HomeMy WebLinkAbout04-22-02 TSH Entity Min MINUTES AND CERTIFICATION
On April 22,2002 the Board of Aldermen of the Town of Westlake,Texas convened in regular meeting
at its regular meeting place in Westlake,Texas. The roll of the duly constituted officers and members of the
Board of Aldermen was called, which are as follows:
Name Title Absent
Scott Bradley Mayor
Fred Held Alderman
Don Redding Alderman
Larry Sparrow Alderman
Bill Frey Alderman
Buddy Brown Alderman
all of who were present,thus constituting a quorum.
Among other business, a written Resolution bearing the following caption was introduced:
A Resolution ordering the creation of a nonprofit corporation pursuant to the Texas Education Code,
approving articles of incorporation and bylaws for,and appointing the initial directors of, such corporation,
appointing certain consultants, and resolving related matters
The Resolution was read by the Board of Aldermen.
After due discussion, it was duly moved and seconded that the Resolution be adopted. The Presiding
Officer put the motion to a vote of the Board of Aldermen,and the Resolution was adopted by the following
vote:
AYES: 5
NOES: 0
ABSTENTIONS: 0
The Presiding Officer then declared the Resolution to be adopted.
The persons named herein are the duly chosen,qualified,and acting officers and members of the Board
of Alderman as indicated herein.
Each of the officers and members of the Board of Alderman was duly and sufficiently notified officially
and personally, in advance, of the time, place, and purpose of the aforesaid meeting and that the resolution
would be introduced and considered for adoption at the meeting.
The meeting was open to the public,and public notice of the time,place,and purpose ofthe meeting was
given all as required by Chapter 551 of the Texas Government Code.
MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT and to correctly refleetthe
duly constituted officers and members of the Board of Aldermen,and the attached copy of the Resolution is
hereby certified to be a correct copy of an official copy thereof,on file among the official records of the Board
of Aldermen,and such resolution has not been amended and is in full force and effect on this April 22,2002.
MINUTES AND CERTIFICATION—Page 1
TAM v.1.4/2/2002
1
By.
Name: Ginger rosswy
Title: Town Secretary
[SEAL]
TAMN.]
TOWN OF WESTLAKE
RESOLUTION NO. 02-16
A RESOLUTION ORDERING THE CREATION OF A NONPROFIT CORPORATION
PURSUANT TO THE TEXAS EDUCATION CODE, APPROVING ARTICLES OF
INCORPORATION AND BYLAWS FOR,AND APPOINTING THE INITIAL DIRECTORS
OF,THE CORPORATION,APPOINTING CERTAIN CONSULTANTS,AND RESOLVING
RELATED MATTERS
WHEREAS. TEX. EDUC. CODE ANN. Chapter 53 (Vernon), as amended (the "Act"), and
particularly Section 53.35(b),specifically authorizes this Board of Aldermen,as the governing body
of the Town of Westlake, Texas (the "Town"), to order the creation of a nonprofit corporation (the
"Corporation") under the Act to act on behalf of the Town as its duly constituted authority and
instrumentality, within the meaning of the Internal Revenue Code of 1486, as amended, for the
purpose of aiding institutions of higher education. accredited primary or secondary schools, or
authorized charter schools, as those terms are defined in the Act, in providing educational facilities
and housing facilities and facilities incidental.. subordinate or related thereto or appropriate in
connection therewith;
WHEREAS, the Act empowers, among other things, that the Corporation may acquire
educational facilities and housing facilities to be used by the students, faculty. and staff of
institutions of higher education and facilities incidental,subordinate,or related thereto or appropriate
in connection therewith (any such facilities, "Facilities"),-
WHEREAS,the Act provides that the Facilities need not be located within the town limits of
the Town;
WHEREAS, the Act authorizes the Corporation to issue revenue bonds ("Bonds") and/or to
enter into other obligations("Obligations")that,among other things, will facilitate the acquisition or
construction of Facilities;
WHEREAS, no Bonds or Obligations of the Corporation will constitute obligations(whether-
special, general, or moral) of the Town;
WHEREAS, the Act provides that the directors of the Corporation are to be appointed by the
Board of Aldermen of the Town;
WHEREAS, this Board of Aldermen intends, by the adoption of this Resolution_ to take all
action necessary to order the creation of the Corporation with all of the corporate powers and
authority granted under the Act;
WHEREAS,the meeting at which this Resolution has been considered was open to the public
as required by law,and public notice of the time,place,and subject of the meeting has been given in
accordance with Chapter 551, Government Code,
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1. The findings and declarations contained in the preamble of this Resolution are
hereby incorporated as part of this Resolution.
SECTION 2. This Board of Aldermen hereby finds and determines that it is in the best interest
of the Town and its inhabitants that the Corporation, to be named as specified in the Corporation's
articles of incorporation(the "Articles"), be created pursuant to the Act to act on behalf of the Town
as its duly constituted authority and instrumentality for the purposes and with the powers and
authority prescribed by the Act.
SECTION 3. This Board of Aldermen hereby orders the creation of the Corporation and
approves the Articles in substantially the form attached to this Resolution as Exhibit-A, and hereby
authorizes the incorporators of the Corporation (as identified in such Articles) to file the Articles
with the Secretary of State in accordance with law. In the event that the name for the Corporation
specified in the Articles is not available, the incorporators are hereby authorized to change the
Corporation's name in the Articles without the further approval of the Town.
SECTION 4. This Board of Aldermen hereby appoints the persons identified in the Articles
(none of whom is an officer or employee of the Town) to serve as the initial members of the board of
directors of the Corporation.
SECTION 5. This Board of Aldermen hereby approves the initial bylaws of the Corporation in
substantially the form attached to this Resolution as Exhibit-B.
SECTION 6. It is intended that the Corporation be a duly constituted authority and
instrumentality of the Town within the meaning of regulations and/or revenue rulings of the Treasury
Department and/or the Internal Revenue Service of the United States promulgated under Sections
103 and 115 of the Internal Revenue Code of 1986.
SECTION 7. With respect to the Town and its instrumentalities,the Board of Aldermen hereby
appoints Petty & Associates, Inc. as program administrator, Larry Williamson as financial advisor,
Thomas Allen Moon as finance counsel, and Jenkens & Gilchrist, P. C. as special finance counsel.
SECTION 8. This Resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED ON THIS 22"' DAY OF APRIL. 2002
ATTEST: Scott Bradley, Mayor
I
Cringe _ Trosswy, Town ecretary Trent O. Petty, Town anager
APPROVED AS TO FORM:
L. anton L wn or icy
List of Exhibits:
Exhibit-A Articles of Incorporation
Exhibit-B Bylaws
ARTICLES OF INCORPORATION
of
TEXAS STUDENT HOUSING CORPORATION --
MSU PROJECT
Pursuant to TEX. EDUC. CODE ANN. Section 53.35(b)(Vernon 1996), as amended (the"Act"), we,
the undersigned natural persons,of the age of eighteen(18)years or more,acting on behalf of and as directed
by the Town of Westlake, Texas (the "Town"), as the incorporators of a nonprofit corporation (the
"Corporation") under the Texas Non-Profit Corporation Act, TEX. REV. CIV. STAT. ANN. Art.. 1396
(Vernon 1997),as amended(the"Texas Non-Profit Corporation Act"),do hereby adopt the following Articles
of Incorporation for such corporation ("Corporation"):
ARTICLE I
The Name of the Corporation is "Texas Student Housing Corporation -- MSU Project,"
ARTICLE 11
The Corporation is a nonprofit corporation created under the Act.
ARTICLE III
The duration of the Corporation is perpetual(subject to dissolution according to law as provided in these
Articles of Incorporation).
ARTICLE IV
The purpose of the Corporation is to act on behalf of the Town as its duly constituted authority and
instrumentality and, in connection therewith,to exercise all powers and authority granted, under the Act and
other applicable law, to corporations created under Section 53.35(b) under the Act,
ARTICLE V
The Corporation shall have no members and is a nonstock corporation.
ARTICLE VI
The street address of the initial registered office of the Corporation is 3 Village Circle, Suite 207,
Westlake, Texas 76262, and the name of the initial registered agent at that address is Scott Bradley.
ARTICLE Vil
All powers and authority ofthe Corporation shall be vested in aboard of directors(the"Board"),subject
limitations imposed by law or otherwise, each member of which shall be appointed by resolution of the
govern ing body of the Town, The number of directors and their terms of office shall be fixed by the bylaws of
the Corporation consistent with the Act. The directors shall serve without compensation,except that they shall
be entitled to reimbursement for the actual expenses they incur in the performance of their official duties.
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TAM.V.ITS 14C—MS U Project-4/3/2002
ARTICLE VIII
The number of directors constituting the initial Board shall be seven. The respective names and
addresses of the initial directors, none of whom is an officer or employee of the Town, are as follows:
Name of Initial Director Address
I. James P. Carter 204 Fresh Meadow Dr.
Trophy Club, Texas 76262
2. Worth Blake 244 Oak Hill Drive
Trophy Club, Texas 76262
3. Annette Bush 203 Oak Hill Drive
Trophy Club, Texas 76262
4. Forrest Watson 214 North Blueridge Parkway
Cedar Park, Texas 78613
5. Dr. John Brooks 513 Sides Ct.
Lewisville, Texas 75057
6. Dr. Patsy Sharp 416 Oak Haven
Keller, Texas 76248
7. Mike Farhat 3500 Grapevine Mills Pwky., Suite 100
Grapevine, Texas 76051
ARTICLE IX
The respective names and street addresses of the incorporators, each of who is a citizen of the State of
Texas and at least 18 years of age, are as follows:
Name of Incorporator Address
I. Fred Held 4105 Aspen Lane
Westlake, Texas 76262
2. Don Redding 5925 Janet Court
Westlake, Texas 76262
3. Larry Sparrow 4035 Aspen Lane 76262
Westlake, Texas 76262.
4. Buddy Brown 13298 Thornton Drive
Westlake,Texas 76262
5. Bill Frey 5924 Janet Court
Westlake, Texas 76262
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TAMN.I.TSHC—MSU Project.4/3/2002
ARTICLE X
On April 22,2002 the governing body of the Town duly adopted a resolution ordering the creation of the
Corporation, authorizing the Corporation to act on behalf of the Town as its duly constituted authority and
instrumentality, and approving the form of these Articles of Incorporation.
ARTICLE XI
These Articles of Incorporation may be amended from time to time by a majority vote of the entire
membership of the Board with the approval of the governing body of the Town. Neither the Corporation's
initial bylaws nor any amendment thereof shall take effect until approved by the governing body of the Town_
ARTICLE XII
No dividends shall be paid by the Corporation and no part of its earnings shall be distributed to or inure
to the benefit of the Corporation's directors or officers or to any private person,firm,corporation,or association
except in reasonable amounts for services rendered.
ARTICLE XIII
The governing body of the Town, in its discretion and without any action by the Board,may at any time
change the structure,organization,programs,or activities of the Corporation or may dissolve the Corporation.
If the Board determines that the Corporation's purposes have been substantially accomplished,and all of the
Corporation's debts and claims have been satisfied, or satisfaction thereof has been provided for, the Board
shall, upon approval by the governing body of the Town, dissolve the Corporation. Any dissolution of the
Corporation shall be subject to any limitations on the impairment of contracts prescribed by the respective
constitutions and other applicable law of the United States of America and the State of Texas. If the
Corporation is dissolved when it has, or is entitled to, any interest in any funds or other property of any kind
(real, personal, or mixed), such interest shall not be transferred to private ownership but shall be transferred
and delivered to the Town(after satisfaction or provision for satisfaction of the Corporation's debts and claims
has been made).
ARTICLE XIV
Regardless of any other provisions of these Articles of Incorporation or the laws of the State of Texas,the
Corporation shall not:
(1) permit any part of the net earnings of the Corporation to inure to the benefit of any private individual
(except that reasonable compensation may be paid for personal services rendered to or for the
Corporation affecting one or more of its purposes);
(2) devote more than an insubstantial part of its activities to attempting to influence legislation by
propaganda or otherwise; or
(3) participate in,or intervene in(including the publication or distribution of statements),any political
campaign on behalf of any candidate for public office.
ARTICLE XV
Notwithstanding any other provisions in these Articles to the contrary, (1) the Corporation shall not
engage in any activity other than in connection with the financing,acquisition,ownership,and operation of
student housing project(the"Initial Project") located on the campus ofMidwestetn State University in Wichita
Falls,Texas,as long as any debt,secured by a mortgage against the Initial Project, is outstanding and has not
3
TAM.V.I.TS HC—M SU Project.4/3/2002
been defeased, and(2)no amendment shall be made to this Article XV without the unanimous consent of all
directors.
ARTICLE XVI
Subject to the requirements of any agreement made by the Corporation relating to any bonds issued by
the Corporation or the requirements of any agreement between the Corporation and any institution of higher
education that is a political subdivision of the State of Texas or any political unit thereof, subsequent to the
repayment of all bonds issued by the Corporation,any property securing such bonds will revert,automatically,
to the Town.
IN WITNESS WHEREOF,we have executed these Articles of Incorporation on this 2211d day of April,
2002.
Fred Held, In for
Don Redding, Incorporator
?lam- � G(,/''1
Larry Spa it w, n orporator
3 r
Buddy Brown, Incorporator
ill Frey, nc o ator
4
TAMN.I.TSHC—MS Projec1.413f2002
STATE OF TEXAS §
COUNTY OF TARRANT
I, the undersigned, a Notary Public of the State of Texas, certify that on this 22"d day of April, 2002,
personally appeared before me FRED HELD,DON REDDING,LARRY SPARROW, BUDDY BROWN,and
BILL FREY who, being by me first duly sworn, severally declared that they are the persons who signed the
foregoing document as incorporators and that the statements therein contained are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and year above written.
Notary Public, State of Texas
[SEAL] %&I LA '_
Ginger qosswy
0�T�AY P ` GINGER CROSSWY My Commission Expires: ajc
/
z Notary Public
STATE OF TEXAS
v of t � 1,4y Cnmm.Exp.02122/2004
5
TAM.V.i.TSHC—MSU Project.413/2002
TOWN OF WESTLAKE
RESOLUTION NO. 02-16
A RESOLUTION ORDERING THE CREATION OF A NONPROFIT CORPORATION
PURSUANT TO THE TEXAS EDUCATION CODE, APPROVING ARTICLES OF
INCORPORATION AND BYLAWS FOR,AND APPOINTING THE INITIAL DIRECTORS
OF,THE CORPORATION,APPOINTING CERTAIN CONSULTANTS,AND RESOLVING
RELATED MATTERS
WHEREAS,TEX. EDUC. CODE ANN. Chapter 53 (Vernon), as amended (the "Act"), and
particularly Section 53.35(b),specifically authorizes this Board of Aldermen,as the governing body
of the Town of Westlake,Texas(the "Town"),to order the creation of a nonprofit corporation(the
"Corporation") under the Act to act on behalf of the Town as its duly constituted authority and
instrumentality, within the meaning of the Internal Revenue Code of 1986, as amended, for the
purpose of aiding institutions of higher education, accredited primary or secondary schools, or
authorized charter schools, as those terms are defined in the Act,in providing educational facilities
and housing facilities and facilities incidental, subordinate or related thereto or appropriate in
connection therewith;
WHEREAS, the Act empowers, among other things, that the Corporation may acquire
educational facilities and housing facilities to be used by the students, faculty, and staff of
institutions of higher education and facilities incidental,subordinate,or related thereto or appropriate
in connection therewith(any such facilities, "Facilities");
WHEREAS,the Act provides that the Facilities need not be located within the town limits of
the Town;
WHEREAS, the Act authorizes the Corporation to issue revenue bonds ("Bonds") and/or to
enter into other obligations("Obligations")that,among other things,will facilitate the acquisition or
construction of Facilities;
WHEREAS,no Bonds or Obligations of the Corporation will constitute obligations(whether
special, general, or moral) of the Town;
WHEREAS,the Act provides that the directors of the Corporation are to be appointed by the
Board of Aldermen of the Town;
WHEREAS, this Board of Aldermen intends, by the adoption of this Resolution, to take all
action necessary to order the creation of the Corporation with all of the corporate powers and
authority granted under the Act;
WHEREAS,the meeting at which this Resolution has been considered was open to the public
as required by law,and public notice of the time,place,and subject of the meeting has been given in
accordance with Chapter 551, Government Code;
NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTION 1. The findings and declarations contained in the preamble of this Resolution are
hereby incorporated as part of this Resolution.
SECTION 2. This Board of Aldermen hereby finds and determines that it is in the best interest
of the Town and its inhabitants that the Corporation,to be named as specified in the Corporation's
articles of incorporation(the "Articles"),be created pursuant to the Act to act on behalf of the Town
as its duly constituted authority and instrumentality for the purposes and with the powers and
authority prescribed by the Act.
SECTION 3. This Board of Aldermen hereby orders the creation of the Corporation and
approves the Articles in substantially the form attached to this Resolution as Exhibit-A,and hereby
authorizes the incorporators of the Corporation (as identified in such Articles) to file the Articles
with the Secretary of State in accordance with law. In the event that the name for the Corporation
specified in the Articles is not available, the incorporators are hereby authorized to change the
Corporation's name in the Articles without the further approval of the Town.
SECTION 4. This Board of Aldermen hereby appoints the persons identified in the Articles
(none of whom is an officer or employee of the Town)to serve as the initial members of the board of
directors of the Corporation.
SECTION 5. This Board of Aldermen hereby approves the initial bylaws of the Corporation in
substantially the form attached to this Resolution as Exhibit-B.
SECTION 6. It is intended that the Corporation be a duly constituted authority and
instrumentality of the Town within the meaning of regulations and/or revenue rulings of the Treasury
Department and/or the Internal Revenue Service of the United States promulgated under Sections
103 and 115 of the Internal Revenue Code of 1986.
SECTION 7. With respect to the Town and its instrumentalities,the Board of Aldermen hereby
appoints Petty&Associates,Inc. as program administrator,Larry Williamson as financial advisor,
Thomas Allen Moon as finance counsel, and 7enkens&Gilchrist,P. C. as special finance counsel.
SECTION 8. This Resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED ON THIS 22"a DAY OF APRIL, 2002.
ATTEST:
Scott Bradley, Mayor
inge rosswy, Town ecretary Trent O. Petty, Town anager
APPROVED AS TO FORM:
L. anton Lo wn orney
List of Exhibits:
Exhibit-A Articles of Incorporation
Exhibit-B Bylaws
MINUTES AND CERTIFICATION
On April 22,2002 the Board of Aldermen of the Town of Westlake,Texas convened in regular meeting
at its regular meeting place in Westlake, Texas. The roll of the duly constituted officers and members of the
Board of Aldermen was called, which are as follows:
Name Title Absent
Scott Bradley Mayor
Fred Held Alderman
Don Redding Aldennan
Larry Sparrow Alderman
Bill Frey Alderman
Buddy Brown Alderman
all of who were present except the absentee(s)shown above, thus constituting a quorum.
Among other business,a written Resolution bearing the following caption was introduced:
A Resolution ordering the creation of a nonprofit corporation pursuant to the Texas Education Code,
approving articles of incorporation and bylaws for, and appointing the initial directors of, such corporation,
appointing certain consultants, and resolving related matters
The Resolution was read by the Board of Aldennen.
After due discussion, it was duly moved and seconded that the Resolution be adopted. The Presiding
Officer put the motion to a vote of the Board of Aldermen, and the Resolution was adopted by the following
vote:
AYES:
NOES: (�
ABSTENTIONS:
The Presiding Officer then declared the Resolution to be adopted.
The persons named herein are the duly chosen,qualified,and acting officers and members of the Board
of Alderman as indicated herein.
Each of the officers and members of the Board of Aldennan was duly and sufficiently notified officially
and personally, in advance, of the time, place, and purpose of the aforesaid meeting and that the resolution
would be introduced and considered for adoption at the meeting.
The meeting was open to the public,and public notice of the time,place,and purpose of the meeting was
given all as required by Chapter 551 of the Texas Government Code.
MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT and to correctly reflect the
duly constituted officers and members of the Board of Aldermen, and the attached copy of the Resolution is
hereby certified to be a correct copy of an official copy thereof,on file among the official records of the Board
of Aldermen;and such resolution has not been amended and is in full force and effect on this April 22,2002.
MINUTESANDCERTIFICATION—Page
TAM v.1.412/2002
By: ?L _
Name: 6in9d Crosswy
Title: Town Secretary
[SEAL]
TAM.v.I
ARTICLES OF INCORPORATION
of
TEXAS STUDENT HOUSING CORPORATION --
MSU PROJECT
Pursuant to TEX. EDUC. CODE ANN. Section 53.35(b)(Vernon 1996),as amended(the"Act"),we,
the undersigned natural persons,of the age of eighteen(18)years or more,acting on behalf of and as directed
by the Town of Westlake, Texas (the "Town"), as the incorporators of a nonprofit corporation (the
"Corporation") under the Texas Non-Profit Corporation Act, TEX. REV. CIV. STAT. ANN. Art. 1396
(Vernon 1997),as amended(the"Texas Non-Profit Corporation Act"),do hereby adopt the following Articles
of Incorporation for such corporation ("Corporation"):
ARTICLE I
The name of the Corporation is "Texas Student Housing Corporation -- MSU Project."
ARTICLE 11
The Corporation is a nonprofit corporation created under the Act.
ARTICLE III
The duration of the Corporation is perpetual(subject to dissolution according to law as provided in these
Articles of Incorporation).
ARTICLE IV
The purpose of the Corporation is to act on behalf of the Town as its duly constituted authority and
instrumentality and, in connection therewith,to exercise all powers and authority granted, under the Act and
other applicable law, to corporations created under Section 53.35(b) under the Act.
ARTICLE V
The Corporation shall have no members and is a nonstock corporation.
ARTICLE VI
The street address of the initial registered office of the Corporation is 3 Village Circle, Suite 207,
Westlake, Texas 76262, and the name of the initial registered agent at that address is Scott Bradley.
ARTICLE VII
All powers and authority of the Corporation shall be vested in a board of directors(the"Board"),subject
limitations imposed by law or otherwise, each member of which shall be appointed by resolution of the
governing body of the Town. The number of directors and their terms of office shall be fixed by the bylaws of
the Corporation consistent with the Act. The directors shall serve without compensation,except that they shall
be entitled to reimbursement for the actual expenses they incur in the performance of their official duties.
1
TAM.V.I.TSHC—MSU Project.4l3 12002
ARTICLE VIII
The number of directors constituting the initial Board shall be seven. The respective names and
addresses of the initial directors, none of whom is an officer or employee of the Town, are as follows:
Name of Initial Director Address
1. James P. Carter 204 Fresh Meadow Dr.
Trophy Club, Texas 76262
2. Worth Blake 244 Oak Hill Drive
Trophy Club, Texas 76262
3. Annette Bush 203 Oak Hill Drive
Trophy Club, Texas 76262
4. Forrest Watson 214 North Blueridge Parkway
Cedar Park, Texas 78613
5. Dr. John Brooks 513 Sides Ct.
Lewisville, Texas 75057
6. Dr. Patsy Sharp 416 Oak Haven
Keller, Texas 76248
7. Mike Farhat 3500 Grapevine Mills Pwky., Suite 100
Grapevine, Texas 76051
ARTICLE IX
The respective names and street addresses of the incorporators, each of who is a citizen of the State of
Texas and at least 18 years of age,are as follows:
Name of Incorporator Address
1. Fred Held 4105 Aspen Lane
Westlake, Texas 76262
2. Don Redding 5925 Janet Court
Westlake, Texas 76262
3. Larry Sparrow 4035 Aspen Lane 76262
Westlake, Texas 76262
4. Buddy Brown 13298 Thornton Drive
Westlake, Texas 76262
5. Bill Frey 5924 Janet Court
Westlake, Texas 76262
2
TAMN.LTSHC—MSU Project_4 1312002
ARTICLE X
On April 22,2002 the governing body of the Town duly adopted a resolution ordering the creation of the
Corporation, authorizing the Corporation to act on behalf of the Town as its duly constituted authority and
instrumentality,and approving the form of these Articles of incorporation.
ARTICLE XI
These Articles of Incorporation may be amended from time to time by a majority vote of the entire
membership of the Board with the approval of the governing body of the Town. Neither the Corporation's
initial bylaws nor any amendment thereof shall take effect until approved by the governing body of the Town.
ARTICLE XII
No dividends shall be paid by the Corporation and no part of its earnings shall be distributed to or inure
to the benefit of the Corporation's directors or officers or to any private person,firm,corporation,or association
except in reasonable amounts for services rendered.
ARTICLE XIII
The governing body of the Town, in its discretion and without any action by the Board,may at any time
change the structure,organization,programs,or activities of the Corporation or may dissolve the Corporation.
If the Board determines that the Corporation's purposes have been substantially accomplished, and all of the
Corporation's debts and claims have been satisfied, or satisfaction thereof has been provided for, the Board
shall, upon approval by the governing body of the Town, dissolve the Corporation. Any dissolution of the
Corporation shall be subject to any limitations on the impairment of contracts prescribed by the respective
constitutions and other applicable law of the United States of America and the State of Texas. If the
Corporation is dissolved when it has, or is entitled to,any interest in any funds or other property of any kind
(real, personal, or mixed), such interest shall not be transferred to private ownership but shall be transferred
and delivered to the Town(after satisfaction or provision for satisfaction of the Corporation's debts and claims
has been made).
ARTICLE XIV
Regardless of any other provisions of these Articles of Incorporation or the laws of the State of Texas,the
Corporation shall not:
(1) permit any part of the net earnings of the Corporation to inure to the benefit of any private individual
(except that reasonable compensation may be paid for personal services rendered to or for the
Corporation affecting one or more of its purposes);
(2) devote more than an insubstantial part of its activities to attempting to influence legislation by
propaganda or otherwise; or
(3) participate in, or intervene in(including the publication or distribution of statements), any political
campaign on behalf of any candidate for public office.
ARTICLE XV
Notwithstanding any other provisions in these Articles to the contrary, (1) the Corporation shall not
engage in any activity other than in connection with the financing,acquisition,ownership,and operation of a
student housing project(the"Initial Project") located on the campus of Midwestern State University in Wichita
Falls,Texas,as long as any debt,secured by a mortgage against the Initial Project, is outstanding and has not
3
TAM.V.I.TSHC—MSU Project.413/2002
been defeased, and (2) no amendment shall be made to this Article XV without the unanimous consent of all
directors.
ARTICLE XVI
Subject to the requirements of any agreement made by the Corporation relating to any bonds issued by
the Corporation or the requirements of any agreement between the Corporation and any institution of higher
education that is a political subdivision of the State of Texas or any political unit thereof, subsequent to the
repayment ofall bonds issued by the Corporation,any property securing such bonds will revert,automatically,
to the Town.
IN WITNESS WHEREOF,we have executed these Articles of Incorporation on this 22nd day of April,
2002.
Fred Held, Incorporator
l
Don Reddin-, Incorporator
Larry Sp r o v Incorporator
Buddy Brown, Incorporator
Bill Frey, Inc r a or
4
TAM.V.I.TSWC—MSU Proiect.4/312002
STATE OF TEXAS §
COUNTY OF TARRANT §
I, the undersigned, a Notary Public of the State of Texas, certify that on this 22nd day of April, 2002,
personally appeared before me FRED HELD,DON REDDING,LARRY SPARROW,BUDDY BROWN,and
BILL FREY who, being by me first duly sworn, severally declared that they are the persons who signed the
foregoing document as incorporators and that the statements therein contained are true.
IN WITNESS WHEREOF, I have hereunto set my hand and seal the date and year above written.
Notary Public, State of Texas
[SEAL]
G'nger Cr s wy
ul P GINGER CRCSS'WY
o``� � °n My Commission Expires:
Notary Public
STATE Of TEXAS
OF + My Comm.Exp.02/22/2004
5
TAMN.I.TSHC—MSU Pr iect.413/2002
9
BYLAWS
of
TEXAS STUDENT HOUSING CORPORATION -- MSU PROJECT
ARTICLE I
POWERS AND OPERATIONS IN GENERAL
SECTION 1.1. Powers of Corporation. The Texas Student Housing Corporation -- MSU Project (the
"Corporation") shall have all of the powers and authority granted to nonprofit corporations under Section
53.35(b),Texas Education Code,as amended (the "Act").
SECTION 1.2. Records. The Corporation shall keep complete corporate and financial records and minutes of
the proceedings of its board of directors(the"Board")and of committees(if any)of the Board in accordance
with applicable law. The records and minutes shall be made available for inspection at all reasonable times by
any member of the Board(any member,a"Director")or by the Director's authorized agent or by any authorized
representative of the Town of Westlake(the "Town").
SECTION 1.3. Regulations. The Corporation, by action of the Board, may promulgate regulations (the
"Regulations")governing the Corporation's operation. The Regulations shall not conflict with, and shall be
subject to, these Bylaws and the Corporation's Articles of Incorporation (the "Articles").
SECTION 1.4. Staffing Functions. Staff functions of the Corporation may be performed by employees of the
Town,under the direction of the Town Manager,subject to payment by the Corporation of the actual costs of
the staff functions to be performed,as from time to time may be billed to the Corporation by the Town. The
Corporation shall pay the bills upon receipt(or as promptly thereafter as practicable) from any of its funds
available for such payment.
SECTION 1.5. Administrative Fees. The Regulations may prescribe fees payable by applicants for financial
participation and/or assistance by the Corporation and such other fees and charges as the Board determines
appropriate to defray the administrative expenses incurred in the operation of the Corporation.
SECTION 1.6. Student Assistance Program. The Corporation shall promulgate Regulations establishing and
providing for the administration of a program designed to provide education and/or housing assistance to
deserving students residing in the Keller Independent School District (the "Keller ISD"), the Carroll
Independent School District (the "Carroll ISD"), and the Northwest Independent School District (the
"Northwest ISD") at the institution(s) of higher education that are aided by the Corporation (the "Student
Assistance Program"). The Regulations governing the Student Assistance Program shall provide a preference
in the awarding of student assistance to students who reside in the Town (and who otherwise qualify for
assistance). The Student Assistance Program shall be funded exclusively from those funds (if any) of the
Corporation that are not subject to a lien and/or pledge securing the Corporation's bonds or other obligations or
required for the timely payment of the Corporation's operation and maintenance expenses. "An Education
Leadership Advisory Committee" (the "Advisory Committee") empowered to advise the Board concerning
students needs,assistance and any other matters deemed necessary by the Board including student scholarship
review criteria. The Advisory Committee shall be composed of five members and shall include a
representative from each of the Carroll ISD,the Keller ISD,and the Northwest ISD and two Directors. The
president shall be empowered to appoint and remove all members of the Advisory Committee.
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ARTICLE II
BOARD OF DIRECTORS
SECTION 2.1. Management of Corporation. The Board is responsible for the management of the
Corporation.
SECTION 2.2. Number,Appointment,Term,Disqualifications,and Removal of Directors. The Board shall
consist of seven Directors.. The Directors constituting the initial Board are those specified in the Articles.
Subsequent Directors(including Directors filling vacancies)shall be appointed by the governing body of the
Town. The term of each Director is two years, provided that a Director shall continue to serve until his/her
successor is appointed and assumes office. No officer or employee of the Town may serve as a Director. Any
Director may be removed at any time(with or without cause)by the governing body of the Town.
SECTION 2.3. Meetings of Directors. (a)The Board may hold its meetings at any place designated(from
time to time)by the Board. In the absence of any designation,meetings shall be held at the principal office of
the Corporation. Regular meetings of the Board shall be held at such times and places as designated by
resolution of the Board. A special meeting of the Board shall be held whenever called by the president or the
secretary of the Corporation or by the Board at the time and place specified by the authority calling the special
meeting. Unless otherwise indicated in the notice of special meeting,any matter that may be acted upon by
the Board at a regular meeting may be acted upon at a special meeting.
(b) Except as otherwise provided by law,notice to Directors of a regular meeting is not required. Notice of
the time and place of each special meeting shall be given to each Director(either by personal delivery,United
States mail,telephone,or telecopy)not later than two hours in advance of the meeting. Notice of any Board
meeting to persons other than Directors shall be given if and to the extent required by law.
(c) Attendance of a Director at a meeting shall constitute a waiver by the Director of any notice of meeting,
unless the Director attends the meeting for the express purpose of objecting to the transaction of any business
on the grounds that the meeting is not lawfully called or convened. A waiver of a notice in writing,signed by
any person entitled to notice(whether before or after the time for giving the notice)shall be deemed to be the
equivalent to the giving of notice.
SECTION 2.4. Quorum. A majority of the number of Directors fixed by these bylaws as constituting the
Board shall constitute a quorum for the transacting of the business of the Corporation. The act ofa majority of
the Directors present at a meeting at which a quorum is in attendance shall constitute the act of the Board.
except as otherwise required by law or by these Bylaws or the Articles_
SECTION 2.5. Order of Business. The Board shall consider the matters before it in such order as the Board
may determine.
SECTION 2.6. Committees. The Board,by resolution adopted by a majority of the Directors in office,may
designate one or more committees that,to the extent provided in the resolution,shall have the authority of the
Board in the management of the Corporation. Each committee shall consist of two or more Directors.
Committees that do not have the authority of the Board in the management of the Corporation may be
designated by resolution of the Board or by the president of the Corporation, and membership on any
committee need not be limited to Directors.
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SECTION 2.7 Compensation of Directors. Directors are not entitled to receive any compensation for their
services as Directors, except for reimbursement of their actual expenses incurred in the performance of their
official duties.
ARTICLE III
OFFICERS
SECTION 3.1. Office Titles. The officers of the Corporation shall be a president, a vice president, a
secretary,a treasurer,and such other officers as the Board may from time to time appoint. The same person
may hold more than one office,except that the president shall not hold the office of secretary.
SECTION 3.2. Appointment, Term, Removal,Vacancy of Offices. Each officer shall be appointed by the
Board for a term of two years and shall continue to serve until his/her successor is appointed and assumes
office. Each officer is subject to removal from office(with or without cause)at any time by the vote of a two-
thirds majority of the Directors in office. A vacancy in any office shall be filled in the same manner as the
original appointment for the unexpired term thereof.
SECTION 3.3 President. The president shall preside at all meetings of the Board. The president is the chief
executive officer of the Corporation and, subject to the control of the Board, shall have general charge and
supervision of the management of the affairs of the Corporation. Tile president shall cause all orders and
resolutions of the Board to be put into effect. The president shall sign and execute all legal documents and
instruments in the name of the Corporation when authorized to do so by the Board, except when the signing
and execution thereof is delegated by the Board to some other officer or to an agent of the Corporation.
SECTION 3.4. 'Vice-President. The vice-president shall, in the event of the absence or disability of the
president, discharge the powers and duties of the president, and the vice-president shall perform such
additional duties as may be assigned from time to time by the Board.
SECTION 3.5. Secretarv. The secretary shall have charge of the records and correspondence of the
Corporation under the direction of the president. The secretary is responsible for the giving of notice of
meetings of the Board, and the secretary shall attend the Board meetings and shall take and keep minutes of,
and record all votes cast at,the meetings. The secretary shall discharge such other duties as may be assigned
from time to time by the president or the Board. The secretary need not be a member of the Board.
SECTION 3.6. Treasurer. (a) To the extent not otherwise provided in any resolution of the Board relating to
the issuance of bonds or other obligations of the Corporation or to instruments authorized by the Board to
provide security therefor,the treasurer shall have the custody of all the funds and securities of the Corporation
and shall deposit them to the credit of the Corporation in such banks or other depositories as the Board may
designate.
(b) The treasurer shall keep proper books of account and other records showing at all times the amount of the
funds and other property belonging to the Corporation and of all receipts and disbursements of the Corporation.
The treasurer shall, under the direction of the Board, disburse all money and sign all checks and other
instruments drawn on or payable out of the funds of the Corporation and shall also make such transfers and
other dispositions of the securities of the Corporation as may be ordered by the Board_
(c) The treasurer shall also discharge such additional duties as may be assigned from time to time by the
Board. The treasurer shall give bond only if required to do so by the Board. The treasurer shall render to the
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president and to the Directors an account of all transactions of the treasurer and of the financial condition of the
Corporation upon request.
SECTION 3.7. Compensation of Officers. Officers are not entitled to receive any compensation for their
services as officers, except for reimbursement of their actual expenses incurred in the performance of their
official duties.
ARTICLE IV
FINANCIAL ADMINISTRATION
SECTION 4.1. Appointment of Program Administrator. The Board shall appoint a program administrator
(the"Program Administrator")who shall be authorized to supervise the performance of all staff functions of
the Corporation and take any other action as authorized by the Board. The initial Program Administrator shall
be Petty&Associates,Inc.,and Trent O. Petty shall be authorized to act as Program Administrator on behalf of
Petty& Associates, Inc. The Program Administrator shall be compensated as determined by the Board.
SECTION 4.2_ Maintenance of Financial Records. Notwithstanding any other provision of these Bylaws,all
financial and accounting records and all bank and trust accounts of the Corporation shall be maintained at the
principal corporate office of the Corporation in the custody of the Program Administrator. Each Director shall
have access to all financial records of the Corporation at any time during normal business hours.
SECTION 4.3. Financial Reports. The Program Administrator shall provide the Board with a monthly
transaction report showing all income received and expenses paid during each calendar month. Upon the
request of a majority of the Board,the Program Administrator shall provide any financial report,to the extent
reasonably possible,to the Board. Upon the request of the treasurer,the Program Administrator shall assist the
treasurer in the performance of the treasurer's duties.
SECTION 4.3. Authorization to Write Checks. Notwithstanding any other provision of these Bylaws, the
treasurer and the Program Administrator each shall be authorized to write checks on behalf of the Corporation
from any bank or trust account maintained by the Corporation for any purpose authorized by the Board;
provided that,with respect to any check in excess of$5,000,the check must be signed by the treasurer or the
Program Administrator and by any other officer or member of the Board.
ARTICLE V
MISCELLANEOUS PROVISIONS
SECTION 5.1. Time for Taking Effect. These Bylaws shall take effect upon their adoption by the Board.
SECTION 5.2. Resignation. Any Director or any officer of the Corporation may resign at any time. A
resignation shall be made by written instrument and shall take effect at the time specified therein or, if no time
is so specified,at the time of its receipt by the president or the secretary of the Corporation. The acceptance of
a resignation is not necessary to make it effective unless expressly so provided in the instrument of resignation.
SECTION 5.3. Fiscal Year. The fiscal year of the Corporation shall be the annual period determined by
resolution of the Board.
SECTION 5.4. Seal. The official seal of the Corporation shall be as determined by the Board. The seal shall
not be necessary to the proper execution by the officers of the Corporation of any document or instrument
unless otherwise specified by the Board.
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SECTION 5.5. Special Requirements. The Corporation shall comply with the following special requirements:
(a) The Corporation shall maintain its books and records separate and apart from any other legal entity.
(b) The Corporation shall not commingle its assets with the assets of any other legal entity.
(c) The Corporation shall maintain financial records separate from any other legal entity.
(d) The Corporation shall maintain an"arm-length"relationship with all other legal entities except as it
otherwise required by law.
(e) The Corporation shall pay the salaries of its own employees.
SECTION 5.6. Amendments. These Bylaws may be amended at any time, and from time to time, by
resolution of the Board, which amendment shall not take effect until approved by the governing body of the
Town.
SECTION 5.7. Interpretation. These Bylaws shall be liberally construed to effect the purposes of the
Corporation. If any part of these Bylaws is ruled invalid by a court of competent jurisdiction,the remainder of
these Bylaws shall remain in effect to the fullest extent possible under the application of such ruling.
References in these Bylaws to the singular number shall include the plural and vice versa(unless the context
otherwise requires).
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