Section 2. Borrowing Money

FCHOA Bylaws - Revision Date: 2022-05-20

(a)      The Board shall have the authority to borrow money for the purpose of acquisition, replacement, restoration, and/or repair of the Association’s capital assets and Common Areas, provided, however, if the total amount of the borrowing for this purpose exceeds seven and one-half percent (7.5%) of the then current fiscal year operating budget, approval of the borrowing is required by a majority of the Members voting in person, by proxy, or by electronic or mailed-in ballot as permitted by the Board, at a meeting at which a quorum is present.  Notwithstanding the foregoing, the Board of Directors shall have the authority to borrow money in the event of emergencies and/or natural disasters, up to a maximum of One Million Dollars ($1,000,000), without the approval of the Members, provided, however, that the term of the borrowing does not exceed one year, and the debt will be retired by special or regular assessments.

(b)      The Board shall have the authority to borrow money for the purpose of modifying, improving, or adding Common Area or amenities, provided, however, if the total amount of the borrowing exceeds or would exceed Fifty Thousand Dollars ($50,000) at any one time, approval of the borrowing is required by a majority of the Members voting in person, by proxy, or by electronic or mailed-in ballot as permitted by the Board, at a meeting at which a quorum is present.

(c)       The Board shall have the authority to borrow money or enter into other financial arrangements for the purpose of purchasing or leasing equipment without Member approval, if the borrowing or financial arrangement is secured by the equipment financed.