Internal By-Laws BAY VIEW GRAND

Transcription

1 Internal By-Laws BAY VIEW GRAND Revised Translation The following translation is provided as a courtesy to Englishspeaking people, but with no legal effect. While reasonable efforts have been taken to have this translation substantially reflect the literal content of the Spanishlanguage version, only the Spanish version is legally valid. Questions regarding bylaw content should be directed to the Bay View Grand Administration. DEFINITIONS FIRST ARTICLE For the purposes of these By-Laws, the following terms have the meanings indicated below: a) LAW The current civil code for the state of Jalisco in matters of condominium laws in force since March 1995, as well as subsequent modifications thereto. The content of the CONSTITUTIVE DEED and/or the By-Laws will be applied in a supplementary manner where the LAW omits specific regulations in regard to a particular topic. b) CONSTITUTIVE DEED The public deed where it is recorded that the property denominated BAY VIEW GRAND was incorporated by the developer into the Condominium Property Regime specifying the terms and conditions in which the Condominium is established, including provisions regarding the use and exploitation of common areas and services applicable to owners, users, employees, visitors, and any other people related in any manner to the Condominium, as long as there is no other contrary provision in the LAW that applies expressly to a particular case and does not contravene any other law. It is understood that any modification, addendum, or correction that is legally made, and is recorded in public deed, will become part of the CONSTITUTIVE DEED. BAY VIEW GRAND is a Full Time Residential Condominium with deluxe quality and services. The complex is divided in 3 sections: North, Central, and South, each one being legally and administratively independent until the development is one hundred percent (100%) completed. North Section is comprised by 154 apartments, Central Section is comprised of 170 apartments and South Section is comprised by 159 apartments with their respective common areas that pursuant to the Civil Code of the state of Jalisco, upon total completion of the complex it will be transformed in one Condominium through the merger of the condo regimes. c) BY-LAWS. The group of norms and provisions that are applied in a general and mandatory manner to owners, users, employees, visitors and any other people related to the Condominium in any way, provided that there are not explicit contrary provisions in LAW and/or the CONSTITUTIVE DEED that apply expressly to a particular case. 1

2 d) INTERNAL POLICIES/RULES & REGULATIONS The group of regulations and/or provisions issued by the ADMINISTRATOR of the CONDOMINIUM, always within the faculties granted by LAW, the CONSTITUTIVE DEED, and BY-LAWS, which having been duly approved by the COUNCIL, will regulate the use and exploitation of goods and services of general use. These INTERNAL POLICIES are of general and mandatory application to owners, users, employees, visitors, and any other person in any way related to the Condominium, provided they do not act to contravene provisions of the LAW and/or there are contrary provisions in the LAW that apply expressly to a given case. e) UNITS Consisting of each one of the 483 residential units, limited by the master or fundamental walls and the spaces between floors that form the floors, ceilings and walls of each autonomous unit, in accordance to the portion that is detailed in the condominium property regime of the BAY VIEW GRAND (the Condominium ). Units include all of their accessories, whether they are of general or indispensable use to maintain the security of the building and the well functioning of general services. f) OWNER Individual person(s) or legal entity that holds title to the property of one or several UNITS. In addition to the aforementioned, the following people are considered as an OWNER: A) The person who entered into a contract of any kind with CORPORACIÓN BAY VIEW GRAND, S.A. de C.V. through which ownership rights were transferred upon compliance with the terms of the contract. B) The beneficiary of a trust deed pertaining to the transfer of ownership rights to a UNIT. g) USER Person different to an OWNER, who by virtue of any title or other such concept inhabits a UNIT permanently or on a temporary basis. h) ADMINISTRATOR or ADMINISTRATION Individual or legal entity who is in charge of the administration of common areas, goods, and services and who holds the legal representation of the Condominium. i) COUNCIL The Administrative Council referred to in Article 1017 of the Law. j) GOODS OF COMMON PROPERTY Any section of the building or the complex that has been destined for common/general use and therefore any OWNER or USER is entitled to its use and enjoyment. k) GOODS OF JOINT PROPERTY The lot and other areas of common use in the building or complex, or those indispensable for the following purposes: existence, 2

3 security, stability, hygiene, ease of access, ornament, or any other similar purpose. These areas are necessarily indivisible; therefore more than one OWNER holds property rights over them. l) PERCENTAGE OF INDIVISIBLE PROPERTY Proportional right that each OWNER has over the GOODS OF JOINT PROPERTY and/or those of common property, which is the result of the proportional value of his/her share of his/her exclusive and private UNIT as established in the CONSTITUTIVE DEED. This factor determines the portion in which each OWNER will contribute to general expenses and the portion or number of votes that correspond to each UNIT in the Assemblies. m) ORDINARY FEES Amounts OWNERS must pay and established by the Owners General Assembly to be paid periodically and in advance, in the terms marked by the LAW and/or the Assembly which are intended to cover the general maintenance and administration expenses of the Condominium. n) EXTRAORDINARY FEES Amounts which each OWNER is obligated to pay as determined by OWNERS Assembly, and which are intended to cover expenses that were not considered in the budget and/or are urgent or indispensable to maintain the goods and the services of the common property in normal operating conditions, and which, due to the amount they represent, cannot be covered within the ordinary budget. o) RESERVE FUND It is the economic contribution which each OWNER is responsible for, destined to the creation of a common fund, which will be used to cover unforeseen expenses that are either very important or very urgent, such as the execution of major repairs that were not contemplated and/or machinery and/or equipment in general that are necessary for the Condominium. p) NECESSARY WORKS Work that is conducted to maintain the Condominium within the normal conditions of security, stability, and hygiene, and to keep all services working properly and efficiently, the completion of which requires the corresponding municipal permits and the agreement of the COUNCIL. q) VOLUNTARY WORKS Work that does not necessarily increase the value of the Condominium, but improves its aspect and comfort, or that even though not necessary does not increase the value of the Condominium. In both cases, for its execution it requires the approval of at least 75% of the total votes of the OWNERS. COMMON AND EXCLUSIVE PROPERTY SECOND ARTICLE Each OWNER shall be the exclusive owner of its UNIT and will be able to sell, lease, mortgage, or encumber it in any manner within the limitations established by the LAW, these By-Laws, or the writing where the act is recorded, 3

4 however, in all cases emphasizing the impossibility to sell or lease in partial form any UNIT. THIRD ARTICLE The rights and the obligations that each OWNER has regarding the common property will be based on the percentage or portion of common areas to its UNIT. FOURTH ARTICLE Each OWNER S rights and obligations regarding the common property or GOODS OF COMMON PROPERTY are indivisible and inseparable from its UNIT or locale. FIFTH ARTICLE The abandonment or transfer of any OWNER S rights in regards to the common property, or to any part of it, shall not relieve said OWNER or its USERS of their duties and obligations in regard to said common property as established by these By- Laws. SIXTH ARTICLE Each OWNER shall use and enjoy the common property and the general services and installations of the Condominium without limiting or affecting the rights of the other OWNERS, except where established by these rules and regulations. SEVENTH ARTICLE The common goods are identified and detailed in the NINTH CLAUSE OF THE REGIME OF CONDOMINIUM PROPERTY OF BAYVIEW GRAND (NORTHERN SECTION) and are incorporated herein for all legal purposes. RIGHTS AND OBLIGATIONS OF OWNERS EIGHT ARTICLE Each OWNER shall use its unit in an orderly and reasonably quiet and respectful manner, in accordance to what is dictated by good common sense, the provisions of the BY-LAWS and the LAW. NINTH ARTICLE No OWNER may use its UNIT in any manner that affects the peace and comfort of other OWNERS or in a way that endangers the security, comfort, stability, or hygiene of the property in general or any of its UNITS in particular. OWNERS shall abstain from actions or omissions which may put the property in danger of fire, robbery, collapse, or any other damage that may produce situations with similar results. TENTH ARTICLE Each OWNER may conduct repairs, alterations, or other construction in accordance to what is allowed by these rules and regulations in the interior of its UNIT with the condition that they do not endanger or include renovations or modifications that affect the foundations, structures, master walls, facades, columns, beams and/or the common property, or that affect in way the appearance or decoration of the building or buildings or any other essential element of said buildings. OWNERS who 4

5 wish to conduct such repairs, alterations or other construction that this article refers to shall request the approval of the ADMINISTRATOR and the COUNCIL, so that there is prior approval of the blue prints and project before the planned work takes place. ELEVENTH ARTICLE No OWNER may paint or decorate the facade, the doors, walls, or other exterior portions, of its UNIT except for those cases that are expressly allowed by these regulations and always with the prior approval of the ADMINISTRATOR and the COUNCIL in their respective functions. TWELFTH ARTICLE OWNERS shall restrain themselves from undertaking any act, from the inside of their respective UNIT that might obstruct or affect the efficient operation of the common property areas or goods. THIRTEENTH ARTICLE OWNERS shall immediately notify the ADMINISTRATOR of any damage to the property or the common goods of which they become aware of, regardless of whom the responsible party might be. FOURTEENTH ARTICLE OWNERS will not be allowed to make any repairs or alterations to the common property and general installations, except for urgent repairs or replacements when the ADMINISTRATOR or a member of the COUNCIL is not available. The repairs and/or replacements so conducted will initially be covered by the OWNER, charging their cost to the general budget for maintenance expenses, with the ADMINISTRATION refunding the expense to the OWNER as soon as possible. FIFTEENTH ARTICLE In order to sell its UNIT, each OWNER shall be up to date with all the obligations established for it by the LAW, these By-Laws, and the Property Regime for the Condominium. If this is not the case, the buyer must than assume complete responsibility, in writing, for the fulfillment of all the pending obligations that the selling OWNER did not fulfill. SIXTEENTH ARTICLE The common expenses shall be charged to the general budget. SEVENTEENTH ARTICLE Every OWNER will be responsible for the payments of its own taxes, including property taxes, as well as the payment of the services individually contracted to serve its UNIT and will contribute to cover the cost of services such as water, gas, electricity, telephone, and municipal services corresponding to the usage incurred in the general or common goods or installations of the Condominium. EIGHTEENTH ARTICLE It is strictly forbidden to commercialize UNITS under the system known as TIME SHARE, CONDO-HOTEL, CESSION, LEASE, LOAN or any other similar arrangement, through which the possession, use and 5

6 enjoyment of any UNIT is transferred to third parties, foreign to the Condominium, for periods shorter that NINETY DAYS. NINETEENTH ARTICLE OWNERS will have the obligation to respect and obey the LAW, the CONSTITUTIVE DEED, the BY-LAWS, and the INTERNAL POLICIES. Equally it will be their responsibility to make them known to those people given possession of their UNIT, including employees, visitors, suppliers, all of which are also obligated to comply with said dispositions with joint liability and responsibility to the OWNER, in case that said dispositions are not observed. Specially the following dispositions: 1. To use the UNITS for residential purposes. 2. To limit the number of occupants, whether they are of permanent or temporary nature, to the maximum number of four people in a one-bedroom UNIT, six people in a two-bedroom UNIT, and eight people in a three-bedroom UNIT. For purposes of this paragraph, each minor will be considered as an occupant. 3. To restrain from establishing or using any UNIT as a school, academy, guest house, hospital or clinic of any nature, factory, workshop or other industry. 4. To restrain from storing flammables materials, explosives, pollutants of any kind and/or dangerous materials, and/or those that may eventually represent danger or a threat to the security, hygiene, stability or comfort of either the residents or the building, itself. 5. To behave in a manner that is moral and complies with the good customs of the other OWNERS and residents. 6. To use corridors, walkways, stairs, elevators, rooftops, vehicular avenues, parking lots, and in general, all other GOODS OF COMMON USE exclusively for the purpose that they are intended or by their own nature imposes; not allowing them to be used in any manner that is diverse or contrary to their pre-determined purpose. 7. To cover all costs of the repairs to damage, breakage, or wear and tear caused in the areas of common property by the OWNER, its family, friends, users, visitors, and employees. The ADMINISTRATOR will decide if it is required that the OWNER undertake a repair within a reasonable period of time, or if the OWNER will be required to pay for the repair at going rates plus 50% of the total cost, and in such cases, the cost and surcharge shall be paid as soon as the ADMINISTRATOR requires payment. 8. To take all measures to avoid robberies of its private property. 6

7 9. To restrain from playing in or operating vehicles in common use areas that are not specifically designated for such purposes and/or outside of the hours established in the INTERNAL POLICIES/ RULES& REGULATIONS. 10. To restrain from throwing any liquids or objects outside of their private area. 11. To restrain from blocking the parking lots, corridors, walkways, stairs, elevators, rooftops, and other common area with objects or vehicles. 12. To restrain from hanging clothes, towels, shoes, or any similar objects from the rooftops, balconies, terraces, windows, railings, handrails, and/or any other place where said objects might be plainly visible from the outside of the UNIT. 13. It is forbidden to fix nails, poles, or hooks outside of a UNIT. The same applies to the installation of satellite dishes and/or any other such devices on the terraces or balconies of a UNIT. 14. To restrain from using materials that damage or dirty the building or bother the rest of the OWNERS. 15. It is forbidden for the residents of a building to keep pets such as dog or cats. The only pets that may be kept are pets such as fish, birds, turtles, and other similar pets that does not represent a risk to the security or hygiene of the building or a disturbance to the neighbors, and that due to their nature, must be kept permanently inside the privacy of the UNIT without constituting a cruelty to the animal. These pets must be kept inside the private UNIT and not be left on the balconies of the UNIT. The pets must not produce any noise that can be heard outside of the UNIT, nor should they be allowed to walk freely in the common use areas. The violation to any of these rules means the immediate expulsion of the pet from the Condominium. 16. To restrain from playing audio and/or video equipment at a volume higher than SIXTY DECIBELS during the day. Between 10:00 PM at night and 8:00 AM in the morning the maximum volume allowed will be FORTY DECIBELS. 17. Not make electrical connections to cables that do not belong to your UNIT. 18. To restrain from opening (through the knocking down of walls) new entryways, windows or clearings in your UNIT. 19. To immediately inform the ADMINISTRATION of any material damage incurred to the common property and to inform of any anomaly that goes against or violates these rules and regulations or that may affect the common goods or the general installation in the future. 7

8 20. Damages shall be repaired and charged to the general budget of the Condominium, except when they are caused due to the blame or negligence of one of the OWNERS or USERS, in which case the applicable OWNER will cover the incurred expenses. When repairs are urgent they initially will be paid for with a provisional charge to the maintenance fund. 21. OWNERS will notify the ADMINISTRATION of lease contracts or other such agreements they have. They will deliver a copy of each, regardless of the duration of the contract, to the ADMINISTRATION for general control purposes. The USER of the UNIT shall accept and obey these By-Laws. The OWNER and the occupant and/or inhabitant of the private UNIT, whomever is in possession for whatever reason or circumstance, are EQUALLY RESPONSIBLE for the payment of the maintenance fees and for any other obligations and/or responsibilities that the LAW, THE CONSTITUTIVE DEED, BY-LAWS and/or the OWNERS Assembly establish or might establish to the OWNER and/or the occupant of the UNIT. The ADMINISTRATION will forbid access to the building if the aforementioned pre-requisite has not been fulfilled. Every USER must provide their name, age, place of origin and any other information about the USER required by the ADMINISTRATION. 22. Each OWNER, upon initial possession of its UNIT and/or subscribing the corresponding title of property on its behalf (the trust s deed, when applicable) shall inform in writing to the ADMINISTRATION, its full name, address or place where the summons for the Assemblies and any other communications shall be delivered, in case that it does not reside in its UNIT. In such case, the OWNER will be able to authorize the ADMINISTRATION to send said communications via fax, and/or any other means that future technology may make available in order to ease communications. Equally it shall register said information in the book that the ADMINISTRATION has for said purpose. If said information was to change, the OWNER shall at the first reasonable opportunity notify the ADMINISTRATION of said changes, and similarly shall register the new information. Failure to comply with the contents of this provision will be understood to be the sole responsibility of the OWNER and shall not be a reason to allege noncompliance to agreements reached by the Assembly. 23. To authorize the ADMINISTRATION and/or the COUNCIL, with prior proper identification being presented, to conduct periodic inspections to verify compliance with these regulations. 24. To attend to the legally summoned Assemblies, in person or by an authorized representative. Authorizations may be granted by simple power of attorney, signed in front of two witnesses, presented in original and in Spanish to the ADMINISTRATION prior to the Assembly. In the instances where the OWNER of a 8

9 UNIT is corporation (moral entity), the representation shall be granted by notarized power of attorney. In those cases where the OWNER is a foreign corporation, the representation may be granted through notarized power of attorney done in the OWNER S country of origin, and then properly translated into Spanish with official note from the corresponding state department, or in such case, meeting all the requirements established by the LAW in the future for foreign documents presented to Mexican courts. 25. To restrain from installing signs of any kind on the exterior of the UNITS and/or in any other place where they might be plainly visible from the outside of the UNIT. 26. To restrain from using venetian blinds and to only use curtains made of regular fabric, thereby maintaining the harmony and external image of the complex. 27. Not to place or establish in any UNIT any mechanism, apparatus or dangerous or unhealthy object that results in an uncomfortable situation for any or all of the OWNERS. In the same manner, no activities shall be conducted that are openly immoral or that go against good conduct, peace and general tranquility. 28. It is forbidden to use the services of the Condominium maintenance personnel for any service other that the ones specially determined for said employee. OWNERS shall restrain from offering gratuities to the aforementioned employees in order to obtain any service other that those specific to their position. 29. Each OWNER shall deposit the garbage that is produced by or that originates from its UNIT in the place assigned to it to do so, inside bags that shall be completely closed in order to avoid pollution. All INTERNAL POLICIES/RULES & REGULATIONS for that purpose issued by the ADMINISTRATION shall be rigorously observed. TWENTIETH ARTICLE THE ADMINISTRATOR The person designated in the OWNERS Assembly, with this position falling under either a physical or judicial entity, will manage the goods affected by the Condominium regime. The designation of the first ADMINISTRATOR, whose position cannot exceed the duration of one year, is the responsibility of those who constitute the Condominium regime. TWENTY FIRST ARTICLE The ADMINISTRATOR of the Condominium has the following faculties and obligations: I. To be executor of the agreements reached in the OWNERS` Assemblies and COUNCIL meetings, as well as being the legal representative of the Condominium in front of others, with the faculties of general judicial empowerment for administrative acts, with no possibility of said faculties being substituted or delegated unless expressly authorized by the COUNCIL. When the Condominium forms part of a complex condominium, to observe the resolution given by the general administrator of the 9

10 complex. In case of a conflict due to instructions given by the general administrator of the complex condominium and the COUNCIL, the differences shall necessary be presented for arbitration to the Urban Development Attorney s office, whose decision shall be final without further recourse to other sources. II. To verify and mind the operation, maintenance of the installations, general services, upkeep of the building. III. To run maintenance and administration expenses. IV. To collect the fees and issue the receipts for said payments made by the OWNERS. In order to collect these fees, he may use the service of an attorney if it is necessary, without needing the authorization of the COUNCIL. V. To keep the books and documentation that support the incurred expenses, said books shall be updated at least every fifteen days. VI. To keep the Condominium books that must be a minimum of three. a) The first book is to record the OWNERS` Assemblies. b) The second book shall be to record the COUNCIL Assemblies. c) The third book is to register the income and expenditures of the Condominium, and d) Whenever the OWNERS Assembly considers it necessary extra books may be kept with auxiliary records (other than those mentioned in points a, b and c). When the records are done in dedicated books, the documents pertaining to the aforementioned records must be kept as an appendix of said records. Under any circumstance where it is not possible to make the record in the corresponding book, said record, in order to validated, will need to be notarized by a notary with residence or jurisdiction in Puerto Vallarta. VII. To deliver during the first fifteen days of the month of April, July, October, and January of each year, to any OWNER who requests it, a financial statement which is to be available in the offices of the ADMINISTRATION, and that contains: a) An analytical report of the expenditures of each quarter. b) A consolidated report that shows and reflects income and overdue fees. c) A general listing of those who have debts, explaining the origin of the debt. 10

11 d) A list of creditors explaining the origin of their credits; and e) The existing cash balance. VIII. To summon the OWNERS Assembly. IX. To aid and, if needed, see that the specific committees that might exist for a specific project receive the support they require. X. To establish, with the prior agreement of the COUNCIL, the policies, terms and conditions needed to take advantage of the concession located and known as the PALAPA RESTAURANT in the pool area of the Condominium, and; XI. All other authority granted to him by the LAW or any other ordinance that applies to this position in the CONSTITUTIVE DEED and these BY-LAWS. TWENTY SECOND ARTICLE The record made for the designation of the ADMINISTRATOR or, in such case, the granting of the bond constituted for the fulfillment of this position, shall be notarized and will note an inscription made in Public Property Registrar regarding the constitution of the Condominium Property Regime. BOARD OF ADMINISTRATION TWENTY THIRD ARTICLE The COUNCIL will be comprised of at least a President, a Secretary, and a Treasurer. The President will be in charge of summoning and approving the COUNCIL meetings, approving through his/her signature the statements issued by the ADMINISTRATOR, referred to in article 1029 of the LAW, and perform all those duties that correspond to the position in accordance with the LAW, the CONSTITUTIVE DEED, the BY-LAWS, and the agreements of the COUNCIL. The Secretary will be in charge of keeping the records of COUNCIL work sessions, of COUNCIL meetings with the Administrator, and of COUNCIL meetings with any OWNER who request their attention for any specific matter. Furthermore, he/she must collect and keep all the necessary paperwork (or at least copies of said paperwork) regarding the matters discussed in said meetings. The Treasurer will be in charge of reviewing, analyzing, and/or making observations to the accounting documents of the ADMINISTRATION, which the COUNCIL deems pertinent to revise. The aforementioned description for each member of the COUNCIL serves only as an example and does not limit their participation. Therefore, members of the COUNCIL are entitled to determine their individual duties through an internal agreement if they wish to do so. There can be as many additional members of the COUNCIL elected as the General Assembly deems pertinent. 11

12 TWENTY FOURTH ARTICLE In order to be part of the COUNCIL a person must be an OWNER (or resident of a property in the Condominium with prior approval from the OWNER) and be up-to-date in the payment of the Condominium fees. TWENTY FIFTH ARTICLE The position of COUNCIL member is nontransferable and honorary. The OWNERS General Assembly, when deemed necessary, may establish the payment of some type of remuneration to all or part of the COUNCIL membership. COUNCIL members will remain in office until one of the following situations takes place: a) they are removed by an Assembly resolution; b) they present their resignation; c) they cease being an OWNER (or that the person who authorized them to act as a member ceases to be an OWNER or in the case of non-owner members, as soon as they cease to be residents of the Condominium); and d) they fall behind in their maintenance fees for more than 60 days. TWENTY SIXTH ARTICLE The COUNCIL will have the following faculties and duties: I. To have the permanent representation of the OWNERS for matters of common interest with the faculties of a general judicial power of attorney for administrative matters. II. To supervise that the ADMINISTRATOR fulfills his/her obligations and see that he/she presents reports and statements of all his/her actions, whenever they deem it necessary: III. To meet at least once a month to receive the ADMINISTRATOR S report that can be done either verbally or in writing. The report is to deal with all Condominium dealings and matters and to verify the accounting statements and the records in the books. IV. To verify the investments in the maintenance, administration, and reserve funds. V. To assist the ADMINISTRATION in the compliance by OWNERS of their obligations. VI. To present at the OWNERS Assembly, during the first quarter of every year, a yearly report of activities, along with the general status of all matters of the Condominium and its financial situation. VII. To authorize, under their responsibility, the execution of any contract that implies the occupation and use of the common goods and services by persons who do not reside in the Condominium. Contracts executed in violation of these rules and regulations and all that is established herein will be null and void. 12

13 VIII. To authorize the ADMINISTRATOR to grant or bestow general powers of attorney with judicial and administrative faculties to whomever it is deemed pertinent for matters of defense and representation of the specific interests of the Condominium and for the judicial collection of dues. He/she may also grant special powers. IX. The powers bestowed by the ADMINISTRATOR and/or the COUNCIL, comprise the faculties to implement the purposes referred to in article 282bis of the Civil Procedure Code of the State of Jalisco; to articulate and answer interrogatories; to formulate penal accusations and assist the public ministry; to acquire goods in public auctions or outside of them, conducting the posture and bids and execute transaction agreements; and to try and desist constitutional trials of guarantees. In such powers it will suffice and be necessary that the following points to be listed: a) The legal deed through which the Condominium regime was constituted and in which specifics are contained in regard to construction, place and date, the authorized public notary, the deed s number, the goods incorporated, their location, and the details of their subscription in the Public Property Registrar: b) The faculties COUNCIL members are vested with according to the Condominium By-Laws, independently of those established by Law. c) The reforms that have been done, if any: d) The record of the Assemblies where the COUNCIL members were designated. e) The details of the subscription to the Public Property Registrar, where the instruments of the aforementioned points were subscribed. TWENTY SEVENTH ARTICLE The record of the designation of COUNCIL members and its annexes shall be certified by a notary public with residency or jurisdiction in Puerto Vallarta, Jalisco and contain at least: I. The instrument of the record of the act through which the constitution was affected by the Condominium regime, mentioning the place and date, the authorizing notary, the instrument s number, the goods that where affected, their location and the details of their subscription to the Public Property Registrar. II. The faculties that, according to the Condominium By-Laws, the COUNCIL members are vested with, independently of those established by the Law. III. The reforms that have been done, if any, and 13

14 IV. The transcript of the record. From the deed that includes the protocol, a note will be made in the subscription of the Condominium that is recorded in the Public Property Registrar. Said record must also be recorded in the Condominium book of records. ASSEMBLIES TWENTY EIGHTH ARTICLE The General Assembly is the supreme organ of administration. The Assemblies will be either ordinary or extraordinary, DEPENDING ON THE CONTENT OF AGENDA. TWENTY NINTH ARTICLE Ordinary Assemblies will meet as many times as the ADMINISTRATOR and/or the COUNCIL deem it necessary, or at the request of the OWNERS, in terms established by the LAW. In case such Assembly is scheduled to meet once a year, said meeting must be held during the year s first quarter and the following matters must be discussed: I. The Condominium general report, regarding goods and services, as well as its financial situation: II. The election of the members of the COUNCIL, and if necessary, the members of special commissions: III. The designation of the ADMINISTRATOR; and IV. The approval of the budget for the following year. THIRTIETH ARTICLE Extraordinary Assemblies will take place any time a decision is required for any of the following maters: I. Modify Condominium regulations. II. Conduct voluntary or improvement projects. III. To modify and dispose of the common goods. IV. To agree upon the extinction of the Condominium Property Regime. V. To incorporate new areas to the Condominium Property Regime or separate them from common areas. VI. To request a judge to obligate an OWNER to sell its rights. VII. To agree to the reconstruction of the property affected by the Condominium regime, and VIII. Other decisions that correspond to the OWNERS present at the meeting. 14

15 THIRTY FIRST ARTICLE The Assemblies shall be summoned by: I. The ADMINISTRATOR, II. The COUNCIL, or III. A judge of the court of claims, with jurisdiction in Puerto Vallarta municipality, upon the petition of a group of OWNERS representing a least a fifth of the rights, or at the petition of any OWNER, when the meetings have not been celebrated in over a year, and THIRTY SECOND ARTICLE In order for the Assembly to be declared legally installed in its first summons, it will be necessary for the presence or representation of OWNERS constituting at least fifty one percent (51%) of the rights of the Condominium. If the aforementioned percentage is not met, a second summons will be issued to the OWNERS to hold a meeting within a term that is no less than seven and no more than fifteen days from the date of the first scheduled meeting, and this meeting will be held with as many as there are in attendance. The first summons document may also include the second summons, pointing out that the second summons will only apply in case that the required legal quorum is not met in response to the first summons. THIRTY THIRD ARTICLE The resolutions made in Ordinary Assemblies will be valid when at least 51% or more of the present or represented OWNER rights vote in favor of the proposal. THIRTY FOURTH ARTICLE Regarding the Extraordinary Assembly, it may be celebrated with whatever number of OWNERS in attendance. However, reached agreements will only be valid if OWNERS representing a minimum of seventy five percent (75%) of OWNER rights approve them. Said approvals will be obtained, either through an Assembly where those present represent the aforementioned percentage, or if complemented within the first thirty calendar days following the meeting occurrence with OWNERS who were absent at the meeting, but who manifest themselves in an authentic manner as knowledgeable of the reached agreements and cast their vote of approval. The only exception to the required percentage to approve a proposal by the Extraordinary Assembly is the case referred to in Section VI the THIRTIETH ARTICLE of these Bylaws, in which case only 51% of the votes in favor is required. THIRTY FIFTH ARTICLE The agreements reached by a legally installed Assembly are mandatory on those absent, dissidents and residents through any title. A person who did not attend an Assembly alleging that he/she was not summoned, may claim the unenforceability of a resolution made, if so claimed within the first thirty calendar days following the date of the Assembly, as long as they have not otherwise acted in any way 15

16 to imply the approval of the resolution they are opposing. A judicial resolution will only affect the person who promoted it. THIRTY SIXTH ARTICLE There is no Thirty Sixth Article in the Spanish-language version. THIRTY SEVENTH ARTICLE The Assemblies will be presided by whomever the attending OWNERS designate, taking the votes of the majority of the attendees to said Assembly, independently of the percentage they represent of the Condominium. The ADMINISTRATOR can be designated president of the Assembly. The attendees must also elect a secretary. The president of the Assembly will also designate two people from among the OWNERS or their representatives present, as scrutinizers in order for them to proceed and make a list of attendance and certify the number of votes that are present and/or represented. The president and secretary shall sign the record of proceedings; any OWNER who requests to do so may also sign said record. The attendance list will be attached, along with the proxies if there were any, to the final record of the proceedings. The president will declare the Assembly as being legally installed, and the Assembly will proceed to discuss the matters stated in the agenda as listed in the summons. In the case that it was not possible to discuss all the points mentioned in the agenda, the Assembly will continue the next business day at a time agreed upon by the majority of those present at the Assembly. In the new meeting only the remaining points in the agenda will be addressed. In the instances foreseen by this article it is not necessary to issue a new summons for the occurrence of a meeting regarding an Assembly that has already been legally constituted. THIRTY EIGHTH ARTICLE The summons to hold the Assembly shall be subscribed by whoever issues them. The Assembly must be held in Puerto Vallarta in the State of Jalisco, always taking into consideration the easiest access and comfort for the OWNERS, preferably they shall be held at the premises of BAY VIEW GRAND DEVELOPMENT. The summons for the Ordinary Assembly shall be issued at least 15 calendar days prior to the scheduled date to hold the meeting. The summons for the Extraordinary Assembly shall be issued at least 20 calendar days prior the scheduled date to hold the meeting. 16

17 In both cases, the summons will be affixed in visible places of the building in the Condominium on the issued date. Besides, all OWNERS who request to be summoned at their address registered with the ADMINISTRATION shall be summoned via registeredreturned-receipt-requested mail. The summons shall be deposited in the corresponding mail office forty days prior to the scheduled date for the assembly, and the received receipts must be kept in order to support the aforementioned. When the summons is issued by judicial or municipal authority it will suffice that said summons be published within the same aforementioned time frame in one of the most widely distributed newspapers in the state, as well as the official publication El Estado de Jalisco and with no detriment to it being posted in the visible areas of the Condominium. The summons must establish the day and time for the Assembly, the type of Assembly that will be conducted, the place for the meeting, and the meeting agenda. Any matter discussed in the Assembly that is not included in the meeting agenda will have no legal force whatsoever, except in the case where one-hundred percent (100%) of Condominium rights is present. EQUITY AND FEES THIRTY NINTH ARTICLE The Condominium s patrimony will be formed with the fees and contributions of any kind made by the OWNERS. They shall contribute to cover the maintenance and operation costs of the facilities and services of the Condominium, and shall be responsible for constituting and keeping reserve funds, based on the percentage of the Condominium that their own private UNIT(s) represents, but when a UNIT consists of different elements and comprises several stairs, patios, gardens, constructions and facilities such as elevators, hoists, antennas and other elements or devices that are used exclusively by one or several OWNERS, the expenses originated by said items will be charged to those who have direct and exclusive use of them. Each OWNER must pay to the ADMINISTRATION an initial amount equivalent to TWO MONTHLY INSTALLMENTS of the current maintenance fee, at the time of taking first possession of its UNIT and/or have the deed subscribed on its behalf (or in such cases the title to the trust). When the fund that was formed through this procedure is completely spent, or the existing fund is not sufficient to cover needs, a new contribution will be established, with prior approval of the Ordinary Assembly, which will have to be paid in the manner, time, and terms established by said Assembly. When an Extraordinary Assembly determines the undertaking of an upgrade or voluntary works, said resolution must state the basis to cover its cost. 17

18 FORTIETH ARTICLE The OWNER S fees shall be paid in advance, precisely on the set date, and if said payments are not made, OWNERS will pay penalty charges on the delinquent amounts equal to the amount considered to be the average moratorium interest established by the two largest credit institutions in the country for ordinary thirty day non-notarized loans. FORTY FIRST ARTICLE The statement issued after ninety days of the overdue date, which has been subscribed by the ADMINISTRATOR with the approval of the President of the COUNCIL, constitutes an executive title. The account statement mentioned herein shall detail in precision the amount and origin of the debt, since this might be for a fees payment or for some other responsibility derived in association with the Condominium, as well as the payment of any penalty charges. The residents or USERS of the Condominium have fiduciary responsibility with the OWNERS for the fees established as ordinary fees and/or special assessments. FORTY SECOND ARTICLE The obligations associated with the Condominium will be paid from the fund pertaining to common equity, and in case it was not sufficient the excess shall be paid proportionally by each OWNER. CONTROVERSIES FORTY THIRD ARTICLE Controversies that arise among OWNERS over their rights regarding the use of their private UNITS and common goods will be resolved according to the following rules: I. Controversies among OWNERS shall be subject to arbitration before the COUNCIL. II. The Civil Procedures Code of the State will be supplementary in these affairs. III. All other controversies that arise shall be vented in front of a judge of the primary court of claims in Puerto Vallarta, Jalisco. FORTY FOURTH ARTICLE The OWNER who repeatedly fails to fulfill its obligations or causes unjustified conflict to others shall be sued by the ADMINISTRATOR in front of a judge of the primary court of claims of Puerto Vallarta, Jalisco, so that in public auction the Unit in question gets sold to the highest bidder, subject to the terms established for public sales in the Code for Civil Procedures for the State of Jalisco. To this purpose, the following documents must be attached as the basis for said suit: a copy of the deed of constitution of the Condominium regime, the reforms made to said 18

19 deed, and the certificate of taxation issued by the Public Property Registrar and of the testimony of the deed that contains the protocol of the Records of the Extraordinary Assembly where the measure was reached. These measures must be approved by more than half of the total of OWNERS. In case of multiple condominiums, it shall suffice with the vote of more than half of the titleholders of the condominium to which the UNIT belongs. The judge shall admit the lawsuit and notify the affected OWNER, anticipating the designation of an expert appraiser to make the corresponding valuation of the UNIT in the terms prescribed by law. Once the valuation is made by the expert appraiser, the date and time shall be determined to conduct the public offering. FORTY FIFTH ARTICLE If the person who is not fulfilling the obligations is a tenant other than the OWNER, the ADMINISTRATOR, with previous approval of the OWNER, shall demand that the tenant vacate the UNIT. If the OWNER opposes, a legal proceeding will be conducted against both in the terms of the aforementioned article. CASES AND CONDITIONS UNDER WHICH THE BY-LAWS MAY BE MODIFIED FORTY SIXTH ARTICLE When in the opinion of the COUNCIL it is necessary to submit to an Extraordinary Assembly a proposal for modification, addition and/or correction of these by-laws, the procedures relating to Extraordinary Assemblies as stated herein are to be followed. DESTRUCTION AND EXTINCTION OF THE CONDOMINIUM FORTY SEVENTH ARTICLE If the building incorporated into the Condominium regime is destroyed totally or in a portion that represents at least three quarters (3/4) of its value, any of the OWNERS may ask for the division or separation of the common goods in accordance to the general dispositions regarding joint property. If the destruction does not reach the indicated graveness, its reconstruction shall be decided through an Extraordinary Assembly. The OWNERS that remain in minority are obligated to contribute to the reconstruction in the portion that corresponds to them, or else sell their rights to the majority holders, according to an expert valuation. The aforementioned rules shall also be observed in case of ruin or inoperability of the building. FORTY EIGHTH ARTICLE The Association of Residents of Bay View Grand, A.C. is recognized as the legal ADMINISTRATOR of the Condominium, being granted powers of attorney pursuant to Article 1012 and 2207 of the Civil Code for the State of Jalisco. GENERAL POWER FOR JUDICIAL CONTROVERSIES AND COLLECTIONS AND FOR ACTS OF ADMINISTRATION. 19

20 FORTY NINTH ARTICLE The ADMINISTRATOR of the Condominium may issue INTERNAL POLICIES/Rules and Regulations for proper use of common areas, and compliance with such rules and regulations is mandatory. The ADMINISTRATOR is fully empowered to impose sanctions and fines in case of non-compliance or violation of the provisions within such Rules and Regulations. Such sanctions and fines are intended to enforce the Condominium BY-LAWS by means of detailed and specific provisions regarding the use of common areas and services, as well as to maintain conduct that is respectful to all concerned. -- End of Document -- 20