BY-LAWS - of - SUN VALLEY HOMEOWNERS ASSOCIATION, INC.

ARTICLE XII

FISCAL MANAGEMENT

The provisions for fiscal management of the Sub-Association set forth in the Declaration shall be supplemented by the following provisions:

Section 1. Accounts.
The funds and expenditures of the Sub-Association shall be credited and charged under the following classifications as appropriate, and maintained separately for, as each relates to, the Common Property and Recreational Facilities, if any:

1. Current Expenses. Current expenses shall include all funds and expenditures to be made within the year for which the funds are budgeted and may include a reasonable allowance for contingencies and working funds. The balance in this fund at the end of each year shall be applied to reduce the assessments for current expenses for the succeeding year or to fund reserves.
2. Reserve for Deferred Maintenance. Reserve for deferred maintenance shall include funds for maintenance items which occur less frequently than annually.
3. Reserve for Replacement. Reserve for replacement shall include funds for maintenance or replacement required because of damage, depreciation or obsolescence.

Section 2. Budget.
The Board of Directors shall adopt a budget for each calendar year which shall include the estimated funds required to defray the current expenses_and may provide funds for the foregoing reserves.

Section 3. Assessments.
Assessments against Owners for their share of the items of the budget shall be made for the calendar year annually in advance on or before December 20th preceding the year for which the assessments are made. Such assessments shall be due annually in advance, or in installments as determined by the Board of Directors. If an annual assessment is not made as required, an assessment shall be presumed to have been made in the amount of the last prior assessment and payments thereon shall be due as during the previous year until changed by an amended assessment. In the event the annual assessment proves to be insufficient, the budget and assessments therefor may be amended at any time by the Board of Directors. Until the first annual assessment shall be determined by the Board of Directors of the Sub-Association, the annual assessment for 1987 shall be fixed by the Company. In each annual assessment the members of each Sub-Association operating autonomously shall be allowed an appropriate credit for expenses such Sub-Association may incur in fulfilling any obligations such Sub-Association may have assumed from the Sub-Association. Such allowance may be rescinded at any time the burden of fulfilling such obligations is re-imposed upon the Sub-Association, and may be made the subject of a retroactive interim assessment whenever deemed appropriate by the Board of Directors.

Section 4. Depository.
The depositories of the Sub-Association will be such banks and/or savings and loan associations in Florida as shall be designated from time to time by the Board of Directors and the monies of the Sub-Association shall be deposited in said depositories. Withdrawals of monies from such accounts shall be only by checks signed by persons authorized by the Board of Directors as provided in these By-Laws; provided, however, that the provisions of any management agreement between the Sub-Association and a manager relative to the subject matter Of this section shall supersede the provisions hereof.