diff --git a/api/src/com/cloud/api/commands/CopyIsoCmd.java b/api/src/com/cloud/api/commands/CopyIsoCmd.java
old mode 100644
new mode 100755
index be1b2570d37..02c98033d61
--- a/api/src/com/cloud/api/commands/CopyIsoCmd.java
+++ b/api/src/com/cloud/api/commands/CopyIsoCmd.java
@@ -29,6 +29,7 @@ import com.cloud.api.ServerApiException;
 import com.cloud.api.response.TemplateResponse;
 import com.cloud.async.AsyncJob;
 import com.cloud.event.EventTypes;
+import com.cloud.exception.ResourceAllocationException;
 import com.cloud.exception.StorageUnavailableException;
 import com.cloud.template.VirtualMachineTemplate;
 import com.cloud.user.Account;
@@ -119,6 +120,9 @@ public class CopyIsoCmd extends BaseAsyncCmd {
         } catch (StorageUnavailableException ex) {
             s_logger.warn("Exception: ", ex);
             throw new ServerApiException(BaseCmd.RESOURCE_UNAVAILABLE_ERROR, ex.getMessage());
-        }
+        } catch (ResourceAllocationException ex) {
+        	s_logger.warn("Exception: ", ex);
+        	throw new ServerApiException(BaseCmd.RESOURCE_ALLOCATION_ERROR, ex.getMessage());
+		}
     }
 }
diff --git a/api/src/com/cloud/api/commands/CopyTemplateCmd.java b/api/src/com/cloud/api/commands/CopyTemplateCmd.java
old mode 100644
new mode 100755
index abcb93e8923..7f2e5d17d5c
--- a/api/src/com/cloud/api/commands/CopyTemplateCmd.java
+++ b/api/src/com/cloud/api/commands/CopyTemplateCmd.java
@@ -29,6 +29,7 @@ import com.cloud.api.ServerApiException;
 import com.cloud.api.response.TemplateResponse;
 import com.cloud.async.AsyncJob;
 import com.cloud.event.EventTypes;
+import com.cloud.exception.ResourceAllocationException;
 import com.cloud.exception.StorageUnavailableException;
 import com.cloud.template.VirtualMachineTemplate;
 import com.cloud.user.Account;
@@ -121,7 +122,10 @@ public class CopyTemplateCmd extends BaseAsyncCmd {
         } catch (StorageUnavailableException ex) {
             s_logger.warn("Exception: ", ex);
             throw new ServerApiException(BaseCmd.RESOURCE_UNAVAILABLE_ERROR, ex.getMessage());
-        }
+        } catch (ResourceAllocationException ex) {
+        	s_logger.warn("Exception: ", ex);
+        	throw new ServerApiException(BaseCmd.RESOURCE_ALLOCATION_ERROR, ex.getMessage());
+		}
     }
 }
 
diff --git a/api/src/com/cloud/template/TemplateService.java b/api/src/com/cloud/template/TemplateService.java
old mode 100644
new mode 100755
index 14a43e00591..76ad1303d28
--- a/api/src/com/cloud/template/TemplateService.java
+++ b/api/src/com/cloud/template/TemplateService.java
@@ -39,8 +39,8 @@ public interface TemplateService {
     
     VirtualMachineTemplate registerTemplate(RegisterTemplateCmd cmd) throws URISyntaxException, ResourceAllocationException;
     VirtualMachineTemplate registerIso(RegisterIsoCmd cmd) throws IllegalArgumentException, ResourceAllocationException;   
-    VirtualMachineTemplate copyIso(CopyIsoCmd cmd) throws StorageUnavailableException;
-    VirtualMachineTemplate copyTemplate(CopyTemplateCmd cmd) throws StorageUnavailableException;
+    VirtualMachineTemplate copyIso(CopyIsoCmd cmd) throws StorageUnavailableException, ResourceAllocationException;
+    VirtualMachineTemplate copyTemplate(CopyTemplateCmd cmd) throws StorageUnavailableException, ResourceAllocationException;
     boolean detachIso(DetachIsoCmd cmd);
     boolean attachIso(AttachIsoCmd cmd);
     /**
diff --git a/server/src/com/cloud/template/TemplateManager.java b/server/src/com/cloud/template/TemplateManager.java
index 3d9da38deb2..8a5971847cf 100755
--- a/server/src/com/cloud/template/TemplateManager.java
+++ b/server/src/com/cloud/template/TemplateManager.java
@@ -22,6 +22,7 @@ import java.util.List;
 
 import com.cloud.exception.InternalErrorException;
 import com.cloud.exception.InvalidParameterValueException;
+import com.cloud.exception.ResourceAllocationException;
 import com.cloud.exception.StorageUnavailableException;
 import com.cloud.storage.Storage.ImageFormat;
 import com.cloud.storage.Storage.TemplateType;
@@ -104,9 +105,10 @@ public interface TemplateManager {
         	throw new IllegalArgumentException("The template hasnt been downloaded ");
         }
      * @throws StorageUnavailableException 
+     * @throws ResourceAllocationException 
      * @throws InvalidParameterValueException 
      */
-    boolean copy(long userId, long templateId, long sourceZoneId, long destZoneId) throws StorageUnavailableException;
+    boolean copy(long userId, long templateId, long sourceZoneId, long destZoneId) throws StorageUnavailableException, ResourceAllocationException;
     
     /**
      * Deletes a template from secondary storage servers
diff --git a/server/src/com/cloud/template/TemplateManagerImpl.java b/server/src/com/cloud/template/TemplateManagerImpl.java
index b511e9f960b..64edb7c4c0d 100755
--- a/server/src/com/cloud/template/TemplateManagerImpl.java
+++ b/server/src/com/cloud/template/TemplateManagerImpl.java
@@ -700,7 +700,7 @@ public class TemplateManagerImpl implements TemplateManager, Manager, TemplateSe
     
     @Override
     @DB
-    public boolean copy(long userId, long templateId, long sourceZoneId, long destZoneId) throws StorageUnavailableException {
+    public boolean copy(long userId, long templateId, long sourceZoneId, long destZoneId) throws StorageUnavailableException, ResourceAllocationException {
     	HostVO srcSecHost = _storageMgr.getSecondaryStorageHost(sourceZoneId);
     	HostVO dstSecHost = _storageMgr.getSecondaryStorageHost(destZoneId);
     	DataCenterVO destZone = _dcDao.findById(destZoneId);
@@ -731,10 +731,16 @@ public class TemplateManagerImpl implements TemplateManager, Manager, TemplateSe
         srcTmpltHost = _tmpltHostDao.findByHostTemplate(srcSecHost.getId(), templateId);
         if (srcTmpltHost == null || srcTmpltHost.getDestroyed() || srcTmpltHost.getDownloadState() != VMTemplateStorageResourceAssoc.Status.DOWNLOADED) {
 	      	throw new InvalidParameterValueException("Please specify a template that is installed on secondary storage host: " + srcSecHost.getName());
-	      }
+	    }
         
-        // Event details
-        Account account = _accountDao.findById(vmTemplate.getAccountId());
+        AccountVO account = _accountDao.findById(vmTemplate.getAccountId());
+        if (_accountMgr.resourceLimitExceeded(account, ResourceType.template)) {
+        	ResourceAllocationException rae = new ResourceAllocationException("Maximum number of templates and ISOs for account: " + account.getAccountName() + " has been exceeded.");
+        	rae.setResourceType("template");
+        	throw rae;
+        }
+        
+        // Event details        
         String copyEventType;
         String createEventType;
         if (vmTemplate.getFormat().equals(ImageFormat.ISO)){
@@ -788,7 +794,7 @@ public class TemplateManagerImpl implements TemplateManager, Manager, TemplateSe
     }
       
     @Override
-    public VirtualMachineTemplate copyIso(CopyIsoCmd cmd) throws StorageUnavailableException {
+    public VirtualMachineTemplate copyIso(CopyIsoCmd cmd) throws StorageUnavailableException, ResourceAllocationException {
     	Long isoId = cmd.getId();
     	Long userId = UserContext.current().getCallerUserId();
     	Long sourceZoneId = cmd.getSourceZoneId();
@@ -822,7 +828,7 @@ public class TemplateManagerImpl implements TemplateManager, Manager, TemplateSe
     
     
     @Override
-    public VirtualMachineTemplate copyTemplate(CopyTemplateCmd cmd) throws StorageUnavailableException {
+    public VirtualMachineTemplate copyTemplate(CopyTemplateCmd cmd) throws StorageUnavailableException, ResourceAllocationException {
     	Long templateId = cmd.getId();
     	Long userId = UserContext.current().getCallerUserId();
     	Long sourceZoneId = cmd.getSourceZoneId();