BOARD POLICY RESOLUTION No. 24 (“BP 24”)
PRESERVATION & IMPROVEMENT FEE/FUND
WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board
of Directors to adopt Policies not in conflict with the Restated
Articles of Incorporation (“Articles”) or the Corporate Bylaws
(“Bylaws”).
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors (“Board” or
“Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or
“Corporation”) in an effort to maintain and carry out its fiduciary
responsibility to its Members, adopts the following Board Policy (“BP”
or “Policies”) on April 24, 2008.
NOW, THEREFORE, BE IT RESOLVED that to minimize inconsistencies,
misunderstandings and misinterpretations inherent in verbal
instructions, rules and regulations, the Board of Directors has
established Board Policies in written form. Such Policies shall be
titled, numbered and indexed for easy reference and use.
NOW, THEREFORE, BE IT RESOLVED that the Restated Articles of
Incorporation and the Corporate Bylaws shall take precedence over Board
Policies and that the following Board Policy regarding the Preservation
Improvement Fee/Fund (“PIF”) shall provide instruction, direction and
guidelines regarding such and shall remain in effect until such time it
is amended or removed.
1.
For
purposes of imposing the Preservation & Improvement Fee, a “transfer” of
residential property shall be defined as the purchase/ acquisition/
inheritance or any other transfer of a legal or beneficial interest in
the title to residential property in Sun City, Arizona pursuant to any
deed, contract for sale, will or other instrument or document
transferring an interest in such property, so long as the original
transferor no longer retains a majority ownership interest in the
property
2. A
Preservation & Improvement Fee will be imposed on the transfer of
residential property in Sun City, Arizona including, but not necessarily
limited to, the following:
a. on
the date any seller(s) transfers to any purchaser(s) residential
property in Sun City, Arizona; or
b. in
the event the residential property is transferred to a Trust, or on the
date when the grantor(s)/transferor(s) is/are no longer a Trustee or
Co-Trustee and beneficiary(ies) of the Trust; or
c. in
the event the residential property is transferred from a Trust, on the
date when the residential property is transferred from the Trust to
persons other than the original grantor(s)/transferor(s) of the Trust;
or
d. in
the event the residential property is transferred to a Corporation, LLC,
Partnership, LLP or any other entity (“Company”) that may represent
non-individual ownership other than Trusts, on the date when the
transferor(s) is/are no longer officers and majority owner(s) of record
of said Company; or
e. in
the event the residential property is transferred from a Company that
may represent non-individual ownership other than Trusts, to a new
owner, on the date when the transferor(s) referred to in (d) above,
is/are no longer the owner(s) of record; or
f. in
the event the residential property is transferred by inheritance
(including but not limited to probate proceedings and beneficiary
deeds), on the date of legal transfer.
3.
The
purchase/ acquisition/ transfer/ inheritance of residential property in
Sun City, Arizona used for any purpose other than as the primary Arizona
residence, including, but not limited to, resale, rental, investment or
use by individuals other than the property owners, shall be subject to
the Preservation & Improvement Fee.
4. At
any time when a “transfer” has occurred for purposes of imposing the
Preservation & Improvement Fee, then a Transfer Fee shall also be
incurred and collected at the same time that the Preservation &
Improvement Fee is collected.
5. Preservation
& Improvement Fees collected will be temporarily deposited in an insured
interest
bearing account,
designated for Preservation & Improvement Fund purposes only. Funds will
remain in the insured interest bearing account or Certificates of
Deposit until sufficient funds are available for authorized expenditures
or for investment in Government issued securities with selection and
maturity to be determined by the Investment Review & Approval
Commission.
6.
Funds
will be withdrawn from the insured interest bearing account and
deposited in the RCSC general checking account to pay for Government
issued securities purchased or for authorized Preservation & Improvement
Fee expenditures. When Preservation & Improvement Fund investments are
sold or matured, proceeds will be deposited as directed by the
Investment Review & Approval Commission in those areas as previously
noted. When funds have been approved for expenditure, a transfer may be
made from the insured interest bearing account, certificates of deposit
or Government issued securities to the RCSC checking account.
7. Investments
and transfer of funds for investment purposes must be approved, in
writing, by the Treasurer.
8. Income
from Preservation & Improvement Fund investments, insured interest
bearing accounts, certificates of deposit or Government issued
securities will be retained as a Preservation & Improvement Fund balance
and NOT transferred to any RCSC account, unless authorized by the RCSC
Board of Directors.
9.
Projects funded from the Preservation & Improvement Fund must:
a.
be
approved by the RCSC Board of Directors;
b.
be a
minimum of $300,000; and
c.
have a
depreciable life of at least 15 years.
10. Preservation
& Improvement Funds are not to be spent for normal operating or
maintenance expenses.
11. A
monthly report will be submitted to the RCSC Board of Directors by
Management detailing monthly and year-to-date activity of income,
transfers and expenditures. A detailed list of investments will, also,
be provided upon request of the Board of Directors.
BOARD
POLICY RESOLUTION INDEX
