ANTARES HOMEOWNERS ASSOCIATION
BYLAWS
PAGE 13

ARTICLE IV (cont.)

(vi) A statement of the place where the names and addresses of the current Members is located.

If the report referred to in Section 4.6(c) is not prepared by an independent accountant, it must be accompanied by the certificate of an authorized Association officer stating that the statement was prepared from the Association's books and records without independent audit or review.

(c) The Association shall distribute to all of its Members a summary of the Association's property, general liability, and earthquake and flood insurance policies that states all of the information required by Civil Code Sections 1365(e)(1) and (2), as amended, within sixty (60) days preceding the beginning of the Association's fiscal year. If any of these policies have lapsed or been canceled and not immediately replaced, or if there is a significant change such as a reduction in coverage on limits or an increase in the deductible for any of these policies, the Association shall notify its Members by first-class mail as soon as reasonably practical. If the Association receives any notice of nonrenewal for any of these policies, the Association shall immediately notify its Members if replacement coverage will not be in effect by the date the existing coverage lapses. If any information required to be disclosed by this subsection is specified in the insurance policy declaration page, the Association may meet the requirements of this subsection by distributing copies of the declaration page.

In addition to financial statements, the Board shall annually distribute within sixty (60) days prior to the beginning of the Fiscal Year a statement of the Association's policies and practices in enforcing its remedies against Members for defaults in the payment of Annual, Capital Improvement, Reconstruction and Special Assessments, including the recording and foreclosing of liens against Condominiums.

The Board shall do the following on at least a quarterly basis: (1) cause to be completed and review a current reconciliation of the Association's operating and reserve accounts, (2) review the current Fiscal Year's actual reserve revenues and expenses-compared to the Budget for the then current Fiscal Year, (3) review the income and expense statement for the Association's operating and reserve accounts, and (4) review the most current account statements prepared by the financial institutions where the Association maintains its operating and reserve accounts. The signatures of either (i) two (2) Directors, or (ii) one (1) Director and one (1) Association officer (who is not also a Director) are required for the withdrawal of money from the Association's reserve accounts. As used in this paragraph, the term "reserve accounts" means monies that the Board has identified from its Budget for use to defray the future repair and replacement of, or additions to, those major components which the Association is obligated to maintain.

The Board shall cause a study of the reserve account requirements of the Property-to be conducted in accordance with Section 1365.S(e) of the California Civil Code. As used in this paragraph, "reserve account requirements" means the estimated funds which the Board has

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