FOUR LAKES LAND OWNERS' ASSOCIATION, INC.
NAME AND LOCATION
The name of the corporation is FOUR LAKES LAND OWNERS' ASSOCIATION, INC., hereinafter referred to as the "Association". The principal office of the Association shall be located at 16470 – 239th Avenue S.E., Issaquah, Washington, 98027, but meetings of Members and Trustees may be held at such places within the State of Washington, County of King, as may be designated by the Board of Trustees.
Section 1. "Association" shall mean Four Lakes Land Owners' Association, Inc., its successors and assigns.
Section 2. "Common Properties" shall mean all real property owned by Association, including but not limited to, the water system, which shall be held for the enjoyment and use of all the Members, and shall not include any streets or other areas dedicated to public use.
Section 3. “Common Facilities” shall mean facilities operated by the Association for the common benefit of the Members including, but not limited to recreational facilities.
Section 4. "Lot" shall mean any plot of ground, with the exception of the Common Properties, either shown upon any recorded subdivision maps of the existing and annexed Properties or otherwise subject to the jurisdiction of the Association.
Section 5. "Member" shall mean every person or entity who holds a membership in the Association.
Section 6. "Owner" shall mean the record owner, whether one or more persons or entities, of the fee simple title or contract purchaser's interest in any Lot or Lots which are a part of the Properties, but shall not include a contract seller or a mortgagee or other lienholder.
Section 7. "Declaration" shall mean and refer to the Declaration of Covenants, Conditions and Restrictions applicable to the properties recorded in the Office of the King County Auditor.
Section 8. “Properties” shall mean the Common Properties, Lots, and other real property which are part of and related to the Association.
MEMBERSHIP AND VOTING RIGHTS
Section 1. Membership. Every Owner of any Lot or Lots shall be a Member of the Association: Provided, however, that if any Lot is held jointly by two or more persons, the several owners of such interest shall designate one of their number as the "Member". The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. No Owner shall have more than one membership. Membership shall be appurtenant to and may not be separated from Ownership of any Lot which is subject to assessment by the Association upon transfer of the fee interest to, or upon the execution and delivery of a contract for the sale or an assignment any Lot, the membership and certificate of membership in the Association shall ipso facto be deemed to be transferred to the new owner. Ownership of any such Lot shall be the sole qualification for membership.
Section 2. Suspension of Membership. During any period in which a Member shall be in default in the payment of any quarterly or special assessment, the voting rights, right to use of the Common Facilities, and/or use of services provided by the Association (as may be applicable) by such Member may be suspended by the Board of Trustees until such assessment has been paid in full. Such rights of a Member may also be suspended, after notice and hearing, for a period not to exceed sixty (60) days, for violation of any rules and regulations established by the Board of Trustees governing the use of the Common Properties and Common Facilities.
Section 3. Voting Rights. No person shall have more than one (1) membership regardless of the number of Lots owned. The interest of each Member shall be equal to that of any other Member, and no Member may acquire any interest which shall entitle him to any greater voice, vote or authority in the Association than any other Member. In the case of Lots owned jointly by two or more persons, only the joint owner designated as the "Member" pursuant to Section 1 of this Article III shall be entitled to vote.
In the event that the Nonprofit Corporation Law of the State of Washington as set forth in Title 24, Revised Code of Washington, is changed to permit one member of a nonprofit corporation to exercise greater voting rights than another member, voting shall thereafter be according to the number of Lots owned; that is, Members shall be entitled to one vote for each Lot in which they hold the interest required for membership by Article III hereof. When more than one person holds such interest in any Lot, the vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot.
PROPERTY RIGHTS: RIGHTS OF ENJOYMENT
Each Member shall be entitled to the use and enjoyment of the Common Properties and Common Facilities as provided in the Declaration, including the water surface and subsurface of all lakes and bodies of water included in said plat, subject to the terms of the Declaration. No Member shall in any way restrict the use of the surface or subsurface of the lakes and/or bodies of water included in said plat by fences, walls, or other obstructions, irrespective of the ownership of the land upon which the lakes or bodies of water are located. Any Member may delegate his rights of enjoyment of the Common Properties and Common Facilities to the Members of his family or his tenants who reside on the property, and, subject to regulation by the Board of Trustees, to his temporary guests. Such Members shall notify the secretary in writing of the name of any such delegate. The rights and privileges of such delegee are subject to suspension to the same extent as those of the Member.
ANNEXATION OF ADDITIONAL PROPERTIES
Section 1. The Association may, at any time, annex additional properties and common areas to the properties described in Article Three of the Articles of Incorporation, and so add to its membership under the provisions of Article III of these By-laws.
Section 2. Before the Association may annex additional properties under this Article, the following requirements must be met:
(a) the owner of the property to be annexed shall deliver to the Board a written request to be annexed to the Association;
(b) the Board shall call a special meeting of the Association to discuss and vote upon the proposed annexation;
(c) an affirmative vote of seventy five percent (75%) of the members of the Association for annexation;
(d) the owner of the property to be annexed shall agree to pay not less than one half of the costs and fees associated with the annexation of the property to the Association including, but not limited to, extension of Association roads to the annexed property, connection to the Association water system, and legal fees;
(e) the Board shall file a change in the legal description of the Association to include the annexed property;
(f) the Declaration of Covenants, Conditions and Restrictions shall be recorded against the annexed property such that the property shall become subject to the Declaration.
AUTHORITY TO DEDICATE
The Association shall have power to dedicate, or transfer, all or any part of the Common Properties owned by it to any governmental unit or public agency or authority or public utility for such purposes and subject to such conditions as may be agreed to by the Members. No such dedication or transfer shall be effective unless an instrument signed by two-thirds (2/3) of the Members of the Association entitled to vote has been recorded, agreeing to such dedication or transfer.
BOARD OF TRUSTEES: SELECTION: TERM OF OFFICE
Section 1. Number. The affairs of this Association shall be managed by a Board of not less than five (5) and not more than nine (9) Trustees all of whom shall be Members of the Association.
Section 2. Election. At the first annual meeting, which shall be held not later than six months from the date of incorporation of this Association, the Members shall elect three Trustees for a term of one year, three Trustees for a term of two years, and three Trustees for a term of three years; and at such annual meeting thereafter, the Members shall elect three trustees for a term of three years.
Section 3. Removal. Any Trustee 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 Trustee, the successor shall be selected by the remaining members of the Board and shall serve for the unexpired term of his predecessor.
Section 4. Compensation. No Trustee shall receive compensation for any service he may render to the Association. However, any Trustee may be reimbursed for his actual expenses incurred in the performance of his duties.
Section 5. Action Taken Without a Meeting. The Trustees shall have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of all the Trustees. Any action so approved shall have the same effect as though taken at a meeting of the Trustees.
Section 6. Resignation. Any Trustee may resign from the Board at any time by delivering either oral tender of resignation at any meeting of the Board, or written notice to the Chairman of the Board, the President, the Secretary or the Board. Any such resignation is effective upon delivery thereof unless the notice of resignation specifies a later effective date and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.
Section 7. Vacancies. If for any reason a vacancy occurs on the Board, the Board may fill the vacancy, or, if the Trustees in office constitute fewer than a quorum of the Board, they may fill the vacancy by the affirmative vote of a majority of all the Trustees in office. The Members may fill a vacancy only if there are no Trustees in office. A Trustee elected to fill a vacancy shall serve for the remainder of the term to which such person is elected.
MEETINGS OF TRUSTEES
Section 1. Regular Meetings. Regular meetings of the Board of Trustees shall be held monthly without notice, at such place and hour as may be fixed from time to time by resolution of the Board. Should said meeting fall upon a legal holiday, than that meeting shall be held at the same time on the next day which is not a legal holiday.
Section 2. Special Meetings. Special meetings of the Board of Trustees shall be held when called by the President of the Association or by any two Trustees, after not less than three (3) days notice to each Trustee.
Section 3. Quorum. A majority of the number of Trustees shall constitute a quorum for the transaction of business. Every act or decision done or made by a majority of the Trustees present at a duly held meeting at which a quorum is present shall be regarded as the act of the Board.
Section 4. Presumption of Assent. A Trustee who is present at a Board meeting at which any action is taken shall be deemed to have assented to the action taken unless (a) the Trustee objects at the beginning of the meeting, or promptly upon the Trustee’s arrival, to holding the meeting or transacting any business at such meeting, (b) the Trustee’s dissent or abstention from the action taken is entered in the minutes of the meeting, or (c) the Trustee delivers written notice of the Trustee’s dissent or abstention to the presiding officer of the meeting before its adjournment or to the Association within a reasonable time after adjournment of the meeting. The right of dissent or abstention is not available to a Director who votes in favor of the action taken.
Section 5. Action by Board Without a Meeting. Any action that could be taken at a meeting of the Board may be taken without a meeting if one or more written consents setting forth the action so taken are signed by each of the Trustees either before or after the action is taken and delivered to the Association. Action taken by written consent of Trustees without a meeting is effective when the last Trustee signs the consent, unless the consent specifies a later effective date. Any such written consent shall be inserted in the minute book as if it were the minutes of a Board meeting.
Section 1. Nomination. Nomination for election to the Board of Trustees shall be made by a Nominating Committee. Nominations may also be made from the floor at the annual meeting. The Nominating Committee shall consist of a Chairman, who shall be a member of the Board of Trustees, and two or more Members of the Association. The Nominating Committee shall be appointed by the Board of Trustees prior to each annual meeting of the Members, to serve from the close of such annual meeting until the close of the next annual meeting and such appointment shall be announced at each annual meeting.
Section 2. Election. Election of the Board of Trustees shall be by secret written ballot. At such election, the Members or their proxies may each cast one vote. The names receiving the largest number of votes shall be elected.
Section 1. Powers. The Board of Trustees shall have power:
(a) To adopt and publish rules and regulations governing the use of the Common Properties, Common Facilities, and the personal conduct of the Members and their guests thereon, and to establish penalties for the infraction thereof;
(b) To exercise for the Association all powers, duties and authority vested in it or delegated to it which are not otherwise reserved to the membership by other provisions of these By-laws, the Articles of Incorporation, the Declaration or applicable law;
(c) To declare the office of a member of the Board of Trustees to be vacant in the event such member shall be absent from three (3) consecutive regular meetings of the Board of Trustees; and
(d) To employ a manager, an independent contractor, or such other employees as they deem necessary, and to prescribe their duties.
Section 2. Duties. It shall be the duty of the Board of Trustees:
(a) To cause to be kept a complete record of all its acts and corporate affairs and to present a statement thereof to the Members at the annual meeting of the Members or at any special meeting when such statement is requested in writing by one-fourth (1/4) of the Members who are entitled to vote;
(b) To supervise all officers, agents and employees of this Association, and to see that their duties are properly performed;
(c) As more fully provided herein and in the Declaration:
(1) To establish, levy and assess, and collect the assessments or charges referred to in Article IX of the Declaration as applicable to the Association; and
(2) To send written notice of each assessment to every Owner thereto, at least thirty (30) days in advance of each annual assessment period;
(d) To issue, or to cause an appropriate officer to issue, upon demand by any Owner, a certificate setting forth whether any assessment has been paid. A reasonable charge may be made by the Board for the issuance of these certificates. Such certificates shall be conclusive evidence of any assessment therein stated to have been paid;
(e) To procure and maintain adequate liability insurance, and to procure adequate hazard insurance on property owned by the Association;
(f) To cause all officers or employees having fiscal responsibilities to be bonded, as it may deem appropriate; and
(g) To cause any Common Properties and Common Facilities owned by the Association to be maintained.
Section 3. Water System. The Board shall be responsible for the maintenance and repair of the water system. The Board shall determine a quarterly assessment payable by all Lot Owners connected to or who make use of the water system. From time to time, the Board may exempt a Lot Owner from payment of the quarterly water assessment. The Board shall provide notice to the Owners of and the reason for such exemption. The determination of the Board may be overturned by a vote of a majority of the Owners at the annual meeting immediately following the notice of the Board’s determination.
Section 1. The Board of Trustees may appoint such committees as are deemed appropriate in carrying out its purposes.
Section 2. If appointed by the Board pursuant to the previous section, it shall be the duty of each committee to receive complaints from Members on any matter involving Association functions, duties and activities within such committee’s field of responsibility. The committee shall dispose of such complaints as it deems appropriate or refer them to such other committee, Trustee or officer of the Association as is further concerned with the matter presented.
Section 1. Annual Meeting. The first annual meeting of the Members shall be held within six months of the data of incorporation of the Association, and each subsequent regular annual meeting of the Members shall be held within the first six months of the calendar year. If the day for the annual meeting of the Members is a legal holiday, the meeting will be held on the first day following which is not a legal holiday.
Section 2. Special Meetings. Special meetings of the Members may be called at any time by the president or by the Board of Trustees, or upon written request of the Members who are entitled to vote one-fourth (1/4) of all of the votes of the entire membership.
Section 3. Notice of Meetings. Written notice of each meeting of the Members shall be given by, or at the direction of, the secretary or person authorized to call the meeting by mailing a copy of such notice, postage prepaid, at least 15 days before such meeting, to each Member at the physical address, e-mail address, or fax number supplied by such Member to the Association. Such notice shall specify the place, day and hour of the meeting, and, in case of a special meeting, the purpose of the meeting.
Section 4. Waiver of Notice. Whenever any notice is required to be given by an Member under the provisions of these Bylaws, the Articles of Incorporation or the Washington law, a waiver of notice in writing, signed by the person or persons entitled to such notice and delivered to the Board, whether before or after the date and time of the meeting or before or after the action to be taken by consent is effective, shall be deemed equivalent to the giving of such notice. Further, notice of the time, place and purpose of any meeting will be deemed to be waived by any Member by attendance in person or by proxy, unless such Member at the beginning of the meeting objects to holding the meeting or transacting business at the meeting.
Section 5. Quorum. The presence at the meeting of Members entitled to cast, or of proxies entitled to cast, one-tenth (1/10th) of the votes of the entire membership shall constitute a quorum for any action except as otherwise provided in the Articles of Incorporation, the Declaration, or these By-laws. If, however, such quorum shall not be present or represented at any meeting, the Members entitled to vote thereat shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum as aforesaid shall be present or be represented.
Section 6. Proxies. At all meetings of Members, each Member may vote in person or by proxy. All proxies shall be in writing and filed with the secretary. Every proxy shall be revocable and shall automatically cease upon conveyance by the Member of his Lot.
Section 7. Action By Members Without Meeting. Any action that may or must be taken at a meeting of the Members may be taken without a meeting if one or more written consents describing the proposed action shall be signed by Members entitled to vote equal to not less than the minimum number of votes necessary to take such action were it taken at a meeting at which all Members entitled to vote on the action were present and voted. Every written consent shall bear the date of signature of each Member who signs the consent. A written consent is not effective to take the action referred to in the consent unless, within 60 days of the earliest dated consent delivered to the Association, written consents signed by a sufficient number of Members to take action are delivered to the Association. Unless the consent specifies a later effective date, actions taken by written consent of the Members are effective when (a) consents sufficient to authorize taking the action are in possession of the Association and (b) the period of advance notice required by these Bylaws to be given to any nonconsenting Members has been satisfied. Any such consent shall be inserted in the minute book as if it were the minutes of a meeting of the Members.
Section 1. Enumeration of Officers. The officers of this Association shall be a president and vice-president, who shall at all times be Members of the Board of Trustees, a secretary, and a treasurer, and such other officers as the Board may from time to time by resolution create.
Section 2. Election of Officers. The president shall be elected at the last Board meeting prior to the Membership Annual Meeting. Election of the remainder of the officers shall take place at the first meeting of the Board of Trustees following each annual meeting of the Members.
Section 3. Term. The officers of this Association shall be elected annually by the Board and each shall hold office for one (1) year unless he shall sooner resign, or shall be removed, or otherwise disqualified to serve.
Section 4. Special Appointments. The Board may elect such other officers as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine.
Section 5. Resignation. Any officers 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.
Section 6. 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 being replaced.
Section 7. 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 Section 4 of this Article.
Section 8. Duties. The duties of the officers are as follows:
(a) President: The president shall preside at all meetings of the Board of Trustees, shall see that orders and resolutions of the Board are carried out; shall sign all leases, mortgages, deeds and other written instruments and shall cosign all checks and promissory notes.
(b) Vice-Presidents: The vice-president shall act in the place and stead of the president in the event of his absence, inability, or refusal to act, and shall exercise and discharge such other duties as may be required of him by the Board.
(c) Secretary: The secretary shall record the votes and keep the minutes of all meetings and proceedings of the Board and of its 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 Members of the Association together with their addresses, and shall perform such other duties as required by the Board.
(d) 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 Trustees, shall sign all checks and promissory notes of the Association; and shall keep proper books of account.
Section 1. Creation of the Lien and Personal Obligation of Assessments. By the Declaration, each Owner is deemed to covenant and agree to pay the Association, for each Lot owned: (1) quarterly assessments or charges, (2) special assessments, and (3) specific assessments, all as provided herein. Any assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with such interest and costs of collection thereof (including reasonable attorney fees) shall also be the personal obligation of the person who was the Owner of such property at the time the assessment fell due. The personal obligation shall not pass to such Owner’s successors in title unless expressly assumed by them in writing; Provided, however, that in the case of a sale of any Lot which is charged with the payment of an assessment or assessments payable in installments, the person or entity who is the Owner immediately prior to the date of any such sale, contract or assignment, shall be personally liable only for the amount of the installments due prior to said date. The new Owner shall be personally liable for installments which become due on and after said date.
Section 2. Purpose of Assessment. The assessments shall be used exclusively for the purpose of promoting the recreation, health, safety and welfare of residents of the Association, including without limitation, the construction, establishment, improvement, repair and maintenance of the Common Properties and services and facilities related to the use and enjoyment of the Common Properties, the payment of taxes and insurance on the Common Properties, the payment of Common Expenses, and the improvement and maintenance of a water system and planting areas on the streets located within the subdivision, and the maintenance of roads and drainage system within said subdivision.
Section 3. Amount of the Quarterly Assessments. The amount of the quarterly assessment shall be as follows:
(a) Lot Assessment: Each Owner shall pay to the Association a quarterly assessment of Forty One Dollars and 14 cents ($41.14) per quarter per Lot as it may be increased or decreased as provided herein;
(b) Water Assessment: Each Owner connected to or who makes use of, the Association water system shall pay a quarterly assessment of Thirty Four Dollars and Seventy Three Cents ($34.73) per quarter per Lot as it may be increased or decreased as provided herein.
Section 4. Increase in Quarterly Assessments.
(a) From and after September 1st, 2006, the amount of the quarterly assessment may be increased effective January 1st of each year without a vote of the membership, by not more than that amount which reflects the increase, if any, of the U. S. Bureau of Labor Statistics Consumer Price Index (calculated on the base period: 1982-1984 equals 100) for Seattle, Washington, for "Urban Wage Earners and Clerical Workers - All Items", for the preceding month of August. Said index established the numerical rating for Seattle for the month of August, 2005, as 195.3. This shall be the base rating. To determine the percentage by which the quarterly assessment for each subsequent year may be increased without a vote of the membership, said base rating shall be divided into the said Consumer Price Index for the month of August preceding the effective date of the proposed increase. Said adjustment percentage, if in excess of 100 per centum, shall be multiplied by the initial quarterly assessment amount provided for herein to determine the maximum amount to which the quarterly assessment may be increased for the subsequent year without a vote of the membership.
(b) The maximum annual assessment may be increased by more than ten percent (10%) only if two-thirds (2/3) of the members of the Association, who are voting in person, proxy, or by mail at a meeting duly called for this purpose, consent to such an increase.
Section 5. Special Assessments for Capital Improvements. In addition to the quarterly assessments authorized above, the Association may levy special assessments for capital improvements upon the Common Properties, or as otherwise provided herein. Any such levy by the Association shall be for the purpose of defraying in whole or in part, the cost of any construction or reconstruction; improvement, repair or replacement of a described capital improvement upon the Common Properties, including the necessary fixtures and personal property related thereto: PROVIDED THAT any such assessment shall have the assent of two-thirds (2/3) of the votes of the members voting personally or by proxy at a meeting duly called for this purpose, written notice of which shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting, setting forth the purpose of the meeting.
Section 6. Specific Assessments. The Board may specifically assess against particular Lots expenses incurred by the Association to provide special benefits, items or services (a) on request of the Owner of a Lot; (b) made necessary by the conduct of the Owner or its licensees, invitees or guests; (c) necessary to bring the Lot into compliance with this Declaration, the Articles, the Bylaws or Association rules; or (d) as may be provided by the terms of this Declaration. Such Specific Assessments may be levied by the Board after notice to the applicable Owners and an opportunity for a hearing.
Section 7. Uniform Rate. Both quarterly and special assessments shall be fixed at a uniform rate for all Lots to which the assessment may apply.
Section 8. Quorum for Any Action Authorized Under Sections 4 and 5. At the first meeting called, as provided in Sections 4 and 5 hereof, the presence at the meeting of Members or of proxies entitled to cast sixty (60) percent of all the votes, shall constitute a quorum. In the required quorum is not forthcoming at any meeting, another meeting may be called, subject to the notice requirement set forth in Sections 3 and 5, and the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty days following the preceding meeting.
Section 9. Date of Commencement of Quarterly Assessments: Due Dates. As to each particular Lot involved, the liability for the quarterly assessments provided for in this Article IX shall begin on the first day of the calendar month following the expiration of thirty (30) days from the date of any deed or contract of sale for the Lot. Said assessment shall be due and payable on such date on the first day of each calendar month thereafter. The due date of any special or specific assessment under Sections 5 and/or 6 hereof shall be fixed by the resolution authorizing such assessment.
Section 10. Effect of Non-payment of Assessments: Remedies. Any assessment not paid within thirty (30) days after the due date shall bear interest at the rate of twelve percent (12%) per annum. Each Owner hereby expressly vests in the Association or its agents the right and power to bring all actions against such Owner personally for the collection of such assessments as debts and to enforce lien rights of the Association by all methods available for the enforcement of such liens, including foreclosure by an action brought in the name of the Association in like manner as a mortgage of real property. Such Owner hereby expressly grants to the Association the power of sale in connection with such liens. The liens provided for in this section shall be in favor of the Association and shall be for the benefit of the Association. The Association shall have the power to bid in an interest at foreclosure sale and to acquire, hold, lease, mortgage and convey the same. The Owner is responsible for payment of all attorneys, fees incurred in collecting past due assessments or enforcing the terms of assessment liens. No Owner may waive or otherwise escape liability for the assessments provided herein by non-use of the Common Properties or abandonment of his Lot.
The Association shall have the right to suspend the voting rights of an Owner for any period during which any assessment against the Lot remains unpaid and for a period not to exceed sixty (60) days for any infraction of the terms of either this Declaration, the Articles or the Bylaws of the Association.
Section 11. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage (and to the lien of any second mortgage given to secure payment of the purchase price) now or hereafter placed on any Lot. Sale or transfer of any Lot shall not affect the assessment lien. Sale or transfer shall not effect the personal liability of the Owner of any Lot for payment of any such assessment. However, the sale or transfer of any Lot which is subject to such first mortgage, or purchase money second mortgage pursuant to a decree of foreclosure under such mortgage or in lieu of foreclosure thereof, shall extinguish the lien of such assessments as to payments thereof, which became due prior to such transfer or sale. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.
Section 12. Exempt Property. The following property subject to the Declaration shall be exempt from the assessments created therein: (a) all Common Properties; (b) all properties dedicated to and accepted by a local public authority; and (c) all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of Washington. All Lots along Cedar Grove Road are exempt from assessment related to road construction and maintenance. However, such Lots shall remain obligated for one-half of the quarterly assessment payable by all Lot Owners. All Lots which are not connected to the Association water system are exempt from the assessment for the water system. However, no land or improvements devoted to dwelling use shall be exempt from said assessments.
AUTHORITY TO MORTGAGE
Any mortgage by the Association of the Common Properties defined in the Declaration shall have the assent of two-thirds (2/3) of the Members of the Association.
SUBDIVISION OF LOTS
No Member of this Association shall subdivide any Lot until such time as a standard sewer system is established and approved by the Seattle-King County Health Department.
The Association may be dissolved with the assent given in writing and signed by not less than two-thirds (2/3) of the Members of the Association. Upon dissolution of the Association, the assets, both real and personal of the Association, shall be dedicated to an appropriate public agency to be devoted to purposes as nearly as practicable the sane as those to which they were required to be devoted by the Association. In the event that such dedication is refused acceptance, such assets shall be granted, conveyed and assigned to any nonprofit organization, corporation, association or trust to be devoted to purposes and uses that would most nearly reflect the purposes and uses to which they were required to be devoted by the Association.
BOOKS AND RECORDS
The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Member. The Declaration, the Articles of Incorporation and the By-laws of the Association shall be available for inspection by any Member at the principal office of the Association, where copies may be purchased at reasonable cost.
The Association shall have a seal in circular form having within its circumference the words "FOUR LAKES LAND OWNERS' ASSOCIATION, INC." and the words "Corporate Seal Washington 1969" in the form and style as affixed in these By-laws by the impression of such seal.
Section 1. These By-laws may be amended, at a regular or special meeting of the Members, by a vote of a majority of a quorum of Members present in person or by proxy.
Section 2. In case of any conflict between the Articles of Incorporation and these By-laws, the Articles shall control; and in the case of any conflict between the Declaration and these By-laws, the heirarchy set forth in the Declaration shall control.
SUBSCRIBED and SWORN to before me this _____ day of _____ , 2006.
These By-laws are duly adopted by the corporation and the corporate seal thereof affixed on this day of , 2006. These Bylaws supersede any previous Bylaws of the Association dated prior to the date set forth above.