Bylaws

Amended Bylaws of Snohomish Cascade Homeowners Association for Divisions I, II, and III

Contents

ARTICLE I – Name and Principal Office

ARTICLE II – Definitions

ARTICLE III – Meetings of Members

ARTICLE IV – Board of Directors

ARTICLES V – Meeting of the Board of Directors

ARTICLE VI – Powers and Duties of the Board of Directors

ARTICLE VII – Officers

ARTICLE VIII – Books, Records, Seal

ARTICLE IX – Assessments

ARTICLE X – Amendments

ARTICLE XI – Miscellaneous

ARTICLE I – Name and Principal Office

  1. NAME: The name of the corporation is SNOHOMISH CASCADE HOMEOWNERS
    ASSOCIATION, hereinafter referred to as the “ASSOCIATION”.
  2. PRINCIPAL OFFICE: The principle office of the ASSOCIATION shall be at such
    location as the directors may from time to time designate.

ARTICLE II – Definitions

  1. “ASSOCIATION” shall mean and refer to a non-profit corporation formed to
    serve as an owner’s association known as the SNOHOMISH CASCADE HOMEOWNER’S
    ASSOCIATION, its heirs, successors and assigns.
  2. “PROPERTIES” shall mean and refer to that certain real property described in
    the Amended Declaration of SNOHOMISH CASCADE COVENANTS, CONDITIONS, AND
    RESTRICTIONS of Divisions I, II, and III.
  3. “COMMON AREA” shall mean and refer to Division I – Tracts A and B, Division
    II – Tracts C, D, and F, and Division III – Tracts B, G, H, I, J and K, reserved
    for the common use and enjoyment of the owners.
  4. “LOT” shall mean and refer to any numbered plot of land shown upon any
    recorded subdivision plat of SNOHOMISH CASCADE DIVISION I, II, III except those
    areas specifically designated on such plats as “Tracts” or “Open Areas.”
  5. “OWNER” shall mean and refer to the person or persons (including Declarant
    except where otherwise expressly provided) of record holding the beneficial
    ownership of a lot. The rights, obligations and other status of being an owner
    commence upon acquisition of the beneficial ownership of a lot and terminate
    upon disposition of such ownership, but termination of ownership shall not
    discharge an owner from obligations incurred prior to termination.
  6. “DECLARANT” shall mean and refer to Donald H. Leavitt, its successors and
    assigns, if such successors and assigns should acquire more than one undeveloped
    lot from the declarant for the purpose of development.
  7. “DECLARATION” shall mean and refer to the Amended Declaration of SNOHOMISH
    CASCADE, DIVISIONS I, II, III COVENANTS, CONDITIONS, AND RESTRICTIONS applicable
    to the properties recorded in the office of the Snohomish County Auditor.
  8. “MEMBER” shall mean and refer to those persons entitled to membership as
    provided in the Declaration.

ARTICLE III – Meetings of Members

  1. ANNUAL MEETING: The first annual meeting of the members shall be held as
    soon as practical after more than 88 lots have been sold in fee or under real
    estate contracts to homeowners. Each subsequent regular annual meeting of the
    members shall be held in the same month of each year thereafter at such date and
    time of each year as may be prescribed by the Board of Directors.
  2. SPECIAL MEETING: A special meeting of the ASSOCIATION may be called at any
    time by the President or by any three (3) members of the Board of Directors. A
    special meeting may also be called upon receipt of a written request stating the
    purpose of the meeting from ten percent (10%) of the voting membership of the
    ASSOCIATION.
  3. NOTICE OF MEETING: Written notice stating the place, day and hour of the
    meeting and, in the case of a special meeting the purpose or purposes for which
    the meeting is called, shall be delivered not less than seven (7) nor more than
    thirty (30) days before the date of the meeting, either personally or by mail,
    by or at the direction of the President, or the Secretary, or the persons
    calling the meeting, to each owner of an occupied lot in the ASSOCIATION. If
    mailed, such notice shall be deemed to be delivered when deposited in the United
    States mail, with postage fully prepaid thereon, addressed to the member’s
    address appearing on the books of the ASSOCIATION or supplied by such member to
    the ASSOCIATION for the purpose of notice.
  4. QUORUM: Those members present or by proxy at any annual or special meeting of
    the members constitute a quorum at the meeting except where a greater number is
    required by the Declaration, or these Bylaws.
  5. PROXIES: Voting may be in person or by proxy executed in writing and filed
    with the Secretary. No proxy shall be valid after the meeting for which it was
    solicited, unless otherwise expressly stated in the proxy, and every proxy shall
    automatically cease upon termination of membership.
  6. MAJORITY VOTE: The vote of a majority of the votes entitled to be cast by the
    members present or represented by proxy at a meeting at which a quorum is
    present, shall be necessary for the adoption of any matter voted upon by the
    members, unless a greater proportion is required by these Bylaws or the
    Declaration. Specifically, seventy-five percent (75%) for amendments to and/or
    repeal of any portion of the Declaration, and sixty percent (60%) to increase
    maximum annual maintenance assessment beyond that amount established in Article
    7.2 of the Declaration.
  7. PLACE OF MEETING: Meetings shall be held in Snohomish County, Washington, or
    at such place as designated by the Board of Directors.

ARTICLE IV – Board of Directors

  1. NUMBER: The affairs of this ASSOCIATION shall be managed by a board of
    three (3) directors appointed by Declarant until the first annual meeting. After
    the first annual meeting, the Board of Directors shall consist of no less than
    two (2) nor more than five (5) members. Directors need not be members of the
    ASSOCIATION.
  2. TERM: The directors named in the Articles of Incorporation shall serve until
    the first annual meeting. At the first annual meeting, the members shall elect
    no less than two (2), nor more than five (5) directors. The number of directors
    and their term of office shall be set by each Board of Directors prior to the
    annual meeting, except that no director may serve for more than three (3)
    consecutive years.
  3. REMOVAL: Any director may be removed from the board with or without cause, by
    a majority vote of the members of the ASSOCIATION. In the event of death,
    resignation or removal of a director, his successor shall be selected by the
    remaining members of the board and shall serve for the unexpired term of his
    predecessor.
  4. COMPENSATION: No director shall receive compensation for any service he or
    she may render to the ASSOCIATION. However, any director may be reimbursed for
    his actual expenses incurred in the performance of his duties with the approval
    of the Board of Directors.
  5. ACTION TAKEN WITHOUT A MEETING: In the absence of a meeting, directors shall
    have the right to take action which could have been taken at a meeting, by
    obtaining the written approval of all of he directors.
  6. NOMINATION OF DIRECTORS: Nomination for election to the Board of Directors
    may be made by a Nominating Committee appointed by the President prior to each
    annual meeting. The report of the Nominating Committee shall be included in the
    notice of the annual meeting. Nominations may also be made from the floor.
  7. ELECTION: Election to the Board of Directors shall be by written ballot. At
    such election, the voting membership or their proxies, may cast the vote they
    are entitled to exercise in respect to each vacancy.

ARTICLES V – Meeting of the Board of Directors

  1. MEETINGS: Within ten (10) days after each annual meeting of the members,
    the directors elected at such meeting, and those holding over, shall hold an
    organization meeting for the purpose of electing offices as hereinafter provided
    and for transaction of such other business as may come before the board. If all
    directors are present at the time and place of meeting, no prior notice of such
    meeting shall be required to be given to the directors. All other meetings of
    the board shall be held at such place and time as directed by the board.
  2. SPECIAL MEETINGS: Special meetings of the Board of Directors may be called by
    the President, or by any two directors, after not less than three (3) days
    notice to each director.
  3. QUORUM: A majority of the directors shall constitute a quorum. The action of
    a majority of the directors present at any meeting at which there is a quorum
    shall be the act of the Board of Directors.

ARTICLE VI – Powers and Duties of the Board of Directors

  1. GENERAL POWERS: The Board of Directors shall have power to:
    1. Adopt and publish rules and regulations governing the use of the
      Common Areas, personal conduct of the members and their guests thereon,
      and to establish penalties for the infraction thereof.
    2. Suspend voting rights, and/or impose interest, or both, during
      any period in which such member shall be in default in the payment of
      any assessment levied by the ASSOCIATION. Such rights will be suspended
      after notice and hearing, until said assessment and interest is paid.
    3. Exercise for the ASSOCIATION all powers, duties and authority
      vested in or delegated to this ASSOCIATION and/or reserved to the
      membership by other provisions of these Bylaws, the Articles of
      Incorporation, or the Declaration.
    4. Declare the office of a member of the Board of Directors to be
      vacant in the event such member shall be absent from three (3)
      consecutive regular meetings of the Board of Directors.
    5. Employ an independent contractor, or such other persons as deemed
      necessary, and to prescribe their duties and fix their compensation.
    6. Levy assessments in accordance with Article VII, paragraph 7.2 of
      the Declaration.
    7. Impose and foreclose a lien against any property for which
      assessments and/or fines are not paid within thirty (30) days after date
      of final notice, or to bring an action at law against the Owner
      personally obligated to pay the same. To enforce said lien, assessment
      or fine by sale of the ASSOCIATION or an organization authorized by the
      ASSOCIATION, in accordance with the provisions of Article VIII,
      paragraph 8.1 of the Declaration, and the laws of jurisdiction.
  2. DUTIES: It shall be the duty of the Board of Directors to:
    1. Maintain a complete record of all of its acts and proceedings of
      its meetings and present at the annual meeting of the members a report
      reviewing the business and affairs of the ASSOCIATION for the year.
    2. As more fully provided in the Declaration, to:
      1. Prepare a report for the ASSOCIATION prior to the annual
        meeting listing past and present assessment year receipts and
        expenditures, and where possible include a forecast of upcoming
        expenses, with adequate allowance for reserves.
      2. Fix the amount of the annual assessment against each Lot at
        least thirty (30) days in advance of each assessment.
      3. Send written notice of each assessment to every Owner
        subject thereto at least thirty (30) days in advance of each
        assessment period.
      4. Prepare a roster of property subject to assessment, with
        assessments applicable to each such property, and to keep such
        roster in the ASSOCIATION office subject to inspection by any Owner.
    3. Issue upon demand by any 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 these certificates. If a
      certificate states an assessment has been paid, such certificate shall
      be conclusive evidence of such payment.
    4. Procure and maintain adequate liability and hazard insurance on
      property owned, leased or otherwise used by the ASSOCIATION.
    5. Cause all officers or employees having fiscal responsibilities to
      be bonded, as it may be deemed appropriate.
    6. Cause the Common Areas and any improvements thereon to be
      maintained.
    7. Procure and maintain insurance protecting the Board of Directors
      and committee members appointed by the Board against liability in the
      course of their duties as outlined herein and in the Declaration.

ARTICLE VII – Officers

  1. OFFICERS: The officers of this ASSOCIATION shall be a
    President, Vice-President, and Secretary/Treasurer who shall at all times be
    members of the Board of Directors. The Board of Directors may appoint an
    Assistant Secretary or Assistance Treasurer by resolution entered on its
    minutes. The officers shall be elected at the organization meeting of the
    Board of Directors each year, and the term of office shall be for a period
    of one year and until their successors are elected and assume office, unless
    such officer resigns or is removed.
  2. 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.
  3. 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 or she replaces.
  4. PRESIDENT: The President shall preside at all meetings
    of the members of the ASSOCIATION and of the Board of Directors. The
    President shall sign for the ASSOCIATION such contracts and other documents
    as may be authorized by the Board of Directors to sign, and shall perform
    all acts and duties usually performed by a President or as prescribed by the
    Board of Directors.
  5. VICE PRESIDENT: In the absence or disability of the
    President, the Vice-President shall preside and perform the duties of the
    President. The Vice-President shall also perform such other duties as may be
    delegated by the Board of Directors.
  6. SECRETARY: The Secretary shall record the votes and
    shall keep, or cause to be kept, the minutes of all meetings and proceedings
    of the Board and of the members, keep the corporate seal of the ASSOCIATION
    and affix it on all papers requiring said seal, serve notice of meetings of
    the board and of the members, keep appropriate current records showing the
    owners of occupied lots together with their addresses, and shall perform
    such other duties as required by the Board.
  7. TREASURER: The Treasurer shall receive and deposit in
    appropriate bank accounts all monies of the ASSOCIATION and shall disburse
    such funds as directed by resolution of the Board of Directors, keep proper
    books of account, cause an annual audit of the ASSOCIATION books to be made
    prior to the completion of each fiscal year, and shall prepare an annual
    budget and a statement of income and expenditures to be presented to the
    membership at its regular annual meeting, and delver a copy of each to the
    members.
  8. MULTIPLE OFFICES: The offices of Secretary and
    Treasurer 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 these Bylaws.

ARTICLE VIII – Books, Records, Seal

  1. INSPECTION BY MEMBERS: The books, records and papers of
    the ASSOCIATION shall at all times during reasonable business hours, be
    subject to inspection by any member.
  2. CORPORATE SEAL: The corporate seal of the ASSOCIATION
    shall be circular in form and shall have inscribed thereon the name of the
    ASSOCIATION, the state of incorporation and the year of incorporation.
  3. EXECUTION OF CORPORATE DOCUMENTS: When the execution of
    any instrument has been authorized by the Board of Directors without
    specifying the executing officer, such instrument may be executed by any two
    of the following officers: The President, the Vice-President, Secretary and
    Treasurer. The Board of Directors may, however, authorize any one of such
    officers to sign any of such instruments for and on behalf of the
    ASSOCIATION, and may designate officials or employees of the ASSOCIATION,
    other than those named above, who may sign such instrument.

ARTICLE IX – Assessments

As more fully provided in the Declaration, each owner of an occupied lot is
obligated to pay to the ASSOCIATION annual assessments which are secured by a
continuing lien upon the property against which the assessment is made. Any
assessments which are not paid when due shall be delinquent. If the assessment
is not paid within thirty (30) days after the due date, the assessment shall
bear interest from the date of delinquency at the rate of twelve percent (12%)
per annum, and the ASSOCIATION may bring an action at law against the property,
and interest, costs, and reasonable attorneys’ fees of any such action shall be
added to the amount of such assessment. No Owner may waive or otherwise escape
liability for the assessment provided for herein by nonuse of the Common Area or
abandonment of his Lot.

ARTICLE X – Amendments

  1. These Bylaws may be amended at a regular or special meeting of the
    members by an affirmative vote of not less than seventy-five percent (75%)
    of the total eligible members, present in person or by proxy, provided that
    notice of the amendment has been included in the notice of the meeting.
  2. Any matter stated in these Bylaws to be or which is in fact governed by
    the Declaration may not be amended except as provided in such Declaration.
    In the case of any conflict between such Declaration and these Bylaws, the
    provisions of the Declaration shall control.

ARTICLE XI – Miscellaneous

The fiscal year of the ASSOCIATION shall begin on the first day of January
and end on the 31st day of December. The first fiscal year shall begin January
1, 1989.