RCSC Board Policy Resolution No. 24

WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) to adopt Policies (“BP” or “Policies”) not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).

WHEREAS to minimize inconsistencies, misunderstandings and misinterpretations inherent in verbal instructions, rules and regulations, the Board of Directors has established Board Policies in written form. Such Policies shall be titled, numbered and indexed for easy reference and use.

WHEREAS the Restated Articles of Incorporation and the Corporate Bylaws shall take precedence over Board Policies and that the following Board Policy on Board Meetings and Member Exchanges shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed by the Board.

NOW, THEREFORE BE IT RESOLVED the Corporation shall adhere to the following Preservation & Improvement Fee/Fund policy:

1. For purposes of imposing the Preservation & Improvement Fee, a “transfer” of residential property shall be defined as the purchase/ acquisition/ inheritance or any other transfer of a legal or beneficial interest in the title to residential property in Sun City, Arizona (a) pursuant to any deed, contract for sale, will or other instrument or document transferring an interest in such property, so long as the original payor no longer retains a majority ownership interest in the property, or (b) following the death of the last original Grantor / Trustor / Settlor under a Trust which holds title to the Property.
2. A Preservation & Improvement Fee will be imposed on the transfer of residential property in Sun City, Arizona including, but not necessarily limited to, the following:
   1. on the date any seller(s) transfers to any purchaser(s) residential property in Sun City, Arizona; or
   2. in the event the residential property is transferred to a Trust, on the date of the death of the last original Grantor / Trustor / Settlor under a Trust; or
   3. in the event the residential property is transferred from a Trust, on the date when the residential property is transferred from the Trust to persons other than the original Grantors / Trustors / Settlors of the Trust, unless the PIF was paid at the time of the death of the original Grantors / Trustors / Settlors of the Trust and the payor(s) retain a majority ownership interest in the property; or
   4. in the event the residential property is transferred to a Corporation, LLC, Partnership, LLP or any other entity (“Company”) that may represent non-individual ownership other than Trusts, on the date when the transferor(s) is/are no longer officers and majority owner(s) of record of said Company; or
   5. in the event the residential property is transferred from a Company that may represent non-individual ownership other than Trusts, to a new owner, on the date when the transferor(s) referred to in (d) above, is/are no longer the owner(s) of record; or
   6. in the event the residential property is transferred by inheritance (including but not limited to probate proceedings and beneficiary deeds), on the date of legal transfer.
3. The purchase/ acquisition/ transfer/ inheritance of residential property in Sun City, Arizona used for any purpose other than as the primary Arizona residence, including, but not limited to, resale, rental, investment or use by individuals other than the property owners, shall be subject to the Preservation & Improvement Fee.
4. At any time when a “transfer” has occurred for purposes of imposing the Preservation & Improvement Fee, then a Transfer Fee shall also be incurred and collected at the same time that the Preservation & Improvement Fee is collected.
5. Income from Preservation & Improvement Fund investments will be retained as a Preservation & Improvement Fund balance.
6. Projects funded from the Preservation & Improvement Fund must:
   1. be approved by the RCSC Board of Directors;
   2. be a minimum of $300,000; and
   3. have a depreciable life of at least 15 years.
7. Preservation & Improvement Funds are not to be spent for normal operating or maintenance expenses.
8. A monthly report will be submitted to the RCSC Board of Directors by Management detailing monthly and year-to-date activity of income, transfers and expenditures. A detailed list of investments will, also, be provided upon request of the Board of Directors.

BE IT FURTHER RESOLVED that a copy of this resolution shall be posted on the RCSC website for members and shall be made available to members upon request at no cost.

Adopted and signed this 25th day of June, 2015 at a duly called Board meeting by a majority (5) of the Recreation Centers of Sun City, Inc. Board of Directors.