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PD182-CS 991117 BYLAWS OF THE TOWNHOUSES OF COPPELL HOMEOWNER'S ASSOCIATION, INC. ARTICLE I NAME AND STATUS 1.1 The name of this organization is THE TOWNHOUSES OF COPPELL HOMEOWNERS' ASSOCIATION, INC. until such time as it is formally amended by appropriate Resolution and the filing ofall necessary forms with the Secretary of State. The organization is a Texas Non-Profit Corporation. ARTICLE II DEFINITIONS 2.1 "Association" shall mean and refer to THE TOWNHOUSES OF COPPELL HOMEOWNERS' ASSOCIATION, INC. its successors and assigns. 2.2 "Declaration" means that one certain Declaration ofCovenantsand Restrictions of THE TOWNHOUSES OF COPPELL filed of record in the Dallas Count)' Clerk's office. 2.3 "Properties" shall mean and refer to that certain real property described in the Declaration, and such'additions thereto as may hereinafter be brought within the jurisdiction of the Association. 2.4 "Common Area" shall mean all real property owned by the Association for the common use and enjoyment of the Members. 2.5 "Lot" shall mean and refer to any of the 92 Lots shown upon the recorded subdivision plat of THE TOWNHOUSES OF COPPELL as recorded in the plat records of Dallas County, Texas. 2.6 "Unit" shall mean and refer to a structure or townhouse erected on each Lot. 2.7 "Owner" shall mean and refer to the record owner, whether one or more persons or entities~ of a fee simple title to any Lot which is a pan of THE TOWNHOUSES OF COPPELL, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation. 2.8 "Member" shall mean and refer to those persons entitled to membership as prOvided in the Declaration. ARTICLE' III PURPOSE 3.1 The purpose or purposes for which the Association is organized are: (a) to exercise those powers, duties and responsibilities provided for in the Declaration as it currently exists or as it may be amended hereafter from time to time; (b) to provide for maintenance, preservation, and architectural control of the Townhouse project located at THE TOWNHOUSES OF COPPELL, an Addition to the city of Coppell in Dallas CounD'. Texas: and (c) to promote the health, safety and welfare of the Owners within the properties and any additions thereto as ma)' hereafter be brought within the jurisdiction of the Association for the purpose to: (1) exercise the powers and privileges and perform all of the duties and obligations as set forth in the Declaration; (2) fix, levy, collect and enforce payment by any lawful means of all charges or assessments pursuant to the terms of the Declaration, pay all expenses in connection therewith and all office and other expenses in connection with or incidental to the conduct of the business of the Association including all license fees, taxes, or governmental charges levied or imposed against the Properties or any other property of the Association; (3) acquire (by gi~ purchase, or otherwise), own hold, improve, build upon, operatel maintain, convey, sell, lease, transfer, dedicate for the public use or otherwise dispose of real or personal property in connection with the affairs of the Association; (4) borrow money, mortgage, pledge~ deed in trust or hypothecate any or all of its real or personal property as security for borrowed money or debts incurred; (5) dedicate, sell, or transfer all or any part of thc Common Area in accordance with the terms of the Declaration, if any, to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Board; (6) notwithstanding the foregoing, the Board ofDirectorsmay from time to time without authorization of the membership, grant or dedicate easements with respect to the Common Area, if any, as may be necessary or convenient to provide or assist in utility service to the property. (7) pa,'t icipate in mergers and consolidations with other usu-profit corporation, s organized for 5a,,u purpose:; st' annex additio,~dl t'c.;idential prop,-zty a,%d C.Dmn~on A~ea, if any, up,),; apL)rOyal by thc goa,',l si DLcec".ors of thc A~socLatio~%; (8) establish Rule.s and lJeguJat~ons w[th J'es[~cct ~o ~he use of aL1 Co,~on Areas and facilities by pc~'so,is authorized to use such a~eas and facilities and have uhe po~e~ to amend such iJules and Regulations from ~ime to time as the A~socLati,)n deems necessary; (9) have and to exercise any and all powc~s, [ight~; and pf ivileges which a co~poration o~gani zed unde~ the Texas Non-Profit Corporation Act by law may no~ o~ hereafte~ have to exercise; and [10) have and to exercLs,~ a~ly othe~ powers, rights and privileges not inconsistent with the Declaration o~ tl%e Articles of Incorporation any othe~ provisions ut these Bylaws o~ '~he Texas No~-Prof'[t Corporation Ac~, which may be necessary og be,,ef[cial.to the ex[stenc,:, ptesecvation, or rights of the Association. ARTICLE IV. OFFICES 4.1 Ptincipa 1 Office. The pt inc[pal office of the co,potation shall be established from time to time by the Board of Directors. The cotpocat[on may also maintain other off~cuu such places within o~ without the State of Texas, as the Board of O~gectots may fgom time to time appoint, or as the affairs of the CO~pOtation may requite. 4.2 Registered Agent and Office. The registered office of the co~poration shall be 5~47 San Fe~ipe, Suite 2200, Houston. Tc~as 77057 and the name of the tegisteted agent at such addre:~ shall be Joe G. 8ax. Notwithstanding any other provi.u[o~ these Bylaws to the contrary, however, such registeged offzce such registered agent may be chad%ged by tesolutlon of the of O[gectot's and upon the filing of a statement to such effect ~'~h the Secretary of State of Texas. ARTICLE V. MEMBI{RS 5.1 ~{ock. The corpocar, ion shall no~ have sha~es of of a~y cla~s and shall no~ be owned {,y any pecson sc pecson:{, i~u5~ o~ c{;~pofat{on. The co,potation] shall have only ,,ne ~yp.~ ::~d c[.~:~s of me:nbe~s as d,:f~ned in ~l]c~.: ilylaws. 5.2 Voting. Each mc,nber shall be entitled to one (L] vo~e per each Lot owned, eith,..r [n pt.r,.:on or by proxy, in filed with the Sec~eta~'/ of the mc,~t~n,] l-.~for~ the apl>oint,',l of each meeting. No p~oxy sl~dll bc valid aft~ three (~) ,,,~,,~1,:. f~om the date of its execution and each proxy shall be rcvocabiL. unless expressly p~ov~ded therein ~o be irrevocable, otherwise made i~revocable by law. 5.3 Terminal. ion of Membersh[[~__ In accordance w~ Declaration,. each Member ~hall be a member loc as long as member is nn owner of a Loc within the condominium reg[mu. 5.,i Annual Meetin9 of Members. The annual mect[~}(j of ti:,' Members shall be held on t-he in of each year, for the purpose of electing directors and for thc transaction of other business as may properly come before t~c meeting. If the day fixed for the annual meeting shall be a legal holiday, such meeting shall be held on the next succeeding bus [ness day. $.$ !~egu t'ar and Special MeeL incls of Members. Regular meetings of the Membe~.s.. mz, y be held al: such time and such place a5 shall, from time to time by r.esolution, be determined by the Board of Directors. Special meetings 'of the Me,,bers may be called by ¢he President, tl~e Board of Directors, or not lc-s5 one-~enth (1/10) of the Members having vo¢ing rights. 5.6 Plac,~ of the Meeting. ~xcept as otherwise provided herein, the meetings of the Members may be held at such place, within or without the State. of Texas, as may be stated in the notice of the meeting o~ the waiver thereof. 5.7 Notice ¢~f the Meetings. Not[ce of the time and place of each meeting of the members, whether it be regular o~ .special, annual o~ otherwise, may be delivered personally or by mall to the Members not less than ten (10) nor more than fifty [50) day~ before such meeting. Provided, however, nothing cont~in,~d in this parag£aph to the cont~&~y shall prevent the Membur~ f~m ~aiving the notice requirement as to t~e date, time or place of ~he meeting. 5.8 informal Action lay Members. Any action required by law to be taken at a meeting of the Members, or any action ~h~ch may be' taken at a meeting of the Members, may be taken without a meeting, if a consen~ in writing, setting forth the actions taken, shall be signed by all of the members .entitled lo vote ',/~th respect to the subject matter thereof. 5.9 Quorum. The presence a{_ the meeting of those Members ~it~ fifty-one percent (51%] of Lhe votes entitled to be shall constitute a quorum fo~ any action, except as otherwise p~ovided in the A~tic~es of lncocpo~-,tion, the Decla~ation or che~.e Bylaws. If, however, a quorum shall not be present represented at any meeting, the Members entitled to vol:,: not ice of other than an announcemenE at tl~e meet ~ng Ull[.l ] quorum sl~all be pcesen¢ o~' ~epres('nLcd. 5.L0 Vo~inq_ by Mail. TI,c Bo,~d of Oircc~O~5 may, ~'esolu~ion, subm[~ mat~e~s to the membe~shkp by mail. and conduc¢ such elections, polls, sucveys, and ~esoLu¢ions, in a manner, by ma. il, as the Board of Directors shall determine said ~esolu~ioa. 5.11 Authority to Vote. Whethec a Member be a pactnecship, fi~m, association, pcop~ ieto~ship, trus~, or any ocher en~ity, the vote of a Membe~ may be cast at any meeting, regular or special, by any person who is a part of the Member's ocganization, o~ by any other person who is authorized in writing [o ~epcesen¢ the Member at ~he meeting. -. ARTICLE VI. BOARD OF DIRECTORS 6.1 Board of Directors. The bbsiness, affai[s, and pcope~ty of ~he co~po~a~ion shall be managed and controlled by ~he Board of Directors. Directors shall serve fo~ a period of one {L) year, or un~il their successors are duly elected. 6.2 Number. The affairs of this Associat ion shall be managed by a Board of three (3} Directors, who nee,] not be Members of the Association. 6.3 Newly Created Directorships. If the numbc [' directors [s increased, the newly created directorships resulting f~om the [ncreas(~ in the authorized numbe~ of directors may be filled by a majofity of the directors then in office, though le~s than a quorum, and the directors so chosen shall hold office un~il their successocs shall be duly elected and shall qualify. 6.4 Vacancies. In case of any vacancies in the Board Directors through death, resignation, disqualification, remov~l o~ any othe~ cause, the vacancies thus c~eated may be filled by [ne President, subject to the app[ovai of a majority of the directors then in office, though less t~an a quorum and the dioecious so chosen shall hold .office un~i[ thei~ suc-cesso~:; shall be duly elected and shall qualify. [n ~h~ event a vacancy is c~eated by the death, ~esigna~ion, disqualification, o~ any other cause of the Pres[dent, the vacancy shall be by the vo~e o~ the cemaining members of the Board of D~ ~hen in office, ~hough less than a quorum and ~he Presidcn[ :~o chosen shall hold office un,il his successor shall be d,~[7 elected and shall qualify. 6.5 Resignations. Any director may resign at a.ny time by giving written notice to the Boar,! of Directors or the or thc Secretary of the corporatio~. Such resignation '~h,~ll L~k,.' etfect at the time specified therein, then upon receipt o( such notice by ~he addressee, and unless otherwise provided the acceptance of such resignation shall not be necessary to ~t effective. 6.6 Remora 1. (a) Any director may be removed from office, for good cause shown, upon the affirmative vote of two- thirds (2/3) vote tn number of the remaining directors, excluding for purposes of calculating thc vote, the accused director, at any special meeting of the directors, provided that notice of the in~ention to act upon such matters shall have been given in the notice calling such meeting, or the ,.~a[ver of such notice. (b) At any regular or special meeLing duly called, any 'o'~e-(J] or more o~ the directors may be removed with or without cause by a ma)ority of the Members, and a successor may then and there be elected to fill the vaca. ncy thus crea~ed. Any director whose removal has been prompted by the Members shall be given an opportunity to be heard at the meeting. (c) When any director is absent from three (3) consecutive regularly scheduled meetings of the Board, his directorship will automatically terminate, no further action of the Board being necessary. In the event of removal, the vacancy shall be filled as provided in paragraph 6.4. 6.7 Powe~s. £n addition to the power and authority expressly conferred upon the Board of Directors by the laws of the State of Texas, by the Articles of Incorporation%, o,' other certificate filed pursuant to law, and by these Bylaws, the Board may exercise all of the powers of the Association and do all such lawful things and acts as may be done by the Association, including l~he Dower to: (a) adopt and publish rules, and regulations gover(~ing use of the Common Area a~d facilities, and the personal conduct of the Members and their guests thereon, and to estabkish penalties for infract io~s the reef; (b) cha~ge reasonable fees fo~ the use of the facilities within the Common Area if such facilities a~e not used by all M,.~mbers e¢iua[ly; and -6- (c) Perform all acts authorized to be performed by the Board pursuant to the terms of the Declaration, the Articles of Incorporation, these ByXaws, DC the Texas Non-ProfLt Corporation Act; and (d) Perform ail acts autl]orized to be performed by the Association pursuant to the terms of the Declaration, the Articles of Incorporation, these Bylaws, or the Texas Non-Profit Corporation Act; provided, however, the Board shall not have the duty or power to perform those acts which are identified as acts only able to be performed by the Association upon a vote of thc Members. (e) Do everything permitted by the Declaration, Articles, of Incorporation, these Bylaws, or the Texas Non-Profit Corporation Act to fulfill the purpose or purposes of each including, but not limited to, enforcing the obligation of each Member in the Association to pay assessments by following whatever collection procc~ure is approved by the Board and not inconsistent with'~he terms of the Declaration. (f) suspend the voting rights and right to the use of the recreational facilities of a Member during any period in which such Member s~all be in default in the payment of any assessment levied by the Association. Such rights may also be suspended after notice and hearing, for a period not to exceed (60) days for nonmonetary infractions of the Declaration or published rules and regulations; (g) borrow money for the purpose of improving Co~non Area and facilities. (h) exercise for the Association all powers, duties and authority vested in or delegated to this Association and not reserved to the membership by provisions of these Bylaws or the Articles of [ncorporation, or the Declaration; (i) declare the office of a Member of the Board of Directors to be vacant in the event each such Member shall be absent from three (3) consecutive regu[ar meetings of the Board of Directors; and (j) employ a manager pursuant to the terms of Declaration, an independent contractor, or such other employees as they deem necessary, and to prescribe their duties; -7- (k) set aside a portion of the Co~aon Areas to be used as the on-site m.~nagement office of the Association; (l) resurve¥ the pcope,'t? .,n,! L'enumb~r any ~uch Units or Lots, as the ca~e may be, that the Boa[d of Di~ec:ors deems appropriate; (m) control all parking facilities and storage facilities .and anything incidental tl~ereto, including restriping and redesigning all ..parking lots and designating storage facilities to Units, and exercise for the Association all powers, duties, and autho[ity associated with the control of ali such pa~king and storage facilities; (n) exercise for the Association all powers, duties and authority vested in or delegated to this Association to carry out and fulfill the purpose or purposes for which the Association is organized including 'those purposes enumerated in A~ticle iii of these Bylaws. ~ ...... 6.8 Duties. In addition to all duties as specified by the Laws of the State of Texas, the Articles of Incorporation or the Declaration, it shall be the duty of the Board of Directors to: [a) cause to be kept a complete record of all its acts and corporate affairs a'nd to present a statement thereof to the Members of the annual meeting of tl~e Members or at any special meeting when such statement i~ reques:ed in w~iting by a majority of the Members who are entitled to vote; {b) supervise ail office~s, agents and employees of the Association, and see that their duties are properly-performed; (c) do everything permitted by the Declaration, Articles of Incorporation, or these Bylaws to fulfill the purpose or purposes of each. 6.9 Quorum. At all meetinqs of the Board of DirecCors, a majbrity o~ the directors present in person and then in office, shall be necessary and sufficient to constitute a quorum for the transaction of business, and the act of a 'majority of · thc directors present at any mee~in,] at which there is a quorum, shall be the act of the Board of Directors. If at any meeting of the Board ~here shall be less than a quorum present, a majority of those p~esent may adj0u~n the meeting from time to time until a quorum i~ obtained. -U- 6.10 Proxy. A director .Lay vole in person or by proxy, executed in writing, by s~id director. No proxy shall b,z va!~d after, three (3) months from the date of its execution .~,~d e~ch proxy shall be revocable unless ,~x[)Lcs~ly provided therui, ~o tt'revocabit~, or unless othc['wtse m,Lde ~rrevocable by law. 6.11 Annual Meeting. The annual meeting of the Board Directors, for the electio~t of officers and the transaction of such other business as may come before it, shall be held at a place determined, by the Board of Directors, at such time as the Board of Directors may determine o~ the , in of each year, unless such day be a holiday, in which case it be held on the next succeeding business day. 6.12 Regular and Special Meetings. Regular meetings of the " Board of Directors may be held at such times and places as shall, from time to time by resolution, be determined by the Board. Special me.'tings may be held when called by the Preside~t, Vice President, Secretary, or any two (2) directors. 6.13 Place of Meeting. Except as otherwise provided herein, the meetings of the Board of Directors may. be held at such place, within or without the State of Texas, as may be stated in the notice of the meeting or the waiver thereof. 6.14 Notice of Meetings_~. Notice DC the time and place of each meeting of the Board of Directors, whether it be regular or special, annual or otherwise, may. be delivered personally or by mail to the members of the Board of Directors, at least ten days before such meeting. Provided, however, nothing contained in this paragraph shall prevent the Board of Director-s from waiving the notice requirement, as to the date, time or place of any meeting. 6.15 Order of Business. At meetings of the Board of Directors, business shall be transacted in such order as from time to time the Board of Directors may determine. 6.16 Compensation. Directors, as such, shall not be entitled to receive any fixed sums for their services, but, by resolution of ~he Board, a fixed sum and expenses of attendance, if any, may be provided for attendance at the Board meetings; p~o'vided that no~hing herein contained shall be interpreted preclude any director from serving the corpocat[on in any othe[ capacity and receiving compensation therefor. 6.17 [~%formal Actio~ by Directors. Any action required by law to be taken at a meeting of directors, or any action which may be taken at a meeting of directors, may be taken without a meeting if a consent, in writing, setting forth the actto,~:; taken, shall be signed by ali of the directors. -9- 6.1§ Liability of Dicectors ~n Certain Cases. A director' shall not be liable for his acts, as such, if he is excuued from Liability under thc Texas Non-Prof[~ Corporation Act, as .u. ended, and, ~n addition, to the fullu~t extent permitted by tl-.~: Non-P~o~[t Corporation AcC, as amended, e~ch office~' o~ d~'ecto~-, shall, in the discharge of any duty imposed or power upon hi~ by the corporation, be ~ully pro~ec~ed }f, ~n exercise of ordinary care, he acted in good faith and in reliance upon ~he written opinion of an attorney for the corporation, the books of account or reports made to the corporation by any of its officials, or by'any independent certified public accountant or by an appraiser selected with reasonable ca~e by the Board Directors, or by such committee, or in reliance upon other records of the corporation. - 6.19 Indemnification of Directors and Officers. Each 'director and officer of the corporation shall be indemnified by the corporation against all expenses actually and necessarily incurred by him in connection with the defense of any action, sui~ or proce6ding, commenced after the date of the adoption of these Bylaws, in which he is made a party by reason of his being or having been a di~-ctor or office~ of the corporation, except in relation to the matters as to which he shall be adjudged in such action, suit or proceeding-, to be liable for negligence or misconduct in the performance of his duty as such director officer. The indemnification granted hereunder shall not be deemed exclusive of any other rights to which such directors or officer may be entitled under any Bylaw agreement or at law or in equity, or otherwise. 6.20 Advisory Directors. Whenever the Board deems appropriate, the Board may,. at its discretion, nominate one ,,ore individuals to serve in the capacity of an Advisory Director. Advisory Directors may a~tend all Board meetings and participate in any discussion at those meetings. Advisory Oirectors shall not have the right to vote and their presence or absence shall not be considered in the determination of a quorum. The term of an Advisory Directo~ shall continue u~ti] such time as the Board decides to terminate the Advisory Directors' term. Subject to the approval of the Board or Directors, the President may appoint advisory members to the Board for any particular meeting. ARTICLE VII. OFFICERS ' 7.1 Number. The officers of the corporation shall be chosen by the Board of Directors. The officers shall be a P~es[dent, Secretary, a Treasurer, and such number of Vice Presidents, Assistant Secretaries and Assistant Treasure~s, if any, as the Board from time to time may determine. No per,on ma~, hold more than one office ac a c~me. 7.2 Additional Officers. The Board may appoint such other -office~'s, agents and factors as it shall deem necessary. 7.3 Term of Office. TI%c o[fkc~r.~ of the corporation shall be elected annually by the 8oa[d of Directors at the annual meeting of'the Board of D~ecto~s. If the election of officers shall not be held at sucl~ meeting, such ele~rtion ':h.,1 [ be held as soon thereafter as conveniently possible. Each officer shall hold office until I~is successor shall have been duly elected and shall have qualified. 7.4 Removal. Any officer, including, the choosiug successor, ~he President, Secretary and the Treasurer, ,nay be removed from office at any time by a two-t-birds (2/3) vote of thc entire Board of Directors, with or without cause. 7.5 Powers and Duties of Office~s. The officers so chosen, shall perform the duties and exercise the powers as follows, as well as such other powers and duties, as may be assigned ko them from ~ime to time by the Board of Directors o[ the President: (a) P r e s i-d-6rtt-.. The President, subject to the control of the Boar~ of Directors, shall be in general charge of the affairs of the corporation, in the o~dinacy course of its business; he shall preside at all meetings of the Board of Directors. He may make, sign and execute ail deeds, conveyances, assignments, bonds, contracts and other obligations, and any and all other instruments and papers-of any kind or character, in the name of the corporation. He shall do and perform such other duties as may from time to time be assigned to him by the 8oard of Directors. He shall be an owner-member of the corporation. (b) Vice President. Each Vice President shall have the usual powers and duties pertaining to his office, together with such other powers and duties 'as may be assigned to hi,, by the Board of Directors, and the Vice President shall have and exercise the powers of ~he President during the officer's absence temporary inability to act. Any action taken by a V~ce President in the per fo~mance of the duties of the President, shall be conclusive evidence of the absence or temporary inability to act of the President at the time such action is taken, rn the eve~t of the President's death, resigna{. ~,)n, disqua'lif icat ion, removal or for any other cau:;e, resulting in a vacancy in the office of President, the Vice President shall temporarily succeed to ~h,; powers, duties and responsibilities of ~h,.· office of President, until such time as ~he Board of Difec~fs can ,neet and choose successor co its President. I{e shall be an owner- member of I-he COrporation. (c). Treasurer. The Treasurer shall have the custody of all funds and securities of the corporation, wl~ich come into his hands. When necessary oc proper, he may endocse, on beha [ [' of the corpocat ion collection, checks, ~otes ,3~' otl~e¢ obligations, shall deposi~ the same to the c~ed~t of the corpOrat:on in such bank o[ banks or depositories as shall be designated in the manner prescribed by the Board of Directors. He may sign all receipts and vouchers for payment made to the co~po~ation, jointly with such officer or officers as is designated by the Board of Directors. Whenever requi~d by the Board of Directors, he shall render a statement of his cash account. He shall enter or cause to be entered regularly on the books of the corporation, to be kept '- by him for that purpose, full accurate accounts of all monies received and paid out on account of .the Corporation. He shall pecfo~m all acts incident to the position Qf Treasure~, subject to the control of the Board of "-Directors, give bond for the faithful discharge of l{'Fs--d~ies in such form and in such amount au the Board of Directors may.¢equire. (d) Assistan~ Treasurers. Each Assistant T~easurer shall have the usual powers and duties pertaining to his office, together with such other powers and duties as may be assigned to him by the Board of Directors and the Assistant Treasurer shall exercise the powers of the Treasurer during that officer's absence or inability to act. re) Secretary. The Secretary shall keep the minutes of all meetings of the Board of Directors in books provided for that purpose. He shall attend to the giving and serving of all notices. He may sign with the President and Vice.President in the name of the Corporation, all contracts, conveyances, transfers~ assignments, authorizations, or other instruments of the Corporation, and affix the seal of the Corporation thereto. He shall have charge of and maintain and keep such ocher books and papers as the Board of Directo¢:~ ,nay direct, all of which shall, at all reasonable cimes, be opened to inspection by any director upon request ac the office of the Corporation during business hours, and he shall in general, perform ali duties incident to the office of Secretary, subject to the control of the Board of Directors. (f) Assistant Secretaries. Each Assistant Secretary shall have the usual powers and duties pectaining to the office, togethe¢ -with such othe~ -12- be available to the Members for inspection and copying thereof, during normal business hours. The corporation may chdrge rea~.onablu expenses of preparing copies of such records or ccpOrt :~ . ARTICLE X. REMEDIES FOR NON-PAYMENT OF ASSESSMENT 10.1 AS more fully provided in the Declaration, each Member ~s obligated to pay to the Association annual and special assessments which are secured by a continuing lien upon the property agains~ which the assessment is made. Any asse'~sment~ which are not paid when due shall be delinquent. If the assessment is not paid within ten (10) days after the due date, the Assessment shall bear a late charge as established by the Declaration, and the Association, or its agent, has the right and power to bring all actions against such Owt~e~ personally loc the collection of such charges as a debt and to enforce the aforesaid continuing lien .by all methods available for the enforcement of such lien. Each'Ow[l_e3 shall be obligated to commence payment of ail assessments againsf--~his Lot on the date such Lot is conveyed to such Owner. Each assessment, together, with interest, costs. and reasonable attorneys fees, shall also be the persona l obligation of the person who was the Owner of the Lot at [he when the assessment fell due. No Owner of a Lot may exempt himself or herself f~'om liabil[t:y for his or her contribution toward the common expenses by waiver of the use of enjoyment of any of the Common Areas or by abandonment of his or her Lot. ARTICLE XI. CONTRACTS, CHECKS, DRAFTS, BANK ACCOUNTS, ETC. 11.1 Authority to Contract. The Board of Directors, except as in these Bylaws otherwise provided, may authorize any office~ or officers, agent or agents, in the name of and on behalf of th,: corporation, to enter into any contract or execute and deliver any instrument, 'and such authority may be general or confined to specific instances; and, unless so authorized by the Board Directors, or expressly authorized by the Bylaws, no officer or agent or employer shall have any power or authority to bind th.: corporation by a contract or engagement or to pledge its credit. or to ~ender it liable for any purpose or any amount. 11.2 Loans. No loans shall be coat,ac{ed on behalf of corporation, and no negotiable papers shall be issued in it': name, unless authorized by the vo~e of the Board of Directors. 11.3 Payment of Funds. All checks, drafts and other order:. ~O~ the payment of money ou{ of the funds of the co~pocation, anal all notes or other evidences of ind,:bted[~es5 of Lhe corporation, shall be signed on behalf of the corporation and in such mann,"r a'; shall from ~me ~o rime be (le~ermined by resoluLiu~t ol II~.. Comm~¢~ee, p~ov~ded ¢hat no emp[oy~-u o~ Leave o~ ~ibsRIICR ~'um I ll~. df aft et' o~hec o~def for the paymerJt of money out of ~he ~und5 the corporation. ii.4 Deposits. All funds o~ ~he corporation, not employed, shall be deposited from time to time, to the credit of the corporation, in such banks or other depositories as tll(~ Boa~d of Directors may select and for the put'pose of such dcpooit, the President, Vice President, the Treasurer, Secretary or any other officer, agent oc employee of ~he corporation to whom such power may be delegated by the Board of Directors, may endorse, assign and delive~ checks, drafts and othe~ o~ders fo~ ~he paymen~ of money which are payable to the o~der of ~he corporation. 11.5 Source of Funds. Thc Association shall be f~om charges and assessments established by the Doa~d of Directors, and wit~"-~n-~ributions of cash and p~operty, received f~om foundations, co~poratkons, o&ganizations, churches, oc individuals. The Boa~d of Directors shall have thc sol,, responsibility of accepting o~ refusing specific contributions. ARTICLE XII. M [ SCZLLAN EOUS 12.1 Office. The principal place of business and office of the co~poration in the State of Texas, shall be in , Texas. i2.2 Seal. The corporate seal shall'- be circular in fo~m ~Lch the name of the corporation inscribed a~ound the margin, and ~ich a five pointed sta~ in the cente~, or may be in such fo~m p~esccibed by the Board of Directors o~ may be dispensed with entirely by the Board of Directors. 12.3 Fiscal Yea~. The fiscal year shall be as is f~om time to time determ.ined by the Board of Directors. 12.4 Loans to Officers and Directors. No loans shall be made by the co~poration to any of its o~ficers and directors. 12.5 ~,~endment of ~yLaws. Subject to the p~ov[sions concained elsewhere herein, the power to alter, amend o~ repeal the Bylaws, or to adopt new Bylaws shall be vested in the 8oecd of Directors who may amend, alter, oc ~epeal the same at any annual oc ~p~c.l~3_.~9.~j.~g, Lf notice of the p~oposed action contained ~n the notice of said meeting, upon two-thirds (2/3] -~5- o 12.6 A~endment to the Cha~te~. The powe~ to alte~, amend, or ~epeal the ch~tec o--f the co,potation, o~ to adopt a charter, or to amend the charter, shall be vested in the I]oa~'d ~1 O~ecto~5. 12.7 Section Headings__~. The headings o~ the articles an~! sections ~f these Bylaws ace inse~ted fo~ convenience ~efe~ence only and shall not be deemed to be a part thereof used in the constcuction o~ interpretation thereof. IN WITNESS WHEREOF, we, being all of the dicectocs of the OAKLEAF CROSSING HOMEOWNERS' ASSOCIATION, INC. have hereunto set ou~ hands this day of , 1991. DO NOT WRITE,'SIGN,STAMP BELOW THIS LINE DEPOSITORY BANK ENDOASEM£NT