Paradise Lake Association: Bylaws Paradise Lake Association

[Page view format not identical to original document]

BYLAWS
PARADISE LAKE ASSOCIATION, INC.

(Amended December 15, 2014)

CHAPTER I—The Association

Section 1—Association—The Paradise Lake Association, Inc. is a non-profit Arizona corporation, which is comprised of its Members and charged with the duties and invested with the powers prescribed by law as set forth in the Articles of Incorporation for Paradise Lake Association, Inc., dated August 28, 2003, and the Bylaws for Paradise Lake Association, Inc., dated April 14, 2004, as amended. In the event of any conflict or inconsistency between these governing documents, it shall be the duty of the Board of Directors of PLA to resolve and correct such differences in the best interest of the Members.

Section 2—Principal Office—The principal office of PLA shall be located in Arizona City, Arizona 85123. The post office box number is box 3026.

Section 3—PLA—PLA shall be the acronym which may be used as a substitute for the proper name of Paradise Lake Association, Inc.

CHAPTER II---Business and Purpose

Section 1—Purpose—The purpose of the PLA is to operate and maintain the Paradise Lake Properties within the scope of these Bylaws for the use and benefit of the Members and the protection of Paradise Lake. The legal description of such property is: Tracts A, C, & D, of Arizona City Unit Ten, according to the plat of record in the office of the County Recorder of Pinal County, Arizona, Book 15 of Maps, page 45.

The PLA, through its Board, shall be empowered, but not be limited to, the following:

A.) To establish and collect Assessments from the Members to defray the costs of maintenance, operation, repair, restoration, rehabilitation, improvement, and management of the PLA Properties.

B.) To pay all taxes and assessments, if any, which may be properly levied against the PLA Properties and the PLA.

C.) To insure the PLA Properties in such form and amount and against such risks as the Board may determine.

D.) To formulate Rules to control the use of the PLA Properties for the enjoyment, comfort, and peace of mind of the Members.

E.) To impose penalties against Members for failure to pay Assessments within the period of time allowed by the Bylaws.

F.) To purchase, lease, or contract for real or personal property deemed necessary by the Board to fulfill the goals and needs of the PLA. The Board shall also be empowered to sell, convey, or lease PLA Properties when it is determined to be in the best interest of the Member’s comfort, safety, quality of life, and general welfare.

G.) To enter into, perform, and carry out leases and contracts of any kind necessary to accomplish the purposes of the PLA.

H.) To borrow money and to issue notes, bonds, and other evidences of indebtedness in order to achieve the purposes of the PLA. To secure these instruments by use of mortgage, trust, deed, pledge, assignment, or lien on the PLA Properties.

I.) To invest working capital and reserves of the PLA prudently.

J.) To act as surety, or guarantor, agent, trustee, broker, or in any other capacity when appropriate to fulfill the purposes of the PLA.

Except as provided below, actions taken by the Board under this Section 1, paragraphs F, G, or H, involving more than ten thousand dollars ($10,000.00) must be approved by a majority of the Members. Provided, however, that in the event the Board has determined that a serious structural or mechanical failure has occurred to the PLA well or pump located on Tract C which requires immediate action, the Board is authorized to exceed the ten thousand dollar ($10,000) limit on purchasing, spending, or borrowing without the prior voting approval of a majority of the Members.

Section 2—Inurement—The PLA is not organized for the purpose of gaining a pecuniary profit. No part of the net earnings of the PLA, if any, shall inure to the benefit of any Member, director, or officer.

Section 3—Fiscal Year—The Calendar year shall be the fiscal year for the PLA.

CHAPTER III—Board of Directors

Section 1—PLA Affairs—The affairs of the PLA shall be conducted by the Board and such officers and committees as the Board may elect or appoint in accordance with the Articles and Bylaws, as the same may be amended from time to time.

Section 2—Number of Directors and Terms—There shall be a total of five (5) directors elected by the membership. The directors shall serve staggered terms. All terms are for three (3) years. By way of illustration, for calendar year 2015, one (1) director shall be elected for a three (3) year term. For calendar year 2016, two (2) directors shall be elected, each for a three (3) year term. For calendar year 2017, two (2) directors shall be elected, each for a three (3) year term.

Section 3—Director Qualifications —A director must be a Member In Good Standing. All Assessments must be current. Any Member In Good Standing can run for election.

Section 4—Time of Election—The annual meeting of the Association shall be the official election date.

Section 5—Election Procedures—The Board shall determine which names will be on the ballot for election, provided however, that no Member In Good Standing shall be excluded. The ballots shall be printed and sent by mail, or electronic mail if the Member so chooses, to all eligible voters no later than thirty (30) days prior to the date of the annual meeting. Voting may either be in person, or by written proxy, at the annual meeting or by mail. A mailed ballot must be received at the Arizona City post office no later than five (5) working days prior to the date of the annual meeting. It shall be the duty of the Board to devise whatever system they deem to be satisfactory to eliminate any multiple voting by any voter and to verify that only eligible voters are receiving ballots. Only voting Members In Good Standing are eligible to vote. The Board will send out a brief resume for each candidate with the ballots, if furnished by the candidate. The Board will appoint two or more vote-counters from the general membership or from their own Board. In the case of a tie vote, the outcome will be determined by a majority vote of the Board.

Section 6—Powers and Duties of the Board—The Board shall have the powers and duties necessary for the administration, management, and control of the Paradise Lake Properties and the affairs of the PLA as authorized by law. The powers of the Board shall include, but not be limited to, all of the rights and duties of the Board as set forth elsewhere in these Bylaws and the Articles, including the power to promulgate such Rules pertaining to the rights and duties of Members of the PLA, and regarding all other matters, as may be deemed proper and which are consistent with the foregoing. The Board may delegate to one or more committees thereof, and to Members and other persons, such duties and powers as the Board determines to be in the best interests of the PLA, to the extent permitted by law.

A.) Vacancies—Vacancies on the Board caused by any reason shall be filled by vote of the majority of the remaining directors even though less than a quorum, or by the remaining director if there is only one (1), and each person so elected shall be a director for the remainder of the term of the director being replaced.

B.) Compensation—Upon approval of the Board, directors may be reimbursed for reasonable out-of-pocket expenses, including travel to meetings pursuant to guidelines and policies of the Board. No reimbursement shall be paid to a director for services performed by him for the PLA in any other capacity, unless a resolution authorizing such remuneration has been passed by the Board.

Section 7—Officers of the Board

A.) Designation—The principal officers of the PLA shall be a chairman and a vice chairman, both of whom shall be elected by the Board. A secretary and a treasurer shall be appointed by the Board along with any other officers they determine to be necessary. Any person may hold more than one office at the same time, but no person shall hold the office of chairman simultaneously with being either treasurer or secretary.

B.) Election of Officers—The officers of the PLA shall be elected each year during the organizational meeting of the Board after the results of the Board election are determined. The previous Board and officers shall remain in office until the new Board has been elected and the various officers have been appointed.

C.) Removal of Officers—Upon an affirmative vote of a majority of the Board, any officer may be removed from his position and may also be removed from the Board.

D.) Resignation of Officers—Any officer may resign at any time by giving written notice to the Board. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein. The acceptance of such resignation shall not be necessary to make it effective. Such officer may resign from just the office position he held and retain the directorship or he may resign from both the office he holds and the directorship.

E.) Vacancies—A vacancy in any office may be filled by a vote of a majority of the Board. The officer elected to fill such vacancy shall serve for the remainder of the term of the officer he replaces.

F.) Chairman—The chairman shall be the chief executive officer of the PLA. He shall preside at all meetings of the Members and of the Board. To the extent permitted by these Bylaws, he shall have all of the general powers and duties which are normally vested in the office of chairman of a corporation, including but not limited to, the power to appoint committees from among the Members of the PLA from time to time as he may in his discretion decide is appropriate to assist in the conduct of the affairs of the PLA.

G.) Vice Chairman—The vice chairman shall take the place of the chairman and perform his duties whenever the chairman shall be absent, unable to act, or refuses to act. If neither the chairman nor the vice chairman is able to act, the Board shall appoint some other member of the Board to do so on an interim basis. The vice chairman shall also perform such other duties as shall from time to time be imposed upon him by the Board.

H.) Secretary—The secretary shall keep the minutes of all meetings of the Board and the minutes of all meetings of the Members of the PLA. The secretary shall have charge of the books and records as the Board shall direct, and shall, in general, perform all of the duties incident to the office of secretary. The Board may appoint Members to assist the secretary.

I. ) Treasurer—The treasurer shall have the responsibility for all PLA funds and securities and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the PLA. The treasurer shall be responsible for the deposits of all monies and other valuable effects in the name, and to the credit, of the PLA in such depositories as may from time to time be designated by the Board. The treasurer shall be responsible to send Annual Assessment statements to each Member no later than thirty (30) days prior to the date of the annual meeting. The treasurer shall also send out statements for any additional Assessments which may be made by the Board. The Board may appoint Members to assist the treasurer.

Section 8—Meetings of the Board

A.) Regular Meetings—Regular monthly meetings of the Board shall be held at such time and place as shall be determined by a majority of the directors. Notice of regular meetings of the Board shall be given to each director, personally or by regular mail, telephone, or electronic mail, at least three (3) days prior to the day named for the meeting. Regular or special meetings may be held by conference telephone if convenience or cost makes it necessary in the opinion of at least two (2) or more of the directors. A director’s participation by conference telephone shall

constitute attendance.

B.) Special Meetings—Special meetings of the Board may be called by the chairman or the vice chairman upon notice to each director, given personally or by regular mail, telephone, or electronic mail in a timely fashion, which notice shall state the time, place, and purpose of the meeting. Special meetings of the Board shall be called by the chairman or the vice chairman in like manner and on like notice, upon the written request of at least two (2) directors. Notice given by mail shall be deemed effective three (3) days after postmarked.

C.) Waiver of Notice—Before, at, or after any meeting of the Board, any directors may, in writing, waive notice of such meeting, and such waiver shall be deemed equivalent to giving such notice. Attendance by a director at any meeting of the Board shall be deemed to be a waiver of notice by him of the time and place thereof.

D.) Quorum—A majority of the Board shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the directors at a duly held meeting at which a quorum is present shall be regarded as an act of the Board unless the Articles or the Bylaws otherwise specifically require the affirmative vote of a different number of directors on a specific matter.

E.) Adjournments—The Board may adjourn any meeting from day to day or such other time as may be prudent or necessary in the best interests of the PLA, provided that no meeting may be adjourned for a period longer than thirty (30) days. If at any meeting of the Board where there is less than a quorum present, in person, or on a conference telephone line, a majority of those present may adjourn the meeting.

F.) Action Taken Without a Meeting—The Board shall have the right to take any action in the absence of a meeting which they could have taken at a meeting, by obtaining the written approval of a majority of the directors.

G.) Open Meeting Requirements—Except as provided below, all meetings of the Association and the Board are open to all Members, and all Members so desiring shall be permitted to attend and listen to the deliberations and proceedings; provided, however, that for regular and special meetings of the Board, Members who are not Board members may not participate in any deliberation or discussion unless expressly so authorized by a vote of the majority of a quorum of the Board. Any portion of a Board meeting may be closed if the closed portion of the meeting is limited to consideration of one or more of the following:

Employment or personnel matters for employees of the Board or the Association
Legal advice from an attorney for the Board or Association.
Pending or contemplated collection matters or litigation.
Pending or contemplated matters relating to enforcement of the Association’s Documents or Rules.

Notice to Members of meetings of the Board is not required if emergency circumstances require action by the Board before notice can be given. Any notice of a Board meeting shall state the time and place of the meeting. The failure of any Member to receive actual notice of a meeting of the Board does not affect the validity of any action taken at the meeting.

H.) Study Meetings—The provisions of this Section 8, Paragraphs A. through G., shall not apply to any meeting of the Board held solely for the purpose of study, fact gathering, or discussion.

Section 9—Committees—The Board may appoint committees from the Board or from the Members. These committees shall have the power and authority designated by the Board, which may be altered at any time by the Board.

Section 10—The Association Rules—The Board may, from time to time, adopt, amend, and repeal Rules. These Rules may restrict and govern the use of any PLA Properties by any Member, lessee, or resident, by the family of such Member, lessee, or resident, and by the guests and invitees of a Member, lessee, or resident. The Association Rules shall not unreasonably discriminate among Members and shall be subject to and not be inconsistent with the Articles and the Bylaws. Upon adoption, the Association Rules shall have the same force and effect as if they were set forth in and were a part of the Bylaws.

Section 11—The Removal of a Director by the General Membership—At any regular or special meeting of the Members, except as may be otherwise be provided by applicable law, any one or more of the directors may be removed with or without cause by the affirmative vote of two thirds (2/3) of the votes entitled to be cast at the meeting, and a successor to fill the remainder of the term shall be elected by the majority of the remaining Board.

Section 12—Fidelity Bonds—The Board may require, in its discretion, that all officers and employees of the PLA handling or responsible for the PLA funds shall furnish bonds. In the event such bonds are required by the Board, the premiums for such bonds shall be paid by the PLA.

Section 13—Personal Liability—No member of the Board or of any committee of the Association, no officer of the Association, and no other employee of the Association shall be personally liable to any Member, or to any other person or entity, including the Association, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error, or negligence of the Association, the Board, any representative or employee or contractor of the Association, or any committee, committee member, or officer of the Association; provided, however, that the limitations set forth in this Section 13 shall not apply to any person who has failed to act in good faith or has engaged in willful or intentional misconduct.

CHAPTER IV---MEMBERSHIPS

Section 1—Voting Memberships—All voting memberships and Assessments shall be based upon ownership of one or more Lots as platted on the original Plat. These Lots must be contiguous with the Paradise Lake Property which surrounds Paradise Lake itself (Tract D). Re-plats which have joined two or more Lots shall have no effect on the determination of Assessments or the granting of voting privileges. One Dues Unit shall be assessed against each original Lot. When construction has begun on a residence as evidenced by a building permit issuance, an additional Dues Unit shall be assessed for the residence, and Assessments for that membership will be pro-rated for the first year by the Board. An additional vote for the residence will be awarded to the Owner of the residence. Based upon these parameters, following are the voting memberships:

SILVER MEMBERSHIP—Requires Ownership of one or more Lots. Each Lot will be assessed one Dues Unit and granted one vote.

GOLD MEMBERSHIP—Requires Ownership of one or more Lots, and at least one of those Lots is required to have a residence built upon it. Each Lot will be assessed one Dues Unit and granted one vote. Each residence will be assessed one additional Dues Unit and be granted one additional vote.
By way of illustration, Member A is the Owner of two Lots; one of those Lots has a residence on it. Member A has a gold membership and will be assessed three Dues Units (one Dues Unit for each Lot and one Dues Unit for the residence). Member B owns five Lots; no Lot has a residence. Member B has a silver membership and will be assessed five Dues Units (one Dues Unit for each Lot). The Board determines that the Annual Assessment for the year is $300. Member A’s Annual Assessment charge for that year would be $900 ($300 x three Dues Units). Member B’s Annual Assessment charge for that year would be $1500 ($300 x five Dues Units).

Both silver and gold memberships shall be twenty (20) year memberships, which automatically renew for another twenty (20) years at the end of each term. The Board shall determine the value of each Annual Assessment and of any additional Assessments attached to each Dues Unit for these memberships. Assessments may be adjusted by the Board as deemed necessary; provided, however, that the value of the Annual Assessment may be adjusted only annually by the Board. A membership can be terminated only by mutual consent of both the Member and the Board. These memberships shall be appurtenant to, and shall not be separated from, ownership of the Lot or residence to which the membership is attributable.

Section 2—Associate Memberships—An associate membership is a non-voting membership designed for individuals and businesses who do not own property which would qualify them for either of the other memberships but have an interest in Paradise Lake for a variety of reasons. The Board shall determine the fee for this membership, and it may be adjusted by the Board as they deem proper. This is an annual membership with only an annual payment allowed at the time of admittance. Associate memberships are not transferable. The membership year shall be the calendar year. The treasurer will send out annual statements at the same time as the statements are sent for the other memberships.

Section 3 —Transfer of Membership—The rights and obligations of a Member shall not be assigned, transferred, pledged, conveyed or alienated in any way except upon transfer of ownership of a Member’s Lot and then only to the transferee of ownership of such Lot. A transfer of ownership of a Member’s Lot may be effected by deed, intestate succession, testamentary disposition, and foreclosure of a mortgage of record, or as otherwise permitted by Arizona law. Any attempt to make a prohibited transfer shall be void. Any transfer of ownership of a Member’s Lot shall operate to transfer the membership appurtenant to said Lot to the new Owner who shall automatically be a Member of the PLA by reason of the transfer and be subject to all Rules, regulations, privileges and responsibilities of the Association. Each seller and purchaser of a Member’s Lot shall be required to notify the Association of the transaction within thirty (30) days of such transaction. No change in the ownership of a lot shall be effective for voting purposes unless and until the Board is given actual written notice of such change and is provided satisfactory proof thereof.

Section 4 —Multiple Owners—In the case of multiple owners of record, such as joint tenancy, tenancy in common, community property, trusteeships, partnerships, or otherwise, all such parties shall be considered to be Members of the PLA and shall enjoy all the privileges and obligations of all Members; provided however, these memberships shall be deemed joint memberships. There shall be only one vote granted for each joint Lot ownership and one vote granted for each joint ownership of a residence. It will be the responsibility of the multiple owners to decide among themselves as to who shall cast their legal number of votes. Should there be any illegal votes cast for any Member Lots, all votes assigned to that property shall be declared void.

CHAPTER V—GENERAL MEMBERSHIP MEETINGS

Section 1—Membership Meetings—Meetings of the Members shall be held at such a place in Arizona City, Arizona, as may be specified in the notice of the meeting. Annual meetings of the Members shall be held in the month of January each year, and the date shall be set by the Board. Special meetings of the Members may be called by the chairman of the Board, a majority of the Board, or by Members consisting of twenty five (25) per cent of the eligible voters.

Section 2—Open Meetings—Member meetings shall be open as described in Chapter III, Section 8, Paragraph G of these Bylaws.

Section 3—Voting—Each Member shall be entitled to the number of votes prescribed in Chapter IV, Section 1 of these Bylaws.

Section 4—Notice—Notice of all meetings of the Members shall be as prescribed in Chapter III, Section 8 of these Bylaws.

Section 5—Quorum—A quorum of Members for any meeting shall be constituted by Members represented in person or by proxy and holding twenty-five (25) percent of the total number of votes entitled to be cast.

Section 6—Adjourned Meetings—If any meeting requiring a vote of Members cannot be organized because of the lack of a quorum, the Members who are present, either in person or by proxy, may adjourn the meeting to a time not more than seven (7) days from the time of the original meeting was called.

CHAPTER VI—ASSESSMENTS AND REMEDIES

Section 1—Association Assessments—All Assessments shall be established and collected as provided in these Bylaws. The Board shall determine the amount of the Annual Assessment, as well as the amount and timing of any additional Assessments, attached to each Dues Unit. The Board shall also determine when Assessments are delinquent, when penal ties should be applied, and the amount of the penalty to be applied, as permitted by Arizona law.

Section 2—Association Remedies—If any Member fails to pay the Assessments, or any installment thereof, or other charges due to the Association, when due, the Association may enforce the payment of the Assessments or other charges by bringing an action at law and recovering a judgment against the Member personally obligated to pay the Assessments or other charges.

Section 3—Costs to be Borne by Member in Connection With Enforcement of Payment of Assessments—In any action taken pursuant to Section 2 of this Chapter VI, the Member shall be personally liable for interest, as permitted by law, and the Association’s collection costs and attorney fees.

Section 4—Increases and Penalties

A. The Association shall not impose an Annual Assessment that is more than twenty per cent (20%) greater than the immediately preceding fiscal year’s Annual Assessment without the approval of the majority of the Members. The Board may impose reasonable charges for the late payment of Assessments. A payment by a Member is deemed late if it is unpaid fifteen (15) or more days after its due date. Charges for the late payment of Assessments are limited to the greater of fifteen dollars or ten per cent of the amount of the unpaid Assessment. Any monies paid by the Member for an unpaid Assessment shall be applied first to the principal amount unpaid and then to the interest accrued.

B. After notice and an opportunity to be heard, the Board may impose reasonable monetary penalties on Members for violations of the Bylaws and Rules of the Association. The Board shall not impose a charge for a late payment of a penalty that exceeds the greater of fifteen dollars or ten per cent of the amount of the unpaid penalty. A payment is deemed late if it is unpaid fifteen (15) or more days after its due date. Any monies paid by a Member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued. Notice pursuant to this subsection B shall include information pertaining to the manner in which the penalty shall be enforced.

C. The charges for late payment and penalties shall be enforceable in the same manner as unpaid Assessments.

CHAPTER VII—RESALE OF LOTS; INFORMATION REQUIRED

Section 1—Information— The Association shall mail or deliver to a Purchaser of a Member’s Lot, within ten days after receipt of a written notice of a pending sale that contains the name and address of the Purchaser, all of the following:

1. A copy of the Bylaws and the Rules of the Association.

2. A dated statement containing:

(a) The telephone number and address of a principal contact for the Association, as designated by the Board.

(b) A contact information form to be filled out and returned by the Purchaser.

CHAPTER VIII—AMENDMENT OF THE BYLAWS

Section 1.—Amendment—These Bylaws may be amended by an eighty percent (80%) affirmative vote of the Board; provided however that these Bylaws may not be amended insofar as such amendment would be inconsistent with the Articles. The form of such amendment shall be as follows:

Upon motion made and seconded, and upon an eighty percent (80%) vote by its members, the Board have amended the previously adopted Bylaws and adopted the within Bylaws at it’s duly convened meeting on __________,_____.

By it’s Chairman: Attest:

___________________________ ___________________

CHAPTER IX—MISCELLANEOUS

Section 1—Books and Accounts—Books and accounts of the PLA shall be kept under the direction of the treasurer and the secretary and in accordance with reasonable standards of procedure and prudence. The Board of shall decide whether and when to have the books audited.

Section 2—Inspection of Books—The books, records, papers, and membership records of PLA shall be available at the principal offices of the

Association for inspection at reasonable times by any Member In Good Standing. The Articles and Bylaws of the Association shall likewise be available for inspection by any Member In Good Standing at the principal office of the Association.

Section 3—Execution of Corporate Documents— With prior authorization of the Board, all notes, checks, and contracts or other obligations shall be executed on behalf of the Association by such officer or officers of the Association as the Board shall designate.

Section 4—Conflicts in Documents—In case of any conflict between the Articles and Bylaws, the Board shall be empowered and required to legally resolve the conflict in the best interest of the Association.

CHAPTER X—DEFINITIONS

Annual Assessment—The Assessment levied by the Board each year in accordance with the provisions of Chapter IV, Section 1 and Chapter VI, Section 1 of these Bylaws. The Annual Assessment shall be composed of two parts: a) an amount based upon the budget prepared by the Board for that year, which the Board determined to be reasonably necessary for the proper operation of the Association and maintenance of the Association Properties, and b) an amount determined to be reasonably necessary for obtaining and assuring the future delivery of water or water rights for Paradise Lake, including but not limited to, purchasing water or leasing water rights for the year. The amount of the Annual Assessment is applied to each Dues Unit.

Articles—The Articles of Incorporation of Paradise Lake Association, Inc., as they may be amended from time to time.

Assessments—Includes the Annual Assessments, special Assessments, supplemental Assessments, or extraordinary Assessments of any kind as may be levied by the Board.

Association Documents—All documents of the Association, including the Plat, Bylaws, Articles, and any other policies, Rules and regulations adopted by the Association or the Board.

Association—The Paradise Lake Association, Inc., also known as the PLA.

Board—The Board of Directors of Paradise Lake Association, Inc.

Bylaws—The Bylaws of Paradise Lake Association, Inc., as amended.

Dues Unit—The basis for calculating the number of Annual Assessments and other Assessments charged against, and all votes granted to, Member Lots under the provisions of Chapter IV, Section 1 of these Bylaws.

In Good Standing—All Assessments, charges, and penalties imposed on a Member from time to time by the Board have been paid in full, and the Member is in compliance with the Rules and Bylaws, as determined by the Board of Directors.

Lots—Lots contiguous with Tract D of Paradise Lake Properties, as

identified on the Plat.

Member—Any person or entity which has either a gold or silver membership under the provisions of Chapter IV, Section 1 of these Bylaws.

Owner—The record owner, whether one or more persons or entities, of beneficial or equitable title (and legal title if the same has merged with the beneficial or equitable title) to the fee simple interest of a Lot. Owner shall not include (a) persons or entities having an interest in a Lot merely as security for the performance of an obligation, or (b) a lessee or tenant of a Lot. Owner shall include a Purchaser under contract for the conveyance of real property, a contract for deed, a contract to convey, an agreement for sale or any similar contract through which a seller has conveyed to a purchaser equitable title in a Lot under which the seller is obligated to convey to the purchaser the remainder of seller’s title in the Lot, whether legal or equitable, on payment in full of all monies due under the contract. Owner shall not include a purchaser under a purchase contract and receipt, escrow instructions, or similar executory contracts which are intended to control the rights and obligations of the parties to the executory contracts pending the closing of a sale or purchase transaction. In the case of Lots, the fee simple title to which are vested in a Trustee pursuant to a subdivision trust agreement or similar agreement, the beneficiary of any such trust who is entitled to possession of the trust property shall be deemed to be the Owner.

PLA—The acronym for Paradise Lake Association, Inc.

Paradise Lake Properties, or PLA Properties—Tracts A, C, and D of Arizona City Unit Ten, according to the Plat. Also included shall be any additional real property, together with the buildings, structures and improvements thereon, which is leased or owned by the Association.

Plat—The plat for Paradise Lake (Tract A), the property surrounding and contiguous with the lake (Tract D), and the property on which the well is located (Tract C). This Plat, and any amendments, supplements, or corrections thereto. has been recorded in the Official Records of the Pinal County, Arizona Recorder. The legal description of the property is:

Tracts A, C and D, of Arizona City Unit Ten, according to the plat of record in the office of the County Recorder of Pinal County, Arizona, in Book 15 of maps, page 45.

Purchaser—Any person, persons, or entity, who by means of a voluntary transfer becomes the Owner of a Lot.

Quorum—The number of members required to be present to legally conduct business as stated in Chapter III, Section 8, Paragraph D and Chapter V, Section 5, of the Bylaws.

Recording—Placing an instrument of public record in the office of the County Recorder of Pinal County, Arizona. “Recorded” means having been so placed of public record.

Rules—All rules and regulations adopted by the Association or by the Board, as such Rules may be amended from time to time in accordance with Chapter III, Section 10, of these Bylaws.

TABLE OF CONTENTS

CHAPTER I—The Association

Section 1— Association

Section 2—Principal Office

Section 3—PLA

CHAPTER II—Business and Purpose

Section 1— Purpose

Section 2—Inurement

Section 3—Fiscal year

CHAPTER III---Board of Directors

Section 1—Board of Directors

Section 2—Number and Terms of Directors

Section 3—Director Qualifications

Section 4—Time of Elections

Section 5—Election Procedures

Section 6—Powers and Duties of the Board

Section 7—Officers of the Board

Section 8—Meetings of the Board

Section 9—Committees

Section 10—Association Rules

Section 11—Removal of a Director by the General Membership

Section 12—Fidelity Bonds

Section 13—Personal Liability

CHAPTER IV—Memberships

CHAPTER V—General Membership Meetings

CHAPTER VI—Assessments and Remedies

CHAPTER VII—Resale of Lots; Information Required

CHAPTER VIII—Amendment of the Bylaws

CHAPTER IX—Miscellaneous

CHAPTER X—Definitions