1.1 The term "Association" as used herein shall mean Lost Nation Property Owners Association. This Association is a Not-for-Profit Corporation.

1.2 The term "Members" as used herein shall be synonymous with the word "Owners" and shall mean title holders of record of one or more lots or tracts as well as those purchasing one or more lots or tracts under so called "Land contracts" or "articles of agreement for warranty deed", their successors or assigns.

1.3 The term "Board" as used herein shall mean Board of Directors of the Lost Nation Property Owners Association.

ARTICLE 2 - MEMBERSHIP

2.1 Membership in this Association shall be limited to owners of real estate situated within the Lost Nation community. The owners shall be bound as members to the by-laws, rules and regulations of the Association.

2.2 The Board may suspend voting privileges and the right to use common properties of the Association of any members if:

(a) The owner member has not paid the current yearly dues.
(b) The owner has not complied with designated rules in the covenants and by-laws.
(c) The owner member has not paid assessments as determined by the Board through the by-laws or covenants.

2.3 When a member ceases to be an owner, such person's membership shall be discontinued. However, such person shall remain liable for all Association charges which exist prior to giving written notice to the Association of change of ownership.

2.4 If any action is brought to enforce or interpret the provisions of the by-laws, and rules and regulations, the Board shall be entitled to recover reasonable attorney's fees from which fees may be set by the court in the trial or appeal of such action or may be enforced in a separate action brought for that purpose, and which fees shall be in addition to any other relief that may be awarded.

ARTICLE 3 - DUES AND ASSESSMENTS

3.1 In order to provide a General Fund to enable the Association to perform its duties and responsibilities, and annual budget will be established by the Board for the purpose of allocating the dues and assessments.

3.2 Annual dues and assessments shall be levied and set by order of the Board at their meeting held in September of each year.
3.3 Annual dues and/or assessments, as established and approved in the assessment budget by the Board, shall be assessed against each member on a "per lot basis". There shall be no more than 4 owners of a single lot.

3.4 Members acquiring lots after January 1st of each year, but no later than June 1st shall pay dues or assessments in the full amount as stated in the covenants. Members acquiring lots after June 1st shall pay dues on a prorate basis of 50% or ½ of dues or assessments incurred for that year.

3.5 Bills for dues and/or assessments shall be mailed to members at their last known address and shall, if not paid within a thirty (30) day period after mailing date, be considered delinquent.

3.6 When any member shall fail to pay dues or assessments prior to the delinquent date, such dues or assessments shall bear interest from January 1st of the calendar year in which dues were payable, to date of payment at the rate of twelve percent (12%) per annum. The Association may, at its discretion, file certificates of non-payment of dues and/or assessments in the Office of the Recorder of Deeds of Ogle County, Illinois, whenever any such dues are delinquent, in which case all fees and costs for recording or filing of such certificate shall also be a lien upon the real estate so described in said certificate. Such lien for delinquent dues and/or assessments, shall continue for a period of no more than five (5) years from the delinquent date, unless within such time suit shall have been instituted for collection of same, in which case the lien shall continue until termination of the suit, and until the sale of the property under execution of the judgment shall be consummated. The Association may also in conjunction with or separately from a lien obtain a personal judgment against any member for dues and assessments which are delinquent. Any member will pay on demand all costs of collection, legal expenses, and attorneys' fees incurred or paid by the Association in collecting or enforcing the by-laws upon default of dues and assessments.

ARTICLE 4 - BOARD OF DIRECTORS

4.1 The Board of Directors shall consists of twelve members.

4.2 Each director shall be an active member in good standing.

4.3 Each year four directors will be elected for a three year term.

4.4 The Board shall determine the policies of the Association, approve the budget, set, levy and assess annual dues to be paid by members, approve all bills, consult with committees, and have general management of the Association. The Board may also adopt a resolution to borrow money for Association purposes.

A resolution by the Board that the interests of the Association require the borrowing of money shall be sufficient evidence for any person that the borrowing is for a proper corporate purpose. The Board may, if it determines that the same shall be reasonably necessary, assign, pledge, mortgage, or encumber any Association property as security for such borrowings, and they may pledge or assign future revenues of the Association as security therefore.

4.5 The Board of Directors at the first meeting of the year in January, shall from their number, elect a President, who shall also be Chairman, a First Vice-President, a Second Vice-President, a Secretary and a Treasurer, as officers of the Association.

4.6 The Board shall meet regularly on the Second Saturday of the month (unless there is a conflict with a national holiday in which case the next subsequent Saturday will apply), the date, time and place to be announced by the President at the regular meeting immediately prior thereto. Board members not present will be so advised by the Secretary. Special meetings of the Board may be held at the call of the President or at the call of any five Board members, provided notices of such meetings are mailed to all Board members not less than five (5) days prior to meeting date.

4.7 Seven members of the Board will constitute a quorum.

4.8 Majority rule will apply.

ARTICLE 5 - OFFICERS

5.1 All officers shall enter upon their official duties at the time of their election each year and shall serve for a term of one (1) year or until their successors shall be duly elected.

5.2 The duties of the officers shall be as follows:

(a) The President will also be Chairman of the Board, and shall preside over all regular and special meetings of the Association, and of the Board. He shall be an ex-officio member of all permanent and special committees. He shall perform such other duties as usually pertain to the office committees of the President.
(b) The First Vice-President, in the absence of the President shall preside at meetings of the Association and of the Board. The Second Vice-President shall preside at all Association and Board meetings in the absence of both the President and the First Vice- President. The Vice-Presidents shall also perform such other duties as usually pertain to that office, or as may be assigned by the President or the Board.

(c) The Secretary shall be responsible for the minutes of all annual or special meetings of the Association; all regular and special meetings of the Board; correspondence; shall have custody of the Association’s records; and shall perform such other duties as may be assigned by the President or the Board; and shall be the registered agent of the Corporation as required by statute and have custody of the Corporate Seal.

(d) The Treasurer shall receive all funds paid to the Association, and shall deposit these in official depositories and shall disburse same on order of the Board. He shall sign all checks and shall be bonded for the highest average dollar amount in the treasury. His accounts and books shall, at all times, be available for inspection by the President, the Board, and any authorized auditors. He shall make a report at the annual meeting and at such other times as the President and the Board may require.

ARTICLE 6 - COMMITTEES

6.1 Permanent Committees:

(a) Membership and Registration
(b) Budget, Finance and Insurance
(c) Security
(d) Covenants and By-laws
(e) Social Activities
(f) Environmental Control
(g) Lake, Beaches, Parks and RCD
(h) Publicity
(i) Roads and Weeds
(j) County and Township
(k) Utilities and Community Services

6.3 Each committee shall be responsible to the President, and shall make such reports as he may direct, or which they may feel necessary for consideration of the Board.

6.4 Special Committees: Special Committees may be appointed by the President, and they shall perform such duties as may be defined in their creation.

ARTICLE 7 - MEETINGS

7.1 This Association shall meet at least once each year at a time and place as shall be determined by the Board. It may hold such other meetings as the Board or membership desire. On all matters considered at the annual meeting, excepting the election of Board Members, each Association member present and in good standing shall be entitled to one vote. Majority shall rule. The election of Board members will be accomplished as outlined in Article 8. In the event of a tie, the presiding officer shall vote for the purpose of determining the majority. The Board shall have the authority, upon affirmative vote of a Board majority to convene a special meeting of the Association for emergent reasons at any time. 10% of the Members, or 25 Members, whichever is greater, shall be required to call a special meeting. For the purpose of voting at any special meeting, or annual meeting, owners in joint tenancy, or tenancy in common, or owners owning more than one lot, shall be deemed to constitute a single owner or member, and shall have only one vote.

7.2 The annual meeting shall be held the second Saturday of September of each year. Tile members shall be given at least two (2) weeks prior notice of the date, time and place of the annual meeting. Those members present shall constitute a quorum; proxy votes may be secured.

ARTICLE 8 - NOMINATION AND ELECTION OF DIRECTORS

8.1 The election of new members for the Board of Directors shall be held at the annual meeting, and will include proxy votes submitted by mail.

8.2 Voting shall be by ballots which shall be counted and with results announced at the annual meeting.

8.3 The President shall appoint the Nominating Committee at the regular Board meeting held in May of each year. The President shall designate the Chairman. The duties of the Committee shall be to make nominations for Directors for the following year with the consent of those nominated and to prepare a ballot which will be mailed to all members in good standing, at least two (2) weeks prior to the annual meeting.

8.4 On the day of the annual meeting, the President shall appoint a committee to be known as the Committee on Elections consisting of not more than five (5) members. The duties of the Committee shall be to count, certify and announce the results of the annual election.

8.5 In the case of a vacancy in the office of President, the First Vice-President shall succeed to the office. In the case of vacancies in other offices, those will be filled by the Board of Directors at the meeting in which the vacancy becomes known, or as soon thereafter as capable candidates may be found.

8.6 No Director shall receive a salary for services performed unless he is also an employee of the Association. Directors and officers may be compensated for reasonable expenses incurred while so acting.

ARTICLE 9 - RULES OF ORDER

Robert's Rules of Order shall be the Parliamentary Authority for all matters of procedure not specifically covered by these By-laws.

Any amendments of these By-laws may be adopted at any meeting of the Board, provided written notice of the proposed amendment shall have been given all Board members at least five (5) days prior to the meeting. Amendments may be proposed and adopted, however, at any regular meeting of the Board without notice provided all Board members are present, and provided all waive such notice. Any amendments of these By-laws also may be adopted at any regular or special meeting of the Association provided written notice of the proposed amendment(s) shall have been given to owners at least two (2) weeks, fourteen (14) days prior to the meeting.

ARTICLE 10 - RULES AND REGULATIONS

10.1 A set of Rules and Regulations affecting all owners in the Community shall be adopted by the Board of Directors, a copy of which shall be mailed to each owner. In the event of subsequent additions to, deletions from, or modifications of, the original Rules and Regulations, notices of such changes will be given to all owners in the manner aforesaid.

10.2 Each member of the Association, and others who own property within the development, shall abide by the provisions of the By-laws as well as any regulation adopted by the Board of Directors of the Association pursuant to these By-laws. Failure to do so shall justify the Board in imposing sanctions upon offenders as is herein provided.

10.3 Any person who is involved without his consent in any legal action due to the fact he is or was a Director, officer or employee of the Association shall be indemnified by the Association against all expenses reasonable incurred by him in connection with or resulting from such legal action. Such expenses shall also include amounts paid by him with the consent of the Association acting through its Board of Directors in reasonable settlement of such actions except for those matters as to which it shall be determined that such person was derelict in the performance of his duties to the Association. This right of indemnification shall apply to matters arising both before and after the time of adoption of this By-law and shall not exclude any other legal right of indemnification to which such person may be entitled.

10.4 Section 1. Violation-Penalties:

(a) Persons who violate any Rules or Regulations, Covenants or By-laws as set forth in this resolution shall be subject to a citation, issued by the LNPOA Covenants and By-Laws Chairperson or his delegate, and fined. Fines shall be enforceable in the same manner as annual assessments and unpaid fees owed to the Association. Persons who violate any Rules or Regulations, Covenants or By-laws will be subject to a citation. The Covenants and By-laws Chairperson or his delegate has the authority to issue the citation to the Property Owner.

(b) The assessment schedule for violation of any Rule or Regulation, Covenant or By-law within a twelve-month period shall be as follows:


• 1st Offense: $25.00
• 2nd Offense: $50.00
• 3rd Offense: Automatic review by LNPOA Board of Directors, fine up to $500.00

(c) Compliant by Property Owner. The Covenants and By-laws Chairperson or his delegate has the authority to investigate a complaint by a Property Owner to determine the validity of the complaint. After making the determination that the Property Owner has a valid complaint, a written complaint shall be prepared by the Covenants and By-laws Chairperson or his delegate and thereafter, a citation can be issued to the offending Property Owner. The complaining Property Owner will be notified if it is necessary to appear before the Board of Review.

(a) Any person who wishes to contest the issuance of a citation may do so by filing, in writing, a hearing request form with the Secretary of the LNPOA within thirty (30) days from the issuance of a citation.

(b) Upon receipt of a hearing request form, the Secretary shall provide the Property Owner with a copy of said request and transmit one copy to the Review Board which shall act as the hearing body before which the Property Owner shall have the right to an advisory-type hearing in which information in the Property Owner's defense may be presented. The Property Owner's copy shall state the time, date, and location of his review hearing.

(c) The Review Board shall be comprised of five (5) LNPOA Board Members in good standing, screened for conflict of interest and appointed by the President for each separate hearing. The Review Board shall meet the second Saturday of each month to hear any cases docketed.

(d) Present at the hearing shall be the Review Board members, the Property Owner with any witnesses and the Covenants and By-laws Chairperson, along with prosecution witnesses. In addition, the Review Board shall retain the right to request the attendance of any other individuals for information testimony. A transcript of all proceedings at the hearing shall be maintained.

(e) Within ten (10) days of the hearing date, the Review Board shall provide, in writing, its recommendation to the Board of Directors.

The decision of the Board of Directors shall be final in all cases.

ARTICLE 11 - GENERAL

While the purpose or purposes for which this Corporation was organized as set forth in the Articles of Incorporation are substantially covered by these By-laws, attention is called to other purposes as set forth in the Articles of Incorporation:

The Association has the right to:

(1) Make restrictions and place the same of record covering the property located in said subdivisions.

(2) To control all public places in said subdivision and all improvements thereon.

(3) To obtain and control all easements on the property as may be required for maintenance of storm or sanitary sewers, public utilities and necessary access roads.

(4) To own and acquire such real estate as may be necessary in order to carry out the purpose of the Association, and to pay taxes on such real estate as may be so used by it.

(5) To assess and collect dues from members of the Association for the purpose of creating a fund for accomplishment of the civic purposes aforesaid. All dues and assessments levied shall become a lien on the real estate of each member of the Association as soon as levied.

(6) To bind members on all matters arising concerning civic purposes and uses of land owned by said members of the Association.