MEMBERSHIP AND VOTING RIGHTS IN THE ASSOCIATION:
Section 1. Membership. Every person or entity who is a record owner of a fee or undivided fee interest in any lot which is subject by this Declaration or supplement thereto to assessment by the Association shall be a member of the Association provided that any such person or entity who holds such interest merely as a security for the performance of an obligation shall not be a member.
Section 2. Voting Rights.
1. The Association shall have two classes of voting membership:
CLASS A. Class A members shall be all those owners defined in Section 1. with the exception of the Developer. Class A members shall be entitled to one vote for each lot with improvements in which they hold the interest required for membership in Section 1. When more than one person holds such interest or interests in any lot, all such persons shall be members and the vote for such lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any such lot.
CLASS B. The Class B member shall be the Developer. The Class B member shall be entitled to three (3) votes for each lot with improvements in which it holds the interest required for membership in Section 1, provided that Class B membership shall cease and become converted to Class A membership as to a particular lot on either of the following dates:
a) On December 31, 1982.
b) When the Developer sells or transfers said lot to any person or entity not a Class B member.
2. Notwithstanding the above, all Class B membership in the Association shall terminate and automatically become converted to Class A membership when the total number of votes of Class A members equals the total number of votes of the Class B member, or December 31, 1982, the anticipated date of this occurrence, whichever is earlier.
3. Notwithstanding the above or any other provision of the Declaration of Covenants, as long as there is Class B membership in the Association or until after one (1) year from the date of incorporation of Redfield Estates Association, the Association may not acquire property, dedicate Common Properties other than said Lot 99 on Plan No. D9867 recorded in the Rockingham County Registry of Deeds together with the accesses and right of way as shown on said Plan, or amend the Declaration of Covenants without the prior approval of the Department of Housing and Urban Development.
4. Notwithstanding the above, no more than three votes may be cast with respect to any lot in which the Class B member holds an interest.