2 MEMBERSHIP

2.1 OCCUPANCY OF RESIDENCES. Only those persons listed on the membership application shall reside in a Member’s residence. Any additional occupants must be approved by the Board of Directors and registered with the office and Security.

2.1.1 LIMITATIONS ON OCCUPANCY. Occupancy of any and all homes in Emerald Bay Subdivision shall be limited to "Single Family Occupancy" which is defined as one or more persons related by blood, marriage or legal adoption which shall not exceed the number of persons determined by multiplying the number of bedrooms in a residential unit by two or a group of not more than three unrelated persons in the entire home. This section shall not be interpreted to prevent the occupancy of any home by guests on a temporary basis of less than 30 days provided such Stockholder Member or Lessee Member is present in such home during the entire period of visitation. This section shall not be construed so as to prohibit a live-in maid or other full or part time care giver required for the convenience or care of those residing in such home provided the maximum of two persons for each bedroom is not exceeded. The Board of Directors may, in their discretion, grant exceptions to the strict application of this Section.

2.2 MEMBERS. Members shall consist of persons i) owning one or more lots in Emerald Bay Subdivision, Smith County, Texas, or ii) who are designated Members by corporations, partnerships, trusts, and guardianships which own one or more lots in Emerald Bay. More than one lot being used in a building site shall be counted as only one (1) membership.  

2.2.1 LIMITATION ON MEMBERSHIP. No person shall own more than one Membership in the HOA.

2.2.2 VOTING RIGHTS. Only one vote at each election will be allowed for each numbered Membership. In the case of a married couple, either spouse may cast the vote.

2.3  ADMISSION PROCEDURES. An owner of property in the Emerald Bay subdivision shall automatically be a member of the HOA without the necessity of any further action. No person or entity shall be a member of the HOA by reason of ownership of only an easement, right-of-way, or mineral interest. 

2.3.1 WAIVER OF LIABILITY. All applicants, by their act of filing an application for membership, agree that they have satisfied themselves that the land and/or structures which they are in the act of purchasing or leasing has been examined to their satisfaction with regard to workmanship and drainage and agree to waive any and all claims for damages as against Emerald Bay Homeowners Association and Emerald Bay Club, Inc., their officers, directors, agents, members and employees and hold them harmless of and from any and all claims, damages, injuries and costs, including attorney fees, in such regard.

2.4 TERMINATION BY SALE OF PROPERTY. Membership shall be terminated by the sale of interest in all lands owned in Emerald Bay Subdivision. Seller’s membership may be extended at Seller’s request for not more than sixty (60) days or such time period approved by the Board of Directors with dues paid in advance for the extended period of time.

2.4.1 FORCED SALE. A “forced sale” is defined as a sale pursuant to a foreclosure, bankruptcy, or other court order. In the event of a forced sale, the membership of the Member subject to the forced sale shall be terminated. 

2.5 ADDRESSES. It is the duty of each Member to ensure the Emerald Bay HOA’s records contain the Member’s correct, current mailing address and email addresses, if applicable. All notices to Members mailed to the last mailing address or email address furnished by the Member to the HOA shall be deemed adequately addressed.

2.6 SUCCESSION. 

2.6.1 DEATH OF A MEMBER. In the case of death of any surviving Member, dues to the HOA shall, during the period of estate administration, be paid by the estate. Should the property of the deceased Member be sold, the eventual purchaser or owner of such property shall pay the current initiation fee.

2.6.2 SEPARATION. Upon the separation, pending divorce, of a married couple holding Membership, each spouse shall continue to be entitled to the privileges of Membership (so long as amounts owing the HOA are timely paid) until the HOA receives an order from a court of competent jurisdiction awarding the membership to either spouse individually. This rule does not expand the voting privilege beyond the one (1) vote to which such share is entitled. If more than one (1) ballot is cast in any election, by more than one (1) person claiming ownership, all ballots cast in that name shall be void.

2.6.3 BEQUESTS.   When an Emerald Bay Member deeds ownership of their Emerald Bay property, by virtue of which they are a member of the HOA, to a spouse, mother, father, son, daughter, son-in-law, daughter-in-law, step children or grandchildren, there will be no transfer or initiation Fee, such that the grantor’s Emerald Bay HOA membership will pass to the grantee of the property so deeded.