Whereas: California Civil Code Section 1363(g) provides "If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents or rules of the association, including any monetary penalty relating to the activities of a guest or invitee of a member, the board of directors shall adopt and distribute to each member, by personal delivery or first-class mail, a schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents. The board of directors shall not be required to distribute any additional schedules of monetary penalties unless there are changes from the schedule that was adopted and distributed to the members pursuant to this subdivision," and

Whereas: A Superior court decision was rendered 4/17/2007 holding that The Rancho Tehama Association did not distribute the fine system to each member by personal delivery or first-class mail prior to the lawsuit, and

Whereas: A Superior court decision was rendered 4/17/2007 holding that The Rancho Tehama Association documents do not anywhere provide authorization to use a monetary penalty for member discipline,

Now therefore be it resolved that: The Fine System revised June 2003, Resolution 03-2003, Resolution 04-2003, Resolution 05-2003, Resolution 07-2005, and Resolution 09-2007 all be Rescinded.

Be it further resolved that: Should the 4/17/2007 Court Decision be overturned for any reason, OR should The Rancho Tehama Association governing documents be amended or changed to provide the use of monetary penalties for member discipline, then a new operating regulation for a "Fine System" will be created and adopted in agreement with Civil Code 1357.130.

I certify that: I am the duly qualified and acting Secretary of Rancho Tehama Association, a California Corporation.

The foregoing is a true copy of a Resolution duly adopted by the Board of Directors at a meeting on August 21, 2007 and entered into the minutes of the book of the Corporation.

The Resolution is in conformity with the Articles of Incorporation and By-laws of the Corporation, which were amended on April 7, 1998 and is now in full force and effect.

Date_____August 21, 2007____________

_________Sheri J. Schultz____________

Sheri Schultz, Corporate Secretary

10/17/2007 3:51 PM