Contents

• Article I: Organization & Membership
• Article II: Meetings & Officers
• Article III: Assessments
• Article IV: Maintenance & Repair
• Article V: Use of Properties Prohibited & Permitted
• Article VI: Miscellaneous

Article I
Organization and Membership

SECTION 1. Identity. These are the By-laws of the Dallas Property Owners Association (hereinafter referred to as the "Association"), established to execute and enforce the Covenants and Restrictions for Dallas Subdivision East and West filed of record with the Faulkner County Circuit Clerk and Recorder on the 27th Day of March, 1997 (East and West, Record Book Vol. I, page 184). These By-laws shall apply to all of the owners of the following real property.

Lots 1-73, Dallas addition to the City of Conway, Faulkner County, Arkansas, Plat Recorded on March 27, 1997, for East and West, Book I, Page 184

SECTION 2. Applicability of the By-Laws. The provisions of these By-Laws shall apply to all present and future owners, mortgagees, lessees, and occupants of the property. The acceptance of a deed or conveyance, or the entering into of a lease, or the act of occupancy of the Property shall constitute an acceptance of, and an agreement to be bound by, the provisions hereof and any Rules adopted by the Association as well as any amendments thereto.

SECTION 3. Members. All owners of the Property shall be members of the Association. The legal owners of record of the Property shall constitute voting members of the Association, with one vote for each Lot, whether in person or by proxy.

SECTION 4. Principal Office. The principal office of the Association shall be maintained on the Property described in Section I of this Article.

Article II
Meetings & Officers

MEETINGS

SECTION 1. Notice of Meetings. A written or printed notice of every meeting of the Association, stating whether it is an annual or special meeting, the place, date, and hour thereof, and the purpose therefore shall be given by the Secretary or the person or persons calling the meeting at least seven (7) days before the date set for such meeting.

1. The annual meeting of the Association shall be held in October of each year.
2. Notice of meetings shall be given to each owner by (a) leaving the notice with him personally; or, (b) by leaving the notice at his residence or usual place of business; or, (c) by mailing it, postage prepaid, addressed to his residence as it appears on the records of the Association; or (d) if such owner cannot be located by reasonable efforts, by publishing the notice in any newspaper of general circulation in Faulkner County, Arkansas, not more than once, the publication thereof to be not less than three (3) days, no more than seven (7) days prior to the meeting date. If notice is given pursuant to the provisions of this section, the failure of any owner to receive actual notice of the meeting shall in no way invalidate the meeting or any proceedings conducted. The owners of record who are owners according to the records of the Association as of twenty-one (21) days prior to the meeting date, shall be the owners entitled to receive the notice provided herein.

SECTION 2. Majority of Owners. Unless otherwise specified, the term "Majority of Owners" as used in these By-laws shall mean those owners of at least 51 percent of the property owners described in the Plats referred to in Article I, Section I.

SECTION 3. Quorum. Except as otherwise provided in these By-laws, the presence in person or by written proxy of a majority of the owners of the Property shall constitute a quorum at all meetings of the Association.

SECTION 4. Proxy. Members of record may attend all meetings of the Association in person or by proxy. At meetings of the Association, members of record whose assessments are current may vote in person or by general or limited proxy. All such proxies shall be in writing, shall utilize a form provided by the Association, shall be witnessed by two persons (if not witnessed by an Officer of the Association), and shall be filed with an Officer of the Association prior to the meeting. Only officers of the Association or other Members are eligible to vote proxies as a proxy holder.

1. The limited proxy does not give the proxy holder the power to change the proxy vote.
2. Each proxy shall be revocable and shall automatically cease upon conveyance of the property by a member.

SECTION 5. Majority Vote. When a quorum has gathered, the vote of a majority of the owners present in person or by proxy at any meeting of the Association shall be binding upon all owners for all purposes except where a higher percentage vote is required by law or by these By-laws. A 75 percent majority vote is required if the Association desires to purchase, lease, or build a structure that requires a one-time, special assessment of over $50 per household per year.

OFFICERS

SECTION 6. Designation. The principal Officers of the Association shall be a President, a Vice-President, a Secretary, and a Treasurer, all of whom shall be elected by the legal owners of the Property. Any two or more offices may be held by the same person except the offices of President and Secretary.

SECTION 7. Election of Officers. The Officers of the Association shall be elected at the annual meeting (or at a special meeting) by a majority vote of the owners.

SECTION 8. Removal of Officers. Upon an affirmative vote of a majority of property owners, any officer may be removed, either with or without cause, and his successor elected at any regular or special meeting of the Board.

SECTION 9. President. The President shall be the chief executive officer of the Association. He shall preside at all meetings of the Association. He shall have all the general powers and duties usually vested in the office of the President for the Association, including but not limited to power to appoint committees from among the owners from time to time as he or she his discretion decide is appropriate to assist in the conduct of the affairs of the Association.

SECTION 10. Vice-President. The Vice-President shall take the place of the President and perform his duties whenever the President shall be absent or unable to act.

SECTION 11. Secretary. The Secretary shall keep the minutes of all meetings of the Association. He shall have charge of such books and papers as the Board may direct and he shall, in general, perform all duties incident to the office of Secretary of a business corporation organized under the laws of the State of Arkansas. The office of Secretary may be combined with that of Treasurer by a majority vote of the members.

SECTION 12. Treasurer. The Treasurer shall have the responsibility for Association funds and securities, and shall be responsible for keeping full and accurate financial records and books of account showing all receipts and disbursements, and he shall prepare all required financial statements. An informal accounting shall be provided with each annual assessment. He shall be responsible for the deposit of all moneys and other valuable effects in the name of the Association, or its designee, in such depositories as may from time to time be designated by the Association.

SECTION 13. Agreements. Contracts. Deeds. Checks. Etc. All agreements, contracts, deeds, leases, checks, and other instruments affecting the Association shall be executed by two of the following officers: The President, Vice-President, Secretary, or the Treasurer of the Association.

SECTION 14. Compensation of Officers. No officer shall receive compensation from the Association for acting as such.

SECTION 15. Insurance for Officers. The Association shall provide "Directors and Officers Insurance" for the officers of the Association. Further, each officer of the Association shall be held harmless from expense, loss or liability by reason of having served as such officer and shall be indemnified by all the property owners (as a common expense) against all expenses and liability, including reasonable attorneys' fees, incurred by or imposed upon him in connection with any proceeding to which he may be a part, or have become involved by reason of being such officer, whether or not he is a officer at the time such expenses are incurred, except in such cases wherein the expenses and liability arise from a proceeding in which such officer is adjudged guilty of willful misfeasance or malfeasance in the performance of his duties.

SECTION 16. Executive Committee and Duties. The Officers of the Association constitute the Executive Committee of the Association. They may, by majority vote, promulgate reasonable rules binding upon the Members and their agents. Such rules shall be intended to protect the Members and buyers of the Property against the undesirable uses of the Property that detract, create nuisances, destroy the aesthetics, or otherwise involve any action that ultimately would lead to reduced property values and or the destruction of the neighborhood.

Duties of the Executive Committee (to be enacted by majority vote) include:

1. Fixing the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period beginning January 1. The annual assessment shall include the estimated common expenses for the year, and a reasonable allowance for contingencies and reserves.
2. Fixing the amount of any reimbursement assessment, special assessment, or enforcement assessment (fine) and sending written notice of each assessment to every Owner subject thereto at least thirty (30) days in advance of the date due.
3. Recommending to the Members the taking of action to initiate or foreclose a lien against any property for which assessments are not paid within thirty (30) days after due date; or to recommend bringing an action at law against the owner personally obligated to pay the same.
4. D. Issuing, or cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not any assessment has been paid. If a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment.
5. If necessary, procuring and maintaining adequate liability and hazard insurance on property owned by the Association.
6. Causing all officers having fiscal responsibilities to be bonded, as it may deem appropriate.
7. Causing the Common Area to be maintained.
8. Coordinating with Members, Realtors, and buyers to ensure that new Members have acknowledged the Covenants and Restrictions, these By-laws, and any applicable Rules concerning the Property.

Article III
Assessments

SECTION 1. Assessments. [Effective January 1, 2003, annual assessments for the common expenses shall be paid in advance after January 1 and no later than March 31 of each year. Annual assessments paid after March 31 shall be assessed an addition penalty of $25 per month for each month or portion of month that the payment is late. If full payments are not received by April 30 of the year, the Owner may be subject to proceedings in law or equity. (As amended, June 20, 2002)] [Annual assessments for the common expenses shall be paid in advance after January 1 of each year. If full payments are not received by March 31 the Owner may be subject to proceedings in law or equity. (Sentences deleted, June 20, 2002)] Special assessments may be made at such times, and payable at such times, as in the judgment of the majority of the owners, may be required for the proper management and maintenance of the Association property. Each owner shall be liable for his pro rata share of the assessments as determined by a percentage of ownership of the property assessed. If an annual assessment is not made as required, an installment in the amount required by the last prior annual assessment shall be payable after January 1. Assessments and pro rata reimbursements start on the first day of the first month after closing.

SECTION 2. Liability. Each owner shall be jointly and severely liable for all unpaid assessments due and payable.

SECTION 3. Delinquent Assessments. The assessments against all property owners shall be set forth in a roll of the property which shall be available in the office of the Association for inspection at all reasonable times by the owners or their duly authorized representatives. The rolls shall contain a list of each property, the name and address of the owner thereof, and the assessment paid and unpaid. Each such assessment shall be the personal obligation of the owner(s). The association can place a lien against properties for unpaid assessments, including all costs associated with collection and enforcement.

Article IV
Maintenance & Repair

SECTION 1. Responsibility of the Association. The Association shall be responsible for the maintenance, repair, and replacement of: shrubbery and grass areas and maintenance outside the subdivision wall; approved subdivision signage; and such other items as may be approved from time to time by a majority of the Members.

SECTION 2. Right of Entry on Lot. The Association reserves the right, if the yard of a lot falls into disrepair or if other conditions create an eyesore or safety hazard, to arrange for maintenance or repair and/or to perform necessary work, after written notice and an opportunity to cure has been given to the owner.

1. To the extent any owner fails to maintain his or her property to the standards required as set by the Executive Committee of the Association or other authorized body, the Association may take action as necessary to bring the property into compliance, and charge the owner all costs therefore in connection with correction, collection and enforcement.
2. The Member/owner's failure to comply by the specified date with the written notice of violation may result in an enforcement assessment (fine) of not less than $50.00 payable to the Association.

Article V
Use of Properties Prohibited & Permitted

SECTION 1. Residential Use.

1. Residential purpose. All Lots and dwellings shall be used for single family home or similar residential purposes and for no other purposes. There shall be no resubdivision of any Lot.
2. Residential Lease (Rental Agreement). No lease may be for less than thirty (30) days and dwellings are not to be used for hotel or transient purposes. Any lease or rental of a residence shall provide that its terms are subject in all respects to the Covenants and Restrictions, the Bylaws, the Rules and Regulations of the Association, and the actions of the Executive Committee, that any failure of the lessee to comply with the terms of the foregoing shall constitute a default under the lease. The Owner shall provide a copy of all Association By-laws and Rules and Regulations to the Lessee at the time a lease is executed.

   Nonresident Owners shall provide the Association with identification of all tenants in writing within a reasonable time after the change in occupancy. Upon notice to Owner of any violation of the Rules and Regulations, the Owner shall in turn notify the Association what action is being taken to correct the violation.

   The Owner, in the event the tenant fails to comply with the Association's Governing Documents, may be held responsible for attorney fees and all costs incurred by the Association in its attempts to obtain the tenant's compliance with the Association Governing Documents.

SECTION 2. Commercial Use Prohibited. No part of Properties shall be used or cause to be used or allowed or authorized in any way directly or indirectly, for any business, commercial, civil, manufacturing, mercantile, storing, vending, or other such nonresidential purposes excepting home offices or occupations without any external visible or other evidence of commercial activity in, on or about the Lot, dwelling or within the development.

SECTION 3. Nuisances. No noisy, hazardous, noxious, or offensive activity shall be carried on upon any Lot or portion of the Properties, nor shall anything be done or kept thereon which is an annoyance or nuisance to the neighborhood, or which shall interfere with the quiet enjoyment of the other residents. This includes, but is not limited to, offensive and unsightly vehicular repair, excessively loud motorized vehicles, barking dogs, and excessively loud music.

No Owner shall permit anything to be done or kept upon his Lot or any part or portion of the Properties which will increase the rate of the Association's insurance coverage, or result in its cancellation.

SECTION 4. Animals.

(a) Animals (usual and customary household pets) may be kept in a reasonable number (which may be determined by the Executive Committee) on each Lot so long as the same are not kept, bred or maintained for commercial purposes. No other animals, livestock or poultry of any kind shall be kept, bred or raised on any Lot or in any residence. The Association shall have the right to prohibit any animal, which constitutes, in the sole and exclusive opinion of the Executive Committee, a nuisance to other Owners or residents. Each Owner shall be absolutely liable to each and all other Owners, their family members, guests, invites, lessees, renters and contract purchasers and their respective family members, guests or invites, for any damage to persons or property caused by any pet kept by Owner or on the properties because of Owner or Owner's tenants, guests, invitees or family members.

(b) Dogs must be leashed (or under direct command if obediently trained) and otherwise under the supervision and restraint of their owners at all times. Owners and residents must pick up after their pets if the pets defecate in the Common Areas or on any property of others visible from the streets.

(c) The Executive Committee shall have the right to establish and enforce additional Rules and Regulations defining, in a uniform and nondiscriminatory manner, and determine what constitutes a "reasonable number" of pets depending on their size, disposition and/or maintenance requirements. The Executive Committee may impose standards for the reasonable control and keeping of household pets in, upon and around the Properties to ensure that the same do not interfere with the quiet and peaceful enjoyment of the properties by the Owners and residents. Owners are subject to enforcement assessments (fines) for failure to adhere to those requirements.

(d) All pets are also subject to the laws and regulations of the City of Conway.

SECTION 5. Parking Areas and Vehicle Restrictions. The Executive Committee has authority to adopt reasonable rules, regulations and penalties regarding parking in and towing from the Association development.

(a) No industrial or commercial vehicle, excluding standard sized pick up trucks or standard vans with commercial license plates that do not violate (a) (6)-(7), shall be allowed to park within the Association development, except if the vehicle is present because of service being provided to a resident, and then, only as long as necessary to provide the service. A commercial or industrial vehicle is defined as including or qualifying as one or more of the following:

(1) A vehicle with commercial signage or logos which identify a business, which signage or logos are clearly visible from the street;
(2) A vehicle with visible ladders and/or visible storage of cargo, equipment or tools;
(3) A vehicle with a weight rating greater than a standard pickup or van (i.e., in excess of a one ton rating);
(4) A pickup truck with a commercial type cargo enclosure in place of the standard pickup bed, or a van with a modified type cargo enclosure;
(5) A vehicle with a cargo lift gate;
(6) A vehicle greater than 21 feet in length;
(7) A vehicle greater than 8 feet in height.

(b) Boats, jet skis, campers, house trailers, recreational vehicles, and similar trailers shall be parked or stored in a garage or behind a screening fence, a minimum of 6 feet high in the side or back yard.

(c) No disabled or inoperable vehicles (including those currently not registered) may be stored in the driveway or on any street. No vehicles may be parked on any lawn.

SECTION 6. Signs. No sign of any kind shall be displayed to the public view on or from any Residence Lot without prior written consent of the Association, excepting one standard sized "For Rent" or "For Sale" sign for each Residence Lot. A reasonable number of standard sized political campaign signs may be displayed on a Lot from 30 days before the election until 24 hours after the election, by which time the signs must be removed. No signs shall be placed on the Common Area except as deemed necessary or prudent by the Committee.

SECTION 7. Trash. All garbage and trash shall be placed and kept within sanitary containers as furnished by the City of Conway and shall be kept from public view except when placed out for scheduled pickup.

SECTION 8. Prohibition on Fixed Basketball Standards. No fixed basketball standards may be attached to any building or element of the Lot or Common Area. Portable basketball standards may be used so long as they are not left in the street and do not create a nuisance or fall into disrepair and constitute a safety hazard or an eyesore.

SECTION 9. Common Areas. No Owner of a Lot shall make any alteration or improvement to the Common Area, or remove any planting, structure, furnishing or other object therefrom, except with the written consent of the Association's Executive Committee or the Architectural Control Committee and no improvement or excavation in Lots shall be allowed that will negatively impact existing drainage.

Nothing shall be stored in the Common Area without the prior consent of the Executive Committee. Where no consent is sought, the Association has the right to remove stored items at the Owner's expense. If storage facilities are required to accommodate this action, all charges for same will be assessed to the homeowner under Article III herein.

[SECTION 10. Prohibition of ingress or egress to or from Reedy Road. In accordance with the applicable City of Conway ordinances and other regulations and as specified on Note 1 of the plat of the Dallas Subdivision recorded in Book 1, Page 184, "1: THERE SHALL BE NO INGRESSING OR EGRESSING TO LOTS ADJACENT TO REEDY ROAD TO OR FROM SAID ROAD." (Section 10 added June 20, 2002)]

Article VI
MISCELLANEOUS

SECTION 1. Notices. All notices to the Association shall be sent by registered or certified mail to the President of the Association or to such other address as the Officers may hereafter designate from time to time. All notices to any owner shall be sent by ordinary first class mail to his property or to such other address as may have been designated by him from time to time, in writing, or to the secretary. All notices shall be deemed to have been given when mailed, except notices of change of address which shall be deemed to have been given when received. Notice of meetings shall be given in the manner set forth in Article 2, Section 1.

SECTION 2. Architectural Standards. The architectural requirements set forth in the Dallas Subdivision Covenants and Restrictions effective April 14, 1997 described in Article 2, 3, 4, & 18 PERTAINING TO PRIMARY STRUCTURE, SECONDARY STRUCTURES AND FENCES, shall continue in full force and effect and are incorporated herein by reference.

1. The Officers of the Association (or their designees) shall enforce the Architectural Standards.
2. Any legal action to enforce the standards shall be agreed upon by a majority vote of the Association Members.

SECTION 3. Severability. The provisions hereof shall be deemed to be severable, and the invalidity, partial invalidity or unenforceability of any one portion or provision of these By-laws shall not affect the validity or enforceability of any other provision.

SECTION 4. Captions. The captions contained in these By-laws are inserted only as a matter of convenience and for reference and no way define, limit, or prescribe the scope of these By-laws or the intent any of any provision thereof.

SECTION 5. Gender. The use of the masculine gender in these By-laws shall be deemed to include the feminine gender and the use of the singular shall be deemed to include the plural, and visa versa wherever the context so requires.

SECTION 6. Waiver. No restriction, condition, obligation or provision contained in these By-laws shall be deemed to have been abrogated or waived by reason of any failure to enforce the same regardless of the number of violations or breaches thereof which may occur.

SECTION 7. Interpretation. The provisions of these By-laws shall be liberally construed to effectuate their purpose of protecting the Member/owners and potential buyers of the property against the undesirable uses of residential property that detract, create nuisances, destroy the aesthetics, or involve any action that would ultimately lead to reduced property values and/or the destruction of the neighborhood. Whenever in these By-laws it is provided that any person shall or will make any payment or perform or refrain from performing any act or obligation, each such provision shall, even though not so expressed, be construed as an expressed agreement to make such payment or to perform or not to perform, as the case may be, such act or obligation.

SECTION 8. Amendment. These By-laws may be amended, modified, or revoked from time to time by two-thirds vote of a quorum of owners of the property; and provided that no modification of or amendment to these By-laws shall be valid unless set forth in a recorded instrument which shall be recorded in the office of the Circuit Clerk and Ex-Officio Recorder of Faulkner County, Arkansas.

End.

[Notice: these By-laws for the Dallas Property Owners Association were unanimously adopted by the members present and voting at a special meeting called for that purpose on January 28, 2002.]

[Notice: Article III, Section 1 and Article V, Section 10 of these By-laws for the Dallas Property Owners Association, as revised, were adopted by the members present and voting at a special meeting called for that purpose on June 20, 2002.]

[Notice: These By-Laws are posted on the web site for convenient reference. The By-Laws as filed in the Office of the County Clerk should be consulted as the official text.]

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