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BYLAWS OF CORONADO SHORES CONDOMINIUM ASSOCIATION NO. 7. ARTICLE I NAME The name of the corporation is CORONADO SHORES CONDOMINIUM ASSOCIATION NO. 7, hereinafter referred to as the "Association"..
ARTICLE II DEFINITIONS Definitions contained in Section I of the Amended Declaration of Covenants, Conditions and Restrictions as to Parcel A, Parcel Map No. 1262 and recorded in the Office of the Country Recorder of San Diego County shall be the same for Article II of these By-Laws.
ARTICLE III MEMBERSHIP Section 1. Membership. Every person or entity who is an Owner of a Condominium which is subject by the Supplemental Declaration to assessment by the Association, shall be a member of the Association. No Owner shall have more than one membership for each Condominium owned. Membership shall be appurtenant to and may not be separated from ownership of any Condominium which is subject to assessment by the Association. Ownership of such Condominium shall be the sole qualification for membership. Section 2. Suspension of Membership. During any period in which a Member shall be in suspension resulting from delinquencies as well as default in the payment of any common or special assessment levied by the Association, the voting rights and right to use the recreational facilities on the Common Areas of such Member may be suspended by the Board of Directors until such assessment has been paid. Such rights of a Member may also be suspended, after notice and hearing, for a period not to exceed thirty (30) days, for any single infraction of any rules and regulations established by the Board of Directors governing the use of the Common Areas.
Exhibit "B" Page No. 2. ARTICLE IV. PROPERTY RIGHTS - RIGHTS OF ENJOYMENT. Section 1. Each Member shall be entitled to the use and enjoyment of the Common
Areas as provided in the Supplemental Declaration. Any Member may delegate his rights of
enjoyment of the Common Areas to the members of his family who reside with him in his
Condominium and to his tenants who reside in his condominium. ARTICLE V. MEETINGS OF MEMBERS. Section 1. Place of Meetings. Meetings of the Association shall be held at the principal office of the Project or such other suitable place convenient to the Members, as may be designated by the Board of Directors; provided, however, that all meetings shall be held in San Diego County, the State of California. Section 2. Annual Meetings. The annual meeting of the Association shall be held within 10 days of December 1. At such meetings there shall be elected by ballot of the Owners a Board of Directors in accordance with the requirements of Article VII of these By-Laws. The Owners may also transact such other business of the Association as may properly come before them. Section 3. Special Meetings. It shall be the duty of the President to call a special meeting of the Association (Corporations Code Section 7510e) upon request of (1) the Board, (2) the President, (3) other persons specified in the Bylaws and (4) twenty five percent of the members and in accordance with Section 7511(a) which requires that only those matters set forth in the notice of a special meeting may be "transacted" at the special meeting. Section 4. Notice of Place of Meetings. It shall be the duty of the Secretary to mail a notice of each annual or special meeting, stating the purpose thereof as well as the date, time and place where it is to be held, to each Member entitled to vote thereat at least ten (10) but not more than ninety (90) days prior to such meeting and addressed to the Member’s addressed last appearing on the books of the Association, or supplied by such Member to the Association for the purpose of notice. The mailing of a notice in this manner shall be considered notice served.
Page No. 3. Section 5. Voting. Voting shall be on a Unit basis. The Owner of each Unit shall be entitled to one (1) vote. Voting may occur in person, proxy or ballot, depending upon the subject for which a vote would be cast. Section 6. Majority of Owners. As used in these By-Laws, the term "majority of Owners" shall mean those Owners holding 51% of the total votes in accordance with the voting provisions contained herein and the Supplemental Declaration. Section 7. Quorum. Except as otherwise provided in these By-Laws, the presence in person or by proxy of those Owners holding 50% of the total votes, in accordance with the voting provisions contained herein and the Supplemental Declaration shall constitute a quorum. Section 8. Proxies. Votes may be cast in person or by proxy. Proxies must be in writing and filed with the Secretary before the appointed time of each meeting. Every proxy shall be revocable and shall automatically cease upon conveyance by an Owner of his Unit. Section 9. Adjourned Meetings. If any meeting of the Association cannot be officially held because a quorum has not attended, the Members who are present, either in person or by proxy, may as otherwise provided by law adjourn the meeting to a time not less than forty-eight (48) hours nor more than thirty (30) days from the time the original meeting was called, at which meeting the requirement for a quorum shall be 25% of the Members. Section 10. Any action required by the law to be taken at a meeting of the Members, or any action which may be taken at a meeting of Members, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the Members entitled to vote with respect to the subject matter thereof. Section 11. Order of Business. The order of business at all meetings of the Association shall be as follows: (a) Roll call.
Page No. 4. (d) Reports of Officers.
ARTICLE VI ADMINISTRATION. Section 1. Compliance with Statute. All activities to enforce the provisions of the Governing Documents shall be conducted in accordance with all applicable laws, statutes and ordinances including but not limited to, Civil Code Section 1354 or any successor statute or law. Section 2. Association Responsibilities. The Owners of the Units constitute the Members of the Association and have the responsibility of administering the Project, approving the annual budget, establishing and collecting monthly assessments and arranging for the management of the Project pursuant to an agreement, containing provisions relating to the duties, obligations, removal and compensation of the manager or management agent. Except as otherwise provided, decisions and resolutions of the Association shall require Board approval and on issues of major importance, by a majority of Owners. This Association as the management body, shall, among other things, have power to: (a) enforce applicable provisions of the Supplemental Declaration, By-Laws, Rules and Regulations or other documentation relating to the control and management of the Project; (b) contract and pay premiums for fire, casualty, liability, workmen’s compensation, and other insurance, including indemnity and other bonds; (c) contract and pay for maintenance, gardening, utilities, materials and supplies and services relating to the Common Areas, and employ personnel reasonably necessary for the operation of the Project including lawyers and accountants where appropriate; (d) participate in any common maintenance and use scheme involving other Lots and Parcels within Coronado Shores Map No. 6641 and Parcel Map No. 1262;
Page No. 5.
(e) pay taxes and special assessments which are or would become a lien on the Project or Common Areas; (f) where appropriate, pay for reconstruction of any portion or portions of the Project damaged or destroyed which are to be rebuilt; (g) delegating its powers to officers, agents and committees. (h) enter into any Unit when necessary in connection with maintenance or construction for which the Association is responsible. ARTICLE VII. BOARD OF DIRECTORS - SELECTION - TERM OF OFFICE. Section 1. Number and Qualification. The affairs of the Association shall be governed by a Board of Directors composed of five (5) persons, all of whom must be Owners of Units in the Project, excepting as may otherwise be provided in the Supplemental Declaration. Section 2. Election and Term of Office. Members of the Association shall elect three (3) directors at the 1994 annual meeting and even numbered years thereafter and two (2) at the 1995 annual meeting and odd numbered years thereafter. Staggered director terms are provided for the purpose of continuity of management. The Directors shall hold office until their successors have been elected and attend their first meeting. (a) Members of the Board of Directors shall be elected by a plurality of the votes cast at the annual meeting of the Members of the Association. (b) Every Member entitled to vote at any election for Directors or for the removal of directors of the Association may cumulate his votes and give one candidate a number of votes equal to the number of Directors to be elected multiplied by the number of votes on the same principle among as many candidates as he thinks fit.
Page No. 6.
Section 3. Vacancies. Vacancies in the Board of Directors caused by any reason other than the removal of a Director by a rote of the Association shall be filled by vote of the majority f the remaining Directors, even though they may constitute less than a quorum; and each person so elected shall be a Director 2ntil a successor is elected at the next annual meeting of the association. Section 4. Manner of Acting. The act of a majority of the Directors present at a meeting at which a quorum is present shall e the act of the Board of Directors, unless the act of a greater number is required by law or by these By-Laws or the Declaration. Any action required or permitted to be taken by the Board of Directors under any provision of this division may be taken without a meeting if all members of the Board shall individually or collectively consent in writing to such action. Such written consent shall be filed with the minutes of the proceedings of the board. Such action by written consent shall have the same force and effect as a unanimous vote of such Directors. ARTICLE VIII. MEETINGS OF DIRECTORS. Section 1. Organization Meeting. The first meeting of a newly elected Board of Directors shall be held within thirty (30) lays of election at such place as shall be fixed by the Directors at the meeting at which such Directors were elected, and no notice shall be necessary to the newly elected Directors in order equally to constitute such meeting, providing a majority of the ~hole Board of Directors shall be present. Section 2. Regular Meetings. Regular meetings of the Board of Directors may be held at such time and place as shall be determined, from time to time, by a majority of the Directors. Notice of regular meetings of the Board of Directors shall be given to each Director, personally or by mail, telephone or telegraph, at least seven (7) days prior to the day named for such meeting. Section 3. Quorum. A majority of the number of Directors shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the Directors resent at a duly held meeting at which a quorum is present shall
Page No. 7. be regarded as the act of the Board of Directors. If, at any meeting of the Board of Directors, there be less than a quorum present, the majority of those present may adjourn the meeting from time to time. At any such adjourned meeting, any business which might have been transacted at the meeting as originally called may be transacted without further notice. Section 4. Waiver of Notice. Before or at any meeting of the Board of directors any Director may, in writing, waive notice of such meeting and such waiver shall be deemed equivalent to the giving of such notice. Attendance by a Director at any meeting of the Board of Directors shall be a waiver of notice by him of the time and place thereof. If all the directors are present at any meeting of the Board of directors, no notice shall be required and any business may be transacted at such meeting. Section 5. Open Meetings. Regular and special meetings of the Board shall be open to all Members of the Association; provided, however, that Members who are not on the Board may not participate in any deliberation or discussion unless expressly authorized to do so by the vote of the majority of a quorum of the Board. Section 6. Executive Session. The Board may, with the approval of a majority of a quorum, adjourn a meeting and reconvene in executive session to meet with its legal counsel, or discuss and vote upon (a) litigation in which the Association is or may become involved, (b) matters that relate to the formation of contracts with third parties, (c) personnel matters, and (d) orders of business of a similar nature. The nature of any and all business to be considered in executive session shall first be announced in open session. In the event their executive session does not follow an open session, the Board may conduct an executive session if the agenda of such executive session is announced at the next regularly scheduled Board meeting. Nothing herein contained shall be construed to obligate the Board to first call an open meeting before meeting in executive session. An executive session which does not follow an open meeting may be called and noticed in the same manner as a special meeting. Any matter discussed in executive session shall be generally noted in the Association minutes. Section 7. Board Deliberation Regarding Member Discipline. In any matter relating to the disciplining of a Member, the Board shall meet in executive session if requested by that Member, and the Member shall be entitled to attend that portion of the executive session in which the Board discusses the discipline of that Member.
Page No. 8. Section 8. Meeting Minutes. The Board shall keep accurate written minutes of its meetings, and shall retain them in the permanent records of the Association. The minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any Board meeting, other than executive session, shall be available to Members within thirty (30) days of the meeting. The minutes, proposed minutes, or summary minutes shall be distributed to any Member upon request and upon reimbursement for the costs in making that distribution. Members shall be notified in writing at the time that the budget is distributed, or at the time of any general mailing to the entire membership, of their right to have copies of the minutes of meetings of the Board and how and where those minutes may be obtained. ARTICLE IX.
Section 1. Powers and Duties. The Board of Directors shall have the powers and duties necessary for the administration of the affairs of the Association, to adopt rules, impose fines for violations thereof, regulating the use of Units (i.e. requiring residential use, prohibiting time shares and other nuisances) These powers shall include but not be limited to the power to adopt and publish rules and regulations governing the use of the Common Areas and the personal conduct of the Members and their guests thereon. Section 2. Other Duties. In addition to duties imposed by these By-Laws or by resolutions of the Association, the Board of Directors shall be responsible for the following: (a) Care, upkeep, and orderly operation of the Project, the Common Areas, and the Restricted Common Areas and Facilities. (b) Collection of regular assessments from the Owners. (c) Review a current reconciliation of the Association’s operating accounts on at least a quarterly basis. (d) Review a current reconciliation of the Association’s reserve accounts on at least a quarterly basis. Reserve accounts are funds that the Association’s Board of Directors have identified for use to defray the future repair or replacement of, or additions to those major components which the Association is obligated to maintain.
Page No. 9. (e) Review, on at least a quarterly basis, the current year’s actual reserve revenues and expenses compared to the current year’s budget. (f) Review the latest account statements prepared by the financial institutions where the Association has its operating and reserve accounts. (g) Review an income and expense statement for the Association’s operating and reserve accounts on at least a quarterly basis. (h) At least once every three years the Board of Directors shall cause a study of reserve account requirements of the common interest development to be conducted if the current replacement value of the major components which the Association is obligated to repair, replace, restore, or maintain is equal to or greater than one half of the gross budget of the Association for any fiscal year. The Board shall review this study annually and shall consider and implement necessary adjustments to the Board’s analysis of the reserve account requirements as a result of that review. The study shall at a minimum include: (i) Identification of the major components which the Association is obligated to repair, replace, restore, or maintain which, as of the date or the study have a remaining useful life of less than 30 years. (ii) Identification of the probable remaining useful life of the components identified as of the date of the study. (iii) An estimate of the cost of repair, replacement, restoration, or maintenance of each major component identified during and at the end of its useful life. (iv) An estimate of the total annual contribution necessary to defray the cost to repair, replace, restore, or maintain each major component during and at the end of its useful life, after subtracting total reserve funds as of the date of the study. Reserve Account Requirements means the estimated funds which the Association’s Board of Directors has determined are required to be available at a specified point in time to repair, replace, or restore those major components which the Association is obligated to maintain. (i) Designation and dismissal of the personnel necessary for the maintenance and operation of the Project, the Common Areas, and the Restricted Common Areas and Facilities.
Page No. 10. (j) Supervise all officers, agents and employees of the Association and see to it that their duties are properly performed. Section 3. Management Agent. The Board of Directors may employ for the Association a manager at a compensation established by the Board of Directors to perform such duties and services as the Board of Directors shall authorize, including, but not limited to, the duties listed in Section 2 of this Article; provided that no such manager or managing agent shall be employed for a period in excess of one (1) year without the approval of a majority of the Members. Section 4. Removal of Directors. Corporations Code 7511(f) requires that notice of the annual or special meeting of the Association must contain advice of a removal hearing. Upon proper notice, one or more of the directors that may be removed with or without cause by a majority of the Members of the Association in attendance and a successor may then and there be elected to fill the vacancy thus created. Any Director whose removal has been proposed by the Members shall be given an opportunity to be heard at the meeting. Section 5. Liability of the Board of Directors. The members of the Board of Directors shall not be liable to the Owners for any non-willful tort, mistake of judgment, negligence or otherwise, except for their own individual willful misconduct or bad faith. The Owners shall indemnify and hold harmless each member of the Board of Directors against all contractual liability to others arising out of contracts made by the Board of Directors on behalf of the Association unless any such contract shall have been made in bad faith. It is intended that the members of the Board of Directors shall have no personal liability with respect to any contract made by them on behalf of the Association. It is also intended that the liability of any Owner arising out of any contract made by the Board of Directors or out of the indemnity in favor of the members of the Board of Directors shall be limited to such proportion of the total liability thereunder as his interest in the Common Areas bears to the interests of all the Owners in the Common Areas. Every agreement made by the Board of Directors or by the manager or managing agent on behalf of the Association shall provide that the members of the board of Directors, or the manager or managing agent, are acting only as agents for the Owners and shall have no personal liability thereunder (except as Owners), and that each Owner’s liability thereunder shall be limited to such proportion of the total liability thereunder as his interest in the Common Areas bears to the interests of all Owners in the Common Areas.
Page No. 11. Nothing in these By-Laws shall prohibit any member of the Board of Directors from entering into contracts with, or otherwise dealing with, the Association. If obtainable, the Association shall purchase liability insurance for each Director covering his personal liability for his acts and omissions occurring while acting in the capacity of a Director of the Association, the cost of which shall be paid by the Association as a Common Expense as provided in the Supplemental Declaration.
ARTICLE X. Officers. Section 1. Designation. The principal officers of the Association shall be a President, a Vice President, a Secretary, and a Treasurer, all of whom shall be chosen by and from the Board of Directors. The offices of Secretary and of Treasurer can be held by the same person. The Board of Directors may appoint an assistant treasurer and an assistant secretary, and such other officers as in their judgment may be necessary. Section 2. Election of Officers. The officers of the Association shall be elected annually by the Board of Directors at the organization meeting of each new Board and shall hold office at the pleasure of the Board of Directors. Section 3. Removal of Officers. Upon an affirmative vote of a majority of the members of the Board of Directors, any office may be removed, either with or without cause, and his successor elected at any regular meeting of the Board of Directors, or at any special meeting of the Board of Directors called for such purpose. Section 4. Resignation of Officers. Any officer may resign at any time by giving written notice to the Board of Directors, 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. Section 5. Vacancies. A vacancy in any office may be filled in the manner prescribed for regular election. The officer elected to such vacancy shall serve for the remainder of the term of the officer he replaces.
Page No. 12. Section 6. President. The President shall be the chief executive officer of the Association. He shall preside at all meetings of the Association and of the Board of Directors. He shall have all of the general powers and duties which are usually vested in the office of president of an association. The President, with majority vote of the Board, may appoint committees from among the Owners from time to time as he may in his discretion decide is appropriate to assist in the conduct of the affairs of the Association. Section 7. Vice President. The Vice President shall take the place of the President and perform his duties whenever the President shall be absent or unable to act. If neither the President nor the Vice President is able to act, the board of Directors shall appoint some other member of the Board of directors to so do on an interim basis. The Vice President shall also perform such other duties as shall from time to time be imposed upon him by the Board of Directors. Section 8. Secretary. The Manager shall keep the minutes of all meetings of the Board of Directors and the minutes of all meetings of the Association. These minutes shall be reviewed and approved by the Secretary before official publications. The Secretary shall have charge of such books and papers as the Board of Directors may direct; and he shall, in general, perform all the duties incident to the office of secretary or as required by the Board of Directors. Section 9. Treasurer. The Manager shall have responsibility for Association funds and securities and shall be responsible for seeing the Management is keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. He shall be responsible for verifying on a monthly basis that the deposit of all moneys and other valuable effects in the name, and to the credit, of the Association are recorded in such depositaries as may from time to time be designated by the Board of Directors. On a quarterly, semi-annual and annual basis, the Treasurer shall review the accounts of all receipts and disbursements and deposits of money and other valuable effects processed by the Manager. He shall monitor the cash and short term investments, proposing for Board approval, the repositioning of funds to increase interest income or lower administrative expense.
Page No. 13. Section 10. Compensation of Employees. The compensation of all employees of the Association shall be fixed by the Board of Directors. This provision shall not preclude the Board of directors from employing a Director as an employee of the Association nor preclude the contracting with a Director for the management of the Project or otherwise, provided that no Director may vote upon any matter providing for his employment and/or compensation.
ARTICLE XI. OBLIGATIONS OF THE OWNERS. Section 1. Assessments. All Owners are obligated to pay monthly assessments imposed by the Association to meet all Common Expenses of the Project as that term is defined in the Supplemental Declaration. The assessments shall be made pro rata according to the numerical value of the Unit owned, all as provided in the Supplemental Declaration. Section 2. Maintenance and Repair. (a) Every Owner must perform promptly all maintenance and repair work within his own Unit, which if omitted would affect the entire Project or a portion of the Project, other than that portion belonging to such Owner, being expressly responsibly for the damages and liabilities that his failure to do so may engender. (b) All the repairs of internal installations of the Unit such as water, light, gas, power, sewage, telephones, air conditioners, sanitary installations, doors, windows, lamps, and all other accessories belonging to a Unit shall be at the Owner’s expense. (c) Sprinkler system and smoke alarm equipment within Owners Condominiums and Common Areas will be maintained and repaired by the Association. (d) An Owner shall reimburse the Association for any expenditures incurred in repairing or replacing any Common Areas damaged through his fault. Section 3. Use of Unit - Internal Changes. (a) All Units shall be utilized for residential purposes only.
Page No. 14. (b) An Owner shall not make structural modifications or alterations in his Unit or installations located therein without previously notifying the Association in writing, through the manager or management agent, if any, or through the President or a member of the Board of Directors. The Association shall review the modification as it relates to the building code and structure and have the obligation to answer within thirty (30) days. Failure to do respond within the stipulated time shall mean there is no objection to the proposed modifications or alteration. Section 4. Other Rules of Conduct. An Owner shall observe and abide by all reasonable rules and regulations duly adopted and published by the Board of Directors of the Association. Section 5. Right of Entry. (a) An Owner shall grant the right of entry to the manager or management agent or to any other person authorized by the Board of Directors or the Association in case of any emergency originating in or threatening his Unit, whether the Owner is present at the time or not. (b) An Owner shall permit other Owners, or their representatives, when so required, to enter his Unit for the purpose of performing installations, alterations or repairs to the mechanical or electrical services, provided that requests for entry are made in advance and that such entry is at the time convenient to the Owner. In case of an emergency, such right of entry shall be immediate. ARTICLE XII SUPPLEMENTARY PROVISIONS. 12.1 Nonliability. Except as provided by law, no right, power or responsibility conferred on the Board or any committee by the Governing Documents shall be construed as a duty, obligation, or disability charged upon any Agent (Management) of the Association. No Agent shall be liable to any party (other than the Association or a party claiming in the name of the Association) for injuries or damage resulting from the Agent’s acts or omissions within what the Agent reasonably believed to be the scope of his or her Association duties
Page No. 15. ("Official Acts"), except to the extent that the injuries or damage result from the Agent’s willful or malicious misconduct. No Agent shall be liable to the Association (or any party claiming in the name of the Association) for injuries or damage resulting from the Agent’s Official Acts, except to the extent that the injuries or damage result from the Agent’s negligence or willful or malicious misconduct. 12.2 Indemnification. The Association shall pay all expenses actually and reasonably incurred by, and satisfy any judgment or fine levied against, any Agent as a result of any action or threatened action against the Agent to impose liability on the Agent for his or her Official Acts, providing that (i) the Board determines that the Agent acted in good faith and in a manner the Agent reasonably believed to be in the best interest of the Association’ (ii) in the case of a criminal proceeding, the Board determines that the Agent had no reasonable cause to believe his or her conduct was unlawful and (iii) in the case of an action or threatened action by or in the right of the Association, the Board determines that the Agent acted with the care (including reasonable inquiry) that an ordinarily prudent person in a like position would use under similar circumstance. 12.3 Supplemental Provisions. Basic provisions governing the functions and activities of the Association are set forth in the Supplemental Declaration. To the extent not inconsistent with the Supplemental Declaration, the functions and activities of the Association shall be supplemented by the following provisions: Section 1. Assessment Roll. The Association shall maintain an assessment roll in a set of accounting books in which there shall be an account for each Unit. Such an account shall designate the name and address of the Owner, the amount of each assessment against the Owner, the dates and amounts in which the assessment come due, the amounts paid upon the account and the balance due upon assessments. Section 2. Budget-Reserves. The Board of Directors shall adopt a pro forma budget, which shall include a summary of the Association reserves based upon the most recent review or study which shall be printed in bold type and include the following: (a.) The current estimated replacement cost, and estimated remaining life of each major component.
Page No. 16. (b.) As of the end of the fiscal year for which the study is prepared: (i) The current estimate of the cash reserves necessary to repair, replace, restore, or maintain the major components. (ii) The current amount of accumulated cash reserves actually set aside to repair, replace, restore, or maintain major component. (iii) The percentage that the amount determined for purposes of clause (i) of subparagraph (b), above, is of the amount determined for purposes of clause (ii) of subparagraph (b.), above. (3) A statement as to whether the Board of Directors of the Association has determined or anticipates that the levy of one or more special assessments will be required to repair, replace, or restore any major components or to provide adequate reserves there for. (4) A general statement addressing the procedures used for the calculation and establishment of those reserves to defray the future repair, replacements or additions to those major components that the Association is obligated to maintain. Section 3. Budget-Operating. The Board of Directors shall prepare a pro forma operating budget that provides estimated revenue and expenses of the Association on an accrual basis. A copy of this budget shall be annually distributed not less than 45 days nor more than 60 days prior to the beginning of the Association’s fiscal year. (a) A review of the financial statement of the Association shall be prepared in accordance with generally accepted accounting principles by a licensee of the California State Board of Accountancy for any fiscal year in which the gross income to the Association exceeds seventy-five thousand dollars ($75,000). A copy of the review of the financial statement shall be distributed within 120 days after the close of each fiscal year.
Page No. 17. (b) In lieu of the distribution of the pro forma operating budget, the Board of Directors may elect to provide a summary of this budget at the business office of the Association and that copies will be provided upon request and at the expense of the Association. If any member request that a copy of the pro forma operating budget required by subdivision (A) be mailed to the member, the Association shall provide the copy to the member by First Class U.S. mail at the expense of the Association and delivered within five (5) days. The written notice is distributed to each of the Association members shall be in at least ten (10) point bold type on the front page of the summary of the budget. Section 4. Default. A statement describing the Association’s policies and practices in enforcing lien rights or other legal remedies for default in payment of its assessments against its members shall be annually delivered to the members during the sixty (60) day period immediately preceding the beginning of the Association’s fiscal year. Section 5. Proposed Assessments Against Each Member. The Association shall levy regular and special assessments sufficient to perform its obligations under the Governing Documents. Notwithstanding more restrictive limitations placed on the Board by these Governing Documents, the Board of Directors may not impose a regular assessment that is more than 20 percent greater than the regular assessment for the Association’s preceding fiscal year or impose special assessments which in the aggregate exceed 5 percent of the budgeted gross expenses of the Association for that fiscal year without the approval of owners, constituting a quorum, casting a majority of the votes at a meeting or election of the Association. Section 6. Use of Reserve Funds. Reserve funds may be used only for "repair, restoration, replacement, or maintenance of, or litigation involving the repair, restoration, replacement of maintenance of, major components which the Association is obligated to repair, restore, replace or maintain." The Board is entitled to borrow reserve funds to meet short-term cash flow requirements or other expenses. In accordance with Section 1365.5(b) of the Civil Code, the use of reserve funds must be authorized in writing, executed by the Board President and Treasurer, or in their absence by two members of the Board. The funds must be repaid within three (3) years, although this may be delayed to a later date, provided the Board makes appropriate
Page No. 18. findings that it would be in the best interests of the Association to delay repayment beyond three (3) years. If repayment is delayed, the Board must use prudent fiscal management in doing so. Under the provisions of Section 1366 of the Civil Code, the Association may levy a special assessment to repay the amount borrowed. This may be done by a Board vote which is not subject to the limit of 5% of budgeted gross expenses Section 7. Depository of Association Moneys. The depository of the moneys of the Association shall be one or more banks or other financial institutions as shall be designated from time to time by the Board of Directors. Withdrawal of moneys from such accounts shall be only by checks or withdrawal orders signed by two Directors that are authorized by the Board of Directors. Section 8. Audit. An audit of the accounts of the Association shall be made annually by a certified public accountant chosen by the Board of Directors, and a copy of said report shall be available in the Managers office for each Member to receive or review within thirty (30) days of the completion of the audit. Section 9. Fidelity Bonds. Fidelity bonds shall be required by the Board of Directors from all officers and employees of the Association and from any contractor handling or responsible for moneys of the Association. The amount of such bonds shall be determined by the Board of Directors, but shall be at least the amount of the total annual assessments against Members for Common Expenses. The premiums of such bonds shall be paid by the Association. ARTICLE XIII. FISCAL YEAR. The fiscal year of this corporation shall be the calendar year unless the Board of Directors shall designate a fiscal period ending other than on December 31. ARTICLE XIV. DONATIONS. The Association may accept gifts, legacies, donations and/or contributions and in any amount and any form, from time to time, upon such terms and conditions as may be decided from time to time by the Board of Directors. Page No. 19. ARTICLE XV. AMENDMENT. Section 1. By-Laws. These By-Laws may be amended by the Association in a duly constituted meeting for such purposes and no amendment shall take effect unless approved by Owners representing at least 51% of the total votes. ARTICLE XVI. MORTGAGEES Section 1. Notice to Association. An Owner who mortgages his Unit, shall notify the Association through the manager or management agent, if any, or the President of the Board of Directors in the event there is no manager or management agent, of the name and address of his mortgagee; and the Association shall maintain such information in a book entitled "Mortgagees of Units". Section 2. Notice of Unpaid Assessments. The Association shall at the request of a mortgagee of a Unit report any unpaid assessments due from the Owner of such Unit. ARTICLE XVII. FINE POLICY AND GENERAL FINE SCHEDULE. 17.1 The following procedure will apply to all violations and infractions of the Coronado Shores Condominium Association No. 7 Governing Documents and Rules and Regulations. Owners may report violations to the management or Board of Directors by submitting a written notice describing the violation. The Board of Directors, management or committee appointed by the Board may also note any violations discovered during walk-through or by personal knowledge of any of its members or representatives. 17.2 At the time a violation is noted or reported, action will be in as follows: (a.) A first notice to correct the violation will be sent by the management. The notice will contain a description of the violation and instructions regarding response to the notice and correction of the violation. In this notice, the owner will be notified that a fine may be imposed if the violation is not corrected.
Page No. 20. (b.) If the violation continues, or if the response is otherwise unsatisfactory, the owner will receive a notice of a monetary penalty and be afforded an opportunity to appear before the Board or an appointed committee either by appearing personally or submitting written testimony. The hearing date shall be at least five (5) days before the effective date of the monetary penalty. The notice shall be delivered to the owner personally or by first class or registered mail to the last address of the owner shown on the Association’s records. The Board or committee shall give fair consideration to the owner’s oral or written testimony in determining whether to impose a penalty. (c.) If the violation continues, or if the response is otherwise unsatisfactory, even after the imposition of a monetary penalty, the Board or its appointed committee may impose additional or continuing fines until such time as the matter is satisfactorily resolved. (d.) If the violation continues further, the Board may refer the matter to the Association’s legal counsel. If a lawsuit is filed, the homeowner may be liable for the Association’s legal costs and fees. (e.) Any monetary penalties imposed by the Board or its appointed committee may become a lien, enforceable in the same manner as assessments. FINE SCHEDULE Fines for first time violations shall be levied in accordance with the following schedule: Hazardous Activities
US$ 1000 Unauthorized Improvements to Fines shall be in addition to an assessment equal to any applicable cost of repair. Fines for continuing or repeating violations may be increased in increments that are at the discretion of the Board. Page No. 21. ARTICLE XVIII. MISCELLANEOUS PROVISIONS. 18.1 Corporate Seal. The corporate seal of the Association shall be in such form as the Board of Directors shall determine and shall contain the name of the Association, the date and state of its creation and such other matters as may be required by the laws of the State of California or as the Board of Directors, in their discretion, may determine. Said seal may be used by causing it or a facsimile thereof to be impressed, affixed, reproduced or otherwise. 18.2 Principal Office. The principal office shall be established and maintained in the County of San Diego, State of California. 18.3 Checks, Drafts, Notes. All checks, drafts or other orders for the payment of money, notes or other evidence of indebtedness issued in the name of the Association for all debts of the Association shall be signed by at least two (2) members of the Board of Directors. 18.4 Notice and Waiver of Notice. Whenever any notice is required by these By-Laws to be given, personal notice is not meant unless expressly so stated; and any notice so required shall be deemed to be sufficient if given by depositing the same in a post office box in a sealed prepaid wrapper, addressed to the person entitled thereto at his last known post office address, and such notice shall be deemed to have been given on the day of such mailing. Any notice required to be given under these By-Laws may be waived by the person entitled thereto. 18.5 Suspension After Hearing. In not less than 5 days following the hearing and by majority vote, The Board of Directors shall have the right to suspend the voting rights of a Member and the right of a Member to use the recreational facilities on the Common Areas for: (a) His failure to pay fines, any common or special assessments as provided in the Supplemental Declaration such suspension shall not exceed the period in which said payment remains delinquent; and (b) His violation of the rules and regulations of the Association, provided that suspension for such cause shall not exceed thirty (30) days for any single violation. Page No. 22. Before any such action may be taken at least ten (10) days’ written notice must be given to such Member, specifying the charges and stating the time and place of hearing on such charge. 18.6 Conflict. In case of any conflict between the Articles of Incorporation and these By-Laws, the Articles of Incorporation shall control; and in case of any conflict between the Supplemental Declaration and these By-Laws or the Articles of Incorporation, the Supplemental Declaration shall control.
ARTICLE XIX ARBITRATION OF CONTROVERSIES. Arbitration of Controversies. Section 1354 of the Civil Code - "Alternative Dispute Resolution" INSERT HERE
ARTICLE XX. COMPLIANCE These By-Laws are set forth to comply with the requirements of the following statutes: California Civil Code Section 1350 through 1359, inclusive, and all other applicable statutes of the State of California. In case any of these By-Laws conflict with the provisions of said statutes, it is hereby agreed and accepted that the provisions of the statute will apply.
Page No. 23 In Witness Whereof, the Secretary of the Association has executed this amendment on July 14, 1994, at Coronado, CA.
SIGNED BY HAMILTON LAWERENCE
July 14, 1994 State of California On July 14, 1994 before me the undersigned, a Notary Public in and for said County and State personally appeared Hamilton Lawrence (proved to me on the basis of satisfactory evidence), to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. Witness my Hand and Official Seal. Signature: RILLIA R. CRAY, NOTARY
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