BYLAWS OF FOREST TRAILS.OVERGAARD HOMEOWNERS ASSOCIATION, INC.

UNIT TWO

ARTICLE

GENERAL: LOCATION AND CORPORATE SEAL

SECTION

1.

Corporate Purpose.

The Association has been formed for the purpose of serving as the Homeowners Association for the Forest Trails Unit Two Subdivision, pursuant to a Declaration of Restrictions recorded on June 20, 1984 with the County Recorder of Navajo County, Arizona, at Docket 740, pages 508-516, inclusive (such document, as amended and in effect from time to time, being hereinafter collectively called the "Declaration").

SECTION

2.

Definitions.

Terms used herein which are defined in the Declaration shall have the same meanings as in the Declaration. The term "Developer" shall mean Heber Associates Limited Partnership or its successors and assigns.

SECTION

3.

Application of Bylaws.

Al! present and future lot owners, tenants, or other occupants of Forest Trails Unit Two are subject to the provisions of these Bylaws, The ownership or rental of any lots in Forest Trails Unit Two or the use or occupancy of any of said lots will conclusively consAtute acceptance and ratification 6y said owner, tenant, occupant or user of these Bylaws and their agreement to comply therewith.

(
SECTION

4.

Priority of Declaration.

The provisions of the Declaration and of the Association's Articles of incorporation shall have priority over these Bylaws, and any provision hereof whicft is contrary to or inconsistent with applicable law, the Declaration, or the Articles of lncorporation shall be void to the e)dent of such inconsistency.

1.

SECTION 5.

Principal Otfice of the Association.

The known place of business of the Association shall be its principal offtce.

SECTION 6.

Other Offices.

The Association may also maintain offices at such other place or places within the State of Arizona as may be designated from time to time by the Board of Directors, and the business of the Association may be transacted at such other offices with the same effect as that conducted at the principal office.

SECTION

7.

Seal.

A corporate seal shall not be requisite to the validity of any instrument executed by or on behalf of the Association but, nevertheless, if in any instance a @rporate seal be used, it shall be a circle having on the circumference the name "FOREST TRAILS OVERGAARD HOMEOWNERS ASSOCIATION - UNIT TWO' and in the center thereof the terms "Arizona
1988."

ARTICLE

II

MEMBERSHIP AND VOTING RIGHTS

SECTION 1.

Membersh i p Characteristics.

Membership in the Association, except for Membership of the Developer, shall be limited to record owners of equitable title (or legal title if equitable title has merged) of lots within Forest Trails Unit Twd An owner of a lot shall automatically, upon becoming the record owner of a lot, be a Member of the Association, and shall remain a Member of the Association until such time as his or her ownership ceases for any reason, at which time his or her Membership in the Association shall automatically cease. Ownership of a lot shall be the sole qualification and criteria for Membership. The foregoing is not intended to indude as Members any persons or entities who hold an interest in a lot or lots merely as a security for the performance of an obligation. A Membership in the Association shall not be transferred, pledged or alienated in any way, except upon the sale of the corresponding lot, and then only to such purchaser, or by intestate succession, testamentary disposition, foreclosure of a mortgage or deed of trust of record or other legal process. Any attempt to make a prohibited transfer is void ard will not be reflected upon the books and records of the Association. The Association shall record the transfer upon the books of the Association and issue a new Membership to a prrchaser and thereupon the old Membership outstanding in the name of the seller shall be null and void.
2.

The record owner (together with any co-owners) of equitable title (or lega title if equitable title has merged) of each lot shall be entitled to one Membership in the Association, for himself/herself and his/her family, which Membership shall be subject to all of the provisions of the Association's Articles of lncorporation, Bylaws, and the Declaration, as in effect or duly adopted or amended.

SECTION 2.

Membership Appurtenant.

Association Membership (other than Class B Membership, as hereinafter defined) shall be appurtenant to and may not be separated from ownership of the particuiar lot to which it corresponds.

SECTION 3.

Classes of Membership.

The Association shall have two classes of Membership, as follows.

Class Class A Member(s) shall be all owners of lots, including the Developer, and shall be entitled to one vote for each lot owned. When more than one person holds an interest in any lot, all such persons shall be Members, although collectively hokiing only one Membership. The vote for such lot shall be exercised as the co-owners among iiremselves may determine, but in no event shall more than one vote be cast with respect to any lot.

A.

The Class B Member shall be the Developer, who shall be entitled, by Class virtue of said Membership, to appoint one Member to the Board of Directors. The Class B Member shall have no other rights (such as to vote) arising out of its capacity as the Class B Member, except as contemplated under Article Vlll. The Class B Membership siull cease on the happening of either of the following events, whichever occurs earlier:
(a) When the Class B Member shall have sold its last lot in fie entire Forest Trails development (i.e., in Units One, Two, Three and Four thereof);or (b) At such earlier time as the Developer may elect in its soie discretion by delivering written notice of such election to the Board of Directors.

B.

SECTION 4. Arrearages. ln the event any owner is in arrears in the payment of any amount due. pursuant to any provision of these Bylaws or the Declaration, for a period of fifteen (15) days or shall be in default in the performance of any provisions of the Declaration, the Bylaws or any rules and regulations, the right to vote the Class A Membership corresponding to said owner's lot may be suspended at the option of the Board of Directors and, if so suspended. shall remain suspended until all payments are brought current and all defaults remedied.

3.

ARTICLE III

MEMBERS' MEETINGS SECTION

1.

Members' Meetings.

All meetings of Members shall be held at such place as may be fixed from time to time by the Board of Directors or, in the absence of Directors, by the President or Secretary of the Association, within the State of Arizona, as shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof.

SECTION 2.

Annual Meetings.

Annual meetings of Members shall be held on the last Thursday in Marcft (commencing in 1989), if not a legal holiday, and if a legal holiday, then on the next secular day following, or at such other date and time as shall be designated from time to time by the Board of Directors and stated in the notice of meeting. At the annual meeting Class A Members shall elect a Board of Directors (except the one member thereof which the Developer retains the right to appoint) and transact such other business as may properly be brought before the meeting; the Class B Member shall at said meeting appoint one individual to the Board of Directors.

SECTION 3.

Notice of Annual Meeting.

Written notice of the annual meeting stating the place, date and hour of the meeting shall be given to each Member entitled to vote at such meeting and the Class B Member not less than ten (10) days nor more than fifty (50) days before the date of the meeting. Such notice shall be given either personally or by first class mail; provided that if such notice is to be by mail, same shall be deposited with the U.S. Postal Service at least twelve (12) days prior to the date set for the meeting. Members entitled to vote at the meeting shall be determined as of four o'clock in the afternoon on the day before the notice of the meeting is
sent.

SECTION 4,

List of Class A Members.

The Secretary of the Association shall prepare and make a complete list of the Class A Memberships, by lot number, entitled to vote at the meeting, or any adjournment thereof, showing the address and the name of each Member, and such list shall be produced and kept open at the time and place of the meeting during the whole time thereof, and may be inspected by any Member present.

4.

SECTION 5.

Special Meetings of Members.

Special meetings of the Members, for any purpose or purposes, unless otherwise prescribed by statute or by the Articles of lncorporation, may be called by the President or Secretary at the request, in writing, of a majority of the Board of Directors, or at the request, in writing, of Members holding not less than one tenth of all the Class A Memberships entitled to vote at such meeting. Such request shall state the purpose or purposes of the proposed meeting.

SECTION 6.

Notice of Special Meeting.

Written notice of a special meeting stating the place, date and hour of the meeting and the purpose or purposes for which the meeting is called shall be given not less than ten (10). days nor more than fifty (50) days before the date of the meeting to each Member of record entitled to vote at such meeting and to the Class B Member. Such notice shall be given either personally or by first class mail provided that if such notice is to be by mail, sille shall be deposited with the U.S. Postal Service at least twelve (12) days prior to the date set for the meeting. Members entitled to vote at the meeting shall be determined as of 4:00 o'clock in the afternoon on the day before notice of the meeting is sent. Business transacted at any special meeting of Members shall be limited to the purpose or purposes stated in the notice.

SECTION 7.

Quorum and Adjournment.

Subject to the next sentence, the holders of at least 20 of the Class A l$emberships outstanding (and entitled to vote at the meeting) present in person or represented by pro{y, shall constitute a quorum at all meetings of the Members for the transaction of business except as otherwise provided by statute or by the Articles of lncorporation. lf, however, such quorum shall not be present or represented at any meeting of the Members, the Members entitled to vote at the meeting, present or represented by proxy, shall have the power, by maiority vote, to either (a) adjourn the meeting to another time or place, without notice other than announcement at the meeting at which adiournment is taken, until a quorurn of at least 20 of the Class A Memberships outstanding (and entitled to vote) shall be present or represented, or (b) reduce, for that meeting alone, the quorum requirement sucft that the meeting may then proceed as an official meeting of the Members, and all actions taken at such meeting shall be as valid as if 20 or more of the Class A Memberships ouEtanding (and entitled to vote) were at all times present at the meeting. At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. lf the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each trlembership of record entitled to vote at the meeting.

5.

SECTION 8.

Majority Required.

When a quorum (whether of 20 Class A Memberships, or of a lesser number as provided for in the second sentence of Article lll, Section 7) is present at the meeting, the vote of the holders of a majority of the voting power present, whether in person or represented by proxy, shall decide any question properly brought before such meeting, unless the question is one upon which, by express provision of statute, the Articles of lncorporation or another section of these Bylaws, a different vote is required or the Class B Member's concurrence with such decision is required, in which case such express provision shall govem and control the decision of such question.

SECTION 9.

Action Without Meeting.

(a) Any action which may be taken at any meeting of Members may be taken
without a meeting and without prior notice, if the Association sends a written ballot to every Member, and if (1) when the number of votes cast by ballot within the time period specified in the ballot equals or exceeds the quorum (after disregarding the provisions of the second sentence of Article lll, Section 7) required to be present at a meeting authorizing the action, and (2) the number of votes for approval equals or exceeds the number of votes that would have been required to approve at a meeting where the total number of Members present was the same as the number of votes actually cast by ballot pursuant to this Section. Ballots shall set forth the proposed action, provided an opportunity to specify approval or disapproval of any proposal, and provide a reasonable time (i.e., not less than twenty (20) days from date of mailing or delivery to the Members) within which to return the ballot to the Association. Ballots shall be delivered either personally or by mail or other means of written communication, addressed to the Members at the address of each such Member appearing on the books of the Association or given in writing by the Member for the purpose of receiving notices. lf no address appears on the books of the Association or has been given to the Association, ballots for such Members shall be mailed or personally delivered to the respective Members'lot(s) at Forest Trails Unit Two. All such solicitations shall indicate the number of responses needed to meet the quorum requirement and, with respect to ballots other than for the election of Directors, shall state the percentage of approvals necessary to pass the measure submitted. The solicitation must specify the time by which the ballot must be received in order to be counted.

(b)

(c) (d)

A written ballot may not be revoked.

Directors may be elected by written ballot under this Section.

6.

SECTION

10.

Waiver of Notice.

Attendance of a Member at a meeting shall constitute waiver of notice of such meeting, except when such attendance at the meeting is for the express purpose of obiecting to the transaction of any business because the meeting is not laMully called or convened. Any Member may waive notice of any annual or special meeting of Members by executing a written notice of waiver either before or after the time of the meeting.

ARTICLE IV DIRECTORS SECTION

I.

Number.

The number of Directors which shall constitute the whole Board shall be at least three and no more than ten, The total number of Directors shall be the combined total of the Director appointed by the Class B Member and the Directors elected by the Class A Members. The Directors shall be elected/appointed at the annual meeting of the Members, except as provided in section 3 of this Article, and each Director elected shall hold office until his or her successor is elected and qualified. Except for the Director appointed by the Class B Members, Directors must be Members.
SECTION 2. Removal.

At any annual or special meeting of Members duly called, any one or more of the elected Directors may be removed with or without cause by vote of the maiorilv of Class A Memberships. The Class B Member may by written notification to the Board remove the Director appointed by it with or without cause.

SECTION 3.

Vacancies.

Vacancies and newly created Directorships resulting from any increase in the authorized number of Directors may be filled by the affirmative vote of a majority of the remaining Directors then in office, though not less than a quorum, or by a sole remaining Director, and the Directors so chosen shall hold office until the next annual election and until their successors are duly elected and qualified, unless sooner displaced; provided, however, that the Class B Member retains the right at any time or times to fill any vacancy created on the Board by the death, resignation or removal of any Director appointed by the Class B Member. !f there are no Directors in office, then an election of Directors may be held in the manner provided herein.

7.

SECTION

4.

Powers and Duties.

The business and affairs of the Association shall be managed by its Board of Directors, which may exercise all ouch powers by the Association and do all such lavvful trts as are not by statute, the Articles of lncorporation, or these bylaws directed or required to be exercised or done by the Members.

SECTION

5.

Other Duties.

Without limiting the generality of Section 4 of this Article, the Board of Directors shall be responsible for the following: Care and upkeep and, to the extent deemed necessary, the secunty of (1) Forest Trails Unit Two and (2) the areas thereof previously dedicate for purposm of, as directed by the Association, common recreation, drainage, public utilities and pedestrian access. Collection of periodic assessments from the owners of lots and the filing of liens and foreclosure thereof where necessary and as permitted by law. Employment and dismissal of the personnel necessary for the maintenance and the operation of Forest Trails Unit Two common areas, and the functioning of the Association.
To obtain and keep in full force and effect insurance policies, in such amounts and such types as the Board deems appropriate, with respect to Forest Trails Unit Two. To grant or relocate easements as may be necessary to confer beflefit on Forest Trails Unit Two.

(a)

(b) (c)

(d)

(e)
(

f To adopt and amend rules and regulations and enforce the same covering the operation and use of all of the property and recreational areas of and/or in Forest Trails Unit Two. To open bank accounts on behalf of the Association and to designate the signatories required therefore.

(g) (h) ( i)

To invest any excess funds held or controlled by the Association. To enforce the Restrictions contained in the Declaration.

The foregoing enumeration of specific responsibilities shall not be deemed to limit any other power or duty of the Board of Directors arising by law or under the Declaration, Articles of lncorporation or these Bylaws.

8.

SECTION 6.

Place of Meetings

The Board of Directors of the Association may hold meetings, both regular and special, solely within the State of Arizona.
SECTION 7. Annual Meetings.

The first meeting of each newly elected Board of Directors shall be held immediately following the annual meeting of Members and in the same place as the annual meeting of Members, and no notice to the newly elected Directors of such meeting shall be necessary in order legally to hold the meeting, providing a quorum is present, ln the event sudt meeting is not held, the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings of the Board of Directors, or as shall be specified in a written waiver of all Directors.

SECTION 8.

Regular Meetings.

Regular meetings of the Board of Directors may be held without notice at such time at and such place as shall from time to time be determined by the Board.

SECTION 9.

Special Meetings.

Special meetings of the Board may be called by the President or the Secretary on one (1) day's notice to each Director, either personally, by mail, by telegram, or by telephone; special meetings shall be called by the President or Secretary in like manner and on like notices on the written request of two (2) Directors, where more than one (1) Director serves on the Board.

SECTION

10.

Telephonic Meetings.

Meetings of the Board of Directors, regular or special, may be held by nreans of conference telephone or similar communications equipment by means of whicft all persons participating in the meeting can hear each other. Participation in a meeting purwant to this Section shall constitute presence in person at such meeting.

9.

SECTION

11.

Quorum.

A majority of the Membership of the Board of Directors shall constitute a quorum and the concurrence of a majority of those present shall be sufficient to conduct the business of the Board, except as may be otherwise specifically provided by statute or by the Articles of lncorporation. lf a quorum shall not be present at any meeting of the Board of Directors, the Directors then present may adjourn the meeting to another time or place, without notice other than announcement at the meeting, until a quorum shall be present.

SEC"I'ION

12.

Action Without Meeting.

Unless otherwise restricted by the Articles of lncorporation or by these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all Members of the Board or committee, as the case may be, consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Board of Directors.

SECTION

13.

Compensation.

No compensation shall be paid to Directors for their services in such capacity. No remuneration shall be paid to a Director for services performed by him or her for the Association in any capacity, unless a resolution authorizing such remuneration shall have been adopted by the Board of Directors before the services are undertaken. Directors may not be employees of the Association. Directors may, however, be reimbursed for any actual expenses reasonably incurred in connection with their duties as Directors.

SECTION

14.

Waiver of Notice.

Attendance of a Director at a meeting shall constitute waiver of notice of sttch meeting, except when the person att6hds the meeting for the express purpose of objectirg to the transaction of any business because the meeting is not lav'rfully called or convened. Any Director may waive notice of annual, regular or special meeting of Directors by executing a written notice of waiver either before or alter the time of the meeting.

10.

SECTION

15.

Certain lmmunityfrom Liability.

Subject to any applicable limitations existing by law and/or under the Association's Articles of lncorporation, any person who serves as a director or who serves on a board or council in an advisory capacity to the Association or its Board of Directors shall. pursuant to A.R.S. 5 1O-1017, be immune from civil liability and shall not be subject to suit directly or by way of contribution for any act or omission resulting in damage or injury if such person was acting in good faith and within the scope of his or her official capacity, unless such damage or injury was caused by willful and wanton or grossly negligent conduct of such person. Nothing in this Section shall limit or modify in any manner the duties or liabilities of a Director or person seruing in an advisory capacity to the Association or its members. "Official capacity" as used in this Section is any decision, act or event undertaken by the Association in furtherance of the purpose or purposes for which it is organized.

ARTICLE V OFFICERS

SECTION

1.

Designation of Titles.

The officers of the Association shall be chosen by the Board of Directors and shall be a President, a Secretary and a Treasurer. The Board of Directors may also choose a Chairman of the Board, one or more Vice Presidents, and one or more Assistant Secretaries and Assistant Treasurers. Any number of offices, except the offices of President and Secretary, may be held by the same person, unless the Articles of lncorporation or these Bylaws otherwise provide.
Aooointment of Officers.

SECTION 2.

The Board of Directors at its first meeting after each annual meeting of tvtembers shall choose a President, a Secretary and a Treasurer, and may choose a Chairman of the Board and one or more Vice Presidents, each of whom shall serve at the pleasure of the Board of Directors. The Board of Directors at any time may appoint such other officers and agents as it shall deem necessary to hold offices at the pleasure of the Board of Directors and to exercise such powers and pefform such duties as shall be determined from time to time by the Board.

SECTION 3.

Compensation.

No compensation shall be paid to officers for their services in such capacfi. No remuneration sirall be paid to an officer for services pedormed by him or her for the Association in any capacity, unless a resolution authorizing such remuneration shall have been adopted Oy ine boarO of Directors before the services are undertaken. No officer may be an employee of the Association. Officers may, however, be reimbursed for any actual expenses reasonably incurred in connection with their duties as officers.
11.

SECTION 4.

Vacancies.

A vacancy in any office because of death, resignation, removal, disqualification or otherwise may be filled by the Board of Directors at any time.

SECTION 5.

Chairman of the Board.

The Chairman of the Board, if one shall have been appointed and be seMng, shall preside at all meetings of the Board of Directors and shall perform such other duties as from time to time may be assigned to him or her.

SECTION 6.

President.

The President shall preside at all meetings of Members, and if a Chairman of the Board shall not have been appointed or, having been appointed, shall not be serving or be absent, the President shall preside at all meetings of the Board of Directors. He or she shall sign all deeds and conveyances, all contracts and agreements, and all other instuments requiring execution on behalf of the Association, and shall act as operating and directing head of the Association, subject to policies established by the Board of Directors.

SECTION 7.

Vice President.

There shall be as many Vice Presidents as shall be determined by the Board of Directors from time to time and they shall perform such duties as from time to time may be assigned to them. Any one of the Vice Presidents, as authorized by the Board, shall have all the powers and perform all duties of the President in the case of the temporary absence of the President or in case of his or her temporary inability to acl ln case of the permanent absence or inability of the President to act, the office shall be declared vacant by the Board of Directors and a successor chosen by the Board.

SECTION 8.

Secretarv.

The Secretary shall see that the minutes of all meeting of Members, of the Board of Directors, and of any standing committees are kept. He or she shall be the custodian of the corporate seal and shall affix it to all proper instruments when deemed advisable by him or her. He or she shall have charge of all the books and records of the Association except the books of account and in general shall perform all duties incident to the office Secretary of a corporation and such other duties as may be assigned to him or her.

12.

SECTION 9.

Treasurer.

The Treasurer shall have general custody of all the funds and securities of the Association except such as may be required by law to be deposited with any state official. He or she shall see to the deposit of the funds of the Association in such bank or banks as the Board of Directors may designate. Regular books of account shall be kept under his or her direction and supervision, and he or she shall render financial statements to the President, Directors, and Members at proper times. The Treasurer shall have charge of the preparation and filing of such reports, financial statements, and returns as may be required by law. He or she shall give to the Association such fidelity bond as may be required by the Board or President, and the premium therefore shall be paid by the Association as an operating expense.

SECTION

10.

Assistant Secretaries.

There may be such number of Assistant Secretaries as shall be determined by the Board of Directors from time to time and such persons shall perform such functions as from time to time may be assigned to them. No Assistant Secretary shall have power or authority to collect, account for, or pay over any tax imposed by any federal, state or city govemment.

SECTION

11.

Assistant Treasurers.

There may be such number of Assistant Treasurers as from time to time the Board of Directors may fix, and such person shall perform such functions as from time to time may be assigned to them. No Assistant Treasurer shall have the power or authority to collect, account for, or pay over the tax imposed by any federal, state or city government.

ARTICLE VI FINANCIAL MAfiERS

SECTION

1.

Assessments.

All owners shall be obligated to pay assessments in accordance with the Declaration and to cover the Association's operating expenses, with such assessments to be determined by the Board of Directors and allocated equally by it among all lots in Forest Trails Unit Two. Any assessments levied or collected which are in excess of the amount required for proper purposes (including maintenance of liquid reserves in an amount deemed reasonably adequate by the Board) may be (a) refunded to the owners who paid such assessments, (b) retained and applied to reducing what would otherwise have been the amount of future assessments, or (c) partially refunded and partially retained in such proportions as the Board may from time to time determine. The amount of periodic assessments, and the mu:lner, timing and disposition of any excess funds collected by way of assessments, shall be determined by the Board, and its determination in those respects shall be conclusive.
13.

SECTION 2.

Budget.

The Board of Directors shall from time to time, but not less frequently than annually, prepare a budget for the Association and determine the amount of the common charges payable by the owners to meet the common expenses of the Association, The Board of Directors shall advise all owners promptly in writing of the amount of such charges payable by each of them, respectively, and shall furnish copies of the budget on which such common charges are based to all owners and to their mortgagees, if requested in writing. The Board of Directors may levy a late penalty charge on any owner who fails to pay all or any part of his or her assessment on or before the due date as set by the Board of Directors. Assessments a Lien.

SECTION 3.

The periodic and any special assessments, together with interest at the rate of 18% per annum, late payment charges, costs of collection and reasonable attorneys'fees, shall be a charge on the land and shall constitute a lien upon the lot against which each such assessment is made. Such lien may be foreclosed by the Association in the manner provided or permitted for the foreclosure of realty mortgages or deeds of trust in the State of Arizona. Each such assessment, together with interest, late payment charges, costs of collection and reasonable attorneys'fees, shall also be the personal obligation of each person who was the owner of such lot at the time when the assessment fell due.

ARTICLE VII COMMITTEES

The Board of Directors may appoint such committees of the Members of the Association and/or Board as it may deem appropriate in carrying out its purposes. The Board of Directors shall in any event appoint an Architectural Committee to perform the functions contemplated by the Declaration. Said Committee shall consist of not less than three individuals, one of whom shall be a representative of the Class B Member except during such time or times as said Class B Member declines to designate such representative.

ARTICLE VII!

AMENDMENT These Bylaws may be amended by a majority vote or the Members at any regular or special meeting, where notice of the proposed amendment is included in the call or notice of meeting, or pursuant to Section 9, Article llt; provided that these Bylaws shall not be amended in such a manner as would be contrary to or inconsistent with the Declaration or the Articles of lncorporation; and provided further, that no portion of these Bylaws inuring to the benefit of the Class B Member may be amended or repealed without the consent of said Class B Member.
14.

ARTICLE

IX.

RULES AND REGULATIONS.

The Board of Directors shall promulgate and adopt rules and regulations for the management of Forest Trails Unit Two and and common areas thereof, and said rules and regulations shall apply to and govern the use and occupation of tne various lots and of the common areas by the owners, any lessees, tenants and guests thereof and all other persons. ARTICLE X
FISCAL YEAR The fiscal year of the Association shall begin on the first day of January and end on the 31st day of December of every year, except tnit tne first fiscal year shall oeiin on the date of the Association's incorporation.

15.

CEBTIFTCATE OF SFCRETTRY

l, t,ho underalgned, do hereby certlfyl 1, That I am the duly elected and actlng Secretar? ot ForeeB Trallo-gvsrgaard Homeownere AeroclaBlon, rnc, - unlg E*o, 2, That the foregoing Bylaws constltute thc Bylawr of the sald Assoclation as duly adopted by the Board of Dlrect,ora of the Assoclation at its O-fganizat,ional Meeting, at whlch a qfuorun was preeent,, hcld on@, 1989, WITNESS td IN -W.HEREOF, I have hereunto eubscrlbed my name thls ff day ot tz/l1/ , t9ss,

I6