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Residents

These are the original governing documents. They are presently undergoing review and revision.

This page will be updated when the new documents are approved by the Stelle residents.

 

BYLAWS OF STELLE COMMUNITY ASSOCIATION

 

ARTICLE I
NAME AND LOCATION

The name of the corporation is Stelle Community Association hereinafter referred to as the Association.  The principal office of the Association shall be located in Stelle, Illinois 60919 and meetings of Members may be held at such places as may be designated by the Board of Directors.

ARTICLE II
SEAL

The corporate seal of the Association shall be in circular form and shall bear the name of the Association and the date 1983.

ARTICLE III
DEFINITIONS

SECTION 1.  “ASSESSABLE UNIT” shall mean and refer to any real property within the Properties which is subject to assessments as provided for in the Declaration of Protective and Restrictive Covenants, filed April 5, 1983, in Ford County, Illinois, by the Stelle Group, Inc.

SECTION 2.  “COMMON AREA” shall mean and refer to all real property and improvements thereon owned or leased by the Association for the use and enjoyment of the Members.

SECTION 3.  “DECLARATION” shall mean and refer to the covenants, conditions and restrictions and all other provisions therein set forth in the Document, as may be amended from time to time.

SECTION 4.  “DEVELOPER” shall mean and refer to The Stelle Group, its successors and assigns; provided, however, that no successor or assignee of the Developer shall have any rights or obligations of the Developer hereunder unless such rights and obligations are specifically set forth in the instrument of succession or assignment or which pass by operation of law.  The rights and obligations set forth herein of the Developer, as Developer, shall cease when all lots have been sold, or on December 31, 1987, whichever occurs first.

SECTION 5.  “FOUNDING DOCUMENTS” shall mean and refer to the Articles of Incorporation of the Association, the Declaration, and these Association Bylaws, all as initially drawn by the Developer and filed and recorded as the case may be, and all as may be duly amended from time to time.

SECTION 6.  “GOVERNING DOCUMENTS” shall mean and refer collectively and severally to the Founding Documents as such may be amended from time to time.

SECTION 7.  “LIVING UNIT” shall mean and refer to any portion of a structure situated upon the Properties designed and intended for use and occupancy as a residence by a single family.

SECTION 8.  “MEMBERS” shall mean and refer to members of the Association which shall consist of all Owners and all Occupants and which is comprised of Class A, Class B, and Class C Members as defined I Article IV of these Bylaws.

SECTION 9.  “MEMBERS” shall mean and refer to members of the Association which shall consist of all Owners and all Occupants and which is comprised of Class A, Class B, and Class C Members as defined in Article IV of these Bylaws.

SECTION 10.  “MULTI-FAMILY RENTAL STRUCTURE” shall mean and refer to a structure owned by a single entity with two or more Living Units under one roof.  Any “Multi-family Rental Structure” built prior to April 1983, which does not meet the requirements for living space as set forth in Article IV of the Declaration, shall be considered as a single family living unit for the purposes of assessment and voting.

SECTION 11.  “OCCUPANT” shall mean and refer to an occupant of a Living Unit who is the Owner, or contract purchaser, or renter, or a lessee or sublessee who is 18 years of age or older.

SECTION 12.  “OWNER” shall mean and refer to the record holder of the fee simple title to any Lot, whether one or more persons or entities, including contract sellers; the term shall exclude those having such interest merely as security for the performance of an obligation.

SECTION 13.  “PROPERTIES” shall mean and refer to all real property which becomes subject to the Declaration, together with such other real property as may from time to time be annexed thereto.

SECTION 14.  “PROPERTY-RELATED COMMUNITY RESOLUTION” shall mean and refer to all issues which have a visual and/or direct effect upon the land including but not limited to architectural standards.

SECTION 15.  “STELLE” shall mean and refer to the 2nd Resubdivision of Stelle Subdivision.

SECTION 16.  “REAL ESTATE” shall mean and refer to any plot of land within Stelle.


ARTICLE IV
MEMBERS, VOTING, AND MEETINGS

SECTION 1.  “MEMBERSHIP”

A.      BASIS.  Membership shall be to the Lot or Living Unit giving rise to such Membership, and shall not be assigned, transferred, pledged, or conveyed, in any way except as provided in the Governing Documents.

B.      MEMBERS’ RIGHTS AND DUTIES.  Each member shall have the rights, duties and obligations set forth in the Governing Documents

C.      VOTING RIGHTS.  The Association shall have three classes of voting membership:

CLASS A.  Class A Members shall be all Owners.  Class A Members shall be entitled to one vote for each Lot owned.

CLASS B.  Class B Members shall be all occupants, tenants or contract purchasers of Living Units who are owners or who are renters 18 years of age or older.  Class B Members must establish residence for a period of six months in the community in order to be eligible to vote.  Previous or near-Stelle residents who move into Stelle may have a six-month residency requirement waived or reduced, upon written request to the Board of Directors at least 30 days before an election.  An eligible person who rents a property in Stelle not covered by the Declaration shall be entitled to one Class B vote.

CLASS C.  Class C Members shall be all Owners of Lots with Living Units and/or Multi-Family Rental Structures.  Class C Members shall be entitled to one vote for each Living Unit owned, except an Owner of a Multi-Family Rental Structure shall be entitled to one vote for each Living Unit which is or has been occupied within such structure.

SECTION 2.  “VOTING RIGHTS”

A.      Class A Members shall vote as provided in the Bylaws to approve a change in the annual general assessments, and to vote on any property-related Community Resolutions.

B.      Class A and Class C Members shall vote as two separate classes to approve special capital improvements assessments; to approve mergers, consolidations or dissolutions of the Association; to approve conveyance, dedications, or mortgaging of the Common Area; (and) to approve amendments to the Declaration and Bylaws of the Association.  A majority vote will be required from each class.

C.      Class A and B Members shall vote as a single class to enact non-property related Community Resolutions, assessments not related to privately owned or Developer owned property, and to elect Directors.

D.      EXERCISE OF VOTE.  In the event that any Class A membership is held by more than one person as a tenant in common or joint tenant, then all such owners shall together be entitled to one vote and a majority of said owners must be in agreement on the casting of said vote for it to be valid.  Any person or entity qualifying as a Member of more than one voting class may exercise those votes to which he is entitled for each such class of Membership.

SECTION 3.  “MAJORITY REQUIRED FOR REFERENDUMS AND ELECTIONS.” 
A majority vote of Class A and B Members voting in any referendum or election shall be final and binding, except for those issues voted upon by either Class A or Classes A and C.  If a Member abstains or if his ballot is invalid, his vote shall not be counted for the purposes of determining a majority.

SECTION 4.  “PROCEDURE FOR BALLOTING.” 
The Association shall develop a procedure for voting on issues and for electing persons to office.  This procedure will be adopted by a majority vote of Class A, B, & C Members.  Voting shall occur at either the annual meeting or at duly called special meetings of the Association.

SECTION 5.  “CANDIDATES FOR ELECTED OFFICE.” 
Any Member of the Association is eligible to declare himself a candidate to serve on the Board of Directors, or any other elected office.  However, a Member may not hold more than one of these elected offices concurrently.  Therefore, if a Member already holds one of the elected offices described in this section and then is elected to another of these offices, he will be considered to have resigned his previously held office.

SECTION 6.  “GENERAL ELECTION DATES.” 
General elections for the Board of Directors shall be conducted during the annual meeting.

SECTION 7.  “ASSUMPTION OF OFFICE.” 
Each candidate who is elected in a general election shall assume office at the next meeting of the Board or within thirty days.

SECTION 8.  “ANNUAL MEETING.” 
The annual meeting of the Association shall occur during the month of January in the community of Stelle, Illinois.

SECTION 9.  “SPECIAL MEETINGS.” 
Special meetings of the Members may be called by the Chairman or the Board of Directors with a written notice stating the time and place and purpose of such meeting with at least five days notice.

ARTICLE V
LEGISLATIVE PROCESS
The Association shall develop a legislative process which shall set forth the procedures and manner through which the voting member(s) of the Association can propose bylaws, community resolutions, policies, rules, regulations, ordinances, guidelines, or any other governing agreement known by whatever name.  This process shall be adopted by a majority vote of the Class A and Class B Members voting as a single class.  (See Article XVII of these Bylaws which describes the manner by which proposed bylaw amendments may be approved or disapproved.)

ARTICLE VI
BOARD OF DIRECTORS

(For section on Architectural Review Board, as referred to in Article X, Section A of the Covenants, see Article VIII of these Bylaws.)

SECTION 1.  “NUMBER.” 
The affairs of the Association shall be managed by a Board of five Directors.  The initial Board shall consist of five Directors appointed by the Developer.  As long as the Developer has rights as Developer, the Board of Directors shall consist of Appointed Directors and Elected Directors.  Thereafter all Directors shall be elected.

SECTION 2.  “COMPOSITION.” 
Appointed Directors shall be appointed by the Developer.  They need not be Members of the Association.  The Developer shall appoint tow Directors until the number of Class A votes is greater than the number of Class C votes, after which time the Developer shall appoint one Director until its rights as Developer cease as defined in Article III, Section 4.

SECTION 3.  “ELECTED DIRECTORS.” 
Elected Directors shall be elected by Class A and Class B Members voting as a single class.  Elected Directors must be Members of the Association.  Two Directors shall be elected from among the Class A Membership, and one Director shall be elected from among the Class B Membership.  As the number of Directors appointed by the Developer decreases, those Directors shall be elected, one from Class A and one from Class B.

SECTION 4.  “TERMS AND TENURE.” 
There shall be no limit upon the number of terms a person may serve as a Director.  The term for Directors shall be two years unless removed from office per Section 8 or 9 of this Article.  The terms of the Directors shall be staggered with three Directors (two Class A and one Class B) elected in odd years, and two Directors (one Class A and one Class B) elected in even years.

SECTION 5.  “MEETINGS.” 
Meetings may be called by the President of the Board of Directors or by any two (2) Directors with at least one (1) day’s notice of the time and place of the meeting which is to be given to all Directors by the Secretary.  Notice of a meeting may be waived if all the Directors are present.

SECTION 6.  “QUORUM.” 
A majority of the Directors shall constitute a quorum.  Once a quorum has been established, the decisions of the majority of the Directors present at such a meeting shall be the decisions of the Board of Directors.

SECTION 7.  “COMPENSATION.” 
Any Director may be paid a reasonable salary for his services provided that a referendum by the Class A Members has been approved setting the amount and terms of such remuneration.  Directors may be reimbursed for reasonable expenses arising out of the performance of their duties.

SECTION 8.  “ELECTIONS AND VACANCIES.” 
The procedure for electing Directors or filling vacancies on the Board of Directors shall be the same as the provisions developed pursuant to Article IV, Section 4 of these Bylaws.

SECTION 9.  “RESIGNATION AND REMOVAL.” 
A Director may be removed from office according to the procedures developed pursuant to Article IV, Section 4 of these Bylaws.  Removal of elected Directors from office shall be voted upon by the Class A, Class B and Class C Membership.  Any Director who is absent from one-third (1/3) of the Board meetings during any six-month period (183 days) shall be considered as having resigned their position as a Director and the vacancy thus created shall be filled pursuant to Article VI, Section 8.

SECTION 10.  “DUTIES.” 
The Board of Directors may adopt architectural standards but they may not enact community resolutions or other legislation which would be enforceable upon the Members of the Association.  The Directors may initiate community resolutions through the legislative process developed by the Association per Article IV of these Bylaws.

Without limiting the generality of its powers, it shall be the duty of the Board of Directors to:

A.      Exercise its powers in accordance with Governing Documents.

B.      Cause to be kept a complete record of all its corporate affairs, make such records available for inspection by any Member or his agent, and present an annual statement to the Members.

C.      Confirm or deny architectural standards for the properties as developed by the Architectural Review Board.

D.      Supervise all officers, agents, and employees of the Association and see that their duties are properly performed.

E.       Designate depositories for Association funds, designate those officers, agents or employees who shall have authority to withdraw those funds from such accounts on behalf of the Association, and cause such persons to be bonded, as it may deem appropriate.

F.       Insure all property owners are in compliance with the protective covenants and the architectural standards.

G.     Send written notice of each assessment to every Owner subject thereto at least 30 days in advance of the due date of the annual assessment or the first installment thereof.

H.      Appoint committees such as the Board deems necessary or helpful or as may be prescribed in these Bylaws.

I.         Exercise its powers and duties in good faith, with a view to the interests of the Association; and to this end, abstain from casting a vote on matters where a potential conflict of interest may exist.

ARTICLE VII
OFFICERS

SECTION 1.  “ENUMERATION OF OFFICERS.” 
The officers of the Association shall be a president and a vice president, who shall at all times be members of the Board of Directors, a secretary, and a treasurer, and such other officers as the Board of Directors may from time to time by resolution create.

SECTION 2.  “ELECTION OF OFFICERS.” 
The election of officers shall take place at the first meeting of the Board of Directors following each annual meeting of the Members.

SECTION 3.  “TERM.” 
The officers of this Association shall be elected annually by the Board of Directors and each shall hold office for one year unless he is re-elected, or shall sooner resign, or shall be removed, or otherwise disqualified to serve.

SECTION 4.  “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 a resignation shall not be necessary to make it effective.

SECTION 5.  “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 replaces.

SECTION 6.  “MULTIPLE OFFICES.” 
The offices of president and secretary may not be held by the same person.

SECTION 7.  “DUTIES.” 
The duties of the officers are as follows:

A.      “PRESIDENT.”  The president shall preside at all meetings of the Board of Directors and of the Association (unless the Board designates another Director or Association Member to preside at such meetings); see that orders and resolutions of the Board are carried out; sign all mortgages, leases, deeds and other written instruments and co-sign all promissory notes and contracts as the Board may approve from time to time.

B.      “VICE PRESIDENT.”  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 exercise and discharge such duties as may be required of him by the Board.

C.      “SECRETARY.”  The secretary shall cause the minutes to be kept of all meetings and proceedings of the Board and of the Members; serve as custodian of Association files and records; keep the corporate seal of the Association and affix it on all papers requiring said sea; cause notice to be served to Members as maintained of the names of all Members of the Association together with their addresses, as registered by such Members together with the properties in which each has an interest; and perform such duties as required by the Board.

D.      “TREASURER.”  The treasurer shall cause all monies of the Association to be deposited in appropriate accounts and disbursed therefrom within the limits of the annual budget or as directed by resolution of the Board of Directors; co-sign any promissory notes and contracts; see the proper books of account are kept; be chief officer responsible for the annual preparation of the budget, income statement, and balance sheet statement to be presented to the Board at its annual meeting.

ARTICLE VIII
ARCHITECTURAL REVIEW BOARD

SECTION 1.  “COMPOSITION.” 
The Architectural Review Board shall consist of three members who may be, but need not be, Members of the Association.  Members of the Architectural Review Board shall serve a one-year term of office.  There shall be no limit to the number of terms.

SECTION 2.  “METHOD OF SELECTION.” 
The Developer shall recommend three persons to serve as the Architectural Review Board.  The Board of Directors shall approve or reject such recommendations.  In the case that a recommendation is rejected, the Developer shall thereupon recommend another person for appointment.  When the rights of the Developer as Developer cease, the Architectural Review Board shall be appointed by the Board of Directors, except that a Members of the Board of Directors may not serve on the Architectural Review Board.

SECTION 3.  “REMOVAL.” 
Any Architectural Review Board Member may be removed from the Board with or without cause by the Board of Directors.  Any Architectural Review Board Member 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 a resignation shall not be necessary to make it effective.

SECTION 4.  “CHAIRPERSON.”  
At the first meeting of the Board of Directors following each Annual Meeting of the Members, the Board shall appoint a Chairperson from among the Members of the Architectural Review Board.  The Architectural Review Board shall elect any other officers it may deem necessary.

SECTION 5.  “DUTIES.” 
The Architectural Review Board shall regulate the external design, appearance and locations of the Properties and improvements thereon in such a manner so as to preserve and enhance values and to maintain a harmonious relationship among structures and the natural vegetation and topography.  In furtherance thereof, the Board shall:

A.      Review and approve, modify or disapprove, within thirty (30) days all written applications of Owners and of the Developer from improvements or additions to Lots, Living Units or Common Areas; in this regard.

B.      Periodically inspect the Properties for compliance with architectural standards and approved plans for alteration; and

C.      Adopt architectural guidelines and programs subject to the confirmation of the Board of Directors; and

D.      Adopt procedures for the exercise of its duties; and

E.       Maintain complete and accurate records of all actions taken.

SECTION 6.  “APPEAL OF ARCHITECTURAL REVIEW BOARD DECISION.” 
Any decision of the Architectural Review Board may be appealed to the Board of Directors, and any decision of the Board of Directors may be directly appealed to the Class A Membership for a vote by submitting a petition signed by ten (10) percent of the Class A Members concurring with such appeal of the Board of Directors.

ARTICLE IX
CITY TREE BOARD

SECTION 1.  “COMPOSITION.” 
The City Tree Board shall consist of three members who are Stelle residents and who may be, but need not be, Members of the Association.  Members of the City Tree Board shall serve a two-year term of office.  There shall be no limit to the number of terms.

SECTION 2.  “METHOD OF SELECTION.” 
Potential City Tree Board members shall declare their intention to serve to the Board of Directors.  The Board of Directors shall then appoint the City Tree Board members.

SECTION 3.  “REMOVAL/VACANCIES.” 
Any City Tree Board Member may be removed from the Board by the Board of Directors.  Any City Tree Board member 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 any later time specified therein, and unless otherwise specified therein the acceptance of such a resignation shall not be necessary to make it effective.  In the event that a vacancy shall occur during the term of any City Tree Board member, a successor shall be appointed for the unexpired portion of the term.

SECTION 4.  “OPERATION.” 
The City Tree Board shall choose its own officers, determine its operating procedures and keep a record of its proceedings.  A majority of the members shall be a quorum for the transaction of business.

SECTION 5.  “DUTIES AND RESPONSIBILITIES.” 
The City Tree Board shall be responsible for:

A.      Studying, investigating, counseling, developing and/or updating annually, and administering a written plan for the care, preservation, pruning, planting, replanting, removal or disposition of trees and shrubs in parts, along streets and in other common areas.  Such plan will be presented annually to the Board of Directors and upon their acceptance shall constitute the official comprehensive city tree plan for the community of Stelle, State of Illinois.

B.      Upon request, investigating, reporting and recommending upon any special matter of question coming within the scope of its work.

C.      Delineating and determining the City Tree Ordinance.  This Ordinance shall be adopted by a majority vote of the Class A and Class B Members voting as a single class.

SECTION 6.  “REVIEW.” 
The City Tree Board shall submit an annual report to the Board of Directors.  The Board of Directors shall then review the previous year’s conduct, acts and decisions of the City Tree Board.  The City Tree Board shall present its development and maintenance plan for the coming year by November 15 each year.  The Board of Directors shall then seek community input on the proposed plan and then approve the plan for the coming year by November 30.

SECTION 7.  “APPEAL OF CITY TREE BOARD DECISION.” 
Any person may appeal from any ruling or order of the City Tree Board to the Board of Directors, who may hear the matter and make a final decision.  Any decision of the Board of Directors may be appealed directly to the Class A and Class B Membership for a vote by submitting a petition signed by ten (10) percent of the Class A and B Members concurring with such appeal to the Board of Directors.

ARTICLE X
MEETINGS OF BOARD OR COMMITTEES

SECTION 1.  “REGULAR MEETINGS.” 
Regular meetings of each board or committee shall be held without requirement of a notice at such place and hour as may be fixed from time to time by resolution of such board or committee.

SECTION 2.  “SPECIAL MEETINGS.” 
Special meetings of any board or committee shall be held when called by the president of the board or committee by its chairman or by any two members or chairman of such board or committee, after not less than three (3) days notice to each member of such board or committee.  Attendance at a meeting without the objection to not receiving the three-day notice constitutes a waiver of this provision.

SECTION 3.  “EXECUTIVE SESSIONS.” 
All meetings of the boards or committees shall be open to observers, except the president or chairman may call a board or committee into executive session on matters of personnel, delinquent accounts and litigation.

ARTICLE XI
COVENANT FOR ASSESSMENTS

SECTION 1.  “CREATION OF THE LIEN AND PERSONAL OBLIGATION OF ASSESSMENTS.” 
The Developer hereby covenants, and each owner of any Lot by acceptance of a deed thereof, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association such Annual and/or Special Assessments as are established herein and paid in the manner hereinafter provided.  All such assessments, together with 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 such assessment is made.  Each such assessment, together with interest thereon and costs of collection thereof, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due and shall not pass to his successors in title unless expressly assumed by them.  No owner may waive or otherwise escape liability for the assessments provided herein by non-use of the Common Area or abandonment of his Assessable Unit.

SECTION 2.  “SUBORDINATION OF LIEN TO MORTGAGE.” 
The lien of the assessments provided for here in shall be subordinate to the lien of any first mortgage or first deed of trust or any other prior existing lien.  Sale or transfer of any Assessable Unit shall not affect the assessment lien.  However, the sale or transfer of an Assessable Unit pursuant to the foreclosure of a first mortgage or first deed of trust or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which become due prior to such sale or transfer.  No sale or transfer shall relieve such Assessable Unit from liability for any assessments thereafter becoming due or from the lien thereof.

SECTION 3.  “METHOD OF ASSESSMENT.” 
All assessments shall be levied by the Association against Assessable Units and collected and disbursed by the Association except for no-property related assessments as designated in Section 5 (C) below.

SECTION 4.  “GENERAL ASSESSMENT.” 
The General Assessment shall be used exclusively to improve, maintain, and operate the Common Area and facilities, including funding of appropriate reserves for future repair and replacement.  The amount of assessment shall be the determination of the Class A voting members.  The Association shall fix the annual General Assessment at an amount sufficient to meet the obligations imposed by the Declaration.  In the event that the Association fails to fix an assessment for any fiscal year, then each assessment established for the prior year shall automatically be continued until such time as the Association acts.

A.      BASIS FOR ASSESSMENT. 
For General Assessment purposes, there shall be two categories of Assessable Units, both of which shall be assessed at a uniform rate within each category.

·        ASSESSMENT CATEGORY I:  All living units which are or have been occupied shall be assessed at one hundred percent (100%) of the General Assessment rate.

·        ASSESSMENT CATEGORY II:  All lots owned by anyone other than the Developer, as defined within these Bylaws as having living units thereon which are not occupied nor have they ever been occupied, hall be assessed at 10% of the general assessment rate, except as specified in Section 8 of this article.

SECTION 5.  “SPECIAL ASSESSMENTS.”

A.      CAPITAL IMPROVEMENT ASSESSMENT.  The Association may levy in any assessment year a Special Assessment applicable to that year and payable over not more than the next three (3) succeeding years, for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area, including fixtures and personal property related thereto, or upon public land within the Properties, provided that any such assessment shall have the assent of both the Class C and Class A Membership voting as two distinct classes.

B.      RESTORATION ASSESSMENT.  The Board of Directors may levy a Restoration Assessment upon any Lot whose Owner fails to maintain such lot or who fails to provide such maintenance funds as may be required.  Restoration Assessments shall be limited to the amount necessary to meet the cost of restoration or deficiency in required funds and the cost of collection thereof.

C.      NON-PROPERTY RELATED ASSESSMENTS.  The Association may levy a non-property related assessment which shall be the determination of Class A and Class B Members.  The method of assessment shall be designated as part of the resolution or vote adopting the assessment.  It is expressly forbidden that liens against property be used to enforce payment of these assessments.

SECTION 6.  “EFFECT OF NONPAYMENT OF ASSESSMENTS.” 
Any assessment installment not paid within thirty (30) days after the due date shall be delinquent.  Thereupon, the Association shall provide Notice of such delinquency and may (a) declare the entire balance of such Annual or Special Assessment due and payable in full, (b) charge interest penalty from the due date at a percentage rate no greater than the statutory maximum, (c) give Registered Notice to the Owner that in the event payment with accrued interest is not paid within thirty (30) days from the date of such notice, then the expressed contractual lien provided for herein shall be foreclosed, (d) upon Registered Mail Notice to the Owner, suspend the right of such Owner to vote or to use recreational facilities until the assessment and accrued interest is paid in full.

SECTION 7.  “PROPERTY SUBJECT TO THESE BYLAWS.” 
The property subject to these Bylaws is the residential property and common areas designated on the plat maps called the Resubdivision of Stelle Subdivision #1, filed in April 1983.  Residential lots and/or homes owned at the date of the filing of the plat are specifically exempt unless the owners(s) elects to join the Association.  The Developer shall convey all common area and facilities in accordance with the terms and schedules developed and mutually agreed to by the Developer and the Stelle Community Association.  The Association is expressly forbidden from mortgaging any common area or facility without the written approval of the Developer so long as the Developer has rights in this Association.

SECTION 8.  “EXEMPT PROPERTY.” 
The following property subject to the Declaration shall be exempt from the assessments, charge and lien created herein:  (a) all properties to the extent of any easement or other interest therein dedicated and accepted by a public authority and devoted to public use, (b) all common areas, (c) all properties exempted from taxation by the state or county government or other public agencies of jurisdiction upon the terms and to the extent of such legal exemption, provided that no property utilized for residential purposes shall be exempt.

ARTICLE XII
PRESERVATION OF RIGHTS
Any non-enforcement or waiver of the use of the Association’s, the Directors’, the Members’, or the Developer’s rights or powers as granted in the governing documents does not constitute a relinquishing or forfeiture of such rights or powers.

ARTICLE XIII
MEDIATION

The Association may develop a non-binding mediation process to provide a means for the resolution of disputes arising between any Member(s) of the Association and other Member(s); or any group(s), association(s), or corporation(s) consisting primarily or exclusively of Members of the Association.

ARTICLE XIV
INDEMNIFICATION

Each officer, director, and board member of the Association in consideration of his services as such, shall be indemnified by the Association to the extent permitted by law against expenses and liabilities reasonably incurred by him in connection with the defense of any action, suit or proceeding, civil or criminal, to which he may be a party by reason of his past or present role in the Association, except to the extent such liability, damage, or injury is covered by any type of insurance.  The foregoing right of indemnification shall not be exclusive of any other rights to which the person may be entitled by laws, or agreement, or vote of the Members otherwise.

ARTICLE XV
FISCAL YEAR

The fiscal year of the Association shall be the calendar year except the first fiscal year shall begin on the date of incorporation.

ARTICLE XVI
INVALIDATION

Invalidation of any article, section, or provision of these Bylaws by judgment or court order shall in no wise affect any of the other provisions which shall remain in full force and effect.

ARTICLE XVII
AMENDMENT

These Bylaws may be amended by a majority of both the Class A and Class C eligible voting Membership voting as two distinct classes.  A majority vote of both classes is required for amendment.  Notice of the proposed amendment must be provided to both the Class A and Class C Membership at lease 15 days in advance of such vote.  Amendments shall become effective upon adoptions or as stated in such amendment.

October 1992