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Canyon Springs Resort Property Owners Association Inc. · 18 pages
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1 AMENDED AND RESTATED BYLAWS of the CANYON SPRINGS RESORT PROPERTY OWNERS’ ASSOCIATION Recitals 1. Bylaws for Canyon Springs Resort Property Owners’ Association were previously adopted (the “Prior Bylaws”).

2. The Board of Directors of Canyon Springs Resort Property Owners Association desires to amend and restate the Prior Bylaws of the Association in its entirety pursuant to Section 22.102(c) of the Texas Business Organizations Code.

3. NOW, THEREFORE, the Board of Directors of the Association hereby am ends and restates the Prior Bylaws in its entirety . Upon recording these Amended and Restated Bylaws of the Association (these "Bylaws"), these Bylaws will replace and supersede the Prior Bylaws.

These By laws of Canyon Springs Resort Property Owners Asso ciation (referred to as the “Amended and Restated By laws”) govern the affairs and processes of CANYON SPRINGS RESORT PROPERTY OWNERS’ ASSOCIATION (CSRPOA), a non -profit Association (referred to as the “Association”) organized under the Texas Non -Profit Cor poration Act also known as Texas Business Organization Code (BOC) . These By laws serve to complement and clarify the Sections in the BOC, Articles of Incorporation referred to as (“Articles”), components of the Deed Restrictions as filed with Comal County , as well as Rober t’s Rules of Order, 12th Edition . The By laws are subordinate to both the Deed Restrictions and Articles of Incorporation .

Any reference to Dedicatory Instruments shall mean Deed Restrictions, Articles of Incorporation, B ylaws, and Rules and Regulations by the Board shall be deemed to be part of the Dedicatory Instruments . The term includes a declaration or similar instrument subjecting the real

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of Incorporation, B ylaws, and Rules and Regulations by the Board shall be deemed to be part of the Dedicatory Instruments . The term includes a declaration or similar instrument subjecting the real property to restrictive covenants, bylaws, or similar instruments governing the adminis tration or operation of a property owners' association; properly adopted rules and regulations of the property owners' association; or all lawful amendments to the covenants, bylaws, instruments, rules, or regulations. All dedicatory instruments will be fi led in the Comal County Clerk’s office .

ARTICLE ONE Name of the Association The name of the corporation is Canyon Springs Resort Property Owners Association, Inc .

(“Association”) and is made up of Units I, II, III, III -A, IV , and V . The subdivision is located in Comal County, Texas . The deed restrictions form the basis for the purpose of the Association.

United Land Company, Inc. assigned the rights, duties , and obligations to the Association and recorded the assignment in Volume 532, pages 234 -235; Official Public Records of Real Property of Coma l County, Texas on 10 September 1986 and the association accepted the assignment on 2 the same date . The assignment wa s acknowledged by the County on 30 September 1986, executed the assignment on 12 January 1987, and filed them on 17 January 1987 as document #290474 . On 12 January 1989 United confirmed the assignment (Document #338629/# 338630 ) specifically giving the col lection of the annual assessment to CSRPOA.

Article Two Non-Profit Corporation Canyon Springs Resort Property Owners Association, Inc. is a nonprofit corporation . (Cite: BOC 22.001 (5)). Specific chapters of the Texas Property Code (Code) are applicable to the

it Corporation Canyon Springs Resort Property Owners Association, Inc. is a nonprofit corporation . (Cite: BOC 22.001 (5)). Specific chapters of the Texas Property Code (Code) are applicable to the Association. Those Chapters Include Chapters 202, 205, 207 , and 209.

Article Three Duration These By laws are perpetual or until revised by the Board of Directors. The authority for the Board to revise the By laws is directed by the 1998 Articles of Incorporation (Article Nine) and BOC 22.102 (c).

Article Four Purpose of the Association The purpose of the Association is outlined in the Articles of Incorporation Article Four . The primary purposes of the Association shall be to receive and maintain funds for the administration of the corporation, upkeep, and maintenance of community facilities, and other purposes of the corporation; to regulate an d administer restrictive covenants of the subdivision , and to foster a sense of community pride and belonging among the residents and property owners of Canyon Springs Resort.

Funding is initially provided by an annual assessment for each property owner . The Board of Directors may direct and collect special assessments, normally for capital improvements or large unseen debts, as well as specific fees, fines, collection cost s including interest, mailings, collection agency fees, and penalties for late pa yment of the annual assessment or other fees as permitted .

Article Five Non-Stock (or Non -Profit) Corporation The Articles of Incorporation were amended on 15 November 1997 , registered with the Texas Secretary of State, and filed on 11 May 1998. The original Articles of Incorporation were filed on 26 July 1973. The corporation shall be a non -stock corporation and no dividends or pecuniary

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as Secretary of State, and filed on 11 May 1998. The original Articles of Incorporation were filed on 26 July 1973. The corporation shall be a non -stock corporation and no dividends or pecuniary gain shall be declared or paid to the members, directors, or officers .

3 Article Six Registered Office and Agent The principal office of the Association in the County of Comal, State of Texas shall be located at 691 Canyon Springs Drive, Canyon Lake, TX 78133.

The association shall have and continuously maintain in the State o f Texas a registered office, and a registered agent whose office is identical with such registered office, as required by the Texas Non -Profit Corporation Act .

The Board of Directors must update the registered office and/or its registered agent as provided in the BOC by filing in the office of the Secretary of State, a statement as outlined in the Business Organization Code 252.011 without a vote of the membership but with the specific aut hority of a majority of the Board of directors.

Article Seven Board of Directors Directors must be residents of the State of Texas and be members in good standing of the Association . Each elected director shall serve for a term of two (2) year s commenci ng the 1st day of June and terminating the last day of the following May .

The Articles of Incorporation directs that there shall be a maximum of nine (9) or a minimum of five (5) directors.

The Affairs of the corporation are vested in its Board of Directo rs, which will direct the management of the corporation . The act of a majority of the Directors present , in person , or by proxy at a meeting, which a quorum is present, shall be the act of the Board of Directors unless the act of a greater number is requi red by the Articles of

the Directors present , in person , or by proxy at a meeting, which a quorum is present, shall be the act of the Board of Directors unless the act of a greater number is requi red by the Articles of Incorporation , or by these bylaws . A director may vote in person or by proxy executed in writing by the director .

Directors shall not receive compensation for their services. Directors may be reimbursed for out -of-pocket expenses that are made for CSRPOA.

The President, with a majority of the Board, may appoint an ex -officio member of the Board. The ex -officio memb er will not have Board voting rights nor will count in the requirement of a Board Quorum. Normally the ex officio member will bring added expertise to the Board such as legal, financial, or other experience of the Board .

A director may resign at any tim e by providing written notice to the Board .

A director may be removed from office pursuant to any procedure therefore provided in these bylaws .

The members may vote to remove a Director at any time. A special meeting of members to consider the removal of a Director may be called following the procedures provided in the Articles or the By laws for an annual meeting.

The notice of the meeting shall state that the issue of possible removal of the Director will be on the agenda. The Director shall have th e right to present evidence at the meeting as to why he/she should not be removed. At the meeting, the members of the Association shall consider possible arrangements for resolving the problems that are in the best interest of the Association . A Director may be removed by the affirmative vote of a majority of the members present or by proxy attending the meeting, providing a quorum is present .

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re in the best interest of the Association . A Director may be removed by the affirmative vote of a majority of the members present or by proxy attending the meeting, providing a quorum is present .

Vacancies: Any vacancy occurring in the Board of Directors and any director position to be filled b ecause of an increase in the number of Directors, shall be filled by an affirmative vote of a majority of the remaining Board of Directors though less than a quorum of the Board may exist. A Director elected to fill a vacancy shall be elected for the unexpired term of his predecessor in office .

4 It is considered a conflict of interest should a Board member utilize their position to solicit business from its members or the Board, and such action will not be done.

Article Eight Original Incorporators The names and address es of each original incorporator were : Altus T. Bowden, R oute 4, Box 435, New Braunfels, TX 78130; Gerald C. Smith, R oute 4, Box 501, New Braunfels, TX 78130; Opal O’Rear, Route 4, Box 501A, New Braunfels, TX 78130 .

Article Nine Selection of the Board of Directors The Articles of Incorporation set forth the number and procedure for the selection of directors. The m anner in which the directors are to be elected by the members is as follows: A nominating committee chair shall be appointed by the President at the Board of Directors meeting in March of each year who s hall appoint a committee.

It shall be the duty of this committee to nominate a candidate for each of the nine (9) director positions. The members of the corporation may, at the corporation Annual meeting in May, nominate individuals to serve as directors provided the consent of the nominee shall first have been obtained. At the May meeting of the corporation,

n may, at the corporation Annual meeting in May, nominate individuals to serve as directors provided the consent of the nominee shall first have been obtained. At the May meeting of the corporation, upon the termination of all nominations, the members of the corporati on shall then vote to elect nine (9) of the corporation’s directors. Each elected Director shall serve for a term of two (2) year s, commencing the 1st day of June and terminating the last day of May.

Notice of Annual Meeting and Vote will be sent to the total membership by mail or electronically, not later than the 10th day or earlier than the 60th day before the date of the election or vote, and the nominees receiving the most votes from the membership shall have been elected . The ballot shall list not only the names of the nominating committee candidates but also write -in candidates and those candidate(s) nominated from the floor by the membership. The ballots shall be cast confidentially. Two or more non -director individuals will conduct the vote count in public and announce those nine candidates receiving the most votes.

Article Ten Corporate Officers and Their Function The general officers of the corporation shall be President, First Vice -President, Second Vice President, Secretary , and Treasu rer. The Board of Directors may provide for the appointment of such individual officers, as they may deem desirable for the best interest of the corporation .

President: The President shall be the principal executive officer of the corporation and shall, in general, supervise and control all of the business and affairs of the corporation . The princip al duties of the President shall be to preside

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cipal executive officer of the corporation and shall, in general, supervise and control all of the business and affairs of the corporation . The princip al duties of the President shall be to preside at all meetings of the members and the Board of Directors and to have general supervision of the affairs of the corporation and to perform such other duties and exercise such other powers as may from time to time be delegated by the Board of Directors.

Vice President(s): The principal duties of the Vice -President(s) shall be to discharge the duties of the Preside nt in the absence or disability, for any cause whatsoever, of the president and to perform all duties as may be delegated to them by the President or the Board of Directors.

Secretary : The principal duties of the Secretary shall be to countersign all deeds, leases, and conveyance executed by the corporation if any. The secretary will k eep a record of the proceedings of meetings of the membership and the Board of Directors, and to safe ly and systematically keep all books, papers, records , and documents belonging to the Association or in any way about the business thereof, except the books and records incidental to the duties of the Treasurer, and to perform such other duties as may be d elegated from time to time by the Board of Directors. The secretary will give all notices as provided by the By laws or by law.

5 The association secretary shall maintain the following records and documents and make them available for inspection if requeste d by a member of the association.

1. Certificates of formation, bylaws, restrictive covenants and all amendments to the certificates of formation, bylaws, and covenants shall be retained permanently .

d by a member of the association.

1. Certificates of formation, bylaws, restrictive covenants and all amendments to the certificates of formation, bylaws, and covenants shall be retained permanently .

2. Minutes of meetings of the owners and the Board sha ll be re tained for seven years.

3. Copies of all legal filings and preceding that involve the association or its Board members shall be retained for seven years or until all parties to the legal action are no longer members of the association.

Treasurer : The principal duties of the Treasure r shall be to keep an account of all monies, credits , and property of any and every nature of the corporation which shall become into his/her hands, and to keep an accurate account of all monies received and disbursed and of proper vouchers of monies disbursed, and to render such accounts, statements, and inventories of monies received and disbursed and of money and property on hand, and generally of all matters pertaining to the office, as shall be required by the Board of D irectors . The treasurer will keep a register of the mailing address of each member.

The treasurer will deposit all monies in the name of the Association in banks, trust companies, or other depositories as provided in the By laws or as directed by the Boar d of Directors. No money shall be paid out except on direct authority of the Board of Directors. The Treasure r will write checks and disburse funds to discharge obligations of the Association The Treasurer will prepare monthly and annual financial repor ts and these reports will be available for audit or review by the membership. The Treasurer shall annually compile a budget for approval of the Board . The Board of

onthly and annual financial repor ts and these reports will be available for audit or review by the membership. The Treasurer shall annually compile a budget for approval of the Board . The Board of Directors may require a bond for the faithful discharge of duties in a sum and with surety as determined by the Board of Directors.

The association treasurer shall maintain the following records and documents and make them available for inspe ction if requested by a member of the association .

Financial books and records shall be retained for seven years.

1. Tax returns and audit records shall be retained for seven years.

2. Account records of current owners shall be retained for five years.

3. Contract s with a term of one year or more shall be retained for four years after the expiration of the contract term.

The officers shall perform such additional or different duties as shall from time to time be imposed or required by the Board of Directors, or as may be prescribed from time to time by the Bylaws.

Removal of Officers : Any officer elected by the Board of directors may be removed by a majority vote of the Board of directors, whenever, in its judgment, the best interests of the corporation would be se rved. Such removal shall be without prejudice to the contract rights, if any, of the officer removed . Any officer that is removed will remain on the Board of Directors if elected as a director by the membership ; however , the membership may vote to remove that director . If the Board elected the director, the board may remove the director.

Officer Vacancy: A vacancy in any office because of death, resignation, disqualification , or otherwise, may be filled by a majority vote of the Board of Directors for the unexpired portion of the term.

Article Eleven

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A vacancy in any office because of death, resignation, disqualification , or otherwise, may be filled by a majority vote of the Board of Directors for the unexpired portion of the term.

Article Eleven Election of Officers All Officers must be elected by the directors , who shall first be elected by the members of the corporation .

6 The Board of Directors, at their first meeting following their election to the Board during the Annual Meeting in May, will elect persons to fill the Officer positions . The Officers will be elected by a majority vote of the Board members present or by proxy.

Any two or more offices may be held by the same person, except the offices of the president and secretary .

Article Twelve Membership NOTE: Throughout this document, the following terms are used interchangeably: Member(s), the homeowner(s), and property owners(s).

Membership in the association is mandatory and includes all present and future property owners of Canyon Springs Resort , a subdivision located within the confines of Comal County, Texas, with the following exception: Owners of Lots in Unit V that are unrestricted are not members of the Association unless those owners have voluntarily elected to pay membership fees in the association . Those lots are specif ically excluded from the Restrictive Covenants filed in document 245699 Volume 396 Page 485 and document 260331 Volume 442 Page 373, Comal County . Once the owner of the lots listed above elects to be a member of CSRPOA, you will not be able to withdraw yo ur membership. Your decision is irreversible and fully transferrable, and you will enjoy the benefits and protection of the POA.

By virtue of the Deed Restriction s annual assessment, each property owner is a member of the Association . There is

nd fully transferrable, and you will enjoy the benefits and protection of the POA.

By virtue of the Deed Restriction s annual assessment, each property owner is a member of the Association . There is a single c lass of membership with all members having equal voting rights and responsibilities . In the event more than one person is listed as “ owner”, there will be only one vote.

The right to the use of association facilities is specifically restricted to those me mbers in good standing who are current on all monies owed to the Association .

Matters submitted to the membership for a vote may pass by a simple majority of the members (present, represented by a written ballot, electronic ballot, or proxy) unless a quorum and larger percentage are required by law . An example of a larger percentag e required is a change to the Article of Incorporation . Two-thirds is required for approval .

Voting: 1. The owner or property to which Membership is appurtenant shall be entitled to one vote.

2. All votes shall be by written or electronic ballot .

3. All votes s hall be counted in the meeting called for the vote .

4. If the property is owned by more than one party, the parties are entitled to cast one collective vote.

5. Owners present, in person or by proxy, at a meeting at which a quorum is established, called for the purpose of electing Directors, and shall have the number of votes equal to the number to be elected to the Board of Directors of the Association. Cumulative voting shall not be allowed in the election of a member of the Board of Directors or for any other purpose. (One director , one vote).

6. All Special meetings at which the owners shall be presented with matters to vote on shall be called by the

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a member of the Board of Directors or for any other purpose. (One director , one vote).

6. All Special meetings at which the owners shall be presented with matters to vote on shall be called by the Board of Directors of the Association, with not less than fifteen days written notice to all owners, which notic e shall be delivered by hand, email, phone call , newspaper or regular 1st class mail to each such owner at the address of such owner’s property within the subdivision, unless such owner designated another address for such purpose by written notice to the Treasurer of the Association.

Quorum: Members holding one -tenth of the votes entitled to be cast represented in person, by proxy, absentee ballot, or electronic ballot, shall constitute a quorum.

7 No person shall be a member b ecause of ownership of an easement, right -of-way, mineral interest, mortgage , or deed of t rust.

Transfer of membership: Membership in the Association transfers with the transfer of the property deed.

Suspension of Membership Rights Membership may be suspended by a majority of the Board of Directors for any of the following reasons: a. Member becomes ineligible for membership due to sale of property b. Member is in default of assessment fees or other funds due to the Association . However , members will not be excluded from voting for directors or matters concerning the rights or responsibil ities of the owner .

c. Member is not in compliance with current deed restrictions or rules of the association.

Suspensions for any reason other than c. above shall be after proper written notice by the Board of Directors and a fair opportunity for hearing be fore the Board has been given.

Waiver of Interest in the Association Property

n other than c. above shall be after proper written notice by the Board of Directors and a fair opportunity for hearing be fore the Board has been given.

Waiver of Interest in the Association Property All real and personal property, including all improvements located on the property, acquired by the Association shall be owned by the Association. A member shall not have an interest in specific property of the Association. Each member hereby expressly waives the right to require partition of all or part of the Association’s property.

Other Rights: Hearing before the Board of Directors Change in membership rights or any adverse action of the Board of Directors concerning any individual member shall entitle the said member to a hearing before the Board of Directors.

A letter must be sent to the member advising the non -compliance with the deed restrictions and the member will be given a chance to remedy the non -compliance. If not in compliance after two weeks, a second letter will be sent advising that a hearing before the Board will be conducted. If a remedy is still not completed, the f ee will be charged to the member 's account weekly.

Hearings will be conducted by the Board of Directors at a mutually agreeable time and date within 30 days of the date the notice to the member was mailed. The President shall preside at all hearings and serve as a moderator for the proceedings . There must be a quorum of Board Members present for the hearing to commence . (Remember that this is not a court case but should be presented as closely as possible to the case the Board will pursue in civil court if necessary . This establishes a foundation at law for the filing of a civil complaint ). Upon satisfaction that a

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presented as closely as possible to the case the Board will pursue in civil court if necessary . This establishes a foundation at law for the filing of a civil complaint ). Upon satisfaction that a quorum is present, the President will call the meeting to order with the following announcement: “This meeting of the Board of Directors of Canyon Springs Resort is convened to hear a complaint of non compliance to association rules and/or a complaint of non -compliance to deed restrictions and to hear a reason why the Association shou ld not assess a fine against the member . The chair finds that there is a quorum, and the meeting is therefore called to Order . The only appeal of the decision of the Board of Directors will be by a petition from a minimum of 10% of the membership in good standing filled with the Board within 45 days of the decision . Are there any motions or questions of the Board before we begin ? (Pause) The Chair recognizes (Board member) who will present the complaint against the member for non -compliance .

(Case wi ll be supported by reference to deed restrictions, Articles of Incorporation charter, bylaws, or Texas Property Code or other applicable law . Physical evidence, or other materials, may be submitted to the Board to support the complaint.)

8 After the Board has made its case, the member will have an opportunity to address the Board of Directors . The cause should be given why the Board should not assess a fine for non -compliance . The member may be, or not be, represented by legal counsel . The member may su bmit evidence, call forth witnesses or other persons as appropriate to the case at hand, or submit materials to support his position.

y be, or not be, represented by legal counsel . The member may su bmit evidence, call forth witnesses or other persons as appropriate to the case at hand, or submit materials to support his position.

After both sides have had an opportunity to present their case, or during the hearing, members of the Board may ask questions or examine articles submitted . When both sides have rested their case, the President will call a recess, while the Board of Directors goes into executive session to decide the results of the case . The member will be excused from the room . The Board member who presented the case participates in the Board decision . If the complaint is sustained by a 2/3 affirmative vote of the Board, the Board will assess a fine not to exceed $105.00 per week that the violation continues . The starting date of t his fine will be at least 10 days after the date the formal decision was mailed or after notice of intent to petition the membership.

Once the decision has been reached that the member is not in compliance, the Chairman will call the hearing back to order. The President will announce the findings as follows: “In executive session (this date) the Board of directors, if after hearing the complaint and allowing the member to respond, the Board finds that the member is not in compliance with the deed restr ictions of Canyon Springs Resort .

The Board hereby assesses a fine of $105.00 per week that the violation continues after this date. Any questions ?

NOTE: The intent to appeal to the membership shall be given to the Board a fter the hearing ”.

(PAUSE) “This fine may be secured by a lien against the member’s property until paid . Payment may be by cash, check,

ent to appeal to the membership shall be given to the Board a fter the hearing ”.

(PAUSE) “This fine may be secured by a lien against the member’s property until paid . Payment may be by cash, check, cashiers' check, or money order . If after 90 days, the violation has not ceased, and the fine has not been paid, Canyon Springs Resort P roperty Owners' Association shall seek any legal remedy allowed by law . The association minutes shall show the findings of this case . A notification of the findings of this Board will be mailed to the member within 10 working days . The meeting is adjour ned.

Article Thirteen Amendments (Articles of Incorporation) The procedures to amend the Articles of Incorporation are outlined in the Texas Business Organization Code (BOC) Section 22.105 . Written or printed notice setting forth the proposed amendments and a summary of the changes to be effected thereby shall be mailed or electronically sent to each member . A proxy will be included in the notice .

Notice of the special meeting stating the purpose, date and time , and location of the special meeting will also be posted on the bulletin board at the entrance to Canyon Springs Report. A quorum of the membership must be present to call the vote . The proposed amendment shall be adopted upon receiving at least two -thirds of the votes from those members present at such meeting either in person or by proxy . The vote will be conducted by secret ballot and the directors not holding an officer position and at least one property owner will count the votes and report the results to the Secretary who will recor d the vote results and provide those results to the President to announce.

Upon any conflict between the Articles and Bylaws, the Articles shall prevail .

Article Fourteen

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the Secretary who will recor d the vote results and provide those results to the President to announce.

Upon any conflict between the Articles and Bylaws, the Articles shall prevail .

Article Fourteen Association Meetings All regular, annual, and special meetings are open to the mem bership .

No written notice of regular monthly meetings is required ; however, notice must be posted on the bulletin board at the clubhouse and the entrance to Canyon Spring Resort on Canyon Springs Drive .

Whenever any notice is required to be given under th e provisions of the Texas Business Organization Code (BOC), or Property code 209.0056, or under the provisions of the Articles of Incorporation or the By laws o f the corporation, 9 a waiver thereof in writing signed by the person or persons entitled to such n otice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice . Attendance at any meeting shall constitute a waiver of notice of such meeting.

Annual Meeting : The Board of Directors shall hold an annual meeting of the members on the third Saturday in the month of May each year, to elect directors and for the transaction of other business as may come before the meeting .

Such meetings will be held at the clubhouse, 691 Canyon Springs Drive, Canyon La ke, TX 78133. If the day fixed for the annual meeting shall be on a legal holiday in the State of Texas, such meeting shall be held on the following Saturday . The Board will certify that a quorum exists before conducting the business of the Association .

If in any year, the election of Directors is not held on the day designated for the Annual Meeting, or at any adjournment of the Annual Meeting, the Board of Directors shall call a special meeting of the members as soon as

ection of Directors is not held on the day designated for the Annual Meeting, or at any adjournment of the Annual Meeting, the Board of Directors shall call a special meeting of the members as soon as possible to conduct the elect ion of Directors. Notice of the special meeting replacing the annual meeting will be mailed and posted on the bulletin board at the entrance to the subdivision on Canyon Springs Drive .

The annual meeting will be announced in writing no later than the 10th day or no earlier than the 60th day before the annual meeting . Ideally, the notice will be a newsletter that includes a presidential summary of the prior year, a ballot listing the candidates for directors and a proxy, and an update of the financial posi tion of the Association through April will be included. The n otice must also be posted on the bulletin board at the clubhouse and the entrance on Canyon Springs Drive .

Ballots for the annual meeting or a special meeting requiring a vote by the membership must be in writing and signed by the member . Electronic votes cast under Section 209.00592 constitute written and signed ballots. Written ballots are not required for uncontested races.

Right to Vote: All members of the association, regardless of their status “in good standing,” will be allowed to vote for directors or matters concerning the rights or responsibilities of the owner .

Special Meetings : Special meetings may be called at any time by the Pr esident, or in his/her absence by one of the Vice Presidents, or the Board of Directors, or by not less than one -tenth (10%) of the members . Such meetings will be held at the clubhouse, 691 Canyon Springs Drive, Canyon Lake, TX 78133. The date and time a long with the

rd of Directors, or by not less than one -tenth (10%) of the members . Such meetings will be held at the clubhouse, 691 Canyon Springs Drive, Canyon Lake, TX 78133. The date and time a long with the purpose of a called special meeting must be provided in writing if the special meeting requires a vote of the membership or by posting to the bulletin board only at the clubhouse and at the entrance of Canyon Spring Resort if membership vote is not required . The notice shall be delivered to each member entitled to vote not later than the 10th day and not earlier than the 60th day before the meeting .

Board of Directors Meetings : Regular meetings of the Board of Directors will be held on the second Tuesday of each month, beginning at 7:00 PM. Such meetings will be held at the clubhouse, 691 Canyon Springs Drive, Canyon Lake, TX 78133. These meetings are open to the members of the Association. Notice of Regular Board Meetings will be posted on the community notice board at the entrance to the subdivision on Canyon Springs Drive .

Meetings of the Board of Directors shall be intended for the conducting of association business and reports of officers and/or committees .

Meetings will be conduct ed by the President or Vice President(s) in his/her absence and shall be managed by an agenda and Roberts Rules of Order . Items may be added to the agenda by request to the President or Secretary not later than 48 hours before the scheduled meeting . The President may modify the agenda by declaration before or during any meeting of the Board.

Regular meetings of the Board of Directors shall include an opportunity for members to address the Board and to bring matters to the attention of the Board following the proper procedures . This will be an agenda item after all

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d of Directors shall include an opportunity for members to address the Board and to bring matters to the attention of the Board following the proper procedures . This will be an agenda item after all other business of the Association is concluded.

Called Meetings of the Board of Directors: The Board shall further meet at the discretion of the President, one of the Vice Presidents in the absence of the President, or by any three Board members . Board meetings may be held at a location convenient to all Board members but preferable at the registered office.

10 The person(s) calling the meeting will give written notice, delivered personally, or sent by e -mail, fax , or first -class mail to each director at the address as shown by the records of the corporation or by personal contact . Notice of the meeting will be given to the directors at a minim um of three (3) days before the meeting . The notice will state the place, day , and time of the meeting, who called the meeting , and the purpose or purposes for which the meeting is called . Board of Directors meetings may be conducted by telephone confere nce or other remote electronic communications technology if all Board members agree with the system .

Attendance at a called meeting shall constitute a waiver of notice of such meeting except where a director attends a meeting for the express purpose of obj ecting to the transaction of any business because the meeting is not lawfully called or convened . Any Board member can waive in writing the 3-day notice requirement for them only .

Membership Quorum : The members holding 10% of the votes that may be cast at a meeting, who attend the meeting in person or by proxy, shall constitute a quorum at the meeting . The members present at a duly called or

: The members holding 10% of the votes that may be cast at a meeting, who attend the meeting in person or by proxy, shall constitute a quorum at the meeting . The members present at a duly called or held meeting at which a quorum is present may continue to transact business, even if enough members leave the meeting so that less than a quorum remains. However, no action may be approved without the vote of at least a majority of the number of members required to constitute a quorum .

The membership shall try to act by consensus ; however, the vote of a majority of voting members entitled to vote at a meeting at which a quorum is present shall be sufficient to constitute the act of membership, unless the vote of a greater number is required by law, the articles of incorporation or the bylaws.

Membership voting shal l be by written ballot . All ballots will be counted in a public forum in the meeting, which the ballot was conducted . The directors who are not officers and at least one non-director property owner will conduct the count and record the result with the Se cretary . The Board may elect to have an outside party conduct the count and record the results with the secretary.

Board Quorum : The presence of a majority of the directors constitutes a quorum for the transaction of the business at any meeting of the Board of Directors . The Board may continue to transact business even though enough directors leave the meeting so that less than a quorum remains. However, no action may be approved without the vote of at least a majority of the number of Directors required to constitute a quorum. If a quorum is not present during a meeting, a majority of the Directors present may adjourn and recon vene the meeting another time; with

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of the number of Directors required to constitute a quorum. If a quorum is not present during a meeting, a majority of the Directors present may adjourn and recon vene the meeting another time; with written or printed notice (including electronic method of delivery, i.e., email or chat room) delivered to each Director not less than 3 days before the date of the reconvened meeting. Attendance at said meeting shall c onstitute a waiver of notice.

Directors may vote by proxy; however , Directors present by proxy may not be counted toward a quorum. The act of the majority of the directors presents in person or by proxy at a meeting at which a quorum is present shall be the act of the Board of directors unless the act of a greater number is required by law.

Proxies : A member entitled to vote may vote by proxy executed in writing by the member. No proxy shall be valid after three (3) months from the date of its executi on unless otherwise provided in the proxy.

All Unassigned Proxy votes shall be distributed evenly to the Board members and administered by the Board of directors.

Specific wording within the proxy is required per Texas Property Code 209.00592 (c) (3) , "By casting your vote via absentee ballot you will forgo the opportunity to consider and vote on any action from the floor on these proposals if a meeting is held. This means that if there are amendments to these proposals your votes will not be counted on th e final vote on these measures . If you desire to retain this ability, please attend any meeting in person. You may submit an absentee ballot and later choose to attend any meeting in person, in which case any in -person vote will prevail."

11

ire to retain this ability, please attend any meeting in person. You may submit an absentee ballot and later choose to attend any meeting in person, in which case any in -person vote will prevail."

11 Meetings by Remo te Communication : A meeting by the board of directors or any committee designated by the board may be held using a remote electronic communications system if each person entitled to participate in the meeting consents to the meeting being held by electronic means and the system can communicate with all participants.

Committees: The President along with a majority o f the directors in office may designate by resolution one or more committees, which, to the extent provided in such resolution will not have nor exercise the authority of the Board of directors in the management of the corporation .

The President shall a ppoint the chair of any committee formed as well as Board members as deemed necessary .

Each committee shall be chaired by a director. The Directors or the Chairperson may establish qualifications for membership on a committee. The Chairperson may appoin t as many members as expedient to conduct committee business, but no less than two persons will constitute a committee.

Committee members must be a member of the association and shall serve at the discretion of the committee chair or Board of Directors . Each committee member shall continue on the committee at the will of the Board of Directors.

A vacancy on a committee may be filled by an appointment made in the same manner as an original appointment.

Committee decisions and planning must be submitted to the Board of Directors for approval before implementation.

Committee meetings will be announced on the bulletin board or by any other means selected by the committee

and planning must be submitted to the Board of Directors for approval before implementation.

Committee meetings will be announced on the bulletin board or by any other means selected by the committee chairman not less than 3 days before the date of the meeting. Electronic notification su ch as phone call s or email is acceptable notification. The notice will state the place, day , and time of the meeting, and the purpose(s) for which the meeting is called. Attendance at the said meeting will constitute a waiver of notice of such meeting .

Recommended Committees: Nominating Committee: Article 9 of the Articles of Incorporation require s a nominating committee .

Architectural Control/ Compliance Committee: This committee shall review building permit applications, inspect properties, interview applicants, recommend approval of applications, collect fees, issue compliance approval, and recommend to the Board reasonable extensions in cases where there are no discrepancies concerning deed restrictions . A majority of members of the Compliance Committee must be members of the community.

Decisions of the committee may be made in a committee meeting or by telephone or email contact with all committee members . The desire is to speed up the application process so that the building can commence without unnecessary delays . However, due care must be taken that all applicants are in full compliance with deed restrictions and regulations . All actions must be reported monthly to the Board of Directors for final approval and ratification.

This committee shall investigate complaints of non -compliance, conduct hearings as necessary, interview property owners, and make recommendations to the Board of Directors concerning r emedial action, fines, settlements, legal

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igate complaints of non -compliance, conduct hearings as necessary, interview property owners, and make recommendations to the Board of Directors concerning r emedial action, fines, settlements, legal procedures, litigation, or possible foreclosure.

After Board approval, the committee will be responsible for collecting fines, tracking debts owed to the association, filing legal papers, consulting attorneys, ne gotiating settlements, and processing claims for collection . The purpose desired is to reduce the time spent discussing these proceedings during normal Board meetings . No action, fine , or penalty shall become effective until such Board ratification.

Waivers or variances to deed restrictions must be heard and approved by the Board of Directors . Such waivers or variances must be provided to the property owner in writing and a copy will be filled in the Association files for permanent record. Units 4 and 5 are the only units that allow variances.

12 Property Owners may appeal the decisions to the Board of Directors or request a hearing with the Board of Directors. They may also appeal to the membership via a petition . The signatures of at least 10 % of the property owners, who are members, are required to constitute a valid petition.

Pool Committee: The pool committee will propose rules or changes to existing rules to the Board of Directors.

They will assist the pool attendants in enforcing the rules. The committee may make recommendations to restrict the use of the pool for members who repeatedly violate the pool rules or cause unsafe utilization of the pool by other members . Pool rules are in the Rules and Regulations section.

Clubhouse Committee: The clubhouse committee will propose rules and regulations to the Board of directors.

zation of the pool by other members . Pool rules are in the Rules and Regulations section.

Clubhouse Committee: The clubhouse committee will propose rules and regulations to the Board of directors.

They will coordinate the rental of the clubhouse and assure all rules for utilization are followed. They will make recommendations for repairs or improvements as needed. T hey will propose fees for rental and fines for failure to return the clubhouse to its state of cleanliness or usability . Clubhouse rules are in the Rules and Regulations sections.

Welcoming Committee : The welcoming committee will provide copies of deed r estrictions, Articles of Incorporation and Bylaws , and any gift provided by the Board or the committee.

Article Fifteen Limitation on Member’s Liability The private property of the members of this Association shall not be liable for its Association’s debts .

Article Sixteen Indemnification of Officers A director is not liable to the corporation, any other person for an action taken or omission made by a director if the director acted in good faith, with ordinary care , and in a manner, the director reasonably believed to be in the best interest of the corporation.

The Association may indemnify a director, former director , or committee member who was, is , or is threatened to be made a respondent in a proceeding to the extent permitted by Section 8.102 if it is determined , in accordance with Section 8.103 that the person acted in good faith, reasonably believed in the case of conduct in the person’s officia l capacity that the person’s conduct was in the best interests of the association and conducted with ordinary care .

The association may purchase indemnity insurance .

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conduct in the person’s officia l capacity that the person’s conduct was in the best interests of the association and conducted with ordinary care .

The association may purchase indemnity insurance .

If the Association may indemnify under the By laws a Director, Officer, or Committee Memb er of the Association, the person may be indemnified against court cost, judgment s, penalties, including excise and similar taxes, a fine, settlements, and reasonable expenses (including attorney’s fees) incurred in connection with the proceedings.

Proced ures relating to indemnification payments shall comply with the Texas Business Organization Act .

Before the Association may pay any indemnification expenses, the Board of Directors shall specifically determine that indemnification is permissible, authoriz e indemnification and determine that expenses to be reimbursed are reasonable. This will be done by resolution of the Board and signed by all members of the Board that are present during this deliberation.

Article Seventeen Alternative Dispute Resoluti ons 13 If the owner is entitled to an opportunity to cure a violation or conflict, the owner has the right to submit a written request for a hearing to discuss and verify facts and resolve the matter in issue before a committee appointed by the Board of the prope rty owner’s association or before the Board if the Board does not appoint a committee .

The association shall hold a hearing under this section no later than the 30th day after the date the Board receives the owner’s request for a hearing and shall notify the owner of the date, time, and place of the hearing not later than the 10th day before the date of the hearing. The Board or the owner may request a postponement, and if requested, a

d shall notify the owner of the date, time, and place of the hearing not later than the 10th day before the date of the hearing. The Board or the owner may request a postponement, and if requested, a postponement shall be granted for a period o f not more than 10 days. Additional postponements may be granted by the agreement of the parties. The secretary of the association may make an audio recording of the meeting .

Should a member have an inquiry or complaint against the CSRPOA or any Board Member thereof, a three -step alternative dispute Resolution Process is established: Step One: Member should complete and submit the inquiry or complaint in writing to the Secretary, stating as much detail as possible and the member should propose a resolution.

Step Two: The Boar d will conduct a hearing allowing the member to present the inquiry or complaint and attempt to resolve it.

Step Three: An owner or CSRPOA may use alternative dispute resolution services .

Article Eighteen Books and Records The Association shall keep cor rect and complete books and records of the accounts, shall also keep minutes of proceedings of its members and Board of Directors, and shall keep at the registered or principal office a record giving the names and addresses of the members entitled to vote . All books and records of the corporation may be inspected by any member or his agent or attorney for any proper purpose at any reasonable time .

The Association’s books and records shall include: a. File-endorsed copy of all documents filed with the Texas Secretary of State relating to the Association, including, but not limited to, the Articles of Incorporation and any articles of amendment, restated articles,

opy of all documents filed with the Texas Secretary of State relating to the Association, including, but not limited to, the Articles of Incorporation and any articles of amendment, restated articles, and articles of merger, articles of consolidation , and statement of change of registered of fice or registered agent.

b. a copy of the Bylaws, and any amended versions or amendments to the By laws c. Minutes of the proceedings of the members, Board of Directors, and committees having any of the authority of the Board of Directors d. A list of the names and addresses of the members, Directors, Officers, and any committee members of the Association e. A financial statement showing the assets, liabilities , and net worth of the Association at the end of the three most recent years.

f. A financial statement showing th e income and detailed expenses of the Association for the three most recent fiscal years g. All rulings, letters, and other documents relating to the Association’s federal, state , and local tax status h. The Association’s federal, state , and local information of income tax returns for each of the Association’s three most recent years.

Inspecting, Auditing , and Copying: A member of the association, on written demand stating the purpose of the demand, is entitled to examine and copy at the member’s expense, in person or by agent, accountant, or attorney, at any reasonable time and for a proper purpose, the books , and records of the corporation relevant to that purpose .

The Association will respond on or before the 10th business day after the date th e association receives the request, shall send written notice of date during normal business hours that the owner may inspect the requested books and

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or before the 10th business day after the date th e association receives the request, shall send written notice of date during normal business hours that the owner may inspect the requested books and records to the extent those books and records are required to be retained by the association .

14 The charges for production and copying of any record and/or document by the association will include all reasonable costs of materials and labor . The costs that would be applicable for an item will be exactly the charges allowed by Texas Administrative Code, Title 1 , Chapter 70.3. The association will require advance payment of the estimated costs of compilation, production, and reproduction of the requested information. If the estimated costs are lesser or greater than the actual costs, the association shall submi t a final invoice to the owner on or before the 30th business day after the date the information is delivered. If the final invoice includes additional amounts due from the owner, the additional amounts, if not reimbursed to the association before the 30t h business day after the date the invoice is sent to the owner, may be added to the owner's account as an assessment. If the estimated costs exceeded the final invoice amount, the owner is entitled to a refund, and the refund shall be issued to the owner no later than the 30th business day after the date the invoice is sent to the owner .

Audits: Any member shall have the right to have an audit conducted of the Association’s books. The member requesting the audit shall bear the entire expense of the audi t. The member requesting the audit may select the accounting firm to conduct the audit . The request must be in writing with sufficient particularity detailing the

ear the entire expense of the audi t. The member requesting the audit may select the accounting firm to conduct the audit . The request must be in writing with sufficient particularity detailing the association’s books and records requested . The association will make every effort to reply within 10 days or provide a reason the request cannot be completed within 30 days .

Article Nineteen Financial The fiscal year of the Association will begin on the 1st day of January and conclude on the 31s t day of December.

The Board of Directors shall annually prepare or approve a report of the financial activity of the Association for the preceding year.

No less than thirty (30) days before the beginning of the fiscal year, the Board will also prepare and approve an annual budget for the association . This annua l Budget will be made available to members as an insert to the annual assessment billing in January of each year or as requested in writing by members.

All records, books, and annual reports of the financial activity of the corporation shall be kept at the registered office or at a location approved by the Board of Directors for at least seven years after the closing of each fiscal ye ar and shall be available to the membership for inspection and copying by arranging an appointment with the treasurer.

Deposits: All funds of the corporation shall be deposited from time to time to the credit of the corporation in such banks, trust compa nies, or other depositories as the Board of Directors may select.

Application of funds received : All monies received in payment by the Association shall be applied to the amounts outstanding to the extent possible, in the following order: Any delinquent as sessment.

1. Any current assessment .

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: All monies received in payment by the Association shall be applied to the amounts outstanding to the extent possible, in the following order: Any delinquent as sessment.

1. Any current assessment .

2. Any attorney’s fees or third -party collection costs incurred by the association associated solely with assessments or any other charge that could provide the basis for foreclosure.

3. Any reasonable attorney’s fees incurred by the association that is not subject to subdivision (3) .

4. Any reasonable fines assessed by the association .

5. Any other reasonable amount owed to the association.

If at the time the property owners’ association receives a payment from a property owner, the owner is in default under a payment plan entered into with the a ssociation: (1) the association is not required to apply the payment in 15 the above order of priority and (2) in applying for the payment, a fine assessed by the association may not be given priority over any other amount owed to the association .

Checks and Drafts : The treasurer will prepare all checks, drafts, withdrawals, or other disbursements from association banking accounts and shall report the transaction to the Board of Directors monthly with the financial reports. Disbursement transaction s exceeding $ 500 shall be approved in writing by at least two of the four Directors listed, President, Secretary, Treasurer, or First Vice President.

Gifts and Donations: The Board of Directors may accept on behalf of the corporation any contri bution, gift, bequest, or devi ce for general purposes or any special purpose of the corporation . Payment of donations shall be voluntary and failure to contribute to the Association shall not be used to deny the rights of any property owner to be

poses or any special purpose of the corporation . Payment of donations shall be voluntary and failure to contribute to the Association shall not be used to deny the rights of any property owner to be a member of the Association and participate in the activities.

Contracts: The Board of Directors , by a majority vote , must authorize any contract or execute or deliver any instrument in the name of or on behalf of the corporation . No Board member will grant or enter into any contracts with the association.

Loans: The Association shall not make any loan to a member or Director of the Association.

Assessments Assessments shall be utilized for the maintenance, upkeep, and operation of the association and facilitie s, including buildings, pools, parks, grounds, signage, tennis courts, and recreational areas, other common areas of the subdivision , and enforcement of deed restrictions . The Board of Directors shall determine the amount of assessments other than the ann ual assessment, which is restricted by the Deed Restrictions.

The Board of Directors may direct and collect special assessments as well as specific fees, deed restriction fines, impose interest and late payment fees on annual and special assessments and returned check fees, postage, attorney fees and collection agen cy fees, usage fees for operation or use of the common area and for services provided to property owners, impose reasonable charges for preparing, recording, or copying amendments to the restrictions, resale certificates, or statements of unpaid assessment s.

Board -directed fees, fines , and penalties are found on page s 32-34 in the Rules and Regulations.

Assessments shall include two categories.

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esale certificates, or statements of unpaid assessment s.

Board -directed fees, fines , and penalties are found on page s 32-34 in the Rules and Regulations.

Assessments shall include two categories.

Annual Assessment: Paragraph 11 or 12 of the Deed Restrictions establishes an annual assessment of $18 per annum for lot owners . Annual assessments shall be payable on the first day of May each calendar year and become past due or delinquent after May 31 . At thirty (30) days past due, Assessments are in default . Late fees begin to accrue at this time along w ith interest charges . A Notice of Default and assessment of late payment fee and accrual of interest charges will be sent to the member . New members shall be charged a prorated assessment of 1/12th of the annual dues for each month of membership . New me mbers automatically become members at the date of purchase of the real property.

Fines, Fees , and Penalties WHEREAS Section 202.004 of the Texas Property Code permits the exercise of reasonable discretionary authority to a Property Owners' Association conc erning the enforcement of restrictive covenants ; WHEREAS Canyon Springs Resort Property Owners' Association (hereafter the Association) is a duly registered Property Owners' Association with the Texas Secretary of State; 16 AND WHEREAS the Association desires to have an expedient method of enforcing properly const rued and filed deed restrictions; AND WHEREAS the Association Charter requires the Association to maintain adherence to the deed restrictions and Articles of Incorporation; NOW, THEREFORE IT IS RESOLVED , that in addition to other methods of enforcement of the Deed Restrictions, the Board of Directors hereby establishes the Fine and Fee schedule in the Rules and Regulations on

EREFORE IT IS RESOLVED , that in addition to other methods of enforcement of the Deed Restrictions, the Board of Directors hereby establishes the Fine and Fee schedule in the Rules and Regulations on pages 32 thru 34 of the Rules and Regulations.

Fines and usage fees: Fines and usage fees may be assessed by the Board of Directors. Deed Restriction Fines become due after completion of the hearing and decision of the Board of Directors and a remedy date is established .

Fees become due upon application by the member and are considered delinquent one (1) day after the due date.

Late payment fees: Notice of delinquent accounts will be mailed not later than thirty (30) days past due, or as soon as the delinquency is noted.

Interest: A 6% simple per annum interest shall be added to the amount owed to the Association . Owners will be notified by 1st class mail to the last known address of the owner . Interest is added by the following method: Each January 1st, 6% interest is added to each an d all individual debt(s) owed the Association on October 1st of the preceding year.

Collection: Accounts past due may be turned over to a collection agency for collections . The cost of collection and related collection costs will be billed to the member . Fees, interest , or fines will continue to accrue during the collection process. A decision not to refer the accounts for collections does not in any way waive the Association 's right to fines, fees, interest, or penalties due.

Returned Check Fee: A charge of $35.00 per item will become due to any check tendered to the Association that the bank dishonors . Dishonored checks will be retained by the Association, and may be redeemed with cash,

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A charge of $35.00 per item will become due to any check tendered to the Association that the bank dishonors . Dishonored checks will be retained by the Association, and may be redeemed with cash, certified check, or money order . Dishonored checks, which are not redeemed within thirty (30) days, may be turned over to a collector, or the applicable court of jurisdiction.

This Assessment, Fine, and Permit Fee Collection Policy shall remain in force and effect until revoked, modified, or amended by a majority of the Board of Directors.

Alternative Payment Schedule : Should an owner owe more than the current annual assessment; the Board may approve an alternative payment plan of three equal payments . The owner should contact the Board for a hearing to establish a n alternative payment Schedule.

Loss of membership rights Any member’s account which is past due one -hundred eighty (180) days is considered to be in default . The Association may suspend the offending member according to the procedures contained in the bylaws.

Liens and Foreclosure : The Board has the right to file liens on property when assessments are past due. Notice will be given to the member before filing the lien to provide the member an opportunity to appeal to the Board for a hearing of the Board and create an opportunity to cure the delinquency before the 61st day after the date the recipient receives the notice.

The authority to file foreclosure will be used only as a last resort to collection action . Foreclosure on the property for fines only, attorney fees only, amounts added to the owner’s account as an assessment under Property code 209.005 will not be processed .

17 Article Twenty Transactions of the Association

property for fines only, attorney fees only, amounts added to the owner’s account as an assessment under Property code 209.005 will not be processed .

17 Article Twenty Transactions of the Association The membership may authorize any officer or agent of the Association to enter into a contract or execute and deliver any instrument in the name of and on behalf of the Association. This authority may be limited to a specif ic contract or instrument, or it may extend to any number and type of possible contract and instruments.

Prohibited Acts: As long as the Association is in existence, no Director, Officer , or Committee Member of the Association shall commit the following prohibited acts: a. Do any act in violation of the Deed Restrictions or of the by laws or a binding obligation of the Association b. Do any act to harm the Association or any of its operations c. Do any act that would make it impossible or unnecessarily difficult to carry on the intended or ordinary business of the Association d. Receive an improper personal benefit from the operation of the Association e. Use the assets of this Association, directly or i ndirectly, for any purpose other than carrying on the business of the Association f. Wrongfully transfer or dispose of Association property, including intangible property such as goodwill g. Use the name of the Association (or any substantially similar name) or any trademark or trade name adopted by the Association, except on behalf of the Association in the ordinary course of the Association 's business.

Article Twenty -One Miscellaneous Provisions Legal Authority Governing Construction of By laws: The by laws sh all be construed in accordance with the laws

nary course of the Association 's business.

Article Twenty -One Miscellaneous Provisions Legal Authority Governing Construction of By laws: The by laws sh all be construed in accordance with the laws of the State of Texas, with primary attention given to Texas Business Organization Code (BOC), Chapters 3, 6, 7, 8, 22, 252 , and to Texas Property Code Chapters 202, 205, 207, and 209.

Conflict between documen ts: In the event of a conflict between the provisions of any Deed Restriction for property subject to the jurisdiction of the Association and the Articles of Incorporation, the provisions of the Deed Restrictions shall govern and control . In the event of any conflict between the terms of the Articles of Incorporation of the Association and these By laws, the terms of the Articles shall govern and control .

Legal Construction : If any By law provision is held to be invalid, illegal, or unenforceable in any respect, the invalidity, illegality, or unenforceability shall not affect any other provision and the By laws shall be construed as if the invalid, illegal, or unenforceable provision had not been included in the By laws.

Headings : The headings used in the By laws are used for convenience and shall not be considered in construing the terms of the By laws.

Article Twenty -Two Declaration of Covenants Conditions and Restrictions (Deed Restrictions) The Association or any Prop erty Owner of Record shall have the right to call for enforcement, by any proceedings at law or in equity, all restrictions, conditions , and reservations contained in the Canyon Springs Resort Subdivision, Units I, II, III, IIIA, IV , and V as filed in the County Clerk’s Office: Unit 1 Filed 20 Sept 1960 in Volume 121 Page 145

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itions , and reservations contained in the Canyon Springs Resort Subdivision, Units I, II, III, IIIA, IV , and V as filed in the County Clerk’s Office: Unit 1 Filed 20 Sept 1960 in Volume 121 Page 145 Unit 2 and 3 filed on each deed filed with Comal County using a reference to Volume 121 page 145 Unit 3A filed 20 Sept 1966 Volume 151 page 591 18 Unit 4 Filed 26 February 1968 Volume 161 page 583 Unit 5 Filed 3 July 1984 and amended April 1985 Volume 396 page 485 and Volume 442 page 373 Any prior variance to the Deed Restrictions granted by the Association does not cause a perpetual variance in the future.

Certification of the Presi dent of the Board of Directors I certify that I am a duly elected Director of Canyon Springs Resort Property Owners Association, and the foregoing Bylaws constitute the By laws of the Association.