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Covenant Enforcement

Published on Nov 23, 2015

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PRESENTATION OUTLINE

1.

Covenant Enforcement

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2.

Hierarchy

  • Federal & State laws
  • Declaration (CC&Rs)
  • Bylaws
  • Articles of Incorporation
  • Rules/Guidelines/Policies
3.

Governing Documents

  • Declaration
  • Articles of incorporation
  • Bylaws
  • Rules/Regs/Policies
  • CCIOA 209.5(1)(b)(VIII)
4.

What Can You Enforce?

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5.

Duty to Enforce

Business Judgment Rule
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6.

Standards of Conduct

Good Faith / Best Interests / Prudently
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7.

Good Faith

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8.

Best Interests

Interests of Association / No Self-Interest
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9.

Prudently

Be Informed / Act Carefully / Use Judgment 
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10.

How to Be Informed

  • Read and Understand Docs
  • Follow Requirements
  • Be Familiar with Laws
  • Participate
  • Seek Advice
11.

Business Judgment Rule

Good Faith / Best Interests / Informed
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12.

Untitled Slide

13.

Where Do Rules Come From?

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14.

Rules

What Makes them Enforceable? / Due Process  / Statute of Limitations
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15.

Defenses

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16.

Judicial Standard of Review

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Kevin Harker