Section 3.1: General
Section 3.2: Duty to manage and care for property
Section 3.3: Duty to pay taxes, maintain casualty insurance and maintain liability insurance
Section 3.4: Duty to ascertain budgetary requirements and to levy dues and assessments
Section 3.5: Duty to enforce collection of dues and assessments
Section 3.6: Power to adopt rules and regulations
Section 3.7: Power to enforce Bylaws and rules or regulations

Section 3.1 General. The Corporation has been formed to further the common interests of the Shareholders. The Corporation, acting through the Board of Directors, shall have the duties and powers hereinafter set forth and, in general, the power to do anything that may be necessary or desirable to further the common interests of the shareholders, to maintain, improve and enhance corporation properties and to improve and enhance the attractiveness, desirability and safety of all areas which fall within the boundaries of Norton Hills Estates.

Section 3.2 Duty to manage and care for property. The Corporation shall manage, operate, care for, maintain and repair all corporation owned properties and keep same in a safe, attractive and desirable condition for the use and enjoyment of the shareholders, their family members and guests.

Section 3.3 Duty to pay taxes, maintain casualty insurance and maintain liability insurance. The Corporation shall pay all real estate taxes and assessments levied upon corporation owned properties and shall obtain and keep in force and effect at all times, to the extent reasonably obtainable, casualty, fire and comprehensive liability insurances.

Section 3.4 Duty to ascertain budgetary requirements and to levy dues and assessments. The Corporation shall determine the revenue required to fund all general operations, including foreseeable reserves for repair and replacement of capital improvements upon corporate owned properties and necessary personal property related thereto, and will levy annual dues assessments against all shareholders in sufficient amounts to fund such operations. Said dues assessments will be issued on or before January 31st of each year and will be due and payable within 30 days of issuance. In addition, if the Board of Directors determines the need for additional revenue required for extraordinary purposes such as constructing, reconstructing, repairing or replacing capital improvements upon corporation properties, or for any other extraordinary requirement, the Board will inform the shareholders of the need for a special assessment and will deliver a ballot for approval by the shareholders to each shareholder's last known address to be returned to the corporation in no more than 30 days. If, upon counting the ballots returned, 51 percent or more of the shares represented by the responding shareholders approve the issuance of the special assessment, the Corporation shall issue said special assessment immediately, to be due and payable within 30 days of issuance.

Section 3.5 Duty to enforce collection of dues assessments and special assessments. The Corporation shall make every reasonable effort to collect any and all dues assessments and special assessments levied upon the shareholders under Sec. No. 3.4 above. If any annual dues assessment or special assessment is not paid within 30 days after it is due, the Board will cause a second notice of the dues assessment or special assessment to be delivered to the shareholder. If payment is not received within 60 days after the original due date, the shareholder will owe the Corporation 150 percent of the dues or assessment. If payment is not received within 90 days after the original due date, the shareholder will owe the Corporation 200 percent of the dues or assessment. If payment is not received within 120 days after the original due date, A late fee equal to one-third of the dues or assessment will be added to any account not paid in full by the due date. The late fee will increase to two-thirds of the dues or assessment for any account not paid in full within 30 days of the original due date, and to 100 percent of the dues or assessment for any account not paid in full within 60 days of the original due date. Any account not paid in full within 90 days of the original due date shall be declared delinquent, and ⁽³⁾ the Treasurer will bring the delinquency to the attention of the Board and recommend an appropriate action. The Board may, at its discretion, either refer the account to a collection agency, file a claim or lien against the shareholder's property, bring a suit at law to enforce the obligation, suspend the delinquent shareholder's voting rights or any combination of the above. Notification of the action taken against the delinquency will be mailed to the shareholder's last known address. The cost of any enforcement action will be added to the delinquency and will be borne in full by the delinquent shareholder. The terms of this section supersede any and all previous resolutions pertaining to late fees.

Section 3.6 Power to adopt rules and regulations. The Corporation may adopt, amend, repeal and enforce rules and regulations, fines, levies and enforcement provisions deemed necessary or desirable with respect to the operation of the corporation, the use and enjoyment of corporation owned properties and the use of any other property within the boundaries of Norton Hills Estates, including privately owned sites. These rules and regulations shall be reasonable and uniformly applied. Notice of the adoption, amendment or repeal of any rule or regulation shall be delivered to each home site, published in the Norton Hills Estates Newsletter, or mailed to the shareholder's last known address 30 days in advance of the effective date. Copies of currently effective rules and regulations will be made available to each shareholder. Each shareholder, family member and guest will be bound by and will comply with all rules and regulations.

Section 3.7 Power to enforce Bylaws and rules or regulations. The Corporation shall have the power to enforce the provisions of these Bylaws and any adopted rules and regulations and shall take such action as the Board deems necessary or desirable to cause compliance by each shareholder, the shareholder's family members and guests. Without limiting the generality of the foregoing, the corporation will have the power to assess and collect fines, suspend the voting rights of shareholders, and initiate legal action as the Board deems appropriate.

⁽³⁾ Amended by the Board of Directors, Aug. 11, 2009