WHEREAS, the Bylaws of Derwood Station Homeowners Association No. 2, Inc., clearly state the duties of the Board of Directors and of its officers;

WHEREAS, the Board desires to fulfill the Bylaws’ requirements in the least bureaucratic manner;

WHEREAS, the Bylaws require that the Board “cause to be kept a complete record of all its acts” and that the Board supervise “all officers. . . of above this Association and see that their duties are properly performed” (Article VII, Sections 2.(a) and 2.(b), respectively);

WHEREAS, the Bylaws require that one duty of the Board president “shall (be to) cosign all checks” (Article VIII, Section 8.(a)) and that one duty of the Board treasurer “shall (be to) sign all checks . . . of the Association” (Article VIII, Section 8.(d));

WHEREAS, from time to time the president and treasurer have been unable to coordinate check signing in a timely manner consistent with the business needs of the Association;

WHEREAS, the members of the Association amended the Bylaws in 2001 so that any officer authorized to sign checks (presently, the president, vice-president, and the treasurer) but “unavailable at the required time . . . may designate another officer to so sign in his or her stead by notifying the Board according to Association policy.” (Article VIII, Section 8.(e)); and

WHEREAS, the Bylaws require that the “vice-president shall act in the place and stead of the president in the event of his absence” (Article VIII, Section 8.(b):

NOW THEREFORE, the Board of Directors adopts the following resolution to establish the Association’s policy and procedure for designating substitute, pro tempore signatories for its checks in the event that the president and/or treasurer are unavailable when the check(s) must be signed.

BE IT RESOLVED AND MADE A POLICY OF THIS ASSOCIATION as follows:

1. Any officer authorized to sign checks may designate another officer to sign in his or her place if he or she is unavailable when a check must be signed. (Signing includes cosigning. The Board vice-president is always authorized to cosign checks in place of the president if the president is unavailable at the required time.)

2. A designation shall be made in any convenient manner with verifiable authorship and shall be communicated to whomever is responsible for issuing the checks (e.g., the Association’s manager). Each such designation shall be communicated to the designee and shall be captured in the minutes of the next Board meeting after the designation.

3. The same Board officer shall not sign the same check twice.

Approved by the Derwood Station Homeowners Association No. 2, Inc., Board of Directors.

_________________________________ ATTEST: ____________________________

Brad Botwin, President Syd Levitus, Secretary

Approved: 2 August 2001 Effective: 2 August 2001