By LawsBYLAWS
OF
TETON TERRACE
HOMEOWNERS ASSOCIATION
These Bylaws are to govern the course of the conduct of the
aforesaid homeowners association. The property affected hereby
upon which these Bylaws were on together with covenants and
declarations where appropriate is more particularly described as
Teton Terrace, a subdivision in Flathead County, Montana, and any
resubdivisions or amendments thereof and any areas added thereto
as stated in the Declaration of Covenants.
ARTICLE I. PLAN OF OWNERSHIP
SECTION 1. Applicability of Bylaws: The provisions of these
Bylaws are applicable to the townhouses, hereafter referred to as
Units, and to the use and occupancy thereof. The term property,
as used herein shall include the land, the buildings, and all
other improvements thereon, all easements, rights and
appurtenances belonging thereto, and all other property, personal
or mixed, intended for the use in connection therewith, all of
which have been submitted to the provisions of the aforesaid
Declaration of Covenants.
SECTION 2. Application: All present and future owners,
mortgagees, lessees, and occupants of Units and their employees,
and any other persons who may use the Units in any manner are
subject to these Bylaws, the Declaration of Covenants, and rules
and regulations pertaining to use and operation of the property,
unless specifically excepted by a provision of the Declaration of
these Bylaws. The acceptance of a deed or conveyance, or the
entering into a lease, or the act of occupancy of a Unit shall
constitute an acceptance of the provisions of these instruments
and a agreement to comply therewith.
SECTION 3. Office: The office of the Association shall be
located at
SECTION 4. Sponsor: The term Sponsor as used herein shall mean
the developers of the project known as Teton Terrace, a
subdivision, as they appear in the Declaration of Covenants
herewith.
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SECTION 1. Qualifications: When these Bylaws refer to a
member of the Board of Directors who is a sponsor designate, such
designate may be any person of the Sponsor's choosing, including
himself. When these Bylaws refer to a member of the Board of
Directors elected by the Unit Owners, such a member must be a
person holding title to a Unit, whether such title is sole and
absolute or in common with others, or in the case of partnership
owners or mortgagees, shall be members or employees of such
partnership, or in the case of corporate owners or mortgagees,
shall be officers, shareholders, or employees of such
corporation, or in the case of fiduciary.
SECTION 2. Constitution of the Board: The affairs of the
Association shall be governed by a Board of Directors constituted
as follows:
(a.) Until the earliest occurrence of one of the following
two events, the Board of Directors shall consist of the
"Sponsor" and such people as they may designate in their
sole and absolute discretion:
(1) Ninety (90) days after twenty-one (21) units
representing 800 of the common interest are sold
by the Sponsor, or corporation hereinafter formed
by them; or
(2) Four (4) years from the date of the first sale to
a unit purchaser.
(b.) Commencing after the earliest occurrence of one of
the events set forth in sub -part (a.) above, the Board shall
consist of five members all of whom shall be elected as
hereinafter provided.
SECTION 3. Powers and Duties: The Board of Directors shall have
the powers and duties necessary for the administration of the
affairs of the Association, except such powers and duties as by
law or by the Declaration, or by these Bylaws, that may not be
delegated to the Board of Directors by the Unit Owners. The
powers and duties to be exercised by the Board of Directors shall
include, but shall not be limited to, the following:
V,
(a.) Operation, care, upkeep and maintenance of the common
elements;
(b.) Determination of the amounts required for operation,
maintenance, and other affairs of the Association;
(c.) Collection of the common charges from the Unit Owners;
(d.) Employment and dismissal of the personnel, as necessary
for the efficient maintenance and operation of the
Association;
(e.) Adoption and amendment of rules and regulations
covering the details of the operations and use of the
Association property;
(f.) Opening of bank accounts on behalf of the Association
and designating the signatories required therefore;
(g.) Purchasing, leasing, or otherwise acquiring in the name
of the Board of Directors, or its designee, corporate
or otherwise, on behalf of all Unit Owners, Units
offered for sale or lease or surrendered by their
owners to the Board of Directors.
(h.) Purchasing Units at foreclosure or other judicial sale
in the name of the Board of Directors, or its designee,
corporate or otherwise, on behalf of all Unit Owners;
(i.) Selling, leasing, mortgaging, voting the appurtenant to
(other than for the election of members of the Board of
Directors), or otherwise dealing with Units acquired
by, and subleasing Units leased by the Board of
Directors or its designee, corporate or otherwise, on
behalf of all Unit Owners;
(j.) Organizing corporations to act as designees of the
Board of Directors in acquiring title to or leasing of
Units on behalf of all Unit Owners;
(k.) Leasing laundry rooms, if any, and granting licenses
for vending machines, if there are any;
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(1.) Obtaining insurance if the same is determined to be
necessary;
(m.) Making repairs, additions, and improvements to, or
alterations of the property, and repairs to and
restoration of the property in accordance with the
other provisions of these Bylaws, after damage or
destruction by fire or other casualty, or as a result
of condemnation for eminent domain proceedings, if
necessary;
(n.) Acting as the approving entity for construction and
engaging in any other activity authorized by the Bylaws
or Declaration.
SECTION 4. Managing Agent and Manager: The Board of Directors
may employ a managing agent and manager at a compensation
established by the Board of Directors, to perform such duties and
services as the Board of Directors shall authorize. However, any
management agreement for the subdivision will provide a clause to
the effect that the agreement is terminable by the Association
for causes upon thirty (30) days written notice thereof, and that
such an agreement may not exceed one year in duration nor be
renewable for more than one year at any given time.
SECTION 5. Elections: When the Board of Directors is to be
constituted as provided in Article II, Section 2(b.), of these
Bylaws, an election shall be held upon call or Sponsor as set
forth in Article III, Section 1(a.), with subsequent elections to
be held at each annual meeting of Unit Owners thereafter to elect
directors as provided in these Bylaws. All members of the Board
of Directors which are permitted to be designated as such by the
Sponsor, serve at the sufferance of the Sponsor. Unless earlier
terminated at the will of Sponsor or by the provisions of Article
II, Section 2(b.), of these Bylaws, all members of the Board of
Directors designated as such by the Sponsor serve for one year
terms, but they may be designated as directors by the Sponsor for
more than one term, and their reappointment need not occur at the
Annual Meeting of the Unit Owners, nor need it be accompanied by
any formal action on the behalf of the Sponsor.
SECTION 6. Removal of Members of the Board of Directors: At
any regular or special meeting of Unit Owners, any one or more of
the members of the Board of Directors, except those designated as
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such by the Sponsor, may be removed with or without cause by a
two-thirds (2/3) vote of the Unit Owners, and a successor may
then and there or thereafter be elected to fill the vacancy thus
created. Any member of the Board of Directors whose removal has
been proposed by the Unit Owners shall be given an opportunity to
be heard at the meeting.
SECTION 7. Vacancies: Vacancies in the Board of Directors,
except a vacancy of a Board Member designated as such by the
Sponsor, caused by any reason other than the removal of a member
thereof by a vote of the Unit Owners, shall be filled by a vote
of a majority of the remaining members at a special meeting of
the Board of Directors held for that purpose promptly after the
occurrence of any such vacancy, even though the members present
at such meeting may constitute less than a quorum, and each
person so elected shall be a member of the Board of Directors
until the next annual meeting of the Unit Owners, at which time
the Unit Owners shall elect a successor by a majority vote who
shall serve out the remainder of the unexpired term.
SECTION 8. Organization Meeting: The first meeting of the
members of the Board of Directors following the Annual Meeting of
the Unit Owners shall be held within ten (10) days thereafter, at
such time and place as shall be set by the Unit Owners at the
meeting at which such Board of Directors shall have been elected,
and no notice shall be necessary to the newly elected members of
the Board of Directors in order legally to constitute such
meeting, providing a majority of the Board of Directors shall be
present.
SECTION 9. Regular Meetings: Regular meetings of the Board of
Directors may be held at such time and place as shall be
determined from time to time by a majority of the members of the
Board of Directors. Notice of regular meetings of the Board of
Directors shall be given to each member of the Board by mail or
FAX at least five (5) business days prior to the day named for
such meeting.
SECTION 10. Special Meetings: Special meetings of the Board of
Directors may be called by the president on five (5) business
days notice to each member of the Board of Directors, given by
mail or FAX, which notice shall state the time, place and purpose
of the meeting. Special meetings of the Board of Directors shall
be called by the president or secretary in like manner and on
like notice on the written request of at least two members of the
Board of Directors.
SECTION 11. Waiver of Notice: Any member of the Board of
Directors may, at any time, waive notice of any meeting of the
Board of Directors in writing, and such waiver shall be deemed
equivalent to the giving of such notice. Attendance by a member
of the Board of Directors at any meeting of the Board shall
constitute a wavier of notice by him of the time and place
thereof. If all the members of the Board of Directors are
present at any meeting of the Board, no notice shall be required
and any business may be transacted at such meeting.
SECTION 12. Quorum of the Board of Directors: At all meetings
of the Board of Directors, a majority of the members thereof
shall constitute a quorum for the transaction of business, and
the votes of a majority of the members of the Board of Directors
present at a meeting at which a quorum is present shall
constitute the decision of the Board of Directors. If at any
meeting of the Board of Directors there shall be less than a
quorum present, a majority of those present may adjourn the
meeting from time to time. At any such adjourned meeting at
which a quorum is present, any business which might have been
transacted at the original meeting, may be transacted without
further notice.
SECTION 13. Fidelity Bonds: The Board of Directors shall
obtain adequate fidelity bonds for all officers and employees of
the Association handling or responsible for Association funds.
The premiums on such bonds shall constitute a common expense.
SECTION 14. Compensation: No member of the Board of Directors
shall receive any compensation of more than $25.00 per meeting
from the Association for acting as such. No compensation will be
paid without approval and upon resolution of the Board and
approval of the membership at an annual meeting.
SECTION 15. Liability of the Board of Directors: The members
of the Board of Directors shall not be liable to the Unit Owners
for any mistake of judgement, negligence, or otherwise except for
their own individual willful misconduct or bad faith. The Unit
Owners shall indemnify and hold harmless each member of the Board
of Directors against all contractual liability to others arising
out of contracts made by the Board of Directors on behalf of the
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Association. It is also intended that the liability of any Unit
Owner arising out of any contract made by the Board of Directors,
or out of the indemnity in favor of the members of the Board of
Directors, shall be limited to such proportion determined by
using the number of Units owned by the owner divided by the
number of Units built and having been or being occupied at the
time of the claim. Every agreement made by the Board of
Directors or by the managing agent or by the manager on behalf of
the Association shall provide that the members of the Board of
Directors, or the managing agent, or the manager, as the case may
be, are acting only as agents for the Unit Owners and shall have
no personal liability thereunder (except as Unit Owners), and
that each Unit Owner's liability thereunder is limited as above
stated.
ARTICLE III. UNIT OWNERS
SECTION 1. Annual Meetings:
(a.) The first annual meeting of the Unit Owners will be
held upon call of Sponsor, within thirty (30) days of
the earliest occurrence of one of the two events set
forth in Article II, Section 2(a).
(b.) Thereafter, the annual meeting of the Unit Owners shall
be held on the last Tuesday of July of each succeeding
year; unless such date shall occur on a holiday, in
which event the meeting shall be held on the succeeding
working day. At such meeting the Board of Directors,
except those designated as such by the Sponsor, shall
be elected by ballot of the Unit Owners in accordance
with the requirements of Article II, Section 5 of these
Bylaws. The Unit Owners may transact any other business
at such meeting as may properly come before them.
SECTION 2. Place of Meeting: Meetings of the Unit Owners shall
be held at the principal office of the Association, or at such
other suitable place convenient to the owners as may be
designated by the Board of Directors.
SECTION 3. Special Meetings: It shall be the duty of the
president to call a special meeting of the Unit Owners if so
directed by resolution of the Board of Directors, or upon a
petition signed and presented to the secretary by Unit Owners
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owning a total of at least twenty-five percent (250) of the
units. The notice of any special meeting shall state the time,
place and purpose of the meeting. No business shall be
transacted at such special meeting except as stated in the
notice.
SECTION 4. Notice of Meetings: The secretary shall mail to
each Unit Owner of record a notice of each annual or special
meeting of the Unit Owners, stating the purpose thereof, as well
as the time and place where it is to be held, at the building or
at such other address as such Unit Owners shall have designated
by notice in writing to the secretary. The mailing of a notice
of meeting in the manner provided in this section shall be
considered service of notice.
SECTION 5. Adjournment of Meetings: If any meeting of Unit
Owners cannot be held because a quorum has not attended, either
in person or by proxy, the president will adjourn the meeting to
a time not less than 48 hours from the time the original meeting
was called, in order that a quorum may be obtained.
SECTION 6. Order of Business: The order of business at all
meetings of the Unit Owners shall be as follows:
a. Roll Call
b. Proof of Notice of Meeting
C. Reading of the minutes of preceding meeting
d. Report of Officers
e. Report of the Board of Directors
f. Report of Committees
g. Election of inspectors of election (when so required)
h. Election of members of Board of Directors (when so
required)
I. Unfinished business; and
j. New business.
SECTION 7. Voting: On all matters to be decided by the
Association, unless excluded by the Declaration or this document,
each Unit Owner shall have one vote. A majority of the Unit
Owners or a majority of unit votes represented by the owner of
the votes present at any meeting or by proxy shall be sufficient
to act on matters brought before the Association. Meetings of
the Association shall only be conducted when a quorum is present,
as defined herein.
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Each Unit in the described property shall have one (1) vote,
but that vote shall be proportionally distributed between all
owners. As used herein, the owners of the property shall be the
person holding possession and title including herein a purchaser
under direct contract for deed, but shall not include a mortgagee
or a contract seller.
Until 90% of the presently proposed units are built and
sold, developer shall have two votes for each unit retained. The
presently proposed number of units is twenty-six (26).
SECTION 8. Majority of Unit Owners: As used in these Bylaws,
the term "majority of Unit Owners" shall mean those Unit Owners
having more than 50% of the authorized votes of all Unit Owners
present in person or by proxy and voting at any meeting of the
Unit Owners determined in accordance with the provisions of
Section 7 of this Article III.
SECTION 9. Quorum: Except as otherwise provided in these
Bylaws, the presence in person or by proxy of Unit Owners having
one-half of the total authorized votes of all Unit Owners shall
constitute a quorum at all meetings of the Unit Owners.
Upon proof of the notice being sent for the annual meeting
to all Unit Owners, the number of Unit Owners present at the
annual meeting shall constitute a quorum.
SECTION 10. Majority Vote: The vote of a majority of Unit
Owners at meeting at which a quorum shall be present shall be
binding upon all Unit Owners for all purposes except where a
higher percentage vote is required by law, by the Declaration, or
by these Bylaws. Meetings of the Association shall only be
conducted when a quorum is present, as defined herein.
ARTICLE IV. OFFICERS
SECTION 1. Designation: The principle officers of the
Association shall be the president, the vice-president, the
secretary, and the treasurer, all of whom shall be elected by the
Board of Directors. The Board of Directors may appoint an
assistant treasurer, an assistant secretary, or such other
officers as in its judgement may be necessary. The president and
vice-president must be members of the Board of Directors. The
offices of secretary and treasurer may be combined.
SECTION 2. Election of Officers: Officers shall be elected
annually by the Board of Directors at the organization meeting of
each new Board of Directors and shall hold office at the pleasure
of the Board of Directors.
SECTION 3. Removal of Officers: Upon affirmative vote of a
majority of members of the Board of Directors, any officer may be
removed, either with or without cause, and his successor may be
elected at any regular meeting of the Board of Directors, or at
any special meeting of the Board of Directors called for such
purpose.
SECTION 4. President: The president shall be the chief
executive officer of the Association. He shall preside at all
meetings of the Unit Owners and of the Board of Directors. He
shall have all of the general powers and duties which are
incident to the office of president of a corporation organized
under the Business Corporation Law of the State of Montana,
including, but not limited to, the power to appoint from among
the Unit Owners any committee which he decides is appropriate to
assist in the conduct of the affairs of the Association.
SECTION 5. Vice -President: The vice-president shall take the
place of the president and perform his duties whenever the
president shall be absent or unable to act. If neither the
president nor the vice-president is able to act, the Board of
Directors shall appoint some other member of the Board of
Directors to act in the place of the president, on an interim
basis. The vice-president shall also perform any other duties as
shall from time to time be imposed upon him by the Board of
Directors or by the president.
SECTION 6. Secretary: The secretary shall keep the minutes of
all meetings of the Unit Owners and of the Board of Directors; he
shall have charge of such books and papers as the Board of
Directors may direct; and he shall, in general, perform all the
duties incident to the office of secretary of a corporation
organized under the Business Corporation Law of the State of
Montana.
SECTION 7. Treasurer: The treasurer shall have the
responsibility for Association funds and securities, and shall be
responsible for keeping full and accurate financial records and
book of accounts showing all receipt and disbursements, and for
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the preparation of all required financial statements. He shall
be responsible for the deposit of all money and other valuable
effects in the name of the Board of Directors, or the managing
agent, in such depositories as may from time to time be
designated by the Board of Directors, and he shall, in general,
perform all the duties incident to the office of treasurer of a
corporation organized under the Business Corporation Law of the
State of Montana.
SECTION 8. Agreements, Contracts, Deeds, Checks, Etc.: All
agreements, contracts, deeds, leases, checks, and other
instruments shall be executed by any two officers or by such
other person or persons as may be designated by the Board of
Directors.
SECTION 9. Compensation of Officers: No officer shall receive
any compensation for acting as such unless the same is approved
first by the Board of Directors and then by a majority vote of
the Unit Owners present in person or by proxy at the annual
meeting.
SECTION 1. Determination of Common Expenses and Common Charges:
The Board of Directors shall from time to time, and at least
annually, prepare the budget for the Association, determine the
amount of the common charges required to meet the common
expenses, and allocate and assess such common charges against the
Unit Owners in proportion to the number of Units owned by them
divided by the number of Units built and at one time occupied.
The common expenses shall include, among other things, the cost
of all insurance premiums on all policies of insurance, if any,
which have been obtained by the Board of Directors. The common
expenses may also include such amounts as the Board of Directors
may deem proper for the operation and maintenance of the
property, including, without limitation, an amount for working
capital, for a general operating reserve, for a reserve fund for
replacements, and to make up any deficit in the common expenses
for any prior year. The common expenses may also include such
amounts as may be required for the purchase or lease by the Board
of Directors or its designees, corporate or otherwise, on behalf
of all Unit Owners, if any Unit whose owner has elected to sell
or lease such Unit or of any Unit which is to be sold at a
foreclosure or other judicial sale. The Board of Directors shall
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advise each owner in writing of the amount of common charges
payable by him, and shall furnish copies of each budget on which
such common charges are based to all Unit Owners and to their
mortgagees.
SECTION 2. Insurance: The Board of Directors may in their
discretion and with the consent of a majority of Unit Owners
acquire any type of insurance they and the majority of Unit
Owners deem necessary or appropriate. This provision does not
require the Board to acquire any insurance.
SECTION 3. Payment of Common Charges: All Unit Owners shall be
obligated to pay the common charges assessed by the Board of
Directors at such time or times as the Board of Directors shall
determine.
No Unit Owner shall be liable for the payment of any part
of the common charges assessed against his unit subsequent to a
sale, transfer, or other conveyance by him thereof (made in
accordance with the provisions of Section 1 of Article VII of
these Bylaws). A Unit Owner may, subject to the conditions
specified in these Bylaws, and provided that his Unit is free and
clear of liens and encumbrances other than a permissible first
mortgage and the statutory lien for unpaid common charges, but
not including contracts for deed without the mortgage and the
statutory lien for unpaid common charges, but not including
contracts for deed without the consent of the seller convey his
Unit to the Board of Directors, or its designee, corporate or
otherwise, on behalf of all other Unit Owners, and in such event
be exempt from common charges thereafter assessed. A purchaser
of a Unit shall be liable for the payment of common charges
assessed against such Unit, except that a mortgagee, trust
indenture beneficiary or other purchaser of a Unit, who comes
into possession at a foreclosure sale of such Unit or at other
proceeding in lieu of foreclosure, shall not be liable for and
such Unit shall not be subject to a lien for the payment of
common charges assessed prior to the foreclosure sale.
SECTION 4. Collection of Assessments: The Board of Directors
shall assess common charges against the Unit Owners from time to
time and at least annually and shall take prompt action to
collect from a Unit Owner any common charge due which remains
unpaid by him for more than thirty (30) days from the due date
for payment.
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SECTION 5. Default in Payment of Common Charges: In the event
of default by any Unit Owner in paying to the Board of Directors
the assessed common charges, such Unit Owner shall be obligated
to pay interest at the legal rate on such common charges from the
due date thereof, together with all expenses, including attorneys
fees, incurred by the Board of Directors in any proceeding
brought to collect such unpaid common charges. The Board of
Directors shall have the right and duty to attempt to recover
such common charges together with interests thereon, and the
expenses of proceeding, including attorneys fees, in an action
brought against such Unit or Unit Owner.
SECTION 6. Foreclosure of Lien for Unpaid Common Charges: In
any action brought by the Board of Directors to foreclose a lien
on a Unit because of unpaid common charges, the Unit Owner shall
be required to pay a reasonable rental for the use of his Unit,
and the plaintiff in such foreclosure action shall be entitled to
the appointment of a receiver to collect such rental. The Board
of Directors, acting on behalf of all Unit Owners, shall have
power to purchase such Unit at the foreclosure sale and to
acquire, hold, lease, mortgage, vote for votes appurtenant to,
convey, or other wise deal with the same. A suit to recover a
money judgement for unpaid common charges shall be maintainable
without foreclosure or waiving the lien securing the same.
SECTION 7. Statement of Common Charges: The Board of Directors
shall promptly provide any Unit Owner, who makes a request in
writing with a written statement of his unpaid common charges.
SECTION 8. Abatement and Enjoining of Violations: The violation
of any rule or regulation adopted by the Board of Directors or
the breach of any Bylaw contained herein, or the breach of any
provisions of the Declaration, shall give the Board of Directors
the right, in addition to any other right set forth in these
Bylaws:
(a.) to enter the Unit in which, or as to which, such
violation or breach exists and to summarily abate and
remove, at the expense of the defaulting Unit Owner, any
structure, thing, or condition that may exist therein
contrary to the intent and meaning of the provisions hereof,
and the Board of Directors shall not thereby be guilty in
any manner of trespass; or
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(b.) to enjoin, abate, or remedy such thing or condition
by appropriate legal proceedings.
SECTION 9. Maintenance and Repair:
(a.) All maintenance of and repair to any Unit, structural
or non-structural, ordinary or extraordinary (other than
maintenance of any repairs to any common element contained
therein not necessitated by negligence, misuse, or neglect
of the owner of such Unit) shall be made by the owner of
such Unit. Each Unit Owner shall be responsible for all
damages to any other units and to the common element
resulting from his failure to effect such maintenance and
repairs.
(b.) All maintenance, repairs, and replacements to the
general common elements, whether located inside or outside
of the Unit (unless necessitated by the negligence, misuse,
or neglect of a Unit Owner, in which case such expense shall
be charged to such Unit Owner), shall be made by the Board
of Directors and be charged to all the Unit Owners as a
common expense.
(c.) All maintenance, repairs, and replacements to the
limited common elements, whether located inside or outside
of the units (unless necessitated by the negligence, misuse,
or neglect of a Unit Owner, in which case such expense shall
be charged to such Unit Owner), shall be made by the Board
of Directors and be charged to the Unit Owners having an
interest in the respective limited common elements.
SECTION 10. Balconies and Patios: A balcony or patio to which
a Unit has sole access from the inside, shall be for the
exclusive use of the owner of such Unit. Such unit owner shall
keep such balconies and patios free and clear of snow, ice, and
accumulation of water and shall make all repairs thereto.
SECTION 11. Use of Units: As restricted in the covenants.
SECTION 12. Alterations, Additions, or Improvements by Board of
Directors: Whenever, in the judgement of the Board of
Directors, the common element shall require additions,
alterations, or improvements, costing in excess of $500.00, and
the making of such additions, alterations, or improvements shall
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have been approved by a majority of the Unit Owners, and by those
mortgagees or sellers under contracts for deed holding mortgages
or contracts constituting first liens upon three or more units,
the Board of Directors shall proceed with such additions,
alterations, or improvements and shall assess all Unit Owners for
the cost thereof as a common charge. Any additions, alterations,
or improvements costing $500.00 or less may be made by the Board
of Directors without approval of the Unit Owners, mortgagees, or
sellers under contracts for deed, and the cost thereof shall
constitute a common charge.
SECTION 13. Additions, Alterations, or Improvements by Unit
Owners: No Unit Owner shall make any structural addition,
alterations, or improvement in or to his Unit, without prior
written consent thereto of the Board of Directors. The Board of
Directors shall have the obligation to answer any written request
by a Unit Owner for approval of a proposed structural addition,
alteration, or improvement in such Unit Owner's Unit, within
thirty (30) days after such request, and failure to do so within
the stipulated time shall constitute approval by the Board of
Directors to the proposed addition, alteration, or improvement.
Any application to any governmental authority for a permit to
make any addition, alteration or improvement in or to any Unit
shall be executed by the Board of Directors. The Board shall not
be liable to any contractor, subcontractor, or materialman, or to
any person sustaining personal injury or property damage, for any
claim rising in connection with such addition, alteration or
improvement. The provisions of this Section shall not apply to
Units owned by the Sponsor until such Units have been initially
sold by the Sponsor and one-half of the amount paid for.
SECTION 14. Right of Access: A Unit Owner shall grant the
right of access to his Unit to the manager, the managing agent,
and any other person authorized by the Board of Directors, the
manager, or the managing agent, to make inspections; to correct
any condition originating in his unit, and threatening another
Unit or a common element; to install, alter or repair mechanical
or electrical services or other common elements in his Unit or
elsewhere in the building; and to correct any condition which
violates the provisions of any mortgage, or contract for deed,
covering another Unit. Requests for such entry shall be made in
advance, and such entry shall be scheduled for a time reasonably
convenient to the Unit Owner, however, in case of emergency, such
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right of entry shall be immediate, whether the Unit Owner is
present at the time or not.
SECTION 15. Rules of Conduct: Rules and regulations concerning
the use of the Units and the common elements may be promulgated
and amended by the Board of Directors with the approval of a
majority of the Unit Owners. Copies of such rules and
regulations shall be furnished by the Board of Directors to each
Unit Owner prior to their effective date. Initial rules and
regulations which shall be effective until amended by the Board
of Directors with approval of a majority of the Unit Owners may
be promulgated by the Sponsor.
SECTION 16. Utilities and Television to Units: Electricity,
water, telephone, television and any gas shall be supplied by the
public and private utility companies serving the area directly to
each unit through a separate meter and each Unit Owner shall be
required to pay the bills for gas and electricity consumed or
used in his unit. The utilities serving the common areas shall
be separately metered and the Board of Directors shall pay all
such as a common expense. Changes in metering shall require
approval of the Board of Directors but shall not require a change
in these bylaws.
ARTICLE VI. MORTGAGES AND CONTRACTS FOR DEED
SECTION 1. Notice to Board of Directors: A Unit Owner who
mortgages his Unit shall notify the Board of Directors of the
name and address of his mortgagee and shall file a conformed copy
of the note and mortgage with the Board of Directors. The Board
of Directors shall maintain such information in a book entitled
"Mortgages of Units".
SECTION 2. Notice of Unpaid Common Charges: The Board of
Directors, whenever so requested in writing by a mortgagee of a
unit or a holder of contract for deed, shall promptly report any
then unpaid common charges or other default by the owner of the
mortgaged or contracted unit.
SECTION 3. Notice of Default: The Board of Directors, when
giving notice to a Unit Owner of a default in paying common
charges or other default, shall send a copy of such notice to
each holder of a mortgage or seller under a contract for deed
16
covering such Unit, whose name and address has theretofore been
furnished to the Board of Directors.
SECTION 4. Examination of Books: Each Unit Owner and each
mortgagee or seller under a contract for deed shall be permitted
to examine the books of account of the Association at reasonable
times, on business days, but not more often than once annually.
SECTION S. First Lien Holder's Rights:
(a.) A holder or insurer of a first mortgage, upon written
request to the Homeowners Association (such request to state
the name and address of such holder or insurer and the Unit
number), will be entitled to timely written notice of:
(1) Any proposed amendment of the Association
instruments affecting a change in (1) the
boundaries of any Unit: (2) the undivided interest
in the common elements appertaining to any Unit or
the liability for common expenses appertaining
thereto: (3) the number of votes in the
Association appertaining to any Unit; or (4) the
purposes to which any Unit or the common elements
are restricted;
(2) Any proposed termination of the Association
regime;
(3) Any condemnation or eminent domain proceeding
affecting the Association regime or any portion
thereof;
(4) Any significant damage or destruction to the
common elements;
(5) Any default under the Declaration or Bylaws which
gives rise to a cause of action against the owner
of a Unit subject to the mortgage of such holder
or insurer, where the default has not been cured
in sixty (60) days.
(b.) The Declaration shall provide that the holder and
insurer of the first mortgage on a Unit shall be entitled, upon
request, to:
17
(1) inspect the books and records of the Association
during normal business hours; and
(2) Require the preparation of and, if preparation is
required, receive an annual audited financial
statement of the Association for the immediately
preceding fiscal year, except that such statement
need not be furnished earlier than ninety (90)
days following the end of such fiscal year. The
Declaration shall also provide that all Unit
Owners shall have reasonable access to inspect the
books, records and financial statements of the
Association, including annual audited financial
statements when such are prepared.
ARTICLE VII. SALES AND LEASES OF UNITS
SECTION 1. Assumption of Provisions: All deeds shall provide
that the acceptance thereof by the grantee shall constitute an
assumption of the provisions of the Declaration, the Bylaws and
the rules and regulations, as the same may be amended from time
to time. All leases shall be consistent with these Bylaws and
shall provide than the Board of Directors shall have power to
terminate such lease and to bring summary proceedings to evict
the tenant in the name of the landlord thereunder in the event of
default by the tenant in the performance of such lease.
SECTION 2. Payment of Assessments: No Unit Owner shall be
permitted to convey, mortgage, pledge, hypothecate, sell, or
lease his Unit unless and until he shall have paid in full to the
Board of Directors all unpaid common charges theretofore assessed
by the Board of Directors against his Unit and until he shall
have satisfied all unpaid liens against such Unit, except
permitted mortgages and contracts for deed.
SECTION 3. Condemnation: In the event of a taking in
condemnation or by eminent domain of part of, or all of the
common elements, the award made for such taking shall be payable
to the Unit Owners in proportion to their ownership in the entire
project, with it understood that the developers or Sponsors are
determined to be Unit Owners for the sake of this provision.
18
ARTICLE IX. RECORDS
SECTION 1. Records and Audits: The secretary shall keep
detailed records of the actions of the Board of Directors,
minutes of the meetings of the Board of Directors, and minutes of
the meetings of the Unit Owners. The treasurer shall keep
financial records and books of account of the Association,
including a chronological listing of receipts and expenditures,
as well as a separate account for each Unit which, among other
things, shall contain the amount of each assessment of common
charges against such Unit, the date when due, the amount paid
thereon and the balance remaining unpaid. A written report,
summarizing all receipts and expenditures of the Association
shall be rendered by the Board of Directors to all Unit Owners at
least quarterly each year. In addition, an annual report of
receipts and expenditures of the Association, compiled by an
independent Certified Public Accountant, shall be rendered by the
Board of Directors to all Unit Owners and to all mortgagees of
Units or sellers under contracts for deed or units who have
requested the same, promptly after the end of each fiscal year.
ARTICLE X. MISCELLANEOUS
SECTION 1. Notices: All notices to the Board of Directors
shall be sent by registered or certified mail, in care of the
managing agent, or if there is no managing agent, to the office
of the Board of Directors, or to such other address as the Board
of Directors may hereafter designate from time to time. All
notices to any Unit Owner shall be sent by registered or
certified mail to the building or to such other address as may
have been designated by him from time to time, in writing to the
Board of Directors. All notices to mortgagees of Units or
sellers under contracts for deed, shall be sent by registered or
certified mail to their respective addresses, as designated by
them from time to time in writing to the Board of Directors. All
notices to the Sponsor, unless hereinafter changed in writing,
shall be sent at the address stated opposite the name below and
shall be sent registered or certified mail. All notices shall be
deemed to have been given when mailed, except notices of change
of address which shall be deemed to have been given when
received.
19
SECTION 2. Invalidity: The invalidity of any part of these
Bylaws shall not impair or affect in any manner the validity,
enforceability, or affect of the balance of these Bylaws.
SECTION 3. Captions and Gender: The captions herein are
inserted only as a matter of convenience and for reference, and
in no way define, limit, or describe the scope of these Bylaws,
or the intent of any provision thereof. The use of the masculine
gender in these Bylaws shall be deemed to include the feminine
gender and the use of the singular shall be deemed to include the
plural and vice -versa, whenever the context so requires.
SECTION 4. Mortgage: As used in these Bylaws, the term
mortgage shall include trust indenture and contracts for deed;
the term mortgagee shall include trust indenture beneficiary and
sellers under a contract for deed, and the term foreclosure shall
include any proceedings in lieu of foreclosure.
SECTION 5. Waiver: No restriction, condition, obligation or
provision contained in these Bylaws shall be deemed to have been
abrogated or waived by reasons of any failure to enforce the
same, irrespective of the number of violations or breaches
thereof which may occur.
ARTICLE XI. AMENDMENTS TO BYLAWS
Except as hereinafter provided otherwise, these Bylaws may
be modified or amended by the vote of 75% in number and in common
interest of all Unit Owners at a meeting of Unit Owners duly held
for such purpose, but only with the written approval of those
mortgagees holding mortgages constituting first liens upon 75% or
more Units or the approval of a seller under a contract for deed
holding contacts constituting first liens upon 75% or more Units.
If so approved, it shall be the responsibility of the
Association to file the amendment with the Clerk and Recorder's
Office in Flathead County, Montana. To record such amendment,
the president and secretary of the Association shall certify on
the face of the amendment the vote. The Association will
maintain for four years records of the Unit Owners votes. The
signature of no other party is necessary on the amendment.
20
a
ARTICLE XII. CONFLICTS
In case any of these bylaws conflict with the provisions of
a statute or of the Declaration, the provisions of such statute
or of the Declaration, as the case may be, shall control.
DONE AND DATED this 22nd day of October, 1996
P0f?,��
SEAL
ATTEST:
9�1' = - =.IME''d
THE CITY OF KALISPELL
BY:
Clarence Kre p
Its: City Manager
CERTIFICATE AND ACKNOWLEDGMENT
STATE OF MONTANA )
ss.
County of Flathead )
The undersigned, Sponsor, respectively, of Teton Terrace
Homeowners Association, hereby certifies and acknowledge as
follows: that the copy of the Bylaws of Teton Terrace Homeowners
Association to which this Certificate and Acknowledgment is
annexed, is a true, compared and correct copy of the Bylaws of
said Teton Terrace Homeowners Association, to be passed, approved
and adopted by the holders of Teton Terrace Homeowners
Association on upon its formation.
That the undersigned, Sponsor of Teton Terrace Homeowners
Association subscribed to the said Bylaws of Teton Terrace
Homeowners Association of which the attached instrument is a
copy, and executed the same as Sponsor of Teton Terrace
21
Homeowners Association, respectively, and hereby acknowledge
execution thereof.
SUBSCRIBED AND SWORN TO before me on this 22nd day of
October, 1996, by The Sponsor's representative Clarence Krepps
known to me to be the City Manager of the City of Kalispell on
behalf of Teton Terrace Homeowners Association and who
acknowledged to me the execution of the instrument to which this
Certificate and Acknowledgment is attached.
IN WITNESS WHEREOF, I have hereunto affixed my hand and
official seal the day and year in this certificate provided.
AL-
STATE OF MONTANA,
SS
County of Flathead
-K�� J. �Kd�
Notary Public for the State of
Montana
Residing at Kalispell, Montana
My Commission Expires : ,,V8l98
Recorded at the request of
ed�1-7 /y
this � day of L�1 19 at o` , o'
the records of Flathead County, State of Montana.
Fee $ Pd.
RECEPTION NO
and recorded in
W