Chico Oaks Website

Chico Oaks, A Planned Unit Development, est. 1976

CONTENTS

ARTICLE X 
COMMITTEES  
10.1   Committees

ARTICLE I  
NAME AND LOCATION

The name of the corporation is CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED hereinafter which is referred to as the "Association." The principal office of the corporation shall be located in Butte County, California.

2.5   Common Area. "Common Area" shall mean all real property owned by the Association for the common use and enjoyment of the Owners and Residents of the Development.

2.6   Declaration. "Declaration" shall mean the Declaration of Covenants, Conditions and Restrictions of CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED recorded in the Office of the County Recorder of Butte County, California, and any Amendments thereof.

2.7   Development. "Development" shall mean all the real property described in the Declaration comprising the CHICO OAKS HOMEOWNERS' ASSOCIATION, INCORPORATED planned development, including such additions thereto as may hereafter be brought within the jurisdiction of the Association.

2.8   Governing Documents. "Governing Documents" shall mean the Articles, By-Laws, Declaration and Rules, and the policies and resolutions adopted by the Board and distributed to the Members.

2.9   Improvement. "Improvement" shall include, without limitation, the construction, installation, alteration, or remodeling of any buildings, walls, decks, fences, swimming pools, landscaping, landscape structures, skylights, solar heating equipment, spas, antennas, utility lines or any structure of any kind. In no event shall the term "Improvement" be interpreted to include projects which are restricted to the interior of any Residence and which do not involve the roof or any load bearing wall.

2.10   Lot. "Lot" shall mean any plot of land shown upon any recorded subdivision map of the Development upon which a Residence has been constructed, with the exception of the Common .Area.

2.11   Member. "Member" shall mean each person or entity who is a record owner of a fee or undivided fee interest in any Lot within the Development, except any such person or entity who holds an interest in a Lot merely as security for the performance of an obligation.

2.12   Member in Good Standing. "Member in good standing" shall mean a Member of the Association who is current in the payment of all dues, assessments, fines, penalties, and other charges imposed in accordance with the Governing Documents and who is in compliance with all of the provisions of the Governing Documents.

2.15   Owner. "Owner" shall mean the record owner, whether one or more persons or entities, of the fee simple title to any Lot which is a part of the Development, including contract sellers, but excluding contract purchasers and excluding those persons having such interest merely as security for the performance of an obligation.

2.16   Residence. "Residence" shall mean a residential structure located upon a Lot which is intended for human residential use and occupancy.

2.17   Resident. "Resident" shall mean any person who resides on a Lot within the Development whether or not such person is an Owner as defined in Section 2.15 above.

3.1   Membership. Membership in the Association shall include, and shall be limited to, all Owners of record of any Lot located within the Development. Membership shall be appurtenant to and may not be separated from ownership of a Lot. Upon becoming the Owner of a Lot, each Owner shall automatically be a. Member of the Association and shall remain a Member until such time as his or her Lot ownership ceases for any reason. Membership in the Association shall not be transferred, encumbered, pledged, alienated or hypothecated in any way, except upon the transfer or encumbrance of the Lot to which it is appurtenant and then only to the transferee or Mortgagee, as the case may be, of such Lot. Any attempt to make a prohibited transfer is void. Upon any transfer of title to a Lot including a transfer upon the death of an Owner, Membership in the Association shall pass automatically to the transferee.

3.2   Voting. Members shall be entitled to cast one (1) vote for each Lot owned. In the event more than one (1) person owns a given Lot, the vote for such Lot shall be exercised as the Owners among themselves shall determine, but in no event shall more than one (1) vote be cast with respect to any Lot. If the joint Owners of a Lot are unable to agree among themselves as to how their vote or votes are to be cast, they shall lose their right to vote on the matter in question. If any Owner casts a vote representing a certain Lot, it will thereafter be conclusively presumed for all purposes that such Owner was acting with the authority and consent of the other Owners of that Lot. The vote at any meeting of Members may be by voice vote, or by ballot; provided, however, that all elections of Directors must be by ballot if a demand therefor is made by a Member at any election before the voting commences.

3.3   Delegation of Membership Rights. A Member who has sold his Lot to a contract purchaser under an agreement to purchase shall be entitled to delegate to such contract purchaser his or her rights and privileges of membership in the Association and shall be deemed to have delegated to a contract purchaser who has assumed occupancy of the Member's Residence all rights of use and enjoyment of the Common Area. No such delegation to a nonresident contract purchaser shall be binding, however, unless it shall be set forth in a written instrument which has been delivered to the Board of Directors. Notwithstanding any delegation, until fee title to the Lot has been transferred of record, a contract seller shall remain liable for all assessments, fines and other charges imposed by the Board and for compliance with the Governing Documents by the contract purchaser. Any Member who has leased or rented his or her Residence to another person or persons shall in all events be deemed to have delegated to his or her tenants all rights of use and enjoyment of the Common Area. It is the express purpose and intent of the provisions of this Section 3.3 to limit the right of use and enjoyment of the Common Area to residents of the Development and members of their households and their guests.

3.4   Record Date. The Board of Directors may fix a time not more than ninety (90) days or less than ten (10) days preceding the date of any Meeting of the Members as a record date for the determination of the Members entitled to notice of and to vote at any such Meeting, and in such case, only those persons or entities identified as Members in the records of the Association on the date so fixed shall be entitled to notice of and to vote at such Meeting. In the event no such record date is fixed by the Board of Directors, the record date for the determination of Members entitled to notice of and to vote at any Meeting shall be the thirtieth (30th) day preceding the date of the Meeting as of 8:00 a.m. on such day.

4.1   Annual Meeting. The Annual Meeting of the Members shall be held during the month of January of each year, on a date and at a time and place to be designated by the Board of Directors, upon proper written notice to all of the Members.

4.2   Special Meetings. Special Meetings of the Members may be called at any time by the President or by the Board of Directors or pursuant to the written request of Members entitled to cast at least five percent (5%) of the total voting power of the Membership.

4.3   Notice of Meetings. Written notice of each Meeting of the Members shall be given by or at the direction of the Secretary or other person authorized to call a Meeting, by mailing a copy of such notice, postage prepaid, or by otherwise causing delivery of such notice to be made, at least ten (10) but not more than ninety (90) days before such Meeting, to each Member entitled to vote thereat addressed or otherwise delivered to the Member's address last appearing on the books of the Association, or supplied by such Member to the Association for the purpose of notice; provided, however, that in the case of a Special Meeting called pursuant to a written request of Members as provided in Section 4.2, Notice of such Special Meeting shall be mailed or otherwise delivered within twenty (20) days after receipt of such written request by the Board, and the date set for such Special Meeting shall be not sooner than thirty-five (35) days nor later than ninety (90) days after the date of the Board's receipt of such written request. Notice of any Meeting of Members shall specify the date, hour and place of the Meeting, and the general nature of those matters which the Board intends to present for action by the Members. Notwithstanding the foregoing, any proper matter may be presented at the Meeting for action by the Members; provided, however, that the only matters that may be acted upon at any Meeting of Members which is actually attended, in person or by proxy, by less than one third (1/3) of the total voting power of the Association are matters the general nature of which has been set forth in the notice of such Meeting.

4.4   Conduct of Meetings. All meetings of Members shall be conducted in accordance with a recognized system of parliamentary procedure or such parliamentary procedures as the Association may adopt.

4.5   Place of Meetings. Annual and Special Meetings shall be held at a location within the Development, provided that the Board may designate, by resolution, a convenient place located as close as reasonably practicable to the Development.

4.6   Quorum. The presence at any Meeting, in person or by proxy, of Members entitled to cast a majority of the votes of all the Members shall constitute a quorum for the transaction of any business, except as otherwise provided in the Governing Documents. If, however, such quorum shall not be present or represented at any Meeting, the Members otherwise entitled to vote thereat shall have power to adjourn the Meeting from time to time, to a date not more than thirty (30) days from the date of the adjourned Meeting, without notice other than announcement at the Meeting, until a quorum shall be present or represented. At the continuation of any meeting so adjourned, the presence in person or by proxy of Members entitled to cast at least one-third (1/3) of the votes of all of the Members shall constitute a quorum.

4.7   Proxies. At all Meetings of the Members, each Member may vote in person or by proxy. All proxies shall be in writing and shall be filed with the Secretary. Every proxy shall be revocable. Any proxy duly executed is not revoked and continues in full force and effect until an instrument revoking it or a duly-executed proxy bearing a later date is filed with the Secretary of the Association; except that no proxy shall be valid after the expiration of eleven (11) months from the date of its execution, unless the person executing it specified therein the length of time for which such proxy is to continue in force, which in no case shall exceed three (3) years from the date of its execution; and provided further that a proxy shall automatically cease upon conveyance by the Member of his or her Lot.

4.8   Vote of the Members. If a quorum is present, in person or by proxy, the affirmative vote of the majority of the voting power so present and voting on any matter shall constitute the act of the Members, unless the approval of a greater number or proportion of Members is required by any provision of the Governing Documents or of law.

4.9   Adjournment. Whether or not a quorum is present, any Meeting of Members may be adjourned from time to time to be reconvened on a later date by the vote of a majority of the Members present in person or by proxy at such Meeting; provided, however', that in the absence of a quorum, no business other than adjournment may be transacted.

4.10   Action Without A Meeting.

5.1   Number. The affairs of this Association shall be managed by or under the direction of a board of five (5) Directors, who shall be Members in good standing of the Association.

5.2   Election and Term of Office. At the next Annual Meeting of the Association following the adoption of these amended By-Laws, the Members shall elect three (3) directors for a term of two (2) years and two (2) directors for a term of one (1) year. At each annual meeting thereafter, the Members shall elect directors for a term of two (2) years to replace those directors whose terms are then expiring. Only persons who are Members in good standing of the Association shall be eligible to be elected to the Board. Each Director shall serve until the expiration of his or her term and thereafter until a successor is elected, or until the earlier death, resignation, or removal of such Director.

5.3   Removal. Any Director may be removed from the Board, with or without cause, by the affirmative vote of a majority of a quorum of the Members conducted at a duly held meeting or by written ballot. No reduction of the authorized number of Directors shall have the effect of removing any Director prior to the expiration of his or her term of office.

5.4   Compensation. No Director shall receive compensation for any service he or she may render to the Association as a Director. However, any Director may be reimbursed for his or her expenses actually incurred in the performance of his or her duties.

5.5   Vacancies. A vacancy shall exist on the Board of Directors in the event of the death, resignation, or removal of any Director, or if the authorized number of Directors is increased, or if the Members fail to elect the full authorized number of Directors. A reduction in the authorized number of Directors shall not cause removal of a Director prior to the expiration of his or her term. The Board of Directors shall have the right to declare the office of a Director vacant if the Director is found by a court of competent jurisdiction to be of unsound mind or is convicted of a felony; if within sixty (60) days within notice of election, he or she fails to accept such office, either in writing or by attending a Meeting as a Director; or if he or she is absent from three (3) consecutive Board Meetings.

5.6   Filling Vacancies. Any vacancy occurring on the Board of Directors may be filled by a vote of the majority of the remaining Directors, though they are less than a quorum of the Board, or by a sole remaining Director. A Director so chosen shall serve the remainder of the term of office of the Director whom he or she replaces. The Members may elect a Director at any time to fill any vacancy not filled by the Directors. If the Board of Directors accepts the resignation of a Director tendered to take effect at a future time, the Board or, if the Board fails to act, the Members may elect a successor to take office when the resignation becomes effective.

6.1   Nomination. Nominations for election to the Board of Directors shall be made by a Nominating Committee prior to any Meeting of Members at which one or more Directors are to be elected. Nominations may also be made from the floor during any such meeting. The Nominating Committee shall consist of a Chairman, who shall be a member of the Board of Directors, and two or more Members of the Association. The Nominating Committee shall be appointed by the Board of Directors prior to each Annual Meeting of the Members to serve from the close of such Annual Meeting until the close of the next Annual Meeting, and such appointment shall be announced at each Annual Meeting. The Nominating Committee shall nominate as many candidates for election to the Board of Directors as it shall in its discretion determine, but not less than the number of positions on the Board that are to be filled at a particular meeting. All nominations shall be made from among Members in good standing.

6.2   Election. At each election of Directors, the Members or their proxies may cast, in respect to each position on the Board to be filled, as many votes as they are entitled to cast under the provisions of the Declaration. The persons receiving the largest number of votes shall be elected.

7.1   Organizational Meetings. Within thirty (30) days after each Annual Meeting of Members, the Board of Directors shall hold a meeting for the purpose of organization, election of officers, and transaction of other business, as appropriate.

7.2   Regular Meetings. Regular Meetings of the Board of Directors shall be held quarterly without notice, at a place within the Development and on a day and at a time as fixed from time to time by resolution of the Board or at another day and time as set forth in a proper Notice which conforms to the provisions of Section 7.4 of these By-Laws. Should the date for any Meeting fall upon a legal holiday, then that Meeting shall be held at the same time on the next day which is not a legal holiday. In the event the Board should determine that the business to be transacted by the Board does not reasonably justify quarterly Meetings, then Regular Meetings of the Board shall be held at such intervals as the Board may determine, but not less frequently than every six months.

7.3   Special Meetings. Special Meetings of the Board of Directors shall be held when called by the President of the Association or by any two Directors.

7.4   Notice. Written notice of the time and place of each Meeting of the Board of Directors, setting forth any special business to be considered, shall be posted at a prominent place or places within the Common Area or shall be disseminated to all Members in a manner reasonably designed to provide prior actual notice of such Meeting. Except as otherwise provided in these By-Laws, notice of each Directors Meeting shall be communicated to members of the Board of Directors not less than four (4) days prior to a Regular Meeting, and seventy-two (72) hours prior to a Special Meeting; provided that shorter notice may be given in the case of a bona fide emergency; and provided further that notice of a Meeting need not be given to any Director who has signed a waiver, of notice or a written consent to holding the Meeting.

7.5   Open Meeting. Regular and Special Meetings of the Board of Directors shall be open to all Members of the Association; provided however, that Association Members who are not Directors may not participate in any deliberation, discussion or vote, unless expressly so authorized by the vote of a majority of a quorum of the Board of Directors. The Board of Directors may, with the approval of a majority of a quorum of the Directors, adjourn a Meeting and reconvene in executive session to confer with legal counsel or to discuss and vote upon personnel matters, litigation in which the Association is or may become involved, and matters that relate to the formation of contracts with third-parties. The nature of any and all business to be considered in executive session shall first be announced in open session. In any matter relating to the discipline of an Association Member, the Board shall meet in executive session, if requested to do so by that Member, and that Member shall be entitled to attend the executive session. Any matter discussed in an executive session shall be generally noted in the minutes of the Board of Directors.

7.6   Action Taken Without a Meeting. The Directors shall have the right to take any action without a Meeting, which they could take at a Meeting, by obtaining the written approval of all the Directors of such action. Any action so approved shall have the same effect as though taken at a duly called and noticed Meeting of the Directors. Any action taken pursuant to the approval of a majority of the Directors shall be as valid as though taken at a Meeting duly held after regular call and notice if, either before or after the action, each Director signs a written waiver of notice, approval of minutes of a Meeting, or consent to the action so taken. All such waivers, approvals and consents shall be filed with the official records and minutes of the proceedings of the Board.

7.7   Quorum. A majority of the number of Directors then in office shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the Directors present at a duly-held Meeting at which a quorum is present shall be regarded as the act of the Board.

7.8   Minutes of Meetings of Directors. Within thirty (30) days after the date of any meeting of the Board, the Board shall make available to the Members either the Minutes of that meeting as adopted by the Board, the Minutes proposed for adoption which shall be marked to indicate draft status or a summary of the Minutes; provided, however, that the foregoing requirement shall not apply to Minutes of any executive session. Copies of the minutes, proposed minutes, or summary of minutes shall be provided to any Member of the Association upon request and upon reimbursement of the Association's costs in providing such copies. Members of the Association shall be notified annually in writing either at the time that the pro forma budget required under section 1365 of the California Civil Code is distributed or at the time of any general mailing to the entire membership of the. Association of their right to obtain copies of the minutes of meetings of the Board and how and where those minutes may be obtained.

8.1   Powers. In addition to such other powers as may be expressly set forth in the Governing Documents or provided by law, the Board of Directors shall have the power to:

(a) Adopt, publish, amend, repeal and enforce rules and regulations governing the administration, management, operation, use and occupancy of the Development, including the use of the Common Area and facilities, the personal conduct of the Members and their tenants and guests within the Development, and any other matter which is within the jurisdiction of the Association;

(b) Determine, after notice and an opportunity for a hearing by the Board, that a Member is not a Member in good standing during any period in which the Member is in default in the payment of any assessment, fine or other charge levied by the Board or is in violation of any provision of the Governing Documents; provided, however, that a Member shall not be denied any privileges of membership on the basis of such Member's lack of good standing except upon an explicit finding by the Board of Directors, after prior notice and an opportunity for a hearing by the Board, that a Member is not a Member in good standing for specified reasons; and provided, further, that a Member found by the Board to be not in good standing shall continue to be deemed a Member not in good standing until the Board shall make a determination, either upon the Board's own initiative or upon the request of the Member, that such Member is, once again, a Member in good standing of the Association;

(c) Establish and impose monetary penalties (fines) for the infraction of any provision of the Governing Documents, not to exceed a maximum of One Hundred Dollars ($100.00) for each violation; suspend the voting or other membership rights and privileges of a Member, including the right to use the recreational facilities during any period in which such Member shall be in default in the payment of any assessment, fine or other charge levied by the Association, and/or for any infraction of the Governing Documents; provided, however, that such monetary penalty or suspension shall be effective only after written .notice to the affected Member, mailed or personally delivered to the Member at least fifteen (15) days prior to the effective date of such penalty or suspension, which notice shall state the reasons for the penalty or suspension and shall provide the opportunity for a hearing by the Board of Directors, orally or in writing in the Board's discretion, at least five (5) days before the effective date thereof. In the case of a continuing violation where a Member fails to cease or remedy a violation after notice from the Board to do so, the Board may deem such continuing violation to constitute two or more separate and distinct violations of the same Governing Document provision and may impose separate and successive sanctions for each such violation; provided, however, that the Board shall not treat any such continuing violation as a separate and distinct violation and impose a separate sanction therefor more than once during any thirty (30) day period. It is the intent and purpose of this provision to authorize and empower the Board in exercise of its discretion to impose a monetary fine or other sanction against a Member for a continuing violation of the same Governing Document provision once during each successive thirty (30) day period, provided that each time the Board decides to impose a sanction, it shall provide the affected Owner with prior notice and an opportunity to be heard by the Board prior to the effective date of any such sanction. The Board may limit the scope of such hearing to facts and circumstances occurring subsequent to the previous Board hearing relating to the subject continuing violation;

(d) Employ the services of a manager or management company as either an employee or an independent contractor, and such other employees or independent contractors as the Board may deem necessary, and to prescribe their duties;

(e) Consult with, seek the advice of, and reasonably rely on the advice of attorneys, accountants, and other professionals in carrying out its authority and responsibility under the Governing Documents and the law, and to pay for such professional services;

(f) Enter a Lot, when necessary, in connection with maintenance, repair, or replacement for which the Association is responsible or which it is authorized to perform, provided that the Board shall provide the Lot Owner with reasonable prior notice, except that in the case of a bona fide emergency, notice shall be given as the exigencies of the situation permit;

(g) Pay all real property taxes and assessments levied upon any property within the Development to the extent not separately assessed to the Owners. Such taxes and assessments may be contested or compromised by the Association, provided that any such taxes are paid or that a bond insuring the payment is posted, prior to the sale or other disposition of any property to satisfy the payment of such taxes;

(h) To the extent permitted by law, participate in mergers and consolidations with other non-profit organizations organized for the same purposes as this Association, provided that any such merger or consolidation shall be approved by the affirmative vote or written consent of at least two-thirds (2/3) of the total voting power of the Association;

(i) Acquire, own, hold, convey, transfer, dedicate or otherwise dispose of real or personal property consistent with the purposes and powers of the Association and the management, administration and operation of the Development or the business and affairs of the Association, and grant and convey easements, licenses, and rights of way in, over, upon or under the Common Area, all subject to any applicable provisions set forth in the Declaration;

(j) Indemnify and hold harmless, to the maximum extent permitted by California law, each person who is or at any time was a director, officer, employee or agent of the Association or member of any committee appointed by the Board from and against any and all claims, liabilities, expenses, judgments, fines, settlements, and other amounts, as those terms are defined by California law, actually and reasonably incurred by any such person, and to which any such person shall become subject by reason of his or her being a director, officer, employee or agent of the Association or member of any committee appointed by the Board;

(k) Open bank accounts, designate signatories upon such bank accounts, and borrow money on behalf of the Association, subject to any restrictions set forth in the Governing Documents; and

(I) Exercise for the Association all powers, duties and authority vested in or delegated to the Association and not reserved to the Members by other provisions of the Governing Documents, and undertake any action on behalf of the Association as the Board shall deem necessary or proper in furtherance of the purposes and powers of the Association and/or the interests of the Association and its Members.

(a) Cause to be kept a complete record of all its acts and the corporate affairs, including an accurate and current record of the Members setting forth their names and addresses, adequate and correct books and records of account, and minutes of the proceedings of the Members, the Board and committees of the Board, and to present a statement thereof to the Members at the Annual Meeting of the Members;

(b) Prepare and distribute to the Members annually, not less than forty-five (45) days nor more than sixty (60) days prior to the beginning of each fiscal year, a pro forma operating budget which shall include all of the following:

(1) An estimate of the Association's revenue and expenses for such fiscal year on an accrual basis;

(2) A summary of the Association's reserves based upon the most recent review or study conducted pursuant to law, which summary shall be printed in bold type and shall include all of the following:

A. The current estimated replacement cost, estimated remaining life, and estimated useful life of each major component the Association is obligated to maintain, restore, repair or replace.

B. As of the end of the fiscal year for which the study is prepared:

(i) A current estimate of the amount of cash reserves necessary to maintain, restore, repair or replace such major components; and

(ii) The current amount of accumulated cash reserves actually set aside to maintain, restore, repair or replace such major components.

C. The percentage of the amount of cash reserves necessary (per Subparagraph B[i]) that is represented by the amount of cash reserves actually set aside (per Subparagraph B[ii]);

(3) A statement as to whether the Board of Directors has determined or anticipates that the levy of one or more special assessments will be required to restore, repair or replace any of the major components or to provide adequate reserves therefor; and

(4) A general statement setting forth the procedures used for the calculation and establishment of reserves to defray the future cost of repair, replacement or additions to those major components that the Association is obligated to maintain, restore, repair or replace.

In lieu of the distribution of the pro forma operating budget, the Board may distribute a summary of such budget to all Members together with a written notice that the budget is available at the office of the Association or at another suitable location within the boundaries of the Development and that copies will be provided to a Member upon a Member's request and at the expense of the Association. If any Member so requests, the Association shall provide a copy of the pro forma operating budget to such Member by United States mail first class postage prepaid, and such copy shall be delivered within five (5) days of such request. The written notice that is distributed to each Association Member as set forth herein shall be set forth in at least 10 point bold type on the front page of the summary of the budget;

(c) At least once every three (3) years, cause a study of the reserve account requirements of the Association to be conducted if the current replacement value of the major components which the Association is obligated to maintain, restore, repair or replace is equal to or greater than one-half of the gross budget of the Association for any fiscal year; and review such study annually and consider and implement necessary adjustments to the Board's analysis of the reserve account requirements as a result of that review.

(d) Not expend funds designated as reserve funds for any purpose other than the maintenance, restoration, repair or replacement of, or litigation involving the maintenance, restoration, repair or replacement of, major components which the Association is obligated to maintain, restore, repair or replace, and for which the reserve fund was established; provided, however, that the Board may, upon making a written finding, recorded in the Board's minutes, explaining the reasons for a transfer and describing when and how the money will be repaid to the reserve fund, authorize a temporary transfer of money from a reserve fund to the Association's general operating fund to meet short term cash flow requirements or other expenses; and provided, further, that any such transferred funds shall be restored to the reserve fund within one (1) year of the date of the initial transfer, except as otherwise expressly provided by law. In the event, a decision is made by the Board to temporarily transfer reserve funds to pay for litigation, the Board shall notify the members of the Association of that decision and of the availability of an accounting of those expenses, as expressly provided by law;

(e) Review the Association's operating and reserve accounts at least in accordance with the following minimum requirements:

(1) Review a current reconciliation of the Association's operating accounts on at least a quarterly basis;

(2) Review a current reconciliation of the Association's reserve accounts on at least a quarterly basis;

(3) Review, on at least actual reserve revenues and year's budget; a quarterly basis, the current year's expenses compared to the current

(4) Review the latest account statements prepared by the financial institutions where the Association keeps its operating and reserve accounts; and

(5) Review an income and expense statement for the Association's operating and reserve accounts on at least a quarterly basis.

As used in this subsection, the term "reserve accounts" shall mean monies that the Board has identified in its annual budget for use to defray the future costs of repair or replacement of, or additions to, those major components which the Association is obligated to maintain, restore, repair or replace;

(f) For any fiscal year in which the gross income to the Association exceeds Seventy-five Thousand Dollars ($75,000.00), distribute to all Members of the Association within one hundred twenty (120) days after the close of such fiscal year a review of the financial statements of the Association prepared in accordance with generally accepted accounting principles by a licensee of the California State Board of Accountancy;

(g) Distribute to the Members annually a copy of the procedures applicable to imposition of a fine or other monetary penalty, suspension of a Member's rights and privileges, or other sanction;

(h) Supervise all officers, agents and employees of the Association, and see that their duties are properly performed;

(i) As more fully provided in the Declaration, to:

(1) Send written notice to each Owner in advance of each fiscal year of the regular assessment levied against his or her Lot for that fiscal year; and

(2) Collect assessments levied by the Association by foreclosing the lien against any property for which assessments are not paid as required in the Declaration and/or by bringing an action at law against the Owner personally obligated to pay the same;

(j) Issue, or cause an appropriate officer to issue, upon demand by any proper person, a certificate setting forth whether or not any assessment has been paid. A reasonable charge may be made by the Board for the issuance of such certificates. If a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment;

(k) Procure and maintain adequate casualty, liability and other insurance on property owned by the Association, as follows:

(1) Fire and Casualty Insurance. The Association shall obtain and maintain a master or blanket policy of fire and casualty insurance, for the full insurable value of all of the Improvements within the Development located upon and within Lots and the Common Area. The insurance shall be kept in full force and effect at all times and the full replacement value of the insured property shall be redetermined on an annual basis. Depending on the nature of the insured property, the policies maintained by the Association pursuant to this section shall contain an agreed amount endorsement or its equivalent, an increased cost of construction endorsement or a contingent liability from operation of building laws endorsement or their equivalent, an extended coverage endorsement, vandalism, malicious mischief coverage, a special form endorsement and a clause to permit cash settlements for full insurable value in case of partial destruction. The policies required hereunder shall provide amounts or coverage as shall be determined by the Board and shall name as insured the Association, all Owners and all Mortgagees as their respective interests may appear. The polices may contain a loss payable endorsement in favor of the trustee described in Section 8.2(k)(7) below.

(2) Public Liability and Property Damage Insurance. To the extent such insurance is reasonably obtainable, the Association shall obtain and maintain a policy of comprehensive public liability and property damage insurance naming as parties insured the Association, each member of the Association Board of Directors, any manager, the Owners and occupants of Lots, and such other persons as the Board may determine. The policy will insure each named party against any liability incident to the ownership and use of the Common Area and any other Association-owned or maintained real or personal property and including, if obtainable, a cross-liability or severability of interest endorsement insuring each insured against liability to. each other insured. The limits of such insurance shall not be less than $1 million covering all claims for death, personal injury and property damage arising out of a single occurrence. Such insurance shall include coverage against water damage liability, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to projects similar in construction, location and use.

(3) Additional Insurance and Bonds. To the extent such insurance is reasonably obtainable the Association may also purchase such additional insurance and bonds as it may, from time to time, determine to be necessary or desirable, including, without limiting the generality of this Section 8.2(k), demolition insurance, earthquake insurance, flood insurance, and workers' compensation insurance. The Board shall purchase and maintain fidelity bonds or insurance in an amount not less than 100 percent of each year's estimated annual operating expenses and reserves and shall contain an endorsement of any person who may serve without compensation. The Board shall purchase and maintain such insurance on personal property owned by the Association and any other insurance, including directors and officers liability insurance, that it deems necessary or desirable.

(4) Coverage Not Available. In the event any insurance policy, or any endorsement thereof, required by Section 8.2(k) is for any reason not available, then the Association shall obtain such other or substitute policy or endorsement as may be available which provides, as nearly as possible, the coverage described above. The Board shall notify the Owners of any material adverse changes in the Association's insurance coverage.

(5) Copies of Policies. Copies of all insurance policies (or certificates thereof showing the premiums thereon have been paid) shall be retained by the Association and shall be available for inspection by Owners at any reasonable time.

(6) Individual Fire Insurance on Lot Improvements, Except as provided in this Section 8.2(k), no Owner can separately insure the Residence and other Improvements on his or her Lot or any part of it against loss by fire or other casualty covered by the Association's blanket insurance carried under this Article VIII, Section 8.2(k)(1). If any Owner violates this provision, any diminution in insurance proceeds otherwise payable pursuant to the provisions of Section 8.2(k)(1) that results from the existence of such other insurance will be chargeable to the Owner who acquired such other insurance, and the Owner will be liable to the Association to the extent of any diminution. An Owner can insure his or her personal property against loss. In addition, any Improvements made by an Owner within his or her Lot may be separately insured by the Owner, but the insurance is to be limited to the type and nature of coverage commonly known as-"tenant's improvements.' All such insurance that is individually carried must contain a waiver of subrogation rights by the carrier as to other Owners, the Association, and any institutional first Mortgagee of such Lot.

(7) Trustees. All fire and casualty insurance proceeds payable under this Section 8.2(k), subject to the rights of Mortgagees, may, in the discretion of the Board, be paid to a trustee, to be held and expended for the benefit of the Owners, Mortgagees and others, as their respective interests shall appear. Said trustee shall be a commercial bank in Butte County that agrees in writing to accept such trust. If repair or reconstruction is authorized, the Association shall have the duty to contract for such work as provided for in its Declaration.

(8) Adjustment of Losses. The Board is appointed attorney-in-fact by each Owner to negotiate and agree on the value and the extent of any loss under any policy carried pursuant to this Article VIII, Sections 8.2(k)(1)(2) and (3). The Board is granted full right and authority to compromise and settle any claims or enforce any claim by legal action or otherwise and to execute releases in favor of any insured.

(9) Distribution to Mortgagees. Subject to the provisions of the Association's Governing Documents, any Mortgagee has the option to apply insurance proceeds payable on account of a Lot in reduction of the obligation secured by the Mortgage of such Mortgagee.

(10) Owner's Liability Insurance. An Owner may carry whatever personal liability and property damage liability insurance with respect to his or her Lot that he or she desires. However, any such policy shall include a waiver of subrogation clause acceptable by the Board and to any institutional first mortgagee.

(11) Officer and Director Insurance. Upon and in the event of the determination by the Board to purchase such insurance, the Association shall purchase and maintain insurance in an amount to be determined by the Board on behalf of any director, officer, or member of a committee of the Association (collectively the "agents") against any liability asserted against or incurred by the agent in such capacity or arising out of the agent's status as such, whether or not the Association would have the power to indemnify the agent against such liability under applicable law.

(I) Enforce the provisions of the Governing Documents, as more particularly set forth in the Declaration, and perform all acts required of the Board under the Governing Documents or- required by law.

9.1   Enumeration of Offices. The officers of this Association shall be a President and Vice-President, who shall at all times be members of the Board of Directors, a Secretary, and a Chief Financial Officer, and such other officers as the Board of Directors may, from time to time, by resolution appoint.

9.2   Election of Officers. The election of officers shall take place at the first Meeting of the Board of Directors, following each Annual Meeting of the Members.

9.3   Term. The officers of this Association shall be elected annually by the Board, and each shall hold office for one (1) year, unless he or she shall sooner resign, be removed by the Board, or otherwise be disqualified to serve.

9.4   Special Appointments. The Board may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine.

9.5   Resignation and Removal. Any officer may be removed from office, with or without cause, by the Board. Any officer may resign at any time by giving written notice to the Board, the President or the Secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

9.6   Vacancies. A vacancy in any office may be filled by appointment by the Board. The officer appointed to such vacancy shall serve for the remainder of the term of the officer he/she replaces, subject to the Board's right to remove an officer.

9.7   Multiple Offices. The offices of Secretary and Chief Financial Officer may be held by the same person. No person shall simultaneously hold more than one of any of the other offices, except in the case of special offices created pursuant to Section 9.4 of this Article.

9.8   Duties. The duties of the officers shall be as follows:

11.1   Record Keeping. The books, records and papers of the Association shall, upon written request and during reasonable hours, be subject to inspection by any Member for any purpose, specified in writing, which is reasonably related to such Member's interest as a Member of the Association. The Governing Documents shall be available for inspection by any Member at the principal office of the Association, where copies may be purchased at reasonable cost. The Board may adopt and publish reasonable rules and regulations establishing procedures relating to a Member's inspection and obtaining copies of Association records.

11.2   Contracts. The Board of Directors may, by resolution, authorize any officer or officers to enter into any contract in the name of, or on behalf of, the Association. Unless expressly authorized by resolution of the Board, no officer shall have any power or authority to bind the Association by any contract or agreement, or to pledge the credit of the Association, or to render the Association liable for any purpose or on any account. No contract with any person or entity to supply or furnish the Association with goods or services shall be for a term in excess of one (1) year, except upon the prior affirmative vote or written consent of a majority of the Members; provided, however, that the foregoing shall not apply to (a) a contract with a public utility company, if the rates charged for the materials or services to be furnished are regulated by the California Public Utilities Commission, the term of which contract shall not exceed the shortest term for which the supplier Will contract at the regulated rate; (b) prepaid casualty and/or liability insurance policies not to exceed three (3) years' duration, which policy or policies shall permit short rate cancellation by the insured; and (c) agreements for cable television services and equipment not to exceed five (5) years' duration.

11.3   Checks. Drafts and Evidences of Indebtedness. All checks, drafts, or other orders for payment of money, or notes or other evidences of indebtedness issued in the name of, or payable to the Association, shall be signed or endorsed by one or m, ore officers of the Association, and in the manner as specified by the Board of Directors; provided, however, that the signatures of at least two (2) persons who shall be members of the Board of Directors or one (1) member of the Board of Directors and one (1) officer who is not a member of the Board of Directors shall be required for the withdrawal of funds from the Association's reserve account.

11.4   Funds and Deoosits. Any funds of the Association shall be deposited, from time to time, to the credit of the Association in such banks or other depositories as the Board of Directors shall determine.

13.1   Amendments. These By-Laws may be amended by the affirmative vote or written consent of a majority of the Members voting on such amendment, provided that the number of Members voting thereon shall be sufficient to constitute a quorum.

14.1   Conflict. In the case Of any conflict between the Articles of Incorporation and these By-Laws, the Articles shall control; and in the case of any conflict between the Declaration and these By-Laws, the Declaration shall control.

(Disclaimer: Information on this website might not be current; it may also be incorrect due to errors during transcription and tampering by hackers. Use this information at your own risk. Always reference your official documents, and verify information by checking with management.)

[ Home ]

Send mail to reznil@aol.com with questions or comments about this web site.
Last modified: November 25, 2001