Conflicting bylaws

[Guest Guest]

In our homes association the fiscal year had been Jan 1-Dec 31, Bylaw was amended (at July 2012 Annual Member meeting) changing fiscal year to be Aug 1-July 31.

There are two different articles about when is fiscal year and assessment due/past due dates. The first was amended but the second one was not.

New amended bylaw.

ARTICLE XVIII

FISCAL YEAR

The fiscal year of the Association shall begin on the 1st day of August and end on the 31st day of July of every year, except that the first fiscal year shall begin on the date of incorporation.

Note: I don't understand what, " except that the first fiscal year shall begin on the date of incorporation" means. We were incorporated in 1971

Current associated bylaw - it was not amended.

ARTICLE XII

ASSESSMENTS

Section 1. Annual Assessments.

Association's annual assessment is due and payable on January 1 of each year. Any assessment or portion thereof which is not paid on or before March 1 of that year shall bear interest from the due date at the rate of eighteen percent (18%) per annum...

The questions are:

1. Should both articles have been amended?

2. Is the due date still January 1 and past due March 1?

3. To relate to new FY is due date bylaw automatically changed, without an amendment, to August 1, past due October 1? OR should this bylaw have been amended to make it compatible to one changing FY?

I thought I read somewhere that only FY date had to be amended and that then secretary changes due date bylaw to be compatible.

Any help will be appreciated.

[Gary c Tesser]

Ten minutes, and no replies yet....

[George Mervosh]

Ten minutes, and no replies yet....

That's because we know what's good for us when it comes to bylaw interpretations. The wrathful one doesn't get a day off for Labor Day.

[Guest Duke]

I know my question is complicated. Hope this simplifies it.

There are two bylaws related, One set FY the other set assessment due date i.e. For years assessment was due at beginning of fiscal year, 1 Jan - assessment due 1 Jan.

Members voted to amend FY to start 1 Aug.

Did not vote to amend due date to 1 Aug.

Again question is, are 2 amendments required or does one changing FY to 1 Aug. automatically changes (without amending latter) due date to start of new FY, 1 Aug.?

[George Mervosh]

Again question is, are 2 amendments required or does one changing FY to 1 Aug. automatically changes (without amending latter) due date to start of new FY, 1 Aug.?

The former.

[Guest Edgar]

I thought I read somewhere that only FY date had to be amended and that then secretary changes due date bylaw to be compatible.

Well, you didn't read it in RONR.

A fiscal year is solely for accounting and tax purposes. It has no automatic effect on any other schedule (e.g. dues) you may have. And there's no reason to change the dues schedule to match the fiscal year. I suspect it's a lot easier for members to remember that their annual dues are due on January 1 rather than some arbitrary date chosen for accounting or tax purposes.

By the way, you could have cleaned up your bylaws by deleting the reference to the "first fiscal year" since that has long since passed.

[George Mervosh]

. And there's no reason to change the dues schedule to match the fiscal year

Tell that to the NAP

[Guest Edgar]

Tell that to the NAP

I can't help but think there's not much you can tell the NAP.

[George Mervosh]

I can't help but think there's not much you can tell the NAP.

Amen, Mr. Mt.