Florida Community Association Manager Practice Exam

In a cooperative, which document typically governs issues such as transfer fees and fidelity bonds?

1. Articles of Incorporation

2. Bylaws

3. Community Regulations

4. Management Agreements

The correct answer is: Bylaws

The governing document for issues such as transfer fees and fidelity bonds in a cooperative is typically the Bylaws. The Bylaws serve as the internal rules and regulations for the management and operation of the cooperative, outlining the rights and responsibilities of the members and the governance structure. They often address financial matters such as fees associated with membership transfer and requirements for fidelity bonds to protect against potential losses due to fraudulent actions by those in managerial positions. In contrast, Articles of Incorporation primarily concern the legal formation of the cooperative entity and outline the basic structure and purpose of the organization, but they do not detail operational issues like transfer fees. Community Regulations would govern day-to-day rules and behaviors within the community, but they are generally less formal than Bylaws. Management Agreements pertain specifically to the relationship between the association and the management company, detailing the responsibilities of the managing entity rather than the governance of the cooperative itself.