BY-LAWS OF
BEACHLOFT CONDOMINIUM
BEACHLOFT CONDOMINIUM
(Updated 9/22/2010) Page 1 of
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ARTICLE I
PLAN OF APARTMENT OWNERSHIP
PLAN OF APARTMENT OWNERSHIP
SECTION I: APARTMENT
OWNERSHIP. The Condominium located
in the Town of Ocean City in the Tenth Election District of Worcester County,
Maryland, known as "Beachloft Condominium" is submitted to the
provisions of Section 117A, et seq., of Article 21 of the Annotated Code of
Maryland (1963 Cumulative Supplement). The
administration thereof shall be by the Board of Directors herein
described, subject to the powers of the owners as herein specified.
SECTION
2: BYLAWS APPLICABILITY. The provisions of these bylaws are applicable to
the Condominium. The
term "Condominium" as used herein shall include the land, as well as the improvements thereon. In
construing these bylaws, and the government of the Condominium pursuant thereto, the provisions of Article 23 of the
Annotated Code of Maryland pertaining to the government of
regular/business
corporations shall be considered as governing to the extent not inconsistent with the provisions of Article 21, Section
117A, et seq. (pertaining to
Condominiums), the Master Deed and these bylaws, the Condominium being considered the corporation and the owners being considered the stockholders
SECTION 3: PERSONAL
APPLICATION. All present and future owners, tenants and future tenants, and
their employees, and any other person that may at any time
use the facilities of the
Condominium in any manner are subject to the regulations set forth in these
bylaws and to the declarations set forth in the Master Deed to which these
bylaws are attached.
The mere acquisition or
rental of any of the Condominium Units (hereinafter referred to as
"Units") or the mere act of occupancy of any of said units will signify that these bylaws as they-may be amended
from time to time, are accepted, ratified, and will be complied with.
ARTICLE II
THE OWNERS
SECTION 1: OWNERS.
The Condominium is owned by the owners of the Units, each of whom shall
be entitled to one vote for each Unit owned by him. In all matters pertaining
to the election of directors, the holding of office and the management of the
Condominium, the lessee under any lease for a term of years, renewable
forever, shall be considered to be the "owner", and the owner of the
fee simple reversion under such a lease shall have no right to vote on such
matters; provided, however, that such lessee shall have no power, without the
concurring vote of such fee simple reversion owner, to act or vote upon any
matter reducing or altering the rights of such fee simple reversion
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owner, pursuant to the terms of his lease or as otherwise
existing according to law, or amending or terminating the Condominium Master
Deed. Other than lessees under leases above described, no other lessee, lien
holder, mortgagee, pledge or contract purchaser
shall have any voting rights with respect to the affairs of the Condominium.
SECTION 2: ANNUAL
MEETINGS. Each year the Council of Unit Owners shall hold an annual meeting
of the owners for the election of directors and the transaction of any business
within the power of the Council on a date and at a time after September tenth
as determined by the Board of Directors. Any business of the Council may be
transacted at an annual meeting without being specifically designated in the
notice, except as required by statute,
by the Master Deed or the Bylaws to be stated in the notice. Failure to hold an
annual meeting at the designated time shall not, however, invalidate the
Council’s existence or affect its otherwise valid acts. (Amended September
26, 1992)
SECTION 3: SPECIAL MEETINGS. It shall be the duty of the President to call a special meeting of the members as directed by resolution of the Board of Directors or upon a petition signed by members representing at least twenty-five percent (25%) of the units having been presented to the secretary. The notice of any special meeting shall state the time and place of such meeting and the purpose thereof. No business shall be transacted at a special meeting except as stated in the notice. (Amended September 24, 2004)
SECTION 3: SPECIAL MEETINGS. It shall be the duty of the President to call a special meeting of the members as directed by resolution of the Board of Directors or upon a petition signed by members representing at least twenty-five percent (25%) of the units having been presented to the secretary. The notice of any special meeting shall state the time and place of such meeting and the purpose thereof. No business shall be transacted at a special meeting except as stated in the notice. (Amended September 24, 2004)
SECTION 4: PLACE OF MEETING. All meetings of owners shall be
held at the principal office of the Condominium in Ocean City, Maryland, except in cases in which the notice
thereof designates some other place; but all such meetings shall be held
within the State of Maryland.
SECTION 5: NOTICE OF MEETINGS. Not less than ten days nor
more than ninety days before the date of every owners' meeting, the secretary
shall give to each owner entitled to vote at such meeting, written or printed
notice stating the time and place of the meeting and, in the case of a special
meeting, the purpose or purposes for which the meeting is called, either by
mail or by presenting it to him personally or by leaving it at his residence or
usual place of business. If mailed, such notice shall be deemed to be given
when deposited in the United States mail addressed to the owner at his post
office address as it appears on the records
of the Condominium, with postage thereon prepaid. Notwithstanding the
foregoing provision a waiver of notice in writing, signed by the person or
persons entitled to such notice and filed with the records of the meeting,
whether before or after the holding thereof, or actual attendance at the
meeting in person or by proxy, shall be deemed equivalent to the giving of such
notice to such persons. Any meeting of
owners, annual or special, may adjourn from time to time to reconvene at
the same or some other place, and no notice need be given of any such adjourned
meeting other than by announcement.
**Duplicated from Article V, Section I –
Assessments: The Board of Directors shall determine the amount of the
assessment annually, and shall submit a copy of the
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annual budget to the unit owners at least thirty
(30) days before the regularly scheduled meeting of the Council of Unit Owners. (Amended September 24, 2004)
SECTION 6: QUORUM. At any
meeting of owners, the presence in person or by proxy of owners entitled to
cast a majority of the votes thereat shall constitute a quorum; but this
section shall not affect any requirement under statute or under the Master Deed
of
the Condominium for the
vote necessary for the adoption of any measure. In the absence of a quorum the
owners present in person or by proxy, by majority vote and without notice other
than by announcement, may adjourn the meeting from time to time until a quorum
shall attend. At any such adjourned meeting at which a quorum shall be present,
any business may be transacted which might have been transacted at the meeting
as originally notified.
SECTION 7: VOTES REQUIRED.
A majority of the votes cast at a meeting of owners, duly called and at which a
quorum is present, shall be sufficient to take or authorize action upon any
matter which may properly come before the meeting, unless more than a majority
of votes cast is required by statute or by the Master Deed.
SECTION 8: PROXIES. An
owner may vote either in person or by proxy "executed in writing by the
owner or by his duly authorized attorney-in-fact. No proxy shall be valid
after eleven months from its date, unless otherwise provided in the proxy.
Every proxy shall be in writing, subscribed by the owner or his duly authorized
attorney, and dated, but need not be sealed, witnessed or acknowledged.
SECTION 9: LIST OF OWNERS.
At each meeting of owners, a full, true and complete list in alphabetical order
of all owners entitled to vote at such meeting shall be furnished by the
Secretary.
SECTION 10: VOTING. In all
elections for directors every owner shall
have the right to vote, in person or by proxy, for as many persons as
there are directors to be elected. At all meetings of owners, the proxies and
ballots shall be received, and all questions touching the qualification of
voters and the validity of proxies and the acceptance or rejection of votes
shall be decided by the chairman of the meeting. Unless demanded or ordered by a
majority of owners present, no vote need be
by ballot, and voting need not be conducted by inspectors.
SECTION 11: INFORMAL
ACTION BY OWNERS. Any action required or permitted to be taken at any meeting
of owners may be taken without a meeting, if a consent in writing, setting
forth such action, is signed by all the owners entitled to vote on the subject
matter thereof, and such consent is filed
with the records of the Condominium.
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ARTICLE III
BOARD OF DIRECTORS
SECTION 1: POWERS. The
business and affairs of the Condominium shall be managed by its Board of
Directors. The Board of Directors may
exercise all the powers of the Condominium except such as are by statute
or the Master Deed or the bylaws conferred
upon or reserved to the
owners, including owners of any fee simple reversion under a ninety-nine year renewable
lease. In particular, but not by way of limitation, the Board of Directors
shall be responsible for, and have all necessary powers in connection with, the
care, upkeep, and surveillance of the buildings and other
facilities of the Condominium, including its general and limited common
elements and services; designation, hiring and dismissal of the personnel
necessary for the good working order of the buildings and for the proper care
of the general and limited common elements and to provide services for the buildings. The Board of Directors may delegate
any of such responsibilities and powers to the officers of the
Condominium, to a manager or managing organization engaged by contract to
undertake any of such responsibilities, or both. The Board of Directors, or any
officer or officers to whom such power may be delegated, shall have power to
take any action necessary or appropriate to enforce payment of all sums,
including assessments against owners, due the Condominium, including the power
to enforce any lien for the same. Such Board shall not undertake to provide
luxury services, such as maid service, common telephone switchboard service,
and the like, to the condominium units
without the unanimous vote of all owners.
SECTION 2: NUMBER OF
DIRECTORS. The number of directors of the Condominium shall be three,
until such number be changed as herein provided. By vote of a majority of the
entire Board of Directors, the number of
directors may be increased or decreased, from time to time, to not
exceeding seven nor less than three directors, but the tenure of office of a
director shall not be affected by any decrease in the number of directors so
made by the Board.
SECTION 3: ELECTION OF DIRECTORS. Until the first annual
meeting of owners or until successors are duly' elected and qualify, .the Board shall consist of John S.
Whaley, Milford W. Twilley and Willie H. Whaley. At the first annual
meeting of owners the owners shall elect directors, one - third to serve for
one year, one-third to serve for two years, and one-third to serve for three
years. Thereafter, directors shall be elected for three year terms or until
their successors are elected and qualify (or for a shorter term to fill a
vacancy arising for an uncompleted term), one-third of the directors being
elected at each annual meeting to succeed the directors whose terms are
expiring. At any meeting of owners, duly called and at which a quorum is
present, the owners may, by the affirmative vote of the holders of a majority
of the votes entitled to be cast thereon, remove
any director or directors from office and may elect a successor or
successors to fill any resulting vacancies for the unexpired terms of removed directors.
SECTION 4: VACANCIES. Any vacancy occurring in the Board of
Directors for any cause other than by reason of an increase in the number of
directors may be filled by a
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majority of the remaining members
of the Board of Directors, although such majority is less than a quorum.
Any vacancy occurring by reason of an increase in the number of directors may
be filled by action of a majority of the entire Board of Directors. A director
elected by the Board of Directors to fill a vacancy shall be elected to hold
office until the next annual meeting of owners or until his successor is
elected and qualifies.
SECTION 5: REGULAR MEETINGS. After each meeting of owners at
which a Board of Directors shall have been elected, the Board of Directors so
elected shall meet as soon as practicable for the purpose of organization and
the transaction of other business, at
such time as may be designated by the owners at such
meeting; and in the event that no other time is designated by the owners, the
Board of Directors shall meet at 12:00 o'clock noon on the day of such meeting,
if not a legal holiday, and if a legal holiday, then on the first day following
which is not a Sunday or a legal holiday. Such first meeting shall be held at
such place within or without the State of Maryland as may be designated by the
owners, or in default of such designation at the place designated by the Board
of Directors for such first regular meeting, or in default of such designation
at the office of the Condominium in Ocean City, Maryland. No notice of such
first meeting shall be necessary if held as hereinabove provided. Other regular
meetings of the Board of Directors shall be held on such dates and at such
places within or without the State of Maryland as may be designated from time
to time by the Board of Directors.
SECTION 6: SPECIAL
MEETINGS. Special meetings of the Board of Directors may be called at
any time by the President or by the Board of Directors by vote at a meeting, or
by a majority of the directors in writing with or without a meeting. Such
special meetings shall be held at such place or places within or without the
State of Maryland as may be designated from time to time by the Board of
Directors. In the absence of such designation such meetings shall be held at
such places as may be designated in the calls.
SECTION 7: NOTICE OF MEETINGS. Regular meetings of the
Board of Directors may be held at such time and place as shall be determined
from time to time, by a majority of the Directors, but at least two (2) such
meetings shall be held during each fiscal year, and all meetings shall be open
to the members of the Association. Notice of regular meetings of the Board of
Directors shall be mailed to each Director and to each unit owner at least
fifteen (15) days but not more than ninety (90) days prior to the day named for
such meeting. (Amended September 24, 2004)
SECTION 8: QUORUM. At all meetings of the Board of Directors,
one-half of the entire Board of Directors, but in no case less than two directors, shall constitute a quorum for the
transaction of business. Except in cases in which it is by statute, by
the Master Deed or by the bylaws otherwise provided, the vote of a majority of
such quorum at a duly constituted meeting shall be sufficient to elect and pass
any measure. In the absence of a quorum, the directors present by majority vote and without notice other than by
announcement may adjourn the meeting from time to time until a quorum shall
attend. At
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any such adjourned
meeting at which a quorum shall be present, any business may be
transacted which might have been transacted at the meeting as originally
notified.
SECTION 9: COMPENSATION. By resolution of the Board of
Directors expenses of attendance, if any, may be allowed to directors for
attendance at each regular or special meeting of the Board of Directors or of
committees thereof, but directors as such shall not
receive any compensation for their services except such as
may be authorized or permitted by vote of the owners. A director who serves the
Condominium in any other capacity, however, may receive compensation therefore without such vote of the
owners.
SECTION 10: INFORMAL ACTION BY DIRECTORS. 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 a written consent is filed with the minutes of proceedings
of the board or committee.
SECTION 11: COMMITTEES. The Board of Directors may by resolution provide for such standing or special
committees as it deems desirable, and discontinue the same at pleasure.
Each such committee shall have such powers and perform such duties, not
inconsistent with law, as may be assigned
to it by the Board of Directors.
ARTICLE IV
OFFICERS
SECTION 1: EXECUTIVE OFFICERS. The Board, of Directors shall
choose a President from among the directors, and a Secretary and a Treasurer
who need not be directors. The Board of Directors may also choose a Vice President, an Assistant Secretary and an Assistant
Treasurer, none of whom need be a director. Any two of the above mentioned
officers, except those of President and Vice President, may be held by the
same person, but no officer shall execute, acknowledge or verify any instrument
in more than one capacity if such instrument be required by statute, by the
bylaws or by resolution of the Board of Directors to be executed, acknowledged
or verified by any two or more officers. Each such officer shall hold office
until the first meeting of the Board of Directors after the annual meeting of owners next succeeding his election, and until
his successor shall have been
duly chosen and qualified, or until he shall have resigned or shall have been removed. Any vacancy in any of
the above offices, may be filled for the unexpired portion of the term
by the Board of Directors at any regular or
special meeting.
SECTION 2:
PRESIDENT. The President shall preside at all meetings of the owners and of the
Board of Directors at which he shall be present;
he shall have general charge and supervision of the business of the Condominium; he may sign and
execute, in the name of the
Condominium, all authorized deeds, mortgages, bonds, contracts or other instruments, except in cases in
which the signing and execution
thereof shall have been expressly delegated to some other officer or agent of the Condominium; and, in
general, he shall per
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form
all duties incident to the office of president, and such other duties as, from time to time, may be assigned to him
by the Board of Directors.
SECTION
3: VICE PRESIDENT. The Vice President, at the request of the President or in his absence or during
his inability to act, shall perform the duties and exercise the
functions
of the President, and when so acting shall have the powers of the President. The Vice President shall have
such other powers and perform such other duties as may be assigned to him by the Board of
Directors or the President.
SECTION
4: SECRETARY. The Secretary shall keep the minutes of the meetings of the
owners and of the Board of Directors in books provided for the purpose; he
shall see that all notices are duly given in accordance with the provisions of the bylaws or
as required by law;
he
shall be
custodian of the records of the Condominium; and in general, he shall perform
all duties incident to the office of secretary, and such other duties as, from time to time, may be
assigned to him by the Board of Directors or
the President.
SECTION
5: TREASURER. The Treasurer shall have charge of and be responsible for all funds, securities,
receipts and disbursements of the Condominium, and shall deposit, or cause to be
deposited, in
the name of the" Condominium, all moneys or other valuable effects in such banks, trust
companies or other depositaries as shall, from time to time, be selected by the Board of Directors;
he shall render to the President and to the
Board of Directors, whenever requested an account of the financial condition of the Condominium, and, in general, he shall perform all the duties incident to the
office of treasurer, and
such other duties as may be assigned to him by the Board of Directors or the President.
SECTION 6: ASSISTANT OFFICERS. The Assistant Secretary shall have such duties as may from time to time be assigned to him by the Board of Directors or the Secretary. The Assistant Treasurer shall have such duties as may from time to time be assigned to him by the Board of Directors or the Treasurer.
such other duties as may be assigned to him by the Board of Directors or the President.
SECTION 6: ASSISTANT OFFICERS. The Assistant Secretary shall have such duties as may from time to time be assigned to him by the Board of Directors or the Secretary. The Assistant Treasurer shall have such duties as may from time to time be assigned to him by the Board of Directors or the Treasurer.
SECTION 7:
COMPENSATION. The Board of Directors shall have
power to fix the compensation of all officers of the Condominium.
SECTION 8: REMOVAL. Any officer or agent of the Condominium
may be removed by the Board of Directors whenever, in its judgment, the best
interests of the Condominium will be served thereby,
but such removal shall be without prejudice to the contractual rights, if any,
of the person so removed.
ARTICLE V
OBLIGATIONS OF THE OWNERS
SECTION 1: ASSESSMENTS. Each owner is obligated to pay the assessments imposed upon him by the Condominium to meet general common element and limited common element expenses, which may include a liability insurance policy premium and a fire and
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other hazard insurance premium. The assessments shall be
made pro rata according to the value of the Unit owned as stipulated in the
Master Deed. Such assessments may include
payments to a general operating reserve. Any such assessments levied
upon the owner of a Unit shall become a lien on said Unit at the time assessed
and until paid in full. Each regular
assessment levied shall be due and payable annually thirty (30) days after assessed. Any special assessment,
designated as such by the Board of
Directors, shall be due and payable when assessed. The Board of Directors
shall determine the amount of the assessment annually, and shall submit a copy
of the annual budget to the unit owners at
least thirty (30) days
before the regularly scheduled meeting of the Council of Unit Owners. (Amended
September 24, 2004)
SECTION 2: MAINTENANCE AND REPAIR.
(a) Every owner must perform promptly all maintenance and
repair work within his own unit which, if omitted, would affect the general or
limited common elements, or any
other Unit, such owner being expressly responsible for the
damages and liabilities his failure to do so
may engender.
(b) All the repairs of internal installations of the Unit
such as water, light, power, telephones, doors, windows, lamps and all other accessories belonging to the Unit areas shall be
at the owner's expense.
(c) An owner shall
reimburse the Condominium for any expenditures incurred in repairing or replacing any general or limited common
element damaged through his fault, other than damage arising from an insured casualty.
SECTION 3: DESTRUCTION OF BUILDING.
(a) In the event of the destruction of any part or all of
the building of the ^Condominium such
destroyed part or parts shall be rebuilt unless such destruction amounts
to more than two-thirds in value of the total value of the building. In such
rebuilding the proceeds of any casualty insurance shall be used to the extent
available, being allocated to the Units,,
general common elements and limited common elements, damaged or destroyed, in
proportion to the cost of restoring each such improvement or facility. Costs in
excess of such proceeds shall be paid as to each Unit by the owner
thereof and as to the general common
elements and limited common elements by
assessment as for repairs to such elements.
(b) In the event of the
destruction of any part or all of the building of the Condominium
amounting to more than two-thirds in value of the total value of the building,
the damage and destruction shall not be
restored if any owner does not agree thereto at any owner's meeting
called to consider the question of such restoration. Upon such restoration, the
costs shall be paid as provided in (a) above. If the building is not restored
following such destruction, the proceeds of any fire or other insurance payable
as a result of such destruction shall be allocated among the Units destroyed or
damaged and the general and limited common elements damaged or destroyed in
proportion to the cost of restoring each, based upon appraisals approved by the
Board of Directors, and such proceeds allocated to each Unit paid over to the
owner (or lien holders, if any) thereof. Amounts allocated to general and
limited common elements shall be paid over to the owners (or
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lien holders, if any) of the Units responsible for maintenance of such elements, and in the proportion of
their relative contributions to repairs to such elements.
SECTION 4: USE OF CONDOMINIUM UNITS — INTERNAL CHANGES.
(a) All units shall be utilized for residential purposes
only, with the exception that Crestwood-Farms Company may use Units 2H, 2G, and
3G as model apartments and display space until May 15, 1968 if it so chooses.
(b) An owner shall not make structural modifications or alterations in his Unit or installations located therein
unless he has previously notified
the Condominium in writing
through the President of
the Board of Directors and received
no objection thereto. The Condominium shall have the obligation to
answer within thirty (30) days, and failure to
do so within that time shall mean that there is no objection
to the proposed modification or alteration.
SECTION 5: USE OF GENERAL COMMON ELEMENTS AND LIMITED COMMON
ELEMENTS. An owner shall not place or cause to be placed in the general common
elements any furniture, packages or objects of any kind, except that he may
temporarily place chairs, umbrellas or other beach paraphernalia on the beach
in the area east of the building. The
remaining general common elements shall be used for no other purpose
than for normal transit through them, or for such other restricted uses as may
be designated by the Board of Directors.
SECTION 6: RIGHT OF ENTRY. An owner shall grant right of entry to any person authorized by the Board of
Directors of the Condominium in case of any emergency originating in or
threatening his Unit, whether the owner is present at the time or not.
SECTION 7: RULES OF CONDUCT.
(a) No resident of the Condominium shall post any advertisements
or posters of any kind on the Condominium except as authorized by the Board of
Directors.
(b) Residents shall exercise care about making noises or in
the use of musical instruments, radios, television and amplifiers that may
disturb other residents.
(c) Clothing, towels and other items of personal property
shall not be hung on exterior railings or any other exterior part of the
building.
(d) Charcoal grills or other portable cooking apparatus
shall not be used on Condominium unit balconies or common element areas.
ARTICLE VI
INSURANCE
SECTION
1: PROTECTIVE POLICIES. The Board of Directors, with the approval of a majority
of the co-owners, shall procure and maintain, in its name, or the name of the
Manager or other designee, as agent or trustee for the benefit of the co-owners
who shall be deemed parties insured, policies of insurance in stock insurance
companies licensed to do business in the
State of Maryland, to the extent obtainable, as follows:
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(a) A policy or
policies insuring the building against loss, damage or destruction by fire or
other casualty, including lightning, windstorm, hail, explosion, riot, civil
commotion, aircraft, vehicle, falling object, smoke,
malicious mischief, vandalism, collapse through weight of snow, ice or
sleet, water, and other similar casualty, in an aggregate amount equal to the
full insurable replacement value of the building, without regard to
depreciation. The policy or policies, unless otherwise insuring the condominium
units against loss, damage or destruction, shall have a contingent or conditional endorsement, with limits equal to the replacement
value of the condominium units, providing for payment by the insurer of a sum
sufficient for restoration of each unit to a ten-antable condition, in the
event that the owner thereof
shall
fail or refuse to restore his unit within a
reasonable time after loss, damage or destruction of such unit, by fire
or other casualty insured against. In lieu of the
aforegoing
insurance, the Board of Directors may procure and maintain such other insurance against loss, damage or destruction of
the general common elements, limited
common
elements AND the condominium units, as shall give substantially equal or
greater protection to the co-owners, as their interest may appear.
(b)
Such insurance as will protect the owners, and each of them, from claims under
workmen's compensation acts and other employee benefit acts.
(c) Such insurances as will protect the
Manager, the Board of Directors, the owners, and each of them, from claims for
damage because of bodily injury, including death, to all others, including
employees of the insured, and from claims for damage to property, any or all of
which may arise out of or result from ownership of any interest in the Condominimum Project or the management or operation of
said project, or because of any injury or damage sustained on or attributable
to the property, including the ownership, maintenance and use of the beach and
parking areas outside the building. It is intended that the insurance described
in this -subparagraph be a comprehensive general liability policy endorsed to
protect each co-owner against all liability arising out of or otherwise
attributable to the property, including operation of the premises, products
liability, liability attributable to work or other act of an independent
contractor, or let or sub-let work, landlords-tenants liability, and
contractual liability. Further, the insurance shall cover the liability of one
or more co-owner as parties insured to one or more of the remaining co-owners,
though also parties insured. Such public liability insurance shall be in the
limits of at least $100,000.00 for injuries or damages sustained by any one
person, $300,000.00 for injuries or damages sustained by two or more persons in
any one accident, and $10,000.00 for property damage. The public liability
insurance policy shall be so endorsed as to protect the insured against
liability imposed or assumed by any contract.
(d) In all events, each
policy of insurance procured under this Section 1 of Article VI shall contain a
waiver of the insurer's subrogation rights against each co-owner, and a waiver
of any defense maintainable by the insurer by reason of any co-insurance
provision of any policy or by reason of any act or neglect of any co-owner,
whether before or after the loss, damage or destruction may occur. Further,
each policy of insurance shall provide that any co-owner in his own right may
procure other insurance, fire casualty, liability or otherwise, and that such
other insurance shall in no wise serve
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to
reduce, abate, diminish or cause any proration in payment of the total loss by
the insurer. Each policy of insurance procured under paragraphs (a) or (b) of this Section 1 shall state
that the exclusive right and authority to adjust losses under the policy shall
be vested in the Board of Directors.
Nothing provided in this Article VI shall prejudice the
right of any co-owner to insure his condominium unit on his account and for his
own benefit, or to insure himself against liability to others. If the co-owner,
however, shall procure fire or other casualty insurance covering his
condominium unit or his interest in the Condominium Project, he shall file with
the Board of Directors a duplicate of the insurance policy.
SECTION
2: REPAIRS AND REPLACEMENT. Unless more than two-thirds (2/3rds) of the
building is destroyed, the proceeds of any insurance policy procured under the
provisions of paragraph (a) of
Section 1 of this Article VI shall be applied to repair,
restore
and reconstruct the common elements destroyed by the casualty insured against
and thereafter, if there by any surplus, to repair or restore the condominium
units damaged by said casualty. If the proceeds of insurances are insufficient
to cover the cost of any necessary repair, replacement or restoration of the
common elements, such excess
costs
shall be paid by the co-owners as a common expense, upon special assessment therefore
and levy thereof by the Board of Directors against each co-owner in accordance
with his percentage interest factor.
SECTION 3: DISBURSEMENT
OF INSURANCE PROCEEDS. If more than two-thirds (2/3rds) of the building
is destroyed, then the disbursement of the proceeds of all insurance policies
shall be paid in accordance with and
governed by the provisions of Section 3 of Article V, SUPRA.
SECTION 4: UNIT OWNER
LIABILITY. In accordance with Section 11-114(g)(2)(iii) 2. of the Maryland Condominium Act, the owner
of a unit where the cause of any damage or destruction of any portion of the
condominium originates shall be responsible
for the council unit owner’s property insurance deductible up to, but
not exceeding $1,000.00. (Added amendment on September 28, 2002)
ARTICLE VII
FINANCE
SECTION 1: CHECKS, DRAFTS, ETC. All checks, drafts and
orders for the payment of money, notes and other evidences of indebtedness,
issued in the name of the Condominium, shall be signed by officers or agents of the Condominium, as determined by the Board of Directors.
SECTION 2: ANNUAL REPORTS. A full audit shall be performed
every five (5) years with a compilation each year. A full audit shall be
performed in any year upon the request of two-thirds (2/3) of the owners or at
the request of the Board of Directors. These audits shall be submitted at the
annual meeting of the owners and filed within twenty days
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thereafter at the principal office of the Condominium in the
State. (Added amendment on November
21, 2008.)
SECTION 3: FISCAL YEAR. The fiscal year of the Condominium
shall be the calendar year, unless otherwise provided by the Board of
Directors.
ARTICLE VIII
AMENDMENTS
SECTION 1: BYLAWS. These bylaws may be amended by the
Condominium at any duly constituted meeting, provided the notice thereof shall
specify the amendment to be voted on, and provided the same is approved by at least two-thirds (2/3) of the owners;
subject, however, to the restriction set forth in Article II, Section 1,
of the Bylaws.
ARTICLE IX
MORTGAGES
SECTION 1: NOTICE TO ASSOCIATION. An owner who mortgages
his Unit shall notify the President of the Board of Directors of the name and
address of his mortgagee; and the Condominium shall maintain such information
in a book entitled "Mortgagees of Units".
ARTICLE X
RESIDENT AGENT
SECTION 1: The Resident Agent heretofore named in the Master
Deed shall be authorized to accept service of process- in any action relating
to two (2) or more Units or to the
common elements as authorized by Article
21, Section 138 of the Annotated Code of Maryland (1963 Cumulative Supplement), or any amendments thereof. The Board
of Directors may, at its discretion, substitute another Resident Agent for the purpose of accepting such service of process as
set forth above, provided that proper notification of such change be promptly filed with the Maryland Department of
Assessments and Taxation.
ARTICLE XI
COMPLIANCE
SECTION 1: These bylaws
are set forth to comply with the requirements of Article 21, Section
117A, et seq., of the Annotated Code of Maryland (1963 Cumulative Supplement).
In case any of these bylaws conflict with the provisions of said statute, it is
hereby agreed and accepted that the provisions of the statute will apply.
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ARTICLE XII
(ADDED
September 20, 1997)
SECTION
1: Liability
and Indemnification of Officers and Directors. The Unit Owners shall indemnify
every officer and director of the Beachloft Condominium against
any and all expenses, including counsel fees, reasonably incurred by or imposed upon any
officer or
director
in connection with any action, suit or other proceeding (including the
settlement of
any
such suit or proceeding if approved by the then Board of Directors of
Beachloft Condominium) to which (s)he may be made a party by reason of being or
having
been an officer or director of the Beachloft Condominium whether or not such
person is an officer or director at the time such expenses are
incurred. The officers and directors of the Beachloft Condominium
shall not be liable to the Unit Owners of Beachloft Condominium for any mistake
of judgment, except for their own negligence, individual willful misconduct or
bad faith. The officers and directors of the Beachloft Condominium shall have
no personal liability
with respect to any
contract or commitment made by them, in good faith, on behalf of the Beachloft
Condominium or the condominium project (except to the extent that such officers
or directors may also be owners of condominium units) and the Unit Owners
shall indemnify
and
forever hold each such officer and director free and harmless against any and
all liability to others on account of any such contract or commitment. Any
right to indemnification provided for herein shall not be
exclusive of any other rights to which any officer or director of the Beachloft
Condominium
may be entitled; and provided further that any contract, commitment or any
agreement is made in good faith and in accordance with the provisions
of the Condominium Master Deed and
of these By-Laws.
SECTION
2. COMMON OR INTERESTED DIRECTORS The
directors shall exercise their powers and duties in good faith and with
a view to the interest of the Unit Owners and the condominium project. No
contract or other transaction between the Unit Owners of the Beachloft Condominium
and one or more of its Directors or any corporation, firm or association in which one or more
of the Directors of the Beachloft Condominium are directors or officers or are pecuniarily or
otherwise interested, is either void or voidable because such Director or
Directors are present at the meeting of the Board of Directors or any committee
thereof which authorizes or approves the contract or transaction, or
because his or their votes are counted for such purpose, if any
of the conditions specified in any of the following subparagraphs exist:
(1) The fact of the common directorate or
interest is disclosed or known to the Board of Directors or a majority thereof
or noted in the Minutes, and the Board authorizes, approves or ratifies
such contract or transaction in good faith by a vote sufficient for the purpose;
or
(2) The fact of the common directorate or interest is
disclosed or known to the Unit Owners, or a majority thereof, and they approve
or ratify the contract or transaction in good faith by a vote sufficient for
the purpose; or
(3) The contract or transaction is
commercially reasonable to the Board of Directors at the time it is
authorized, ratified, approved or executed.
Page 14 of 14
Common or interested Directors may be counted in determining the
presence of a quorum of any meeting of the Board of Directors or
committee thereof which authorizes, approves or ratifies any contract or
transaction, but may not enter into any discussion nor vote on that contract or
transaction, provided that the Contract to be awarded is approved by a majority
of
the members of the Board of Directors, exclusive of the interested member or
members in such Contract.
SECTION 3. LIMITATION OF LIABILITY.
The Association shall not be liable for any failure of water supply or
other services to be obtained by the Association or paid for out of the common
expenses funds, or for injury or damage to person or property caused by the
elements or by the owner of the condominium unit, or any other person, or
resulting from electricity, water, snow, or
ice which may leak or flow from any portion of the common elements or
from any wire, pipe, drain, conduit, appliance or equipment. The Association
shall not be liable to the owner of any condominium unit for loss or damage, by
theft or otherwise, or articles which may be stored upon any of the common
elements. Not diminution or abatement or common expense assessments, as herein
elsewhere provided, shall be claimed or allowed for inconvenience or discomfort
arising from the making of repairs or improvements to the common elements, or
to any condominium unit or from any action by the association to comply with
any law, ordinance or with the order or directive of any municipal or other
governmental authority. (Section 3 added September 24, 2004)
