Arkansas REALTORS(C) Association Policy Manual

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					         2010
  Arkansas
REALTORS®
Association
Policy Manual
    The ARKANSAS REALTORS® ASSOCIATION
                            ®
  2009-2010 GENERAL POLICY & BYLAWS MANUAL
           Edition # 10.1, DATED 10/21/09
                                        Table of Contents
TABLE OF CONTENTS                                               2
MISSION STATEMENT                                               3
CONSTITUTION AND BYLAWS                                         3
2008-2009 STATEMENT OF PUBLIC POLICY                            18
DISCRIMINATION AND HARASSMENT PREVENTION POLICY                 20
RESERVE AND INVESTMENT POLICY                                   25
EMERGENCY SUCCESSION & DISASTER PLAN                            29
DOCUMENT RETENTION POLICY                                       32
DISASTER SURVIVAL                                               33
POLICIES OF THE PUBLICATION, REALTOR® ‘RIGHTINGS,               34
CONFLICT OF INTEREST AND OWNERSHIP DISCLOSURE AGREEMENT         35
POLICY TO PROTECT MEMBERS’ PRIVATE INFORMATION                  36
POLICY OF SELLING MEMBER MAILING LISTS                          36
AFFINITY PARTNERSHIP PROGRAM                                    37
ARA CLASSROOM RENTAL RATES/CONDITIONS                           37
MINIMUM SERVICES CRITERIA FOR BOARDS AND ASSOCIATIONS           38
FIDELITY AND DISHONEST BOND FOR LOCAL BOARDS                    39
COMMITTEES                                                      41
MEETING PROTOCOL & SCHEDULING                                   41
COMMITTEE CHAIRPERSON’S & VICE CHAIRPERSON’S RESPONSIBILITIES   42
COMMITTEE JOB DESCRIPTIONS                                      43
BOARD OF DIRECTORS                                              43
EXECUTIVE COMMITTEE                                             44
BUSINESS PLANNING/ STRETGIC PLANNING COMMITTEE                  44
CONVENTION COMMITTEE                                            45
PROFESSIONAL DEVELOPMENT COMMITTEE                              46
EQUAL OPPORTUNITY COMMITTEE                                     55
LEGISLATIVE COMMITTEE                                           55
PUBLIC RELATIONS COMMITTEE                                      56
PROFESSIONAL STANDARDS & GRIEVANCE COMMITTEE                    57
RISK REDUCTION COMMITTEE                                        58
REALTOR® OF THE YEAR COMMITTEE                                  58
NOMINATING COMMITTEE                                            59
PAST PRESIDENT’S ADVISORY COUNCIL                               60
FINANCE COMMITTEE                                               60
DUTIES OF THE PRESIDENT                                         61
DUTIES OF THE PRESIDENT-ELECT                                   62
DUTIES OF THE SECRETARY-TREASURER                               64
DUTIES OF THE ARA DISTRICT VICE PRESIDENT                       65
DUTIES OF THE DIRECTORS-AT-LARGE & OTHERS                       67
DUTIES OF THE ARA ZONE DIRECTOR                                 69
DUTIES OF THE IMMEDIATE PAST PRESIDENT                          71
DUTIES OF THE NATIONAL DIRECTORS                                72
REALTOR®-OF-THE-YEAR POLICIES AND PROCEDURES                    73
THE SHAFFER HALEY REALTOR®-OF-THE-YEAR AWARD                    75
DISTINGUISHED SERVICE AWARD (DSA)                               75
ARA LIFE MEMBERSHIP APPLICATION                                 78
AWARD FOR EXCELLENCE                                            79
GENERAL EXPENSE/REIMBURSEMENT POLICY                            84
STAFF LINE AUTHORITY                                            93




                                              2
                MISSION STATEMENT
                      The Arkansas REALTORS® Association
                              Little Rock, Arkansas

       As the voice for real estate, the Arkansas REALTORS®
                                                          ®
Association serves its members by promoting professionalism
       through education, communications, technology, legal
 information and services, by advocating the use and transfer
    of real property, and by positioning the REALTOR® as the
                                                    ®
                     primary source for real estate services.

                            ARKANSAS REALTORS® ASSOCIATION
                               CONSTITUTION AND BYLAWS
                                       (EFFECTIVE JANUARY 1, 2010)


                                             CONSTITUTION
ARTICLE I
Name

The name of this organization shall be: ARKANSAS REALTORS® ASSOCIATION hereinafter referred to as
the ASSOCIATION.

ARTICLE II
Objects

The objects of this Association shall be to unite local Boards of REALTORS®, hereinafter referred to as
Boards*, their members, and REALTOR® Members in the State of Arkansas for the purpose of exerting
effectively a combined influence upon matters affecting real estate, to elevate the standards of the real estate
business throughout the state and the professional conduct of persons engaged therein. The objects also
include advancing the civic growth and economic growth of the State of Arkansas.

*As used herein the term “Board(s)” refers to Boards and Associations.



                                                        3
ARTICLE III
Jurisdiction

The territorial jurisdiction of this ASSOCIATION shall be the entire State of Arkansas. Territorial jurisdiction is
defined to include the right and duty to control the use of the terms REALTOR®, and REALTORS® subject to
the conditions set forth in these Constitution and Bylaws and those of the NATIONAL ASSOCIATION OF
REALTORS® in return for which this ASSOCIATION agrees to protect and safeguard the property rights of the
NATIONAL ASSOCIATION OF REALTORS® in the terms.

ARTICLE IV
Headquarters

The ASSOCIATION shall maintain headquarters in the city of Little Rock, Arkansas.

ARTICLE V
Administration

The Administration of the affairs of the ASSOCIATION shall be vested in a Board of Directors.

ARTICLE VI
Amendment

This constitution may be amended at any meeting of the members by a two-thirds vote of the members
present, provided that a written notice of the proposed amendment or amendments shall have been sent to
each member at least thirty days prior to the meeting at which the amendment or amendments are to be
considered, except that the Board of Directors may, at any regular or special meeting of the Board of Directors
at which a quorum is present, be noticed about amendments to the Constitution which are mandated by policy
of the NATIONAL ASSOCIATION OF REALTORS®

                                                   BYLAWS
ARTICLE I
Membership

Section 1. The members of this ASSOCIATION shall consist of seven classes: (1) Member Boards, (2) Board
Members, (3) REALTOR® Members, (4) Affiliate Members, (5) Institute Affiliate Members, and (6) Life
Members.

Section 2. A Member Board shall be any Board within the State of Arkansas; all the REALTOR® Members of
which who hold primary Membership in the Board hold membership in this ASSOCIATION and in the
NATIONAL ASSOCIATION OF REALTORS®.

Section 3. A Board Member shall be any REALTOR® Member or Institute Affiliate Members of a Member
Board in good standing.

Section 4. A REALTOR® Member shall be any individual engaged in the real estate profession as a principal,
partner, corporate Officer, or branch office manager acting on behalf of the firm’s principal(s) and licensed or
certified individuals affiliated with said REALTOR® Member whose place of business is located in an area
outside the jurisdiction of any Member Board who meets the qualifications for REALTOR® Membership
established by this ASSOCIATION (which must be consistent with National Association of REALTORS’®
Membership Qualification Criteria). Secondary REALTOR® Membership shall also be available to individuals
who hold primary membership in a Board/Association in another state and who desire to obtain direct
membership in this ASSOCIATION without holding membership in a local Board/Association in the state.

                                                         4
REALTOR® Members (excluding Secondary REALTOR® Members) shall as a qualification for membership
satisfactorily complete a reasonable and nondiscriminatory course of instruction offered by this ASSOCIATION
or any of its Member Boards covering the Constitution and Bylaws and Rules and Regulations of this
ASSOCIATION, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF
REALTORS® and shall agree to abide by such Constitution, Bylaws, Rules and Regulations, and Code of
Ethics.

An applicant for REALTOR® Membership who is a sole proprietor, partner, corporate Officer, or branch office
manager of a real estate firm shall supply evidence satisfactory to the Membership Committee that he is
actively engaged in the real estate profession, and maintains a current, valid real estate broker's or
salesperson's license or is licensed or certified by an appropriate state regulatory agency to engage in the
appraisal of real property, has a place of business within the state or a state contiguous thereto (unless a
secondary member), has no record of recent or pending bankruptcy*, has no record of official sanctions
involving unprofessional conduct**, agrees to complete a course of instruction covering the Bylaws of the
State Association, and the Constitution and Bylaws and Code of Ethics of the NATIONAL ASSOCIATION OF
REALTORS®, and shall pass such reasonable and nondiscriminatory written examination thereon as may be
required by the Committee, and shall agree that if elected to membership, he will abide by such Constitution,
Bylaws, Rules and Regulations, and Code of Ethics.

Note 1: * No recent or pending bankruptcy is intended to mean that the applicant or any real estate firm in
which the applicant is a sole proprietor, general partner, corporate Officer, or branch office manager, is not
involved in any pending bankruptcy or insolvency proceedings or, has not been adjudged bankrupt in the past
three (3) years. If a bankruptcy proceeding as described above exists, membership may not be rejected unless
the Association establishes that its interests and those of its members and the public could not be adequately
protected by requiring that the bankrupt applicant pay cash in advance for Association and MLS fees for up to
one (1) year from the date that membership is approved or from the date that the applicant is discharged from
bankruptcy (whichever is later). In the event that an existing member initiates bankruptcy proceedings, the
member may be placed on a "cash basis" from the date that bankruptcy is initiated until one (1) year from the
date that the member has been discharged from bankruptcy.

** No record of official sanctions involving unprofessional conduct is intended to mean that the Association may
only consider judgments within the past three (3) years of violations of (1) civil rights laws; (2) real estate
license laws; (3) or other laws prohibiting unprofessional conduct against the applicant rendered by the courts
or other lawful authorities.

NOTE 2: Article IV, Section 2, of the NAR Bylaws prohibits Member Boards from knowingly granting
REALTOR® or REALTOR-ASSOCIATE® membership to any applicant who has an unfulfilled sanction
pending which was imposed by another Board or Association of REALTORS® for violation of the Code of
Ethics.

Individuals who are actively engaged in the real estate profession other than as sole proprietors, partners,
corporate Officers, or branch office managers in order to qualify for REALTOR® Membership, shall at the time
of application, be associated either as an employee or as an independent contractor with a Designated
REALTOR® Member of the Board or a Designated REALTOR® Member of another Board (if a secondary
member) and must maintain a current, valid real estate broker's or salesperson's license or be licensed or
certified by an appropriate state regulatory agency to engage in the appraisal of real property, shall complete a
course of instruction covering the Bylaws of the State Association, and the Constitution and Bylaws and Code
of Ethics of the NATIONAL ASSOCIATION OF REALTORS®, and shall pass such reasonable and
nondiscriminatory written examinations thereon as may be required by the Membership Committee and shall
agree in writing that if elected to membership he will abide by such Constitution, Bylaws, Rules and
Regulations, and the Code of Ethics.

The Association will also consider the following in determining an applicant's qualifications for REALTOR®
membership:
                                                        5
   •   All final findings of Code of Ethics violations and violations of other membership duties in any other
       Association within the past three (3) years
   •   Pending ethics complaints (or hearings)
   •   Unsatisfied discipline pending
   •   Pending arbitration requests (or hearings)
   •   Unpaid arbitration awards or unpaid financial obligations to any other Association or Association MLS.

Any misuse of the term REALTOR® or REALTORS® in the name of the applicant’s firm.
(Above # 6 is optional and shall not take effect until the general membership approves at the next general
membership meeting in September, 2007)

"Provisional" membership may be granted in instances where ethics complaints or arbitration requests (or
hearings) are pending in other Associations or where the applicant for membership has unsatisfied discipline
pending in another Association (except for violations of the Code of Ethics; See Article I, Section 4(a) NOTE 2)
provided all other qualifications for membership have been satisfied. Associations may reconsider the
membership status of such individuals when all pending ethics and arbitration matters (and related discipline)
have been resolved or if such matters are not resolved within six months from the date that provisional
membership is approved. Provisional members shall be considered REALTORS® and shall be subject to all of
the same privileges and obligations of REALTOR® membership. If a member resigns from another Association
with an ethics complaint or arbitration request pending, the Association may condition membership on the
applicant's certification that he/she will submit to the pending ethics or arbitration proceeding (in accordance
with the established procedures of the Association to which the applicant has made application) and will abide
by the decision of the hearing panel.

The Board of Directors (or its appointed designee) shall review and act on all applications for membership. An
application may not be rejected without providing the applicant with an opportunity to appear before the Board
of Directors to make such statements as he deems relevant. If the Board of Directors determines that the
application should be rejected, it shall record its reasons with the Secretary. If the Board of Directors believes
that denial of membership to the applicant may become the basis of litigation and a claim of damage by the
applicant, it may specify that denial shall become effective upon entry in a suit by the Association for a
declaratory judgment by a court of competent jurisdiction of a final judgment declaring that the rejection
violates no rights of the applicant.

The Board of Directors may adopt an application fee for REALTOR® Membership in reasonable amount, not
exceeding three times the amount of the annual dues for REALTOR® Membership, which shall be required to
accompany each application for REALTOR® Membership and which shall become the property of the Board
upon final approval of the application.

Designated REALTOR® Members. Each firm (or office in the case of firms with multiple office locations) shall
designate in writing one REALTOR® Member who shall be responsible for all duties and obligations of
Membership including the obligation to arbitrate pursuant to Article 17 of the Code of Ethics and the payment
of Board dues as established in Article X of the Bylaws. The "Designated REALTOR®" must be a sole
proprietor, partner, corporate Officer, or branch office manager acting on behalf of the firm's principal(s) and
must meet all other qualifications for REALTOR® Membership established in Article V, Section 2, of the
Bylaws.

Any REALTOR® Member of the Association may be disciplined by the Board of Directors for violations of
these bylaws, the Code of Ethics, or other duties of membership, after a hearing as described in the Code of
Ethics and Arbitration Manual of the Association, provided that the discipline imposed is consistent with the
discipline authorized by the Professional Standards Committee of the NATIONAL ASSOCIATION OF
REALTORS® as set forth in the Code of Ethics and Arbitration Manual of the National Association.


                                                        6
If a REALTOR® Member is a sole proprietor in a firm, a partner in a partnership or an Officer in a corporation,
and is suspended or expelled, the firm, partnership or corporation shall not use the terms REALTOR® or
REALTORS® in connection with its business during the period of suspension, or until readmission to
REALTOR® membership, or unless connection with the firm, partnership or corporation is severed, or
management control is relinquished, whichever may apply. The membership of all other principals, partners, or
corporate Officers shall suspend or terminate during the period of suspension of the disciplined Member, or
until readmission of the disciplined Member or unless connection of the disciplined Member with the firm,
partnership, or corporation is severed, or unless the REALTOR® who is suspended or expelled removes
himself from any form or degree of management control of the firm for the term of the suspension or until
readmission to membership, whichever may apply. Removal of an individual from any form or degree of
management control must be certified to the Association by the Member who is being suspended or expelled
and by the individual who is assuming management control, and the signatures of such certification must be
notarized. In the event the suspended or expelled Member is so certified to have relinquished all form or
degree of management control of the firm, the membership of other partners, corporate Officers, or other
individuals affiliated with the firm shall not be affected, and the firm, partnership or corporation may continue to
use the terms REALTOR® and REALTORS® in connection with its business during the period of suspension
or until the former Member is admitted to membership in the Association. The foregoing is not intended to
preclude a suspended or expelled Member from functioning as an employee or independent contractor,
providing no management control is exercised. Further, the membership of REALTORS® other than principals
who are employed or affiliated as independent contractors with the disciplined Member shall suspend or
terminate during the period of suspension of the disciplined Member or until readmission of the disciplined
Member, or unless connection of the disciplined Member with the firm, partnership, or corporation is severed,
or management control is relinquished, or unless the REALTOR® Member (non-principal) elects to sever his
connection with the REALTOR® and affiliate with another REALTOR® Member in good standing in the
Association, whichever may apply. If a REALTOR® Member other than a sole proprietor in a firm, partner in a
partnership, or an Officer of a corporation is suspended or expelled, the use of the terms REALTOR® or
REALTORS® by the firm, partnership or corporation shall not be affected.

In any action taken against a REALTOR® Member for suspension or expulsion under Section 4 (h) hereof,
notice of such action shall be given to all REALTORS® employed by or affiliated as independent contractors
with such REALTOR® Member and they shall be advised that the provisions in Article II, Section 4 (h) shall
apply.

Section 5. Institute Affiliate Members shall be individuals who hold a professional designation awarded by a
Institute, Society or Council affiliated with the NATIONAL ASSOCIATION OF REALTORS® that addresses a
specialty area other than residential brokerage or individuals who otherwise hold a class of membership in
such Institute, Society or Council that confers the right to hold office.

Section 6. Affiliate Members shall be real estate owners and other individuals who do not hold a real estate
license or a license or certification as an appraiser or firms who are Affiliate Members of Member Boards.

Section 7. Life Members shall be individuals who have held membership in the Arkansas REALTORS®
Association for a continuous period of 25 years, or for 30 years which may not have been continuous, have
attained the age of sixty-five (65) years, have made a notable contribution to this ASSOCIATION, and have
been recommended for this designation by a Local Board or by the Executive Committee; or who have been
granted the “REALTOR® Emeritus” status by the NATIONAL ASSOCIATION OF REALTORS®. Life Members
shall hold all the rights, privileges and responsibilities of Membership except that dues for Membership in the
Arkansas REALTORS® Association shall be waived.


ARTICLE II
Officers
Section 1. The elective Officers of this ASSOCIATION shall be a President, a President Elect, a
Secretary/Treasurer, and a District Vice President from four Districts of the State as geographically identified
                                                         7
by the Board of Directors. The President Elect shall, when necessary, perform the duties of the President and,
in his/her absence, the Secretary/Treasurer shall perform such duties. The President, President Elect, the
Secretary Treasurer and the Immediate Past President shall serve for one calendar year or until their
successors are elected and qualified. The District Vice Presidents shall serve a term of two calendar years,
staggered, Districts One and Three on odd years and Districts Two and Four on even years. In filling a
vacancy, the scheduled election years shall be adhered to. The President Elect shall succeed to the office of
President and the President shall succeed to the office of Immediate Past President the following year. The
President shall not be eligible to serve a second successive term.

Section 2. The duties of the Officers shall be such as their titles, by general usage, would indicate and such as
may be assigned to them, respectively, by the Board of Directors from time to time, and such as are required
by law. Additionally, the President shall be the leader of this ASSOCIATION’S Delegates to the National
Convention and Delegate Body Meeting of the National Association of REALTORS® and in the absence of a
Member Board representative, vote for the Member Board.

Section 3. The ASSOCIATION shall pay the cost for and include the elected Officers in a surety bond in the
amount of One Hundred Thousand Dollars that covers and reimburses the ASSOCIATION for loss of
ASSOCIATION assets that result from direct or indirect acts of the elected Officers during their term of office.

Section 4. In the event of a required hiring of an Executive Vice President, the Executive Committee shall
appoint a Transition and Search Committee consisting of the current President of the Association as chair,
three members of the Executive Committee and three members of the Board of Directors to implement a
search plan and carry out a transition to a new and permanent EVP. The Transition and Search Committee
will report its findings for a new Executive Vice President to the Board of Directors for approval. There shall be
an Executive Vice President who shall be appointed by the Board of Directors. The Executive Vice President
shall be the Chief Executive Officer of the Association, subject to the President. The Executive Vice President
shall have supervision of the entire staff and he or she shall perform such other duties as may be delegated by
the Board of Directors, the Executive Committee or the President, and all other duties usual to such office.
The Executive Committee will have responsibility for monitoring the work of the Executive Vice President
whether permanent or temporary. The ASSOCIATION shall pay the cost for and keep current an employee
dishonesty insurance policy in the amount of One Hundred Thousand Dollars that covers and reimburses the
ASSOCIATION for loss of ASSOCIATION assets that result from direct or indirect acts of dishonesty on the
part of its administrative Officers or their support staff.

Section 5. The Board of Directors may retain legal and other professional counsel, and may fix the terms of
compensation thereof.

ARTICLE III
Election of Officers and Directors

Section 1: The election of Officers and Directors shall be held at the annual membership meeting of the
ASSOCIATION, their terms of office to be effective January 1 of the following year.

Section 2. The President shall appoint a Nominating Committee of which the Immediate Past President, upon
acceptance, shall be the chairman and represent his/her zone. The members of which shall be one for each
ASSOCIATION Zone, based upon Zone member population (see Article 5, Constitution), to be selected from
the respective area each Director represents, which shall name one candidate with the following qualifications
for each office to be filled:

   •   Each District Vice President nominee must have served a minimum of one year on the Board of
       Directors.
   •   The nominee for President Elect must have served either as Secretary/Treasurer or as a District Vice
       President.

                                                        8
   •   A nominee for Zone Director must be a Member of the Zone from which he or she is nominated.
   •   A nominee for Director-at-Large must be a Member of this ASSOCIATION.
   •   The nominee for Secretary-Treasurer must have served a minimum of two years on the Board of
       Directors.
    • The position of President shall be filled by the President Elect by succession and not be nominated
       either by the Nominating Committee or by petition.
    • The position of Immediate Past President shall be by succession for a one year period following the
       year as President.
Nominees for Past President positions on the Board of Directors must be a Member of this Association in good
standing. The Zone Directors for each zone normally serve a three-year term. Should the occasion occur that
a Zone have a majority (51%) of Directors expiring in a given year (except Zones who have only one Director),
the Nominating Committee Chair shall determine staggered terms in an upcoming election.

Section 3: The report of the Nominating Committee shall be mailed to all Members of the ASSOCIATION,
including all REALTOR® members and all Life Members at least sixty days prior to the election. Additional
candidates with the qualifications in Section 2 (a) (b) (c) (d) and (e) may be placed in nomination by petition
signed by at least five per cent (5%) of the current Members, including REALTOR® Members and Life
Members of the Arkansas REALTORS® Association. The petition shall be filed with an Association
Administrative Officer at least forty-five (45) days preceding the election. The Association Administrative
Officers shall mail notice of such additional nominations to all ASSOCIATION Members, including all
REALTOR® members and all Life Members at least thirty (30) days preceding the election.

Section 4: Notice to members on official business such as Bylaws and Nomination Reports shall be made prior
or on the noted dates using the ASSOCIATION’S bulk mail permit and may be included in normal mailings to
all members by noting on the address page the following: “Official Notice to Members”.

ARTICLE IV
Nominees for Appointments

Nominees for Appointment to the Arkansas Real Estate Commission, Recommendations for Nominees for the
Position of Director of the NATIONAL ASSOCIATION OF REALTORS® and Other Non-Elected Positions.

Section 1. The Nominating Committee as defined and directed in Article III, Section 2, shall, as part of its
duties, name four nominees as recommendations for appointment to the Arkansas Real Estate Commission
and for Officers, Directors, and other positions that may be required of this ASSOCIATION. All
recommendations shall be submitted to the members in good standing and attending the Annual Membership
Meeting. In the event of more recommendations than positions available, the submission shall be in the form
of a written ballot with all the recommendations listed. The membership shall then be instructed to vote for the
person(s) they wish to fill the number of positions. The names receiving the most votes shall be the
Nominee(s).

Section 2. Nominees for appointment to the Arkansas Real Estate Commission shall comply in full and at all
times with the requirements and qualifications set forth in Arkansas Statutes Sec., 17-35-201 of the Arkansas
Real Estate Licensing Law, otherwise the nomination shall be considered null and void and therefore vacant.

Section 3. Filling of vacancies by resignation or otherwise in the Arkansas Real Estate Commission or in this
ASSOCIATION’S Nominees shall be effected by the Board of Directors as prescribed in Article V, Section 4.

Section 4. Election of National Directors and recommendations to the NATIONAL ASSOCIATION OF
REALTORS® for the position of other National offices shall be executed in the same manner as hereinbefore
defined and directed in Article III, Section 2, for Officers and Directors of this ASSOCIATION. National
Directors shall be elected to staggered terms of three years.


                                                        9
Section 5. Recommendations, nominations, or filling of vacancies for other Arkansas REALTORS®
Association positions shall be executed in the same manner as hereinbefore defined and directed in Article III.

Section 6. Vacancies by resignation or otherwise in the positions enumerated in Section 4 and Section 5 of
this Article shall be filled by the Board of Directors as prescribed in Article V, Section 4.


ARTICLE V
Board of Directors

Section 1. The Board of Directors shall conduct the affairs of the ASSOCIATION and shall carry out the
policies enunciated and the instructions given by majority vote of the members at any meeting.

Section 2. The Board of Directors shall consist of the following; President; President Elect;
Secretary/Treasurer; the Immediate Past President each serving a one year calendar term in those positions ;
Four District Vice Presidents each serving a two calendar year term electing two each year as described in
Article II above; Six Directors at Large, two to be elected each year to serve a term of three calendar years;
Twelve Zone Directors, four being elected each year to serve a term of three calendar years; an additional
Zone Director from each Zone with more than 500 members and a third Zone Director from each Zone with
1,000 to 1,499 members as of as of April 30th of the current year according to paid members, to be elected to
a three calendar year term; Three ARA Past Presidents, each serving a three year calendar term; and each
Director of the National Association of REALTORS® elected by this Association shall serve during their term
on the National Association of REALTORS® Board of Directors. The Board of Directors shall also consist of
the current year’s Chairpersons of the Professional Development Committee, the Legislative Committee, the
Equal Opportunity Committee, the Professional Standards Committee, the Public Relations Committee, the
Risk Reduction Committee, RPAC, and the Convention Committee and shall also be full voting members of the
Board of Directors for the current year each is Chairman defined above. Should one of the Committee
Chairpersons also be a member of the Board of Directors by election, that Chairperson shall only have one
vote as a member of the Board of Directors. Each year when the NAR Region IX Vice President-Elect is from
Arkansas he or she will serve on the ARA Board of Directors.

Section 3. The Board of Directors shall administer the finances of the Association and shall have sole authority
to appropriate money. Funds appropriated by the annual budget approved by the Board of Directors shall be
considered appropriated and may be ordered paid by the Secretary Treasurer. The accounts of the
Association shall be audited annually by a certified public accountant.

Section 4. The Board of Directors shall meet a minimum of three times each year which will be called by the
President of the ASSOCIATION at locations to be determined by the President.

Section 5. Vacancies
Vacancies by resignation or otherwise in the Board of Directors shall be filled by the Board of Directors until the
next general election only, at which time the membership shall elect a Director or Directors for the remainder of
any unexpired term or terms.
If a District Vice President during his/her term transfers their real estate license to a firm located outside their
elected District and does not maintain primary or secondary membership in a local Board within the District, it
shall constitute an automatic and immediate resignation of their position.

If a Zone Director during his/her term transfers their real estate license to a firm located outside their elected
Zone and does not maintain primary or secondary membership in a local Board within the Zone, it shall
constitute an automatic and immediate resignation of their position.

Section 6. There shall be an Executive Committee of the Board of Directors, (See Article VI)

Section 7. Special Meetings & attendance by members:
                                                         10
The Board of Directors shall meet on call from the President upon three days written notice. Attendance by
members shall be required. Upon the third absences during the entire term of the appointment, resignation
shall be automatic. An excused absence is only when the member is attending another ARA Meeting held at
the same time. The chair shall determine such resignations. Should such resignation be instituted, the
members may file a written request to the President for reinstatement explaining the reasons for absences. If
reinstated, one additional absence shall automatically be a final resignation without the ability to submit for
reinstatement.

Section 8. 50% plus one of the elected Directors shall constitute a quorum of the Board of Directors.

ARTICLE VI
Executive Committee

There shall be an Executive Committee of the Board of Directors, composed of the President, President-Elect,
Secretary/Treasurer, District Vice Presidents, and Immediate Past President. The Executive Vice President,
the Chief Financial Officer and the Government Affairs Director shall be non-voting members. This committee
shall make recommendation to the Board of Directors, shall transact business within the authority of the Board
between meetings of the Board of Directors, and shall report such actions in full to the Board of Directors at its
next meeting, except for Executive Session proceedings. This Committee shall not have the power to alter the
Association’s travel budget, change the dues structure, execute special assessments on the members or alter
the bylaws except when mandated by the National Association of REATLORS® or by laws enacted by the
State of Arkansas.


ARTICLE VII
Past President’s Advisory Council

There shall be a Past President Advisory Council appointed by the current President consisting of a minimum
of four Past Presidents of the ASSOCIATION, who shall continue to be members. The Advisory Council shall
act in an advisory capacity to the Officers and Directors of the ASSOCIATION and shall function at the
discretion of and with duties assigned by the current President or by any member(s) of the Executive
Committee. The chair of the Council shall be the Immediate Past President of the ASSOCIATION.


ARTICLE VIII
Committees

Section 1. There shall be the following Standing Committees. The members of which shall serve for one year
or multiple years as dictated by the committee’s policy or until their successors are appointed and qualified.

                                            Business Planning
                                    Past Presidents Advisory Council
                                        Professional Development
                                            Equal Opportunity
                                                Legislative
                                               Nominating
                                   Professional Standards & Grievance
                                             Public Relations
                                         REALTOR® of the Year
                                             Risk Reduction
                                          Convention Committee
                                           Finance Committee
                            Communications Committee (effective January 1, 2010)

                                                       11
Section 2. The President, with the approval of the Board of Directors, may appoint such other committees as
he/she deems advisable. Members shall be appointed to one year terms. The President shall be an ex officio
member of all committees except the REALTOR® of the Year and Nominating Committees.


Section 3. Committees shall have such duties as their titles indicate, and as the Board of Directors may assign.
All actions of committees shall be subject to the approval of the Board of Directors.

Section 4. The President shall appoint members to all committees except members of the REALTOR® of the
Year committee prior to the beginning of the year the President takes office. Attendance by members shall be
required except for special meetings of the Convention Committee. Upon the third absences during the entire
term of the appointment, resignation shall be automatic. An excused absence is only when the member is
attending another ARA Meeting held at the same time. The chair shall determine such resignations. Should
such resignation be instituted, the members may file a written request to the President for reinstatement
explaining the reasons for absences. If reinstated, one additional absence shall automatically be a final
resignation without the ability to submit for reinstatement. Should the size of a committee be reduced by
Presidential action, no current member shall be removed until their term expires.

Section 5. At committee meetings, a majority shall constitute a quorum, except that when a committee
consists of more than nine members, five shall constitute a quorum.

Section 6. The Board of Directors is authorized to support The Arkansas Real Estate Foundation. The
objectives for The Foundation are:

   •   To promote study and research in the field of real estate,
   •   The distribution of knowledge thereof, and the continuing education of real estate brokers and
       salesmen.
   •   To cause to be published and distributed literary works on real estate subjects.
   •   To encourage universities and colleges in Arkansas to offer more real estate courses.
   •   To encourage college students to take more courses in real estate.
   •   To attract qualified professors by endowment of a chair.
   •   To offer scholarships to students interested in real estate as a profession.

Section 7. The Board of Directors is hereby authorized to create a legal action fund from the reserves of the
ASSOCIATION. The fund may reach, but shall not exceed, $100,000 plus interest. The specific purpose of
the fund shall be for the prosecution or defense of lawsuits brought by or against the ASSOCIATION or its
Officers, or, when determined appropriate by the Board of Directors, one or more members of the
ASSOCIATION, if deemed by the Board of Directors to have statewide impact. The fund shall be placed in an
interest bearing account as determined by the Executive Committee. Money may be withdrawn from the fund
only after approval of the Board of Directors. Money withdrawn from the fund shall be deposited in the
General Account for disbursement. The fund may be used for other purposes with a two-thirds vote of the
Board of Directors.

Section 8. The Board of Directors is hereby authorized to create an Issues Mobilization fund from the reserves
of the ASSOCIATION and from an allocation of a portion of member dues annually. The specific purpose of
the fund shall be for the support or oppose any statewide or local measure or governmental action or potential
action that affects real property rights, real estate brokers and agents, or the real estate industry. In the normal
course of business, the Legislative Committee shall recommend the use of the fund and approved by the
Board of Directors. In an emergency, the Executive Committee shall have the authority to disperse the fund’s
assets for purposes listed above. The fund shall be placed in an interest bearing account as determined by the
Finance Committee with the approval of the Executive Committee. Money withdrawn from the fund shall be


                                                        12
deposited in the General Account for disbursement. The fund may be used for other purposes with a two-
thirds vote of the Board of Directors.

ARTICLE IX
Meetings

Section 1. The time and place of the annual membership meeting of the ASSOCIATION shall be designated by
the Board of Directors. The annual convention shall include the time of the annual membership meeting.

Section 2. The ASSOCIATION shall hold an annual membership meeting at the annual convention which shall
be open to all REALTOR® Members and Life Members who are full registrants to the annual convention.
Each REALTOR® Member, each Institute Affiliate Member, and each Life Member, subject to being a member
in good standing, shall be a delegate and entitled to one vote. Attendance at the complete (full) convention
requires payment of a registration fee.

Section 3. A quorum shall consist of those present and qualified to vote on business matters brought before
the Annual Business Meeting.

Section 4. Other special meetings may be called by the Board of Directors. Any call for a meeting shall state
the purpose, time and place of the meeting and shall be issued at least ten days in advance. A quorum shall
consist of those present and qualified to vote on business matters brought before the meeting. To be a
qualified voter, one must be a Member in good standing of this ASSOCIATION.


ARTICLE X
Fiscal Year

The fiscal year shall end on the last day of December of each year.


ARTICLE XI
Code of Ethics

The Code of Ethics of the NATIONAL ASSOCIATION OF REALTORS® is adopted as the Code of Ethics of
this ASSOCIATION and shall be considered a part of its rules and regulations and shall in the future be
deemed to be amended and changed whenever said Code of Ethics is amended or changed by the National
Association of REALTORS®.


ARTICLE XII
Professional Standards

Section 1. Allegations of ethical violations and contractual disputes (and specific non-contractual disputes as
defined in Standard of Practice 17-4) between REALTORS® and between REALTORS® and their customers
or clients may be submitted to an ethics or arbitration panel at the State Association level under the following
circumstances in such cases where the Member Board is not a party to the “Agreement Between the Arkansas
REALTORS® Association and (Member Board) To Establish Statewide Professional Standards Enforcement
Procedures.”

Allegations of unethical conduct made against a REALTOR® who is directly a member of the State Association
and not a member of any Member Board.
Allegations of unethical conduct made against a REALTOR® in the instance in which the Member Board,
because of size or other valid reason, determines that it cannot provide a due process hearing of the matter
and petition the State Association to conduct a hearing.
                                                      13
Contractual disputes (and specific non-contractual disputes as defined in Standard of Practice 17-4) between
REALTORS® who are not members of the same Member Board where the matter has been referred to the
State Association by both Member Boards.
Contractual disputes (and specific non-contractual disputes as defined in Standard of Practice 17-4) between
REALTORS® who are directly members of the State Association and are not members of any Member Board.
Contractual disputes (and specific non-contractual disputes as defined in Standard of Practice 17-4) between
a REALTOR® who does not hold membership in any Member Board, but is directly a member of the State
Association, and a REALTOR® who is a member of a Member Board.
Contractual disputes (and specific non-contractual disputes as defined in Standard of Practice 17-4) between
REALTOR® Members of the same Member Board where the Board with good and sufficient reason is unable
to arbitrate the controversy. (Explanation: This provision is not designed to relieve a Member Board of its
primary responsibility to resolve differences arising between members of the same Member Board. The
section recognizes that in some Member Boards with limited membership, usual arbitration procedures may be
impossible.)
Contractual disputes between a customer or client and a REALTOR® where the Member Board with good and
sufficient reason is unable to arbitrate the dispute or the REALTOR® is a direct member of the State
Association.

Section 2. Any Member Board that is a party to the “Agreement Between the Arkansas REALTORS®
Association and (Member Board) To Establish Statewide Professional Standards Enforcement Procedures”
shall comply with the terms and procedures of the Agreement.

Section 3. The responsibility of the ASSOCIATION and of ASSOCIATION members relating to the
enforcement of the Code of Ethics, the disciplining of Members, the arbitration of disputes, and the
organization and procedures incident thereto shall be governed by the Code of Ethics and Arbitration Manual
of the National Association of REALTORS®, as from time to time amended, which by this reference is made a
part of these Bylaws.

Section 4. If a REALTOR® Member (as defined in Article II, Section 4, of these bylaws) resigns from the
Board or otherwise causes membership to terminate with an ethics complaint pending, that Board of Directors
may condition the right of the resigning Member to reapply for membership upon the applicant's certification
that he/she will submit to the pending ethics proceeding and will abide by the decision of the hearing panel.

 If a REALTOR® Member (as defined in Article II, Section 4, of these bylaws) resigns or otherwise causes
membership to terminate, the duty to submit to arbitration continues in effect even after membership lapses or
is terminated, provided that the dispute arose while the former member was a REALTOR®.

Section 5. New Member Code of Ethics Orientation. Applicants for REALTOR® membership shall complete
an orientation program on the Code of Ethics of not less than two hours and thirty minutes of instructional time.
This requirement does not apply to applicants who have completed comparable orientation in another
Association, provided that membership has been continuous, or that any break in membership is for one year
or less.

Failure to satisfy this requirement within 180 days of the date of application will result in denial of the
membership application.

Note: This orientation program must meet the learning objectives and minimum criteria established from time
to time by the National Association of REALTORS®.

Section 6. Continuing Member Code of Ethics Training.
Effective January 1, 2001, through December 31, 2004, and for successive four year periods thereafter, each
REALTOR® and REALTOR-ASSOCIATE® member of the Association shall be required to complete
quadrennial ethics training of not less than two hours and thirty minutes of instructional time. This requirement
will be satisfied upon presentation of documentation that the member has completed a course of instruction
                                                         14
conducted by this or another Association, or the NATIONAL ASSOCIATION OF REALTORS®, or any other
recognized educational institution or provider which meets the learning objectives and minimum criteria
established by the NATIONAL ASSOCIATION OF REALTORS® from time to time. Members who have
completed training as a requirement of membership in another Association and members who have completed
the New Member Code of Ethics Orientation during any four year cycle shall not be required to complete
additional ethics training until a new four year cycle commences.

Failure to satisfy this requirement shall be considered a violation of a membership duty for which REALTOR®
membership shall be suspended until such time as the training is completed.

Members suspended for failing to meet the requirement for the first four (4) year cycle (2001 through 2004) will
have until December 31, 2005 to meet the requirement. Failure to meet the requirement by that time will result
in automatic termination of membership.

Failure to meet the requirement for the second (2005 through 2008) cycle and subsequent four (4) year cycles
will result in suspension of membership for the first two months (January and February) of the year following
the end of any four (4) year cycle or until the requirement is met, whichever occurs sooner. On March 1 of that
year, the membership of a member who is still suspended as of that date will be automatically terminated.

Section 7. Professional Standards hearings and the organization and procedures incident thereto shall be
governed by the Code of Ethics and Arbitration Manual of the National Association of REALTORS® as from
time to time amended, which by this reference is made a part of these Bylaws.

ARTICLE XIII
Dues

Section 1. The annual dues of each Member Board as defined in Article I of these Bylaws shall be an amount to be set by
the Arkansas REALTORS Association® Board of Directors plus the allocation of dues for the NATIONAL ASSOCIATION
OF REALTORS® times the number of REALTOR® Members who hold primary membership in the Board, plus (2) an
amount to be set by the Arkansas REALTORS® Association Board of Directors plus the allocation of dues for the
NATIONAL ASSOCIATION OF REALTORS® times the number of real estate salespersons and licensed or certified
appraisers employed by or affiliated as independent contractors with REALTOR® Members of the board who are not
themselves REALTORS® Members. In calculating the dues payable by a Member Board, nonmembers, as defined in the
preceding sentence, shall not be included in the computation of dues if dues have been paid in another Board in the State
or a State contiguous thereto, provided the Board notifies this ASSOCIATION in writing of the identity of the Board to
which dues have been remitted.

Section 2. The annual dues of each REALTOR® Member actively engaged in the real estate business from areas not
within the jurisdiction of a Member Board shall be set by the Arkansas REALTORS® Association Board of Directors plus
the allocation of dues for the NATIONAL ASSOCIATION OF REALTORS® plus an amount equal to be set by the
Arkansas REALTORS® Association Board of Directors plus the allocation of dues for the NATIONAL ASSOCIATION OF
REALTORS® times the number of real estate salespersons and licensed or certified appraisers who (a) are employed by
or affiliated as independent contractors, or who are otherwise directly or indirectly licensed with such REALTOR®
Member and (b) are not REALTORS® , provided, however, that if two or more REALTORS® are principals of the same
firm, partnership or corporation then only that REALTOR® designated from time to time in writing (the “designated”
REALTOR®) by the firm, partnership or corporation shall be required to pay that portion of the dues which is computed on
the basis of the real estate salespersons and licensed or certified appraisers employed by or affiliated as independent
contractors with such firm, partnership or corporation, and the dues of the remaining REALTORS® who are principals of
such firm, partnership or corporation, shall be be set by the Arkansas REALTOR® Board of Directors plus the allocation
of dues for the NATIONAL ASSOCIATION OF REALTORS®.

A REALTOR® with a direct or indirect ownership interest in an entity engaged exclusively in soliciting and/or
referring clients and customers to the REALTOR® for consideration on a substantially exclusive basis shall
annually file with the Association on a form approved by the Association a list of the licensees affiliated with
that entity and shall certify that all of the licensees affiliated with the entity are solely engaged in referring
clients and customers and are not engaged in listing, selling, leasing, managing, counseling or appraising real
                                                           15
property. The individuals disclosed on such form shall not be deemed to be licensed with the REALTOR® filing
the form for purposes of this Section and shall not be included in calculating the annual dues of the Designated
REALTOR®.
Membership dues shall be prorated quarterly for any licensee included on a certification form submitted to the
Association who during the same calendar year applies for REALTOR® or REALTOR-ASSOCIATE®
membership in the Association. However, membership dues shall not be prorated if the licensee held
REALTOR® or REALTOR-ASSOCIATE® membership during the preceding calendar year.


Section 3. The annual dues of each Institute Affiliate Member shall be as established in Article II of the Bylaws
of the NATIONAL ASSOCIATION OF REALTORS®.
Note: The Institutes, Societies and Councils of the National Association shall be responsible for collecting and
remitting dues to the National Association for Institute Affiliate Members ($75.00). The National Association
shall credit $25.00 to the account of a local Association for each Institute Affiliate Member whose office
address is within the assigned territorial jurisdiction of that Association, provided, however, if the office location
is also within the territorial jurisdiction of a Commercial Overlay Board (COB), the $25.00 amount will be
credited to the COB, unless the Institute Affiliate Member directs that the dues be distributed to the other
Board. The National Association shall also credit $25.00 to the account of state Associations for each Institute
Affiliate Member whose office address is located within the territorial jurisdiction of the state Association. Local
and state Associations may not establish any additional entrance, initiation fees or dues for Institute Affiliate
Members, but may provide service packages to which Institute Affiliate Members may voluntarily subscribe.

Section 4. Upon payment to this ASSOCIATION of the dues required under Section 1, 2, and 3 of this Article,
each REALTOR® and Institute Affiliate Member of Member Boards within the State, and each REALTOR®
and Institute Affiliate Member from areas not within the jurisdiction of a Member Board within the State shall be
deemed a REALTOR® or Institute Affiliate Member, as the case may be, in good standing of this
ASSOCIATION. Upon payment of dues required under any other Sections of this Article, the individual making
such payment shall be deemed a Member as designated in good standing of this ASSOCIATION.

Section 5. Section 5. The annual dues of each Affiliate Member shall be set by the Arkansas REALTORS® Association
Board of Directors.

Section 6. In January of each year each Member Board shall file with this ASSOCIATION in such format as
shall be determined by this ASSOCIATION, a list of its REALTOR® and Institute Affiliate Members and the real
estate salespersons and licensed or certified appraisers employed by or affiliated as Independent contractors
with such REALTOR® Members, certified by the President and Secretary of the Board, and that Member
Board shall pay dues for the current year on the basis of such list; provided, however, that adjustments shall be
made each quarter for Members dropped or enrolled by the Member Board during the preceding quarter. On a
quarterly basis, the Member Board shall report to the State Association the names and addresses of
REALTO® and Institute Affiliate Members dropped or enrolled during the preceding quarter. Any Member
Board or other Member delinquent in payment of dues by more than 90 days may be dropped from
membership in the ASSOCIATION by the Board of Directors. Any Member Board or other member delinquent
in payment of dues by more than 90 days may be assessed a penalty of $5.00 or $10.00 if 180 days
delinquent or $20.00 if 360 days delinquent.

Section 7. A New Member Administrative Processing Fee of $50.00 shall be due and payable for all new
members or licensees as of the date of affiliation with any REALTOR® member of a Member Board or any
Individual REALTOR® Member. The Administrative Processing Fee shall become delinquent on the 31st day
after the quarter in which the Member or licensee became affiliated and shall increase by 10%. After the 61st
day the processing fee shall increase by an additional 10% for an accumulative amount of 20%. After such
dates and times, a Member Board or any other Member may be dropped from membership in the
ASSOCIATION by action of the Board of Directors. There shall be no refunds of such fees. A member who
has paid dues for the current calendar year, then placed on inactive status, may be reinstated during that
current calendar year that dues were paid, without payment of a New Member Administrative Processing Fee.
                                                         16
ARTICLE XIV
Districts and Zones

The Board of Directors shall divide the State into four Districts and one Vice President shall be elected from
each of the Districts so created. The Board of Directors shall divide the State into Twelve Zones and a Director
or Directors shall be elected for each of the Zones so created according to the formula set forth in Article V of
the Constitution, ADMINISTRATION. The Districts and/or Zones are subject to geographic realignment, as the
Board of Directors deems necessary.


ARTICLE XV
Use of the term “REALTOR®”, and “REALTORS®”

Section 1. Use of the term “REALTOR®”, or “REALTORS®” by members shall at all times be subject to the
provisions of the Constitution and Bylaws of the NATIONAL ASSOCIATION OF REALTORS® and to the rules
and regulations prescribed by its Board of Directors. The ASSOCIATION shall have authority to control, jointly
and in full cooperation with the NATIONAL ASSOCIATION OF REALTORS®, use of the terms within those
areas of the state of Arkansas not within the jurisdiction of a Member Board. Any misuse of the terms by
members is a violation of a membership duty and may subject members to disciplinary action by the Board of
Directors after a hearing as provided for in the Association’s Code of Ethics and Arbitration Manual.

Section 2. REALTOR® Members of the ASSOCIATION shall have the privilege of using the term
“REALTOR®”, and “REALTORS®” in connection with their business so long as they remain REALTOR®
Members in good standing. No other class of members shall have this privilege.

Section 3. A REALTOR® Member who is a principal of a real estate firm, partnership or corporation may use
the terms REALTOR® or REALTORS® only if all the principals of such firm, partnership or corporation who
are actively engaged in the real estate profession within the state or a state contiguous thereto are
REALTORS® or Institute Affiliate Members.

Section 4. An Institute Affiliate Member shall not use the term “REALTOR®” or “REALTORS®” and shall not
use the imprint of the emblem seal of the NATIONAL ASSOCIATION OF REALTORS®.


ARTICLE XVI

The ASSOCIATION maintains a policy manual which is referenced as supplement to the bylaws and is a living
document with changes being authorized by the Board of Directors except for the following sections;
Professional Standards Policy Supplement and Minimum Services Criteria for Boards and Associations are
mandated policies of the National Association of REALTORS®. Job Description & Employment at-will
Agreement for the Executive Vice President shall be authorized by the Executive Committee. Staff Job
Descriptions and Staff Officers Job Descriptions shall be at the direction of the Executive Vice-President. The
Board of Directors, the Executive Committee and the Executive Vice President shall not exceed their authority
in changes as mandated by these bylaws. The Policy Manual shall not require membership approval.


ARTICLE XVII
Rules of Order

Roberts’ Rules of Order, latest edition, shall be recognized as the authority governing all meetings and
conferences when not in conflict with the Bylaws of the ASSOCIATION.

                                                       17
ARTICLE XVIII
Amendments

The Bylaws may be amended at any meeting of the membership by the affirmative vote of two-thirds of the
members present, provided, however, that notice of any proposed amendments shall have first been mailed
(see Article III, Section 4) thirty (30) days in advance to all members.
The state’s bylaws shall be automatically adopted on mandated amendments by The National Association of
REALTORS® and would be effective as of the date that change is effected. The Board of Directors of the
state must be noticed at the next regularly scheduled meeting of the Board.


ARTICLE XIX
Harassment

Any member of the Association may be reprimanded, placed on probation, suspended or expelled for
harassment of an Association or MLS employee or Association Officer or Director after an investigation in
accordance with the procedures of the Association. As used in this Section, harassment means any verbal or
physical conduct including threatening or obscene language, unwelcome sexual advances, stalking, actions
including strikes, shoves, kicks, or other similar physical contact, or threats to do the same, or any other
conduct with the purpose or effect of unreasonably interfering with an individual's work performance by
creating a hostile, intimidating or offensive work environment. The decision of the appropriate disciplinary
action to be taken shall be made by the investigatory team comprised of the president, and president-elect
and/or vice president and one member of the Board of Directors selected by the highest ranking Officer not
named in the complaint, upon consultation with legal counsel for the Association. Disciplinary action may
include any sanction authorized in the Association’s Code of Ethics and Arbitration Manual. If the complaint
names the president, president-elect or vice president, they may not participate in the proceedings and shall be
replaced by the immediate past president or, alternatively, by another member of the Board of Directors
selected by the highest ranking Officer not named in the complaint.

ARTICLE XX
Dissolution

Upon the dissolution or winding up of the affairs of the ASSOCIATION, the Board of Directors, after providing
for payment of all obligations, shall distribute any remaining assets to any nonprofit and tax exempt real estate
research center existing in the State of Arkansas at the time of dissolution, or, within its discretion, to any other
nonprofit and tax exempt organization.

(NOTE: THIS COPY OF THE CONSTITUTION AND BYLAWS INCLUDES REVISIONS ENACTED AT THE
1963, 1964, 1968, 1969, 1973, 1975, 1976, 1979, 1980, 1981, 1982, 1983, 1984, 1986, 1987, 1988, 1989,
1990, 1992, 1993, 1994, 1996, 1997, 1998, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008 and the
2009 CONVENTION’S ANNUAL MEMBERSHIP MEETING.)


                             ARKANSAS REALTORS® ASSOCIATION
                               11224 EXECUTIVE CENTER DRIVE
                                   LITTLE ROCK, AR 72211
                               2008-2009 STATEMENT OF PUBLIC POLICY
                                                  February, 2008

                                                   Ken Gill, CRS
                                                  Herb Yarbrough
                                                         18
                                                  Garry Rhodes
                                         Doug Smith, ABR, CRS, GRI
                                                  Ted Mullenix
                                       Robert J. Balhorn, RCE, CAE, GAD


The Arkansas REALTORS® Association, its 37 local REALTOR® Boards, Associations and Councils,
comprised of over 8,300 members and the National Association of REALTORS®, comprised of more than
One Million members, represent the vast majority of professionals active in all phases of the Real Estate
Industry. As REALTORS® we are pledged to abide by the high standards of integrity and moral conduct
required by our Code of Ethics. We are dedicated to the protection and the preservation of the free enterprise
system and the right of the individual to own real property as guaranteed by the Constitution of the United
States of America. To that end, we offer the benefits of our knowledge of real estate, our experience, and our
technical facilities to the public in general and government in particular.

GENERAL

We believe that the political stability and economic prosperity of the citizens of the State of Arkansas as well as
the United States of America are dependent in large measure upon the right of the individual to own real
property and to exercise and enjoy the benefits of ownership. We oppose undue actions by governments,
groups or individuals, which diminish or deny the full and free exercise of this right. We believe that every
individual should have the opportunity to live in safe and decent housing. This objective can best be served
by a healthy housing market accomplished in an economic environment that fosters an ample supply of
affordable mortgage money.
We believe that home ownership serves as a cornerstone of our democratic system of government and
deserves a preferred place in our system of values as it contributes to community responsibility, civic stability,
and family security and well being. We believe the continuing demand for rental housing can best be met by
private investors willing to make long-term capital risks. We support a mutually beneficial owner-rental
occupant relationship, which will encourage a continuing supply of adequate and affordable housing. We
believe in the free enterprise system. We oppose undue intervention by State government in the affairs of
businesses. We oppose counterproductive taxation, governmental guidelines, regulations, rules and
procedures which increase consumer costs, burden the business community, and contribute to the unbalanced
budget. The Government’s enforcement of rules and regulations must recognize the judicial axiom that
everyone is innocent until proven guilty. We believe in both a balanced State and Federal budget
accomplished by a reduced rate of government spending and the systematic reduction of the government debt.
This requires an emphasis on fiscal responsibility, including requirements for cost-benefit analysis for all
proposed legislation and termination of unnecessary and overlapping existing programs. We believe that
growth in the supply of money should be adequate to promote real economic growth, but should be kept
consistent with long-term price stability. Control of the money supply should be conducted in a manner so as
to avoid violent short run fluctuations. We believe in the immediate goal of national energy independence to be
accomplished by economically sound State and National energy policies, which include not only conservation,
but also exploration and development of all resources.
We believe in balancing environmental conservation with economic survival. In this respect, we feel that
agricultural needs, social and economic factors, and the future growth of our state and nation must be
considered in the development of land use policies.
We believe that active involvement in political activity is a privilege and responsibility of every citizen. Thus, we
encourage continuing participation in local, state and national political affairs and urge total support of those
candidates who pledge and by their actions preserve, and indeed strengthen, America’s free enterprise system
which is based upon the underlying principle of private property ownership. We further urge qualified
individuals, including REALTOR® Members, to make them available for public service.




                                                         19
ADVANCED EDUCATION
As real estate professionals we should accept responsibility for continuing educational training for our
members. We will continue to cooperate with the Arkansas Real Estate Commission and other institutions of
learning to improve the knowledge and capabilities of our present and future members. In order to provide
increased quality of real estate education, we propose stronger requirements for real estate instructors in the
State of Arkansas.


AGRICULTURE - LAND USE

The Arkansas REALTORS® Association recognizes the need for dependability in the American Agricultural
Policy. The lack of long term strategies for agriculture results in inefficient allocation and utilization of our
agricultural resources. We, the Arkansas REALTORS® Association, encourage the gainful distribution and
consumption of U.S. agricultural products both domestically and by foreign countries and oppose any
restriction in production. We urge all economic factors and private property rights to be fully considered before
government agencies impose any restrictions on conversion of agricultural land to non-agricultural purposes.


ASSESSMENT PRACTICES

The Arkansas REALTORS® Association urges the members to support current laws providing for tax
assessment of all real property and all forms of shelter on an equitable basis, based on current fair market
value.

BUSINESS AND INDUSTRIAL DEVELOPMENT

We urge the Arkansas Department of Economic Development to aggressively promote business and industrial
development in Arkansas. Arkansas must build and maintain a competitive position with other states so that
economic development grows in all parts of the state. The General Assembly must should give the
Department of Economic Development all the tools necessary to attain a dominant level of business and
industrial development within the region. Tools should include creative financing, tax incentives, customized
training programs and other innovative programs.

DISCRIMINATION AND HARASSMENT PREVENTION POLICY

Discrimination and harassment are contrary to the policy of ARA. The ARA is committed to providing an
environment that is free of discrimination and harassment based on an individual’s status. An individual’s
status means an individual’s race, color, ancestry, ethnicity, religion, sex, pregnancy, national origin, age,
disability, marital status, veteran status, sexual orientation, or any other legally protected status. The complete
Harassment Policy can be found in the Employee Policy Manual near the end of this manual including
procedures for filing a complaint.


EDUCATION

The Arkansas REALTORS® Association recognizes the vital necessity of professional competency to meet the
challenges of the real estate practice in a complex society. We provide reciprocal education and license
renewal among: State REALTOR®, Institutes, the Societies, Institutes and Councils of the National Association
of REALTORS® and the State licensing authorities. We recognize a need to share our knowledge with the
general public and our responsibility to our members to continue to offer real estate programs, which relate to
the needs of our clients, customers, communities and governmental entities.


                                                        20
ENVIRONMENT

We urge REALTORS® to continue their involvement in environmental issues and to assist commerce, industry
and government in decisions concerning these issues, keeping in mind the consideration of cost and
practicality, as well as rights of property owners.

EQUAL OPPORTUNITY IN HOUSING

Fair Housing is a major element of the Arkansas REALTORS® Association’s Public Policy. Members of our
Association are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity
throughout the State of Arkansas and the Nation. We subscribe to the philosophy of inclusion in rendering
services to clients, customers and the communities at large and welcome the opportunity to serve the needs of
our communities and all individuals and families without regard to Race, Color, Religion, Sex, Handicap,
Familial Status or National Origin.

The Fair Housing Partnership with the Arkansas Office of Housing and Urban Development, executed on
November 5, 1997, outlines a program of voluntary compliance. Realtors voluntarily participate in activities and
programs to acquaint the community with the availability of equal housing opportunity, to establish office
procedures to ensure that there is no denial of equal professional service, to make materials available that will
explain their commitment, and to work with other groups within the State to identify and remove barriers to fair
housing.

Realtors support the “One America” initiative that strives to build a nation of all Americans where there is
“opportunity and responsibility” for all and “a diverse democratic State in which we respect, even celebrate,
differences, while embracing the shared values that unite us.” We welcome cultural diversity with equal
opportunity for all.

It is our firm belief that compliance is best achieved through quality education. Laws do not change attitudes,
people do, and therefore the solution to housing discrimination is changing personal values and attitudes.
Realtors have made a conscious personal commitment to eliminate bias and prejudice from the housing
market and provide equal professional services to all prospects.

We believe the citizens of Arkansas are better served with our new Arkansas Fair Housing Law that is
substantially equivalent to the Federal Fair Housing Law. We support the Arkansas Fair Housing Commission
and its endeavor to educate the public concerning the Arkansas Fair Housing Law, as evidenced by the
Arkansas REALTORS® Association’s publication and distribution of the Arkansas Fair Housing Handbook for
REALTORS®. We support the enforcement of the Arkansas Fair Housing Law by the Arkansas Fair Housing
Commission.


GOVERNMENT APPOINTMENTS

Because of the importance of government Board and agency policies, as related to the real estate profession,
the Arkansas REALTORS® Association encourages state, county and municipal governing bodies to receive
and consider input from local area REALTORS® when making appointments to Boards or commissions that
affect the real estate profession. We oppose any discriminatory practices or impediments to REALTORS®
serving on state, county or city Boards and commissions.


GOVERNMENTAL BUILDINGS

We oppose the acquisitions of or construction of commercial property with public moneys that is in competition
with private enterprise.
                                                       21
The Arkansas REALTORS® Association recognizes there is an ample supply of office space readily available
for lease to the State. The Arkansas REALTORS® Association supports the State leasing space from existing
building owners so long as office space can be leased by the State at rates favoring a lease versus
constructing and maintaining a building. Another alternative is for the State to acquire existing buildings at
costs below new construction. The State government should not enter into new construction of a State office
complex building unless and until the needed space cannot be obtained from existing private owners at rates
that justify leasing or acquisition costs lower than new construction.

The Arkansas REALTORS® Association believes State buildings should be acquired to cover only the
essential services and not provide additional buildings for agencies that may be reduced in the future. The
Arkansas REALTORS® Association encourages State government to utilize its revenues for purposes other
than construction and maintenance of additional buildings. The Arkansas REALTORS® Association supports
an impartial lease versus ownership calculation to be performed prior to any new State building construction.

HOME INSPECTORS

Arkansas Home Inspectors are required to register with the State of Arkansas and to meet certain
requirements of qualifications as Home Inspectors. The Arkansas REALTORS® Association supports the
existing requirements.

INDEPENDENT CONTRACTORS

The Arkansas REALTORS® Association strongly opposes any efforts to change the current laws regarding
independent contractor status that would be to the detriment of the members of the Arkansas REALTORS®
Association. We also oppose bringing State laws into conflict with Federal Legislation such as the areas of
Worker’s Compensation, Unemployment Insurance and Social Security.

INFLATION

We support a balanced budget, the elimination of the National Debt, the stabilization of the money supply and
the freedom of business and industry to function without undue governmental restrictions. This would not
mean we are in favor of the removal of mortgage interest deduction because of its devastating effects on
private property ownership.

LANDLORD TENANT LAW

REALTORS® support the present landlord-tenant laws which adequately protect the rights of tenants and
landlords.

MANDATORY ARBITRATION

Due to the increasing cost of litigating disputes and the length of time required to effect litigation, we support
legislation mandating a requirement of arbitration prior to the filing of a lawsuit.


POLITICAL AFFAIRS

Recognizing there is a real threat to the free enterprise system in this country, the Arkansas REALTORS®
Association believes in the need for constant vigilance to prevent the further decay of the rights of private
property owners who are dedicated to the continued health, well-being and preservation of the free
enterprise system, encouragement of the ownership of private property and the protection of the rights of
private property owners. On behalf of our membership, the Association is advanced in the understanding of
                                                         22
involved in our political system and urges members to become involved and participate in political activity
in the party of their choice at all levels of government. All members should offer their personal services and
support to candidates committed to the free enterprise system and to the protection of the rights of private
property owners. The Arkansas REALTORS® Association urges its members to seek elected or appointed
office and to devote the required time and energy to the ultimate benefit of our state and communities. We will
continue to promote a political affairs committee in each member Board and charge these committees with the
obligation and responsibility to actively promote political programs and strongly support the following guidelines
that protect individual property rights:

   1. Provide a continuing political education program for all members.
   2. Establish a communication and information network at the State and local level.
   3. Monitor the activities of elected and appointed officials, and the legislation under consideration.
   4. Inform all members of issues having a bearing on the real estate industry and encourage them to
      participate actively in protecting our private property rights.
   5. Select and support candidates who are dedicated to the free enterprise system and the support of
      private property rights, and who will carry out the basic philosophy of our Association.
   6. Work with ARPAC Trustees by informing them of candidates deserving REALTOR® support.
   7. We stand prepared to mobilize our Members to react to threats to private property rights. We oppose
      public financing of political campaigns for elected offices. Public financing in whole or in part will
      inevitably lead to the elimination of private contributions to candidates for the public office. We believe
      that the present system allows for better communications between the elected officials and the people
      they serve.

PROPERTY OWNERSHIP

Private ownership of real property is the foundation of our nation’s free enterprise system. REALTORS®
dedicate themselves to the achievement of that right by every citizen. An unrestricted and continuing
opportunity for every citizen to own real property must be a recognized state goal.
The Arkansas REALTORS® Association, through its members will continue to assist the public in achieving
this goal. REALTORS® have made it possible for the public to be more mobile, vary their life-style,
accumulate wealth and provide a hedge against inflation, thereby creating a desire to or need to transfer
ownership.

REAL ESTATE LICENSING AND REGULATIONS

We support the efforts of the Arkansas Real Estate Commission to vigorously enforce the real estate license
law. We recognize the necessity of continued regulation of Real Estate Brokers and Salespersons to maintain
an acceptable level of competence for persons who now may in the future become actively engaged in the real
estate business.


REAL ESTATE RECOVERY FUND

The recovery fund shall be maintained and administered by the Arkansas Real Estate Commission. The
assets of the fund may be invested and reinvested as the Commission may determine with the advice of the
State Board of Finance.
Any amounts in the fund including accumulated interest, may be used by the Commission for the following
purposes:
   1. To fund educational seminars and other forms of educational projects for all licensees.
   2. Fund real estate chairs or courses at various state institutions of higher learning for the purpose of
       making such courses available to licensees and the general public.
   3. To fund research projects in the field of real estate.


                                                       23
   4. To fund any and all other educational and research projects of a similar nature having to do with the
      advancement of the real estate field in Arkansas.


RENT CONTROL

We support the concept of affordable housing and defend the right of Americans to own property free of
unreasonable controls of any kind. We therefore urge elected officials at all levels of government to oppose
the adoption of rent control legislation.


STATE AND FEDERAL BANKS ENTERING THE REAL ESTATE BROKERAGE BUSINESS

The Arkansas REALTORS® Association is concerned about the potential effects on the competitive structure
of the real estate industry with respect to the expansion of bank holding companies, i.e. savings and loans
service corporations which use federally insured deposits for reinvestments.
The Arkansas REALTORS® Association opposes any effort by such financial entities to participate in the
business of third party real estate brokerage, fee appraising, or other real estate services not directly related to
the primary function of that lending institution.

STATE AND LOCAL REAL ESTATE TAXATION

Real estate taxes should be used primarily to pay for schools and government services that promote the
private ownership of real property. We oppose impact fees and laws that place an undue hardship on the
development of housing and other real property.
Any lowering of the required percentage of the Legislature voting to change the real estate tax maximum levy
would mean that real estate taxes would discourage new residents and new industry, which Arkansas
desperately needs, from moving into the state. We therefore are opposed to any such lowering of the
percentage by which real estate tax maximum levy can be increased.
We support a reduction of the real property tax through the use of a homestead exemption. We are opposed
to replacing the real property tax through an increase in the state sales tax, in part because of the loss of the
exemption of real estate taxes from Federal and state income taxes. REALTORS® and appraisers would no
longer have property records available to use as we do now. Schools would be totally funded by the state thus
replacing local control by state control. A lower level of school funding will reduce school quality. Any new
school, library or municipal project would require special funding by the Legislature.


TAX INCREASES

The Arkansas REALTORS® Association strongly opposes a sales tax on services. This would be a “PASS
ON” cost to the consumer and this type of sales tax would only broaden the gap between adequate housing,
affordability. The Association will actively oppose any legislation that would levy this type of tax on services.
We are opposed to replacing the real property tax through an increase in the state sales tax, in part because of
the loss of the exemption of real estate taxes from Federal and state income tax.

We are opposed to any increase of the current transfer tax of $3.30 per $1,000.00 of sales price.


TRANSFER TAX

The ability to purchase real property contributes directly to the economy of the state. We believe that a
transfer tax can become a detriment to real estate sales, therefore we are opposed to any increase of the
current transfer tax rate of $3.30 per $1000.00 of sales price. We also believe that since this tax is generated
                                                        24
by the real estate industry it should support and promote such real estate industry. We believe the money from
the existing transfer tax should be used for:

   1.   Recruitment of suitable industry to the State.
   2.   Education of persons within the real estate industry.
   3.   Education of the general public about the real estate industry.
   4.   Support of the Retirement and Relocation Division of the Arkansas Department of Parks and Tourism.

CONCLUSION

Every effort was made to reach a true consensus of the membership in developing these positions. Members
from all areas of the state and all segments of the industry were consulted and given an opportunity to
contribute.
Each statement was clearly defined as to merit and formulated to present the REALTOR® position. Every
effort was made to insure that this document and its contents are in conformity with the general objectives of
the Arkansas REALTORS® Association.
Inquiries about the 2008-2009 Statement of Public Policy should be addressed to the Executive Vice
President, Andy Schaus, Arkansas REALTORS® Association, 11224 Executive Center Drive, Little Rock,
Arkansas, 72211. Telephone (501)225-2020.

                               Arkansas REALTORS® Association
                                 Reserve and Investment Policy
           (As approved by the Board of Directors, 09/2003 & 3/21/2006, revised 5/16/2009)

Overview: This policy sets forth the objectives, responsibilities and investment strategies for the
management of the Association’s assets. The goal of this policy is to ensure that the funds of the Association
are invested to achieve the highest possible rate of return using safe and prudent investment practices.

The ARKANSAS REALTORS® ASSOCIATION recognizes that certain investments of our funds can also be
used to further the growth of the housing market in Arkansas and the US. Therefore, investments in Arkansas
state chartered banks and investments in mortgage-backed securities will be considered essential elements of
the Association’s portfolio.

Categories: For the purposes of managing investment risk and to optimize investment returns within
acceptable risk parameters, the funds held will be divided into three separate investment pools.

The three investment pools are as follows:
 1) Operating Reserve Funds
   a) Restricted Funds
   b) Program Contingency Fund
   c) Other Investment Fund
 2) Designated Reserves
   a) Equipment Replacement Fund
   b) Legal Action Fund
   c) Issues Mobilization Fund
 3) Operational Fund

Procedures:           The following procedures will be followed to ensure the Reserve and Investment policy
statement is consistent with the current mission of ARA and accurately reflects the current financial condition:
This Reserve and Investment policy shall be reviewed annually by the Finance Committee and Executive
Committee for any necessary revisions.


                                                       25
Recommendations for any revisions or modifications will be made by the Finance Committee and Executive
Committee to the Board of Directors for approval.

Funding:                The following procedures will be used to determine the dollar amounts to be placed in
each investment pool:

                                          Operating Reserve Funds

Investing of the reserve fund is to be separated into two portfolios with a specified dollar to be maintained in
the portfolio referred to as Restricted Funds.

Restricted Funds – The target amount for the Restricted Funds is designated at an amount equal to six months
of the Annual Operating Budget. The Finance Committee and Executive Committee will recommend to the
Board of Directors via the annual budget process the target dollar level of Restricted Funds each year.

Program Contingency Fund - The Finance Committee and Executive Committee will recommend to the Board
of Directors via the annual budget process the dollar level to be added to the Program Contingency Fund each
year.

Other Investment Fund - The Finance Committee and Executive Committee will recommend to the Board of
Directors via the annual budget process the dollar level to be added to the Other Investment Fund each year.


Purpose:

Restricted Funds - The purpose of the Restricted Funds is to provide approximately six months of operating
reserves to meet expenses of ARA in the event of a significant budget shortfall.

Program Contingency Fund – The purpose of this category is for funding unbudgeted programs or unbudgeted
emergency expenses. The request for use of these funds must be approved by the Board of Directors.

Other Investment Fund- Defined as the cash funds in excess of those required to operate the Association
(Operational Fund) and meet the reserve requirements as established by the Board of Directors (Restricted
Funds and Designated Reserves).


Funding: Investing of the reserve fund is to be separated into three portfolios with a specified dollar amount to
be maintained in the portfolio referred to as Restricted Funds.

Restricted Funds– The target amount for the Restricted Funds is designated at an amount equal to six months
of the Annual Operating Budget. The Finance Committee and Executive Committee will recommend to the
Board of Directors via the annual budget process the target dollar level of the Restricted Funds each year.

Program Contingency Fund- The Finance Committee and Executive Committee will recommend to the Board
of Directors via the annual budget process the dollar level to be added to Program Contingency Fund each
year.

Other Investment Fund - The Finance Committee and Executive Committee will recommend to the Board of
Directors via the annual budget process the dollar level to be added to the Other Investment Fund each year.

Investment Objectives:
The investment objectives of the Operating Reserve Funds are:
   • Preservation of Capital
                                                        26
   •   Liquidity
   •   To optimize the investment return within the constraints of the policy


Investment Guidelines:
Allowable Investments: The Executive Committee with the recommendations from the Finance Committee
shall be authorized to invest the ARA Operating Reserve Funds as follows:
    • US Government Securities (term investment) such as Treasury bills, notes or bonds, which are backed
        by the full faith and credit of the US Government.
    • Certificates of Deposit (term investment) issued by a federally insured (FDIC or FSLIC) financial
        institution with account deposits limited to the federally insured protection level ($250,000) per
        institution. Whenever possible, CDs will be purchased from Arkansas State-Chartered Banks
        whenever possible to generate public relations for our members.
    • Federal Agency Securities (term investment) such as notes issued by FANNIE MAE and GINNIE MAE;
        providing the securities are backed by the full faith and credit of the issuing Federal Agency.
    • Money Market or Savings Accounts established with a local bank protected by Federal Insurance with
        account balances limited to the federally insured protection level ($250,000) per institution.
    • Real Estate such as commercial real estate investment property located in the state of Arkansas.

Maturity: The weighted average maturity for the Operating Reserve Funds excluding any real estate
investments shall be limited to one year or less.

Reporting: The Treasurer shall prepare the following reports for presentation on a monthly basis to the
Executive Committee:
   • Schedule of Investments
   • Interest Income Year to Date
   • Current Yield

                                           Designated Reserves
Equipment Replacement Fund – The Finance Committee and Executive Committee will recommend to the
Board of Directors via the annual budget process the dollar level to be added to the Equipment Replacement
Reserve each year.

Legal Action Fund – Funded in accordance with ARA Bylaws

Issues Mobilization Fund – Annually, $3.00 per member is added to this reserve.

Authorized Investment Instruments
   • US Government Securities (term investment) such as Treasury bills, notes or bonds, which are backed
      by the full faith and credit of the US Government.
   • Certificates of Deposit (term investment) issued by a federally insured (FDIC or FSLIC) financial
      institution with account deposits limited to the federally insured protection level ($250,000) per
      institution. Whenever possible, CDs will be purchased from Arkansas State-Chartered Banks
      whenever possible to generate public relations for our members.
   • Federal Agency Securities (term investment) such as notes issued by FANNIE MAE and GINNIE MAE;
      providing the securities are backed by the full faith and credit of the issuing Federal Agency.
   • Money Market or Savings Accounts established with a local bank protected by Federal Insurance with
      account balances limited to the federally insured protection level ($250,000) per institution.
   • Real Property investments such as commercial real estate property located in the state of Arkansas will
      be an allowable use of Operating Reserve Funds only. A majority of the Board of Directors shall be
      required to use any of operating reserve funds for the purpose of acquiring investment real estate.


                                                       27
Purpose:
The purpose of the Designated Reserves is to allocate a portion of ARA’s reserves for specific purposes. The
three funds within Designated Reserves are:
Equipment Replacement Fund
Legal Action Fund
Issues Mobilization Fund


Funding:
Equipment Replacement Fund – The Finance Committee and Executive Committee will recommend to the
Board of Directors via the annual budget process the dollar level to be added to the Equipment Replacement
Reserve each year.
Legal Action Fund – Funded in accordance with ARA Bylaws
Issues Mobilization Fund – Annually, $3.00 per member is added to this reserve.


Investment Objectives:
The investment objectives of the Designated Reserves are:
   • Preservation of Capital
   • Liquidity
   • To optimize the investment return within the constraints of the policy


Investment Guidelines:
Allowable Investments: The Executive Committee with recommendations from the Finance Committee shall
be authorized to invest the Designated Reserves as follows:
    • US Government Securities (term investment) such as Treasury bills, notes or bonds, which are backed
       by the full faith and credit of the US Government.
    • Certificates of Deposit (term investment) issued by a federally insured (FDIC or FSLIC) financial
       institution with account deposits limited to the federally insured protection level ($250,000) per
       institution. Whenever possible, CDs will be purchased from Arkansas State-Chartered Banks
       whenever possible to generate public relations for our members.
    • Federal Agency Securities (term investment) such as notes issued by FANNIE MAE and GINNIE MAE;
       providing the securities are backed by the full faith and credit of the issuing Federal Agency.
    • Money Market or Savings Accounts established with a local bank protected by Federal Insurance with
       account balances limited to the federally insured protection level ($250,000) per institution.

Maturity: The weighted average maturity for the Designated Reserves shall be limited to one year or less.

Reporting: The Treasurer shall prepare the following reports for presentation on a monthly basis to the
Executive Committee:
   • Schedule of Investments
   • Interest Income Year to Date
   • Current Yield


                                             Operational Fund
Purpose: The purpose of the Operational Fund is to provide sufficient cash to meet the day to day financial
obligations of ARA in a timely manner.


Investment Objectives: The investment objectives of the Operational Fund are:
   • Preservation of Capital
                                                      28
   •   Liquidity
   •   To optimize the investment return within the constraints of the policy


Investment Guidelines:
      Allowable Investments: The Executive Committee with recommendations from the Finance Committee
      shall be authorized to invest the ARA Operational Fund as follows:
          • Checking accounts in US federally insured banks not to exceed federally insured amounts
          • Federally-insured Certificates of Deposit

       Maturity: The maturities on investments for the Operational Fund shall be limited to one year or less

       Reporting: The Treasurer shall prepare the following reports for presentation on a monthly basis to the
       Executive Committee:
          • Schedule of Investments
          • Interest Income Year to Date
          • Current Yield

                             Emergency Succession & Disaster Plan
Procedure for the Appointment of an Acting Executive Vice President in the Event of an Unplanned Absence of
the Executive Vice President

Rationale:
In order to ensure the continuous coverage of executive duties critical to the ongoing operations of the
Arkansas REALTORS® Association and its services to its members, the Board of Directors is adopting policies
and procedures for the temporary appointment of an Acting Executive Vice President. The Board believes
that due diligence in exercising its governance functions requires that it have an emergency executive
succession plan in place. It is expected that this plan will ensure continuity in external relationships and in staff
functioning. This plan shall become part of the ARA Policy Manual.

Priority Functions of the Executive Vice President position at ARA

The full EVP position description is contained within the Policy Manual.

Among the duties listed in the position description, the following are the key functions of the EVP to be covered
by an acting EVP:
    • Along side the Elected President, serve as ARA’s principal leader, representative and spokesperson to
       the greater community and membership.
    • Support the Board of Directors
    • Ensure integrity and strength of Board leadership and address issues around clarity of role,
       governance, bylaws/policies, corporate structure and membership
    • Assist with recruitment and orientation of new Board members
    • Prepare Executive reports to Board of Directors and Executive Committee and attend various
       committee meetings.
    • Convene and lead the management team.
    • Recruitment, interview, selection and evaluate all staff positions.
    • Implement ARA’s short-range and long-range programs and goals.




                                                         29
Succession plan in event of a temporary, unplanned absence -- SHORT-TERM

Definitions
A temporary absence is one in which it is expected that the EVP will return to his position once the events
precipitating the absence are resolved. An unplanned absence is one that arises unexpectedly, in contrast to a
planned leave, such as a vacation or a sabbatical. A short-term absence is 3 months or less.

Who may appoint the Acting EVP
The Board of Directors authorizes the Executive Committee to implement the terms of this emergency plan in
the event of the unplanned absence of the Executive Vice President. In the event of an unplanned absence of
the EVP, the COO Director shall immediately inform the President of the absence. The position description of
the COO specifies that they shall serve as Acting EVP in the absence of the EVP. As soon as is feasible, the
President shall convene a meeting of the Executive Committee to affirm the procedures prescribed in this plan
or to make modifications the Committee deems appropriate.

Back-ups for the position of Acting EVP
Should the COO/CFO be unable to serve as Acting Executive Director, the first back-up appointee will be the
Professional Development Director. In the event the standing appointee, the COO, is new to the COO position
and fairly inexperienced with ARA, the Executive Committee may decide to appoint the back-up appointee to
the acting executive position. The Executive Committee may also consider the option of splitting executive
duties among other staff members.

Cross-training plan for appointees
The EVP, with assistance from the COO/CFO, shall develop a plan for training the two potential appointees in
each of the priority functions of the Executive Vice President which are listed above. The training plan is
attached to this document and will be completed within ninety days of the approval of this plan by the Board of
Directors.

Authority and restrictions of the appointee
The person appointed as Acting EVP shall have the full authority for decision making and independent action
as the regular EVP.

Compensation
The Acting EVP’s compensation will be determined by the Executive Committee.
 Board committee responsible for oversight and support to the Acting Executive Director
As with the EVP, the President acting with counsel from the Executive Committee, will have responsibility for
monitoring the work of the Acting EVP. This has been slightly altered above so that the acting EVP answers
mainly to the President. The Executive Committee will also be alert to the special support needs of the
Executive Vice President in this temporary leadership role.

Communications plan
To notify the full Board of Directors.
As soon as possible after the Acting EVP has begun covering an unplanned absence, Executive Committee
members and the Acting EVP shall communicate the temporary leadership structure to the following key
agencies external to ARA office: AREC,     NAR, Local REALTOR Boards.


Succession plan in event of a temporary, unplanned absence -- LONG-TERM

Definition
A long term absence is one that is expected to last more than 3 months



                                                      30
Procedures
The procedures and conditions to be followed shall be the same as for a short-term absence with one addition:

The Executive Committee will give immediate consideration, in consultation with the Acting EVP, to temporarily
staffing the management position left vacant by the Acting EVP. This is in recognition of the fact that, for a
term of more than 3 months, it may not be reasonable to expect the Acting EVP to carry the duties of both
positions. The temporary staff person would focus on covering the priority areas in which the Acting EVP
needs assistance.

Succession plan in event of a PERMANENT unplanned absence.

Definition
A permanent absence is one in which it is firmly determined that the EVP will not be returning to the position.

Procedures
The procedures and conditions shall be the same as for a long-term temporary absence with one addition:
The Executive Committee shall appoint a Transition and Search Committee consisting of the current President
of the Association as Chair, the President-Elect, two Past Presidents currently not serving on the Executive
Committee, one member of the Executive Committee other than the President or President-Elect, and four
members of the Board of Directors not currently on the Executive Committee to implement a search plan and
carry out a transition to a new permanent EVP. The Transition and Search Committee will report its findings
for a new Executive Vice President to the Board of Directors for approval.

Approvals and maintenance of record

Succession plan amendments
Any amendments to the Exit Plan will be approved by the Executive Committee and forwarded to the full Board
of Directors for its vote and approval.

Signatories
This plan shall be signed by the President, the EVP, and the appointees designated in this plan annually.

Maintenance of record
Copies of this plan shall be maintained by the President, the EVP, the COO/CFO, the back-up appointee, and
the ARA Corporate Attorney.


President of the Arkansas REALTORS® Association                                                   Date

Executive Vice President of the Arkansas REALTORS® Association                                    Date

Chief Operating Officer/Chief Financial Officer of the Arkansas REALTORS® Association             Date

Professional Development Director of the Arkansas REALTORS® Association                           Date




                                                       31
                               Arkansas REALTORS® Association
                                DOCUMENT RETENTION POLICY
       Accounts payable (seven years)
       Accounts receivable(seven years)
       Annual financial statements (permanent)
       Bank statements (seven years)
       Bank reconciliations (seven years)
       Canceled checks- routine matters (seven years)
       Canceled checks- special (loan repayment, etc.) (permanent)
       Correspondence: routine (four years)
       Deeds and closing papers (permanent)
       Deposit slips (four years)
       Electronic payment records (seven years)
       Employee expense reports (seven years)
       Fixed-asset acquisition invoices (after disposal) (seven years)
       Freight bills (seven years)
       General ledgers (permanent)
       Income tax returns (permanent)
       Inventory count & costing sheets (seven years)
       Insurance policies (after expiration) (four years)
       Investments (after disposal) (seven years)
       Mortgages, loans & leases (paid) (seven years)
       Payroll journals & ledgers (permanent)
       Purchase orders (except accounts payable copy) (one year)
       Purchase invoices & orders (seven years)
       Receiving sheets (two years)
       Sales commission reports (five years)
       Sales records (seven years)
       Sales tax returns & exemption support (five years)
       Subsidiary ledgers (seven years)
       Tax returns (federal & state) (if applicable) (permanent)
       Trial balances (permanent)


Association Corporate Records
       Articles of Incorporation and amendments (permanent)
       Bylaws, Policy Manual and amendments (permanent)
       Corporate filings (permanent)
       Corporate Minute Book (permanent)
       Committee, Executive Committee and Board of Director’s minutes shall reflect action taken with such
       minimum explanation as is absolutely necessary to make the action clear.
       Any recording of a meeting shall be immediately destroyed after the minutes are transcribed to a draft
       hard copy with not exceptions. Any corrections shall be noted in the next meeting of the assembly.
       The Corporate Minute Book of Minutes shall be assembled at the end of each calendar year and
       properly signed by the Secretary Treasurer for the year of service.
       Policy Manual changes shall be approved by the entire Board of Directors at their next scheduled
       meeting.
       IRS Exemption Letter (permanent)

Electronically Stored Information
The Association shall backup all electronic records twice daily; 1) once to a second backup hard drive, and 2)
once daily to an off-site vendor.
                                                      32
Only data will be backed up. Programs to obtain such data are not backed up as they are deemed not
operative from a backup. Programs can only be re-installed from the original source of the program such as
the installing disk.


Employment Records
      Documents relating to job recruitment: advertising, job orders submitted to employment agencies,
      interviewing, testing, hiring, training, demotions, promotions, layoffs, discharge, and other personnel
      decisions (one year)
      Employee benefit plan documents (duration of plan)
      Garnishments / wage assignments (three years)
      Immigration I-9 forms (duration of employment plus one year, minimum of three years)
      Medical records relating to the exposure of the employee to any toxic or hazardous substances.
      (duration of employment plus 30 years).
      Payroll records showing name address, date of birth, occupation, rate of pay, and weekly compensation
      (three years)
      Personnel Records (ten years after employment ends)
      Record of all occupational injuries, including those under state workers compensation law
Other Records
      Legal Documents
      Contracts (ten years after expiration)
      Trademarks, Patents & Copyrights (permanent)
      Warranties & Guaranties (two years beyond terms of the warranty)
      Correspondence: legal (permanent)
      NAR / Association Documents
      NAR charter (permanent)
      Territorial jurisdiction (permanent)
      REALTOR® Agreement (until superseded)
      Member file & membership applications (two years after membership terminates)
      Professional Standards Hearing Records: Ethics (result of hearing- permanent; rest of hearing file-
      minimum of 1 year after satisfaction of sanctions (if any) and there is no threat of litigation)
      Arbitration / Mediation (minimum of 1 year after payment of award (if any) and there is no threat of
      litigation)
      Property Records
      Deeds of Title (permanent)
      Leases (two years after expiration)
      Depreciation schedules (permanent)
      Property Damage (seven years)
      Property Tax (permanent)
      Appraisals (permanent)
      Blueprints / Plans (permanent)
      Warranties & Guaranties (two years beyond terms of the warranty)


Disaster Survival
Create a single DVD that houses the critical documents for the organization. Keep copies of the same DVD at
the executive Director’s home, the Association’s Legal Counsel and a copy with the Association’s CPA. All the
recommended documents below should be scanned. By protecting the key operating documents, such as the
IRS Letter of Determination, bylaws, and financial statement, it will be possible to relocate and rely on those
documents to get up and running. The DVD contains the following documents:



                                                      33
• Articles of Incorporation included in DVD and also backed up on server off-site
• Bylaws included in DVD and also backed up on server off-site
• Current Rosters of Board and Staff included in DVD and also backed up on server off-site
• Policy Manual included in DVD and also backed up on server off-site
• Insurance Policies included in DVD and also backed up on server off-site, also copies at the insurance
agent’s office.
• IRS Information Returns for 3 Years (Form 990)* only copies at the CPA’s office since any audit would
require more than the return.
• IRS Letter of Determination included in DVD and also backed up on server off-site
• IRS Application for Exemption (Form 1023 or 1024) included in DVD and also backed up on server off-site
• Current Budget and Financial Statement the current financial statements change monthly and are backed up
on the server, should not have to back up monthly on DVD. The annual budget and the most recent annual
audit will be on the DVD and backed up on the server.
• List of Passwords this item shall be backed up only to the DVD



                            Arkansas REALTORS® Association’s
                     Policies of the Publication, REALTOR® ‘Rightings,
                                         Effective January 1, 2008
   (Approved by the Executive Committee as an emergency measure, 12/07 and approved by the Board of Directors,
                                    February, 2008, amended June 17, 2009)

   1. All advertising is subject to approval of the Arkansas REALTORS® Association. Articles submitted for
       publication are subject to editing by the Arkansas REALTORS® Association.
   2. REALTOR® Members are encouraged to submit articles for publication and are subject to acceptance
       and editing by the Arkansas REALTORS® Association which in no way will solicit agents for
       employment as an agent or broker for any firm, REALTOR® or otherwise.
   3. Advertising will be accepted for services and products which will enhance the performance and/or limit
       liability for professional real estate business of brokers and agents.
   4. REALTORS® will be encouraged to place advertising in a special ‘Referral’ section of the magazine but
       under no circumstances solicit agents to join the advertiser’s firm. This advertising shall only consist of
       offering cooperation via offering a fee for any broker/agent who referrers both buyers and sellers to the
       advertising firm.
   5. Franchise soliciting for the purpose of selling a firm a franchise is encouraged. Franchises advertising
       the solicitation of agents (either in general or for specific franchise firm) is not acceptable advertising.
   6. Advertising by members or non-members to solicit any professional in the real estate business to join
       the advertiser’s firm shall be prohibited.
   7. Placement of events, for profit or not for profit, on the calendar published in the REALTOR® ‘Rightings
       shall be subject to acceptance of the Editor of this publication.
   8. All requests for legal hotline questions shall be published only after ARA’s Legal Counsel’s review and
       permission to publish.
   9. Articles written by the Arkansas Real Estate Commission shall be subject to editing for purposes of
       meeting the technical, stylistic requirements of the magazine’s editor. REALTOR® ‘Rightings has
       encouraged the ‘Commission’ to submit articles and will continue to do so.
   10. The mailing list for distribution is obtained from the most current NRDS (membership records kept
       current by Local Board Executive Officers and ARA) preferred mailing address entered by the member
                                                        34
       when asked. Changes in address shall be addressed to your Local Board Executive Officer. To that
       list, we currently add addresses of advertisers and other persons which contribute to the real estate
       profession.
   11. Advertising by Private Education Schools is welcome. You must be an approved school by the State
       Private Career Education Commission, a division of the State of Arkansas. Schedules for classes shall
       be in the advertisement and shall not appear in the calendar of events if published in the magazine.
   12. The editor shall employ the services of selected members of the Communications Committee to serve
       as content advisors and shall be sent each article for comment. Should two members object to the
       content, the editor shall pull the article from publication.



                Conflict of Interest and Ownership Disclosure Agreement
1. When the Arkansas REALTORS® Association (ARA) has an ownership interest in an entity and a member
has an ownership interest in that same entity, such member must disclose the existence of his or her
ownership interest prior to speaking to a decision making body on any matter involving that entity.

2. If a member has personal knowledge that ARA is considering doing business with an entity in which a
member has any financial interest, or with an entity in which the member serves in a decision-making capacity,
or wit, then such member must disclose the existence of his or her financial interest or decision making role
prior to speaking to a decision making body about the entity.

3. If a member has a financial interest in, or serves in a decision-making capacity for, any entity that the
member knows is offering competing products and services as those offered by ARA, then such member must
disclose the existence of his or her financial interest or decision-making role prior to speaking to a decision
making body about an issue involving those competing products and services.

After making the necessary disclosure, a member may participate in the discussion and vote on the matter
unless that member has a conflict of interest as defined below.

Conflict of Interest Policy

A member of any of ARA’s decision making bodies will be considered to have a conflict of interest whenever
that member:

1. Is a principal, partner or corporate Officer of a business providing products or services to ARA or in a
business being considered as a provider of products or services (“Business”); or

2. Holds a seat on the Board of Directors of the Business unless the person’s only relationship to the Business
is service on such Board of Directors as ARA’s representative; or

3. Holds an ownership interest of more than 1 percent of the Business.

Members with a conflict of interest must immediately disclose their interest at the outset of any discussions by
a decision making body pertaining to the Business or any of its products or services. Such members may not
participate in the discussion relating to that Business other than to respond to questions asked of them by
other members of the body. Furthermore, no member with a conflict of interest may vote on any matter in
which the member has a conflict of interest, including votes to block or alter the actions of the body in order to
benefit the Business in which they have an interest.

I hereby agree to and will adhere to the above policy.



                                                         35
Signature                                                                           Date


Print Name


Policy to protect members’ private information

Collect only necessary information for the immediate needs and retain it for a minimal amount of time.
Safeguard the information; keep secure and make no copies.
If private information is received via email, make a hardcopy and trash the email that the information was
displayed. Hardcopy to be maintain in a secure location.
Disposal shall be in one of two methods; 1) ARA owns a commercial shredder which may be used for small
amounts of hardcopies, or 2) request that a shredding company pickup larger amounts of material to be
shredded. It is not necessary to see the material shredded but must receive a receipt from a bonded
shredding company that the material will be totally shredded.

It is the responsibility of ARA to use the information responsibly and to protect that information from
unauthorized disclosure.

Unfortunately, there is no fail proof plan to protect against the improper use of personal information. There are
state statutes than must be adhered to when an unauthorized disclosure occurs and ARA should immediately
notify ARA’s general counsel for instructions on such failure and procedure to adhere to.

Examples Of Types Of Personal Information That Should Be Protected:

   •   Social Security Numbers: Should not have the need to request ever.
   •   Financial Information such as credit cards and bank information.
   •   Medical History
   •   Employment Records; All records shall be immediately sent (originals) to ARA’s general counsel. No
       copies, electronic or hardcopies shall be maintained in the ARA office.
   •   Credit Reports
   •   NRDS Identification numbers (cannot be given to other members or the public)
   •   State Real Estate License Number
   •   Member’s home address and/or phone number.
   •   Driver’s license number
   •   Mother’s maiden name
   •   Any password a member may use for personal access to information.
   •   Any information concerning specific dollar amounts from Award for Excellence


Policy of selling member mailing lists

The Arkansas REALTORS® Association will make available a membership mailing list which consists of the
name of the broker/agent, company name, address which the agent/broker prefers mail to be sent, city, state
and zip code.

Any member of the Arkansas REALTORS® Association may purchase a mailing list of members for a one-time
use in electronic format (Excel) for a fee of $75.00

Any non-member of the Arkansas REALTORS® Association may purchase a mailing list of members for a
one-time use in electronic format (Excel) for a fee of $500.00.

                                                        36
The mailing list, in either member or non-member format, shall not include email addresses of the members.

The member classification shall include any REALTOR® from any other state or local Board and shall comply
to NAR’s policy on Board of Choice may purchase a mailing list for one-time use for $150.00.

Any contributor in access of $1,000 shall, when requested, be able to receive an electronic version of the
membership mailing list for a one-time use but not in access of 90 days prior to the start of an annual
convention.

Any paid (paid in advance of the request) exhibitor at an annual convention of ARA, when requested, be able
to receive an electronic version of the membership mailing list for a one-time use but not in access of 90 days
prior to the start of an annual convention.

An affinity partner and a government entity upon request, shall receive an electronic version of the membership
mailing list for a one-time use.


AFFINITY PARTNERSHIP PROGRAM

The Board of Directors shall accept applications for the ASSOCIATION’S Affinity Partnership Program. The
goal of the Directors is to align the ASSOCIATION with products and services which will benefit the business
and personal operations and convenience of its members.
In some cases of acceptance, the ASSOCIATION will derive a monetary rebate from such a partnership
The Board may also accept for partnership, services or products which do not offer such rebates but shall
benefit its members and that shall be the number one reason for acceptance.
The Board shall ensure members that ARA has researched the product and services and find that such entities
to be reliable and trustworthy.
In the event of either poor product or service, ARA shall not be held liability by any loss to any member or firm.

ARA will:
  • Publish the Affinity Partner on their member Web Site, and
  • From time to time, publish articles written by the Affinity Partner in the monthly newsletter, and
  • Sign an agreement with an Affinity Partner as requested, and
  • Retain the right to terminate such agreement at anytime.

The Affinity Partner will:
Provide all marketing materials necessary for promotion to ARA members, and provide ARA with written
reports semi-annually of the progress of the acceptance of the product and/or service.


                      ARA CLASSROOM RENTAL RATES/CONDITIONS
REALTORS:                                                                   Total
1 classroom rental         $125.00 + cleaning $55.00                        $180.00
2 classrooms rental        $200.00 + cleaning $100.00                       $300.00
3 classrooms rental        $250.00 + cleaning $135.00                       $385.00
Projector rentals          $100.00 per projector
Refreshments and Catering provided by sponsor, no charge


Non-industry organizations:
1 Classroom rental        $200.00 + cleaning $55.00                         $255.00
2 Classrooms rental       $300.00 + cleaning $100.00                        $400.00
                                                       37
3 Classrooms rental        $400.00 + cleaning $135.00                     $535.00
Projector rentals          $200.00 per projector
Refreshments and Catering provided by sponsor, no charge

       Rental for ½ day shall be 75% of the daily rate.
       Occupancy past 5:00 PM, $25.00 per half hour after 5:00 PM.
       No alcohol will be allowed by the above groups without permission of the Executive Committee.
       All sponsors shall be responsible for any damage to the facility.
       No Saturday and Sunday events unless approved by the Executive Committee.
       Catering Company and menu for event must be cleared by ARA.

         MINIMUM SERVICES CRITERIA FOR BOARDS AND ASSOCIATIONS
At the 1992 Annual Convention of the National Association of REALTORS, the Board of Directors approved
the “Minimum Services Criteria” for Boards and Associations. The criteria is based on the premise that every
member, regardless of the Board or Association to which, he or she belongs, is entitled to a basic level of
service.

The minimum services criteria for all REALTOR Boards and Associations is as follows.
Questions concerning the minimum services criteria may be directed to NAR’s Member Policy Department at
312/329-8399 or to ARA at local 501-225-2020 or toll-free statewide 1-888-333-2206.

MINIMUM SERVICES CRITERIA

   1. Elections and Meetings. The Board or Association must adopt Bylaws to govern its operation and
      elections, and membership or business meetings must be conducted in accordance with the Bylaws.

   2. Dues Collection. The Board or Association must enforce the dues formula to assure that every
      licensee affiliated with a firm comprised of REALTOR principals is either a member or that the
      Designated REALTOR pays dues based on the number of non-member licensees affiliated with the
      firm.

   3. Staff Services. The Board or Association must maintain or have access to staff services and legal
      counsel.

   4. Communications Process. The Board or Association must provide some form of regular news bulletin
      or computer-based information service to communicate with its members.

   5. Orientation. The Board or Association must maintain (or provide in cooperation with another Local
      Board) an orientation program to inform new members of the privileges and obligations of membership.

   6. Educational Offerings. At least twice a year the Board or Association must provide or cosponsor
      educational offerings relevant to the real estate business. (This requirement could be met by actively
      promoting the availability of such courses offered by another Board or Association if such offerings are
      within a reasonable distance.)

   7. Enforcement of the Code of Ethics. The Arkansas REALTORS® Association must maintain a viable
      professional standards process to enforce the REALTORS Code of Ethics and must provide arbitration
      as a member service. The Association must have a fully functioning professional standards committee
      with the administrative capacity to conduct the processes. All Local Boards within the State of
      Arkansas must be a signatory to the Statewide Professional Standards enforcement procedures.



                                                     38
Specifics on each of these seven criterions are contained in the “Minimum Services Criteria Certification Kit”
available from the National Association of REALTORS, or from ARA. As certification and recertification of a
local Board is required, the Executive Committee shall serve as the certifying body to approve or disapprove
such process. ARA staff members shall support this activity.

Effective January, 2007, all Local Boards shall be required to file their certification electronically with NAR and
file their Bylaws and MLS Bylaws via email directly to NAR. The Arkansas REALTORS® Association shall
have the responsibility to certify once the local Boards have complied with electronic filing and NAR’s approval
of the Board Bylaws and MLS Bylaws, if they apply.


                         Fidelity and Dishonest Bond for Local Boards
                           ARKANSAS REALTORS® ASSOCIATION
In an attempt to possibly assist all Local Boards from problems arising from the possibility of improper use of
funds, the Arkansas REALTORS® Association has the opportunity, assuming execution of the attached
agreement and strict compliance by the applicable Local Board with all terms and conditions set forth below, to
provide each participating Local Board with a Surety Bond to cover losses.

The following (in addition to any other terms and conditions set forth in the Surety Bond) must apply in order to
take advantage of the coverage:

   •   Coverage is for three signatories from your Board allowed to sign checks. One of those persons should
       also make deposits if deposits are to be covered by the bond.
   •   An annual audit from someone who is not a signatory and appointed by your Board of Directors. This
       need not be from a CPA but should be someone who is experienced in auditing and bookkeeping.
   •   A monthly reconciliation of the banks statement by someone who does not sign checks or make
       deposits. (Who does not handle any of the monies of the Board)
   •   Two signatures on every check and no blank check signatures.
   •   Every signatory on checks or persons under coverage must take an annual vacation away from Local
       Board business of signing checks and making deposits.
   •   Require annual signing of an agreement with the Arkansas REALTORS® Association that the Local
       Board will abide by the conditions of coverage. If that agreement is not signed, no coverage will be
                afforded to the local Board.
   •   Coverage, upon the express terms and conditions set forth in the Surety Bond (a copy being enclosed),
       is limited to $25,000
   •   In order for coverage to be effective, the covered person must be convicted in a court of law.
   •   This coverage is effective for employees (full or part time) and elected Officers/Directors of the Local
       Board (exclusively for duties assigned by the Local Board and not to cover any negligent or willful
       actions while acting as a licensee)

If a Local Board has similar coverage in place, the Arkansas REALTORS® Association recommends review of
existing coverage with your insurance representative and legal counsel to determine whether it may be
advisable for each Local Board to amend existing coverage to include a $25,000 deductible and specify
existing coverage is secondary to the Surety Bond outlined herein.




                                                        39
                          Agreement for Coverage of a Surety Bond
We, the Board of Directors of the
                                                   (Local Board Name)
agree to accept the coverage of a Fidelity or Dishonesty Bond from Western Surety Company (the "Insurer")
and funded by the Arkansas REALTORS® Association subject to the following terms, conditions and
contingencies:

   •   Coverage is for three signatories from your Board allowed to sign checks. One of those persons should
       also make deposits if deposits are to be covered by the bond.
   •   An annual audit from someone who is not a signatory and appointed by your Board of Directors. This
       need not be from a CPA but should be someone who is experienced in auditing and bookkeeping.
   •   A monthly reconciliation of the bank statement(s) by someone who does not sign checks or make
       deposits. (Who does not handle any of the monies of the Board)
   •   Two signatures on every check and no blank check signatures.
   •   Every signatory on checks or persons under coverage must take an annual vacation away from Local
       Board business of signing checks and making deposits.
   •   Require annual signing of an agreement with the Arkansas REALTORS® Association that the Local
       Board will abide by the conditions of coverage. If that agreement is not signed, no coverage will be
       afforded to the local Board.
   •   Coverage, upon the express terms and conditions set forth in the Surety Bond (a copy being enclosed),
       is for up to $25,000
   •   In order for coverage to be effective, the covered person must be convicted in a court of law.
   •   This coverage is effective for employees (full or part time) and elected Officers/Directors of the Local
       Board (exclusively for duties assigned by the Local Board and not to cover any negligent or willful
       actions while acting as a licensee).

The initial period of coverage began on June 19, 2002, and extends annually. We agree to implement the
conditions of coverage listed above and to affect controls to keep the conditions in place for the period of
coverage. IN ALL CIRCUMSTANCES, LOCAL BOARD AGREES TO PURSUE ALL CLAIMS UNDER THE
SURETY BOND COVERAGE SOLELY AGAINST INSURER AND AGREES TO RELEASE, INDEMNIFY AND
HOLD ARKANSAS REALTORS® ASSOCIATION HARMLESS FROM ANY CLAIM MADE HEREUNDER,
WHETHER ALLOWED, DENIED, OR OTHERWISE HANDLED BY INSURER.

The three persons we select for coverage are:



The following members of the Board of Directors are agreeing to this agreement on the

              Day of                               , 2009




                                                     40
                           ARKANSAS REALTORS® ASSOCIATION

                                              COMMITTEES
STANDING COMMITTEES

The Arkansas REALTORS Association’s Constitution and by laws requires that the following “Standing
Committees” be continually in existence. Membership is rotated, that is, terms do not all expire the same year.
Vacancies are filled by appointments made by the President.

       LEGISLATIVE
       PROFESSIONAL DEVELOPMENT
       BUSINESS PLANNING
       PROFESSIONAL STANDARDS & GRIEVANCE
       EQUAL OPPORTUNITY
       RISK REDUCTION
       PUBLIC RELATIONS COMMITTEE
       NOMINATING COMMITTEE
       REALTOR®-OF-THE-YEAR COMMITTEE
       DISTINGUISHED SERVICE AWARD COMMITTEE
       CONVENTION COMMITTEE
       PAST PRESIDENTS ADVISORY COUNCIL
       FINANCE COMMITTEE
       COMMUNICATIONS COMMITTEE



SPECIAL COMMITTEES

       NAR & ARA DISTINGUISHED SERVICE AWARD SEARCH COMMITTEE
       GOOD NEIGHBOR AWARD COMMITTEE

The Board of Directors or the President as needed may create additional “Special Committees”. Membership
is for one year only, from appointments made by the President.


                                 MEETING PROTOCOL & SCHEDULING

   •   The Arkansas REALTORS® Association shall hold a minimum of one membership meeting and three
       major committee and Board of Directors meetings annually.
   •   The President Elect shall name the meeting dates for the year he/she shall be President.
   •   An annual calendar shall be completed for the Leadership Conference held in November or early
       December annually and shall be under the direction of the President Elect.
   •   The by-laws require that all members be notified of a membership meeting at least 30 days prior to the
       meeting.
   •   A Board of Directors meeting shall also require a minimum of 30 days notice according to the by-laws.
   •   The ARA Executive Committee’s meetings shall be scheduled in the annual calendar, which is finalized
       in November of the previous year. An agenda shall be sent to members of the Executive Committee to
       arrive at least five days prior to the meeting if possible. The current year’s President shall call special
       meetings at least three days prior to the meeting. Emergency meeting materials may have to be faxed
       as soon as possible prior to the meeting.
                                                       41
•   Minutes of all Executive Committee meetings shall not be posted to the ARA web site due to search
    engines picking up names, etc. An email notice shall be sent to the with an attachment of the minutes
    The Directors at Large will receive a copy through their List Serve. Any member wishing a copy of the
    minutes may request them from ARA.
•   The Committee Chair or Vice Chair shall be required to complete, in writing, an action item blank. Each
    action item as deemed necessary for a report to the Executive Committee and Board of Directors shall
    be placed on one form. The staff member assigned to their committee will have the blank forms
    available and assist the Chair or Vice Chair in completing those forms. The Executive Vice President
    shall determine if the action item requires action from the Executive Committee and Board of Directors
    and place on the agenda.
•   The Executive Committee shall determine ‘do pass’, ‘defeat’, or return to committee for further study
    and report same after the Chair or Vice Chair gives their report
•   Any member of the Association shall have the right to request a subject for discussion by any
    committee including the Executive Committee and the Board of Directors but shall so request at least
    30 days prior to a regularly scheduled meeting at the Board of Director’s Meeting. .
•   Any member requesting a discussion of a subject by any committee shall submit that request to the
    Executive Vice President or the Chief Financial Officer (for Financial Committee and the Business
    Planning Committee). Should the staff Officer determine that the subject should be shifted to another
    committee that decision shall stand. An example would be a subject which is requested to be brought
    before the Board of Directors and it is deemed necessary to research through a committee prior to
    going before the Board of Directors.
•   All approved actions items brought up from committees shall be presented to the Executive Committee
    prior to the Board meeting. The Executive Committee shall inform the Board of its recommendation on
    items or actions they deem appropriate.
•   Attendance by members shall be required. Upon the third absences during the entire term of the
    appointment, resignation shall be automatic. An excused absence is only when the member is
    attending another REALTOR® meeting held at the same time. The chair shall determine such
    resignations. Should such resignation be instituted, the members may file a written request to the
    President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
    shall automatically be a final resignation without the ability to submit for reinstatement..
•   Weapons of any kind are prohibited from any and all meetings and classrooms of the Arkansas
    REALTORS® Association (licensed or unlicensed) unless previously approved by the Executive
    Committee in advance.


       COMMITTEE CHAIRPERSON’S & VICE CHAIRPERSON’S RESPONSIBILITIES

•   Committee Chairs shall be required to order notice to members of committee meetings whether or not
    they are special meetings or regularly scheduled meetings at least two weeks prior to the meeting
    which will also include an agenda of subjects to be discussed.
•   Each committee chair shall have the services of a staff member assigned to that committee for
    administrative services required by the committee.
•   The Committee Chair or Vice Chair shall be required to complete, in writing, an action item blank. Each
    action item as deemed necessary for a report to the Executive Committee and Board of Directors shall
    be placed on one form. The staff member assigned to their committee will have the blank forms
    available and assist the Chair or Vice Chair in completing those forms. The Executive Vice President
    shall determine if the action item requires action from the Executive Committee and Board of Directors.
•   The Committee Chair or Vice Chair shall be available for the next Executive Committee Meeting to
    present the action item(s) from their Committee. They must also be prepared to make a presentation to
    the Board of Directors on all action items approved for presentation.
•   It shall be the full responsibility of the Chairperson to enforce the following policy: Attendance by
    members shall be required. Upon the third absences during the entire term of the appointment,
    resignation shall be automatic. An excused absence is only when the member is attending another
                                                  42
    ARA Meeting held at the same time. The chair shall determine such resignations. Should such
    resignation be instituted, the members may file a written request to the President for reinstatement
    explaining the reasons for absences. If reinstated, one additional absence shall automatically be a final
    resignation without the ability to submit for reinstatement.
•   All Vice Chairs of all committees must submit their committee’s budget along with the proposed project
    descriptions for the following year by August 1 of the prior year. The chair will be notified to submit
    such request.
•   All chairs shall have the responsibility to assign projects, as needed and related to their committees, to
    Task Forces within their committee.
•   Attending and chairing meetings, being especially careful to solicit input from every committee member
    and to request votes as needed.
•   Removing selves/asking other committee members to remove themselves from issues representing
    either a conflict of interest or the appearance of a conflict of interest.
•   Working with staff to submit reports to the monthly newsletter on committee activities as appropriate.
•   Be intensely interested in the duties assigned that Committee.
•   Have previous experience on the Committee and familiar with past activity.
•   Have an open mind.
•   Be able to keep the group on the subject at hand at all times during a meeting.
•   Be able to stick to time schedules.
•   Understand people and their wants, as well as stimulate others to work together.
•   Be impersonal and refrain from favoritism.
•   Be tactful, friendly and respect the opinions of others.
•   Be willing to learn.
•   Be the one who will abide by the wishes of the majority and follow through to completion of a project.
•   At the beginning of each meeting, the chair shall introduce the President, Executive Committee
    Members, Real Estate Commissioners if present, Vice Chair of this committee and introduce guests
    and first-time attendees.
•   When accepting an appointment of incoming Chair and Vice Chair of an ARA Committee, it is
    mandated that the year prior to your serving, attendance at the Leadership Retreat is required with
    attendance at the session on ‘Conducting a Meeting’.

                             COMMITTEE JOB DESCRIPTIONS
                          BOARD OF DIRECTORS JOB DESCRIPTION

•   The Board of Directors shall be the highest authority of the Association.
•   Their authority is detailed in the Bylaws of this Association.
•   They shall meet a minimum of three times annually.
•   Any member shall have the right to request a subject for the agenda by filing their request along with
    rationale with the Executive Vice President 14 days prior to a scheduled meeting.
•   The Board of Directors shall administer the finances of the Association and shall have sole authority to
    appropriate money. Funds appropriated by the annual budget approved by the Board of Directors shall
    be considered appropriated and may be ordered paid by the by the Executive Committee and the
    Secretary Treasurer.
•   Special Meetings & attendance by members: The Board of Directors shall meet on call from the
    President upon three days written notice.
•   Attendance by members shall be required. Upon the third absences during the entire term of the
    appointment, resignation shall be automatic. An excused absence is only when the member is
    attending another REALTOR® meeting held at the same time. The chair shall determine such
    resignations. Should such resignation be instituted, the members may file a written request to the
    President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
    shall automatically be a final resignation without the ability to submit for reinstatement.
                                                   43
   •   50% plus one of the elected Directors shall constitute a quorum of the Board of Directors.
   •   The President of the Association shall serve as chairman of the Board of Directors.
   •   In the event the President cannot be present for the meeting, the President Elect shall serve as
       Chairman.

                            EXECUTIVE COMMITTEE JOB DESCRIPTION

   •   The Executive Committee shall be comprised of the President, President Elect, Secretary Treasurer,
       the Immediate Past President and 4 District Vice Presidents as elected by the membership. All terms
       are for one year except the District Vice Presidents who will serve a two year term on a rotating basis.
       All members shall have one vote each.
   •   The Executive Vice President, the Chief Operating Officer/Chief Financial Officer, the Government
       Affairs Director, and a staff recording secretary shall be non-voting members of the Executive
       Committee.
   •   The Executive Committee shall meet at a minimum of ten times annually and at the call by the
       President of the Association
   •   The President of the Association shall serve as Chairman of the Executive Committee.
   •   The President shall have the authority to call an Executive Session at which only the eight voting
       members and incoming District Vice Presidents if they are invited to the meeting shall be part of the
       Executive Session.
   •   Incoming District Vice Presidents are invited to join the Executive Committee meetings in November
       and December prior to the date of their official duties.
   •   In the event the President cannot be present for the meeting, the President Elect shall serve as
       Chairman.
   •   This committee shall make recommendation to the Board of Directors, shall transact business within
       the authority of the Board between meetings of the Board of Directors, and shall report such actions in
       full to the Board of Directors at its next meeting, except for Executive Session proceedings. This
       Committee shall not have the power to alter the Association’s travel budget, change the dues structure,
       execute special assessments on the members or alter the bylaws except when mandated by the
       National Association of REATLORS® or by laws enacted by the State of Arkansas.


        BUSINESS PLANNING/ STRATEGIC PLANNING COMMITTEE JOB DESCRIPTION

The Business Planning Committee:

   •   The Business Planning Committee is a standing committee of the Arkansas REALTORS® Association
       chaired by the President Elect. The members shall be selected by the President Elect normally around
       mid-year after the President Elect ascertains the performance of persons who he/she may feel would
       lend to the quality of the meeting. The term for the members of the committee is one year.
   •   Is responsible for developing a recommended short term, medium term and long term Business Plan,
       which will direct the operation of all committees, the Board of Directors, the Executive Committee and
       the staff.
   •   Annually (as needed) determine the need for surveys, focus groups, etc., to assess the needs of its
       members.
   •   The Plan shall be for the upcoming year but has the ability to recommend any mid-year additions or
       corrections prior to the plans implementation for the coming year.
   •   All recommendations shall be presented to the Board of Directors at their next scheduled meeting
       unless the President calls a special meeting of the Board.
   •   May, if needed and at the discretion of the “Association’s” President, alter a plan to meet the needs of
       the members and/or the market.


                                                      44
                            CONVENTION COMMITTEE JOB DESCRIPTION

The Convention Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association with its chairman being appointed
       by the Secretary Treasurer for the year of their Presidency and will be appointed for a period of one
       year. The newly elected Secretary Treasurer shall select the site within the first 5 months after his/her
       election.

   •   Will allow its chairman with counsel of the President, to select the members of this committee and the
       chairman shall be given the authority to select vice-chairs for a variety of tasks and sub-tasks as shall
       be required for that year’s convention. Appointments to this committee are for 1 year. The Chairman
       shall represent this committee on the Board of Directors. The Chair, as selected by the President Elect,
       shall automatically be a member of the previous year’s Convention Committee.

   •   This committee shall be responsible for raising sponsorship funds, soliciting exhibitors, recommending
       speakers, programs and sessions, providing convention on-site assistance, local Board promotion with
       visits, assigning sub-committee members for specific tasks and keep an open line of communications
       between members and the ARA staff. See timeline attached as addendum (a).

   •   The negotiation of the hotel rates (space, rates and meal costs), AV, food & beverage or other
       services/products and speaker’s rates and travel is the responsibility of the Meeting Planner.

   •   The chairperson shall set the attendance policy of this committee.

Required activities at the annual convention:
   •   Installation Banquet
   •   Realtor of the Year
   •   Business meeting prior to the Inaugural Banquet but during convention
   •   Board of Directors
   •   Opening Session

On-Site policies:
The Convention Chair shall be provided 1 hotel standard room with taxes but incidentals to be to the account
of the Chair. Co-chairs and Vice Chairs are not included in this policy. The Chair shall also be granted a
complementary convention registration plus one more full registration for his/her guest/spouse.
The Hotel and/or Convention facility shall request approval from ARA for suite request by vendors and
members during our Convention.


State Convention Timetable

                Event                     Committee      Staff   Chairman              Deadline

Selection of venue for Convention                           X                 Less than 5 months of
                                                                              Secretary election
Set Registration cost                                       X         X       August of previous year
Committee Selection                                                   X       January 1st
Theme of Convention                            X                              January 1st
Speakers                                       X                              March 1st

                                                       45
Sponsors                                       X                              March 1st
Meal Selection                                 X                              May 1st
Entertainment                                  X                              May 1st
Exhibitors - Selection                         X            X                 July 1st
              Booth Layout                                  X                 Two weeks prior to event
Award purchases                                             X                 Six weeks prior to event
Shuttle Buses & Other transportation                        X                 Six weeks prior to event
Door Prizes - Presenters                       X            X                 Four weeks prior to event
Decorating                                     X            X                 Four weeks prior to event
Print - Info Brochure                          X            X                 Four weeks prior to event
        Registration Form                                   X                 May 15th
        Tickets                                             X                 Four weeks prior to event
        Inaugural Program                                   X                 Two weeks prior to event
        R.O.Y. Program                                      X                 Two weeks prior to event
Door Prizes                                    X                              Two weeks prior to event
Event - ticket takers                          X            X                 Two weeks prior to event
Signs                                                       X                 Two weeks prior to event




                  PROFESSIONAL DEVELOPMENT COMMITTEE JOB DESCRIPTION

The Professional Development Committee:

   •    Is a standing committee of the Arkansas REALTORS® Association composed of members of the
        “Association”, each having three year terms staggered so that 1/3rd of the members are appointed
        each year by the President of the “Association”.
   •    Shall be a requirement, to selection to this committee, that members shall hold a GRI, CRS or CRB
        designation.
   •    Is charged with the responsibility of establishing policy, procedures and operations of all organized
        state administered education to the members of this “Association”.
   •    Shall cooperate with all other committees within the “Association” in the development, implementation
        and administration of educational programs, which will benefit all members and local Boards.
   •    Shall seek all resources for programs, presenters and applications which may enhance all educational
        offers the “Association” shall make available to the “Association’s” membership.
   •    Shall maintain a roster of qualified instructors who qualify for employment as an independent contractor
        by the “Association”.
   •    Will be responsible for all course content for all offerings except for those courses which are co-
        sponsored by the National Association of REALTORS®.
   •    Shall set policy for monitoring by committee members in courses offered by the “Association”.
   •    Shall be fiscally responsible to the President of this “Association”.
   •    Will consider core and menu courses for the “Association” on an annual basis.

                                                       46
       •   Attendance by members shall be required. Upon the third absences during the entire term of the
           appointment, resignation shall be automatic. An excused absence is only when the member is
           attending another REALTOR® Meeting held at the same time. The chair shall determine such
           resignations. Should such resignation be instituted, the members may file a written request to the
           President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
           shall automatically be a final resignation without the ability to submit for reinstatement.


                             ARKANSAS REALTORS® ASSOCIATION
                                                   ®
                           PROFESSIONAL DEVELOPMENT COMMITTEE
                                   Effective January 1, 2005

I.         NAME          Arkansas REALTORS® Association Professional Development Committee

II.        AUTHORITY Created in 1962 by action of the Board of Directors of the Arkansas REALTORS®
           Association.

III.       PURPOSE        To provide general leadership for all educational programs within the Association
           including the Graduate REALTOR® Institute as well as all NAR recommended designations.

IV.        OPERATIONAL RULES

           A.     Membership

                  l.     The committee shall consist of selected members, each serving a three (3) year
           term. New members shall be appointed by the President-Elect each year at the time all
           committee appointments are made, said appointees to serve terms commencing the first of
           the ensuing year as the president-elect becomes President.

                  2.     All appointees shall hold active GRI and REALTOR® designations.

                  3.     The President shall serve as an ex-officio member of the committee.

                4.      The Chairman of the Professional Development Committee shall serve as a
           member of the Board of Directors.

           B.     Meetings

                  l.       The Professional Development Committee shall meet as required to conduct the
           education programs and to conduct long-range planning. Not less than three (3) meetings
           a year will be held. The Professional Development Committee Chairman shall preside at all
           meetings, and in his/her absence the Chairman shall appoint a committee member to
           preside.

                  2.     Minutes will be taken in each meeting

                   3.      As per the Board of Directors, any member missing two meetings with absences
           during their term will be terminated from the committee. One unexcused absence from a
           monitoring assignment shall constitute immediate removal from the committee.
           Cancellations within a 5-day period of the class shall be brought before the committee to
           determine continued participation as a committee member.

                                                         47
            4.      Quorum         Five committee members present constitute a quorum.

V.   PROFESSIONAL DEVELOPMENT COMMITTEE PROCEDURES

     A.     The committee shall maintain control of all activities of the education programs, the
     Graduate, REALTOR® Institute and shall exercise authority in selection of course materials,
     subjects and instructors in conjunction with the National Association of REALTORS® guidelines
     and the Board of Director guidelines.

     B.       The committee, in conjunction with the Professional Development Director, shall authorize,
     procure and select the physical facilities for classes and set the dates of the classes to be held for
     all the education programs.

     C.    The committee shall determine what courses are to be held each year and shall maintain a
     schedule of courses at least three months in advance.

     D.      The committee shall establish fees to be paid to instructors and working committee
     members per diem and travel expenses. A prepared statement of these fees shall be furnished to
     the Professional Development Committee each time they are changed or the fee exceeds the
     established fee. Each instructor shall be furnished with the schedule of payment for his instruction
     time for his approval prior to each engagement.

     E.     The committee shall work in close cooperation with the Board of Directors and the
     Executive Committee in all matters of any educational program:

            l. In the preparation of schedules and dates.

            2. In the preparation of the brochures and publicity, if required.

            3. In any change or selection of instructors or course subject matter.

            4. The committee will establish other guidelines as required and will operate accordingly
     unless changes are made by the Board of Directors.

           F.      The Professional Development Director shall forward GRI certificates and pins to Local
     Boards for presentation upon member meeting all the designation requirements and submitting the
     NAR processing fee.

     G.    The committee shall publish the names of the new GRI graduates, in the ARA Publication.
     New GRI designees will be recognized annually at the ARA Convention in the Convention
     Program.

            H.      The committee shall maintain all student records relative to each course in the
     Association’s office. Such records are to be considered CONFIDENTIAL information and shall not be
     divulged or disclosed without authority by a member of the Professional Development Committee.

     I.     Current reports on committee actions will be given in writing or verbally at each Board of
     Directors Meeting.

     J.    The committee shall be responsible to approve an annual budget for items other than
     revenue producing classes for the Executive Committee and the Board of Directors.


                                                     48
      K.     The committee shall be responsible in administering the Association’s GRI Scholarship
      Program called the Pete Hart Scholarship program. The Arkansas REALTORS® Association shall
      award scholarships to the persons with the highest score from each GRI class. In the event of a tie
      the scholarship will be decided by lot, to be drawn by the Executive Vice President or Director of
      Professional Development for the scholarship. Also, if the scholarship is received from a two-day
      course the recipient will receive a scholarship to a two-day course, and the same pertains to a one-
      day course. Two single day scholarships may be used for a two-day course. If the recipient of a
      scholarship has completed his GRI requirements, then the scholarship may be applied to an ABR
      course that is sponsored in whole or in part by the ARA. The recipient will be published in the
      monthly publication.

      L.     The committee, through the Chief Financial Officer, shall prepare a financial statement of
      each REALTOR® Institute, One-Day Seminar or any other education program presented by or
      through the Professional Development Committee. The financial statement will be presented to each
      committee member and Executive Committee member.

      M.      The GRI program will be divided into three (3) series blocks. The 100 series will consist of a
      four day class schedule. This can be taken two (2) days at a time or the entire four (4) day block all at
      once. If the student chooses to take the entire four (4) day block, they will receive a 20% discount on
      course fees. The 200 series will also consist of a four day class schedule. This can be taken two (2)
      days at a time or the entire four (4) day block all at once. If the student chooses to take the entire four
      (4) day block, they will receive a 20% discount on course fees. The 300 series will consist of two (2)
      required one day courses and two (2) elective courses. The student can also substitute a CRS or ABR
      course for a one day elective


VI.   OPERATION POLICIES AND GUIDELINES

      A.     Arkansas REALTOR® Institute

      l.     Purpose of GRI
             The Arkansas REALTOR® Institute was founded in 1965 to fill the need for more in-depth
      education in all phases of real estate. It was the eighth such state REALTOR® Institute approved by
      the National Association of REALTORS® on May 18, 1967.

      2.       Completing the 100 and 200 series courses, 2 one day required courses and 2
      elective courses from the 300 series, meets the National Association of REALTORS
      Educational requirement for the professional designation “Graduate, REALTOR
      Institute” (GRI) awarded by the Arkansas REALTORS Association. This designation
      continues so long as the graduate maintains membership in the Association. The course
      provide the most comprehensive education in real estate available, establishing an
      educational base for advanced studies and a professional base for better communication
      between those in the real estate industry. Each subject area has been carefully developed
      and is taught by the most proficient instructors in the field. Through personal research and
      first-hand experiences GRI instructors provide students with the most up-to-date ideas and
      techniques available. Regardless of the length of experience, students can profit from the
      Institute. Each class contains a mixed cross-section of experience levels. The
      acquaintances made while attending will be lifelong and will expose students to new and
      varied ideas and innovations in handling real estate. The REALTOR® Institute is licensed
      by the State Board of Private Career Education.



                                                      49
               3.       Preliminary planning of each REALTOR® Institute will be done by the Executive
       Vice President and the Professional Development Director, in close coordination with the
       Professional Development Committee Chairman. These plans include the following but are
       not limited to the same:

                       (a)     Facilities

                               Insure advance dates for, and a good physical plant in whichever city the
              Institute is to be held, at least one (1) year in advance, or whatever time element is
       required to guarantee the site. The site and physical plant must insure all necessary
       operations and services required for the Institute:

                               1.) Student room availability
                               2.) Quick meal services
                               3.) Good classroom facilities
                               4.) Emergency medical services
                               5.) Good sound systems
                               6.) Good catering management
                               7.) Sufficient classroom fixtures and furniture, such as blackboard, easels,
                               message centers, overhead unit stands, projection stands, efficient electrical
                               connections and extensions, and any other props required for instructors
                               8.) Good clean restrooms
                               9.) Any other furniture and supplies as required

                       (b)     Instructors

               Establish, implement and update a list of instructors who are available for the various classes in
               the curriculum of each Institute. Each instructor must be aware of the requirements and
               guidelines set forth in the “GRI Faculty Guidelines” attached as appendix B.

               It is the responsibility of the ARA Professional Development Committee to approve,
       classify and assign instructors for GRI and other courses administered by ARA. In
       order to facilitate this action, a Faculty Committee, appointed by the Professional
       Development Chairman, will make reports and recommendations to the Professional
       Development Committee based on review of resumes and ongoing monitoring and
       evaluating of instructors. The Faculty Committee shall include at least three
       members of the Professional Development Committee. Input from all Instructors,
       who are ARA members, will be accepted and encouraged during faculty selection.


The fee to be paid is as follows:

   •   Instructor Fee $143.00 per hour
   •   GRI instructors will be paid by for the actual number of hours worked. The instructor will be required to
       be present during the exam period to answer any questions.
   •   ARA will pay the motel/hotel expense of the GRI instructor plus $50.00 per Diem for each day of
       instruction.

A member of the Professional Development Committee or a GRI designee who is familiar with ARA education
policies must monitor each course in its entirety. It is the responsibility of the monitor to critique the instructor.

                       (c)     Promotion-Advertising:


                                                          50
       (1)     Brochures should be processed and made ready for mailing at least
       30 days in advance of the first course offering annually. The brochure will
       include a reproducible registration form. The brochure shall explain the
       REALTOR Institute program, pre-registration and registration fees for
       REALTORS® and non-members, dates, place, instructors, refund
       information, and any other pertinent information deemed necessary.
       Brochures should be mailed to all members of the Arkansas REALTORS®
       Association, surrounding four state Association offices and any other
       distribution that may induce attendance.

The Professional Development Committee with approval of the Board of Directors will control advertising.
Dollar amount to be spent must be approved by the Board of Directors. Each Board should be advised of each
Institute by letters, fax, or e-mail from the Professional Development Director at least 45 days in advance of
each Institute.

Course schedule and registration form shall be made available on the internet home page

Education information shall be inserted into the ARA newsletter each quarter to include upcoming courses for
that quarter, new designees, and general educational announcements as prepared by the ARA Professional
Development Director and/or the Professional Development Committee Chairperson.

                      (d)    Class Fees

                             (1)    The Professional Development Committee will set fees for each class
                      as required. The Board of Directors must approve these fees.

                              (2)     As established by the Professional Development Committee and
                      approved by the Board of Directors, the fee for attending 2 days of the 100
                      or 200 series courses is $155.00. To attend the entire four (4) day block,
                      the price is $248.00 after a 20% discount. The fee for attending a 300 series
                      course is $75.00. The fees for non-members of the ARA are $105.00 and
                      $185.00 for one and two day courses respectively.


                             (3)     Registrations should be paid in full in advance of each Institute.

                              (4)       Cancellations received 7 days prior to the course will have a $15.00
                      processing fee retained. Cancellations received less than 7 days before the
                      course and no-shows will forfeit the registration fee. Emergency exceptions
                      will result in a transfer of deposit from one education offering to another,
                      within a 12-month period, to be determined by the Professional Development
                      Director. Refund requests shall be forwarded to the Professional
                      Development Committee for determination.

                      (e)    Equipment and Supplies

                            The Executive Vice President and Professional Development Director will
                      purchase or lease fixtures and supplies as required (per past experience).


                      (f)     Registrations will be made by mail or faxed application. Pre-registrants by
                      mail or fax shall be discounted as agreed by the Professional Development
                      Committee with approval of the Board of Directors. Non-REALTORS® will

                                                       51
       pay a larger tuition fee. If classes are not full, registration will be accepted
       on the morning of the first day of the Institute at the registration desk.

       (g)      Courtesy Audits (Legislators, Guests, GRI’s)

                Special guests shall be allowed to audit any course on a space available
       basis.

       (h)      Examinations

       Courses will be concluded with an examination in each course. Each
       respective exam will test the students over the material covered in the
       course they are attending. All students are required to take the examination
       and make a grade of 75% or higher in order to receive a certificate of
       completion.

If on the original examination a student does not make a passing grade of
75% or higher, he or she will be allowed to re-take the exam in his or her
local Board office, with the Board executive Officer or elected secretary
responsible for administering the exam. Students will be allowed to review
their original exam before re-taking. A maximum of one re-take is allowed.
If a student does not pass the re-take exam, he or she will be required to
repeat the course in order to receive credit.

Should any student be caught cheating on exam, his/her test will be
immediately taken up and he/she receive a failing grade.

       (i)      Attendance Policy

Students are required to be present in the classroom during the total
instruction period in order to receive both GRI and Continuing Education
credit. Advance notice of this policy shall be given to all students.
Classroom monitors are charged with the responsibility of enforcing the
attendance policy. Any student who fails to meet the requirements of the
attendance policy may lose credit for the course and forfeit his tuition.
However, if a student feels that he has a valid reason for his absence or tardiness,
he may petition the Professional Development Committee in writing for the transfer
of his tuition to a future GRI course. The decision on such transfer shall be the sole
responsibility of the Professional Development Committee.

       (j)      Reciprocity Agreement

Persons transferring from other states, who obtain a resident salesman or
broker’s license in Arkansas, will be allowed credit towards the Arkansas
GRI designation, if the GRI courses in the state from which they are
transferring are approved by the National Association of REALTORS® and proof of
completion is supplied to the Arkansas REALTORS® Association by the state
Association from which they are transferring. Approval of course transfers are
subject to approval of the Executive Vice President and Professional Development
Director. Transfer of course I and II will be accepted towards the Arkansas GRI
designation as outlined above. Upon completion of the remainder of the course in
Arkansas, the Arkansas GRI designation will be awarded if the student is a member
of the Arkansas REALTORS® Association. Transfers, who already hold the GRI

                                         52
               designation will be awarded the Arkansas designation upon receipt of a resident
               salesman or broker license in Arkansas, acquire membership in the Arkansas
               REALTORS® Association, supply proof of the GRI designation from the state from
               which they are transferring. (The State GRI program must be approved by the
               National Association of REALTORS®)

                      (k)     Professional Development Committee Member per Diem and Mileage

               Members of the Professional Development Committee and advisory
               members of the committee shall be paid a per diem of the hotel rate plus mileage for
               assisting at the Institute for each course they actually work. Members will also be
               reimbursed for EO approved expenses directly related to entertainment of the
               instructor they are assigned to.

                      (l)     Guidelines for GRI and RIO Courses

               All GRI courses are subject to Guidelines adopted by the Board of Directors on September 28,
               1995, copy of which is attached to and made a part of this Policy and Procedures Manual as
               Appendix C.
       B.      Arkansas REALTORS® Association Sponsored Seminars

               Co-sponsored seminars will be held periodically in conjunction with the National Association of
               REALTORS® and its institutes and societies. These will be scheduled as approved by the
               Professional Development Committee.

                                     GRI FACULTY AND GUIDELINES

l.    All instructors who hold a real estate license must be active dues-paying members of ARA (if residing in
Arkansas) and must hold either the GRI designation or other designation awarded by NAR or its affiliates.

2.      All instructors must meet the requirement of the State Board of Private Career Education for instructors
at real estate schools and must be knowledgeable of continuing education rules and regulations.

3.      All Instructors are expected to remain current with their assigned course subjects, and provide students
with the most current information available.

4.     Instructors are expected to teach the course outline and to cover and review the exam questions.

5.     Instructors are expected to conduct themselves in a professional manner at all times. This includes
dressing in appropriate business attire and refraining from the use of coarse or offensive language or any
conduct that would reflect negatively on the instructor or ARA. All instructors must adhere to Article 18 of the
Arkansas REALTORS Association Bylaws. It is the responsibility of the instructors to request a copy of the
ARA Bylaws.

6.      An instructor may be automatically suspended from the roster if he or she cancels without notifying the
staff coordinator at least 72 hours in advance of a course with the exception of justifiable emergencies to be
determined by the Professional Development Committee. Any individual wishing to become a member of the
GRI faculty must submit a resume to the Faculty Sub-Committee. Said resume should reflect the education,
training and experience of the applicant that relates to subjects he or she may be teaching, as well as any
instructor training or experience. Instructors who teach in fields other than real estate must hold a
baccalaureate degree in the field in which they teach and have either worked or taught in that field for at least 2
years.


                                                        53
                               GUIDELINES FOR GRI AND RIO COURSES

The National Association of REALTORS® allows the state Association to operate the REALTORS® Institute
for the purpose of providing basic education for real estate agents and to award the GRI designation to
REALTORS® who have met the requirements. The overall responsibility for the GRI program rests with the
Professional Development Director of ARA under the leadership of the Professional Development Committee.

The purpose of the following guidelines is to establish standards for all GRI courses that will ensure the
maintenance of quality and allow for the efficient administration of those courses.

Administration of Courses. The GRI courses appearing on the ARA schedule to be held in the Little Rock
area will be administered by ARA Professional Development Department staff. All courses on the ARA
schedule to be held outside the Little Rock area, as well as all RIO courses will be administered by members
and/or staff of the local Boards where the courses are scheduled.
Course Topic Selection. GRI courses should be structured to provide a broad base of knowledge for the
real estate practitioner. It is anticipated that some course topics will qualify for continuing education credit,
and, in those instances, application will be made for that credit. However, the most important factor in the
selection of course material is the need to comply with GRI learning objectives. Course topic selection should
be made by committee members working with the Professional Development Director.
Instructor Assignments. It is the responsibility of the ARA Professional Development Committee to
approve, classify and assign instructors for GRI courses. In order to facilitate this action, a Faculty Committee,
appointed by the Professional Development Chairperson, will make reports and recommendations to the
Professional Development Committee based on review of resumes and ongoing monitoring and evaluating of
instructors. The Faculty Committee is made up of three members of the Professional Development Committee
(refer to page 5)
Schedule. The schedule will be prepared by members of the Professional Development Committee working
with the Professional Development Director. Schedule to be approved by the ARA Board of Directors at, or
prior to, the ARA Annual Convention. Scheduling of RIO courses by local Boards is on a first come, first
served basis. A 60-day notice will be required for GRI credit ONLY. A 120-day notice will be necessary if CE
credit is involved. A completed contract properly executed by a Board official accompanied by a check for the
full amount for the course will constitute a completed application necessary to reserve a date. The
Professional Development Director must approve the course requested to avoid competition with courses on
the ARA schedule.
Facilities. Recognizing the importance of a good classroom environment, the GRI Administrator’s Reference
Manual will provide facility guidelines, including audio-visual requirements, classroom amenities and services
needed. In addition, the Professional Development Director will assist the administrator in assuring that all
requirements are met for each course presented.
Class Size. Most instructors recommend 75 to 100 as a maximum class size. However, the size of the
class should be determined by the capacity of the facility. In some instances, subject matter should also be
considered. These decisions should be made in each situation by the administrator and the Professional
Development Director.
Tuition. The Professional Development Committee’s Policy and Procedure Manual establishes class fees for
the ARA schedule of classes. These charges have not been applied to RIO courses since they are
underwritten by other parties. It is recommended, however, that some tuition be paid by the student for every
GRI course offered, the tuition amount to be determined by the local Board involved in the RIO course.
Weapons of any kind are prohibited from any and all meetings of the Arkansas REALTORS® Association
(licensed or unlicensed) unless previously approved by the Executive Committee in advance.




                                                       54
                      EQUAL OPPORTUNITY COMMITTEE JOB DESCRIPTION

The Equal Opportunity Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association composed of its members, each
       having three year terms staggered so that one-third of the members are appointed each year by the
       President plus two ex-officio members from the Arkansas office of Housing & Urban Development and
       one ex-officio member of the Arkansas Fair Housing Commission with yearly terms.
   •   Suggests policy and procedures to be followed by the Association in the arena of Fair Housing and
       Equal Opportunity.
   •   Maintains communication with the Department of Housing & Urban Development.
   •   Conforms to the terms of The Fair Housing Partnership Agreement with the partners.
   •   Implements training at the state and local levels.
   •   Will publish, both electronically and hardcopy changes in Equal Opportunity polices which the
       Association makes.
   •   Shall maintain a “Frequently Asked Questions” web site on the ARA home page.
   •   Shall monitor all actions taken against REALTORS® and direct staff to forward necessary information
       about those actions to ARA’s attorney and the National Association of REALTORS®.
   •   Shall, in addition to those laws governed by the Fair Housing Laws, monitor rules and regulations in the
       arenas of lending, employment (including sexual harassment) or other industry related regulations as
       they affect the practice of real estate in the State of Arkansas, and develop informational services for
       the members and member Boards.
   •   Shall maintain communication for the purposes of educating and resolving unclear information with the
       State of Arkansas Fair Housing Commission.
   •   Shall, on an annual basis, review the ARA Fair Housing Handbook.
   •   Attendance by members shall be required. Upon the third absences during the entire term of the
       appointment, resignation shall be automatic. An excused absence is only when the member is
       attending another REALTOR® Meeting held at the same time. The chair shall determine such
       resignations. Should such resignation be instituted, the members may file a written request to the
       President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
       shall automatically be a final resignation without the ability to submit for reinstatement.


                           LEGISLATIVE COMMITTEE JOB DESCRIPTION

The Legislative Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association
   •   Is composed of Association members who meet the recommended requirements in the job
       description for a committee member, each having three year terms staggered so that one-third
       of the members are appointed each year by the Association President .
   •   Shall have Task Forces appointed by the Chairman as deemed necessary with the number of
       members on each task force to be at the discretion of its Chairman with the terms to be for one
       year or until the business of the task force is completed.
   •   Shall be responsible for setting policy for the Association’s position in all legislative matters,
       which may be brought forth by any local, county, state or federal governing bodies.
   •   Shall at no time take a position about a political party or candidate.
   •   Shall be responsible for developing or amending any Statement of Policy of the Association
       with the approval of the Association’s Board of Directors.
   •   Will make recommendations to the Executive Committee and the Board of Directors
       concerning legislative affairs at all levels of government.
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   •   Shall offer all members and local Boards training and informational services, which would,
       politically, affect any member’s business or the operation of the Association.
   •   Will provide training for any member, who will enhance his/her entry into the political process
       at any level and support efforts by any local Board to promote its members involvement in any
       level of elected government bodies.
   •   Will maintain very close contact with all elected officials through regular visits, phone calls or
       written communication at all levels of state and federal government.
   •   Shall decide what issues will require a “Call to Action”.
   •   Will keep all elected officials informed about the Arkansas REALTORS® Association’s position
       on timely issues.
   •   Will keep all members timely informed about the Association’s position in any legislation
       pending or proposed.
   •   Will work with the Arkansas Real Estate Commission and other related regulatory bodies in
       drafting and promoting legislation.
   •   Attendance by members shall be required. Upon the third absences during the entire term of
       the appointment, resignation shall be automatic. An excused absence is only when the
       member is attending another REALTOR® Meeting held at the same time. The chair shall
       determine such resignations. Should such resignation be instituted, the members may file a
       written request to the President for reinstatement explaining the reasons for absences. If
       reinstated, one additional absence shall automatically be a final resignation without the ability
       to submit for reinstatement.


                        PUBLIC RELATIONS COMMITTEE JOB DESCRIPTION

The Public Relations Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association composed of members of the
       “Association”, its members each having three year terms staggered so that the President appoints one-
       third of the members each year.
   •   Is a committee of very diverse and wide ranging responsibilities, which may use Sub Committees with
       its individual leaders who shall be called “Sub Committee Chairpersons”
   •   Is responsible for reviewing and recommending to the Board of Directors any image advertising
       campaign as determined to be beneficial to the members.
   •   Is responsible for policy, promotion, and direct the administration of the Award of Excellence Program.
   •   Is responsible for policy, promotion, and administration of all Association community outreach programs
       including support for Arkansas Special Olympics.
   •   Is responsible for distribution of statewide press releases to be distributed at least monthly to a list of
       “Media Contacts” developed and maintained by this committee and staff.
   •   Shall, at the direction of the President, prepare and arrange for media coverage on any issue the
       President feels necessary to present on a pressing issue in which time is of the essence.
   •   Shall adhere to the ARA Statement of Policy in any statements or press releases unless authorized
       only by the President and/or the Board of Directors.
   •   Shall work with other committees on publicity for projects and issues.
   •   Shall assist and guide local Boards for publicity for activities and projects within the local Board.
   •   This committee shall have a Vice-Chairperson appointed by the President Elect of the Association.
   •   The current year’s Chairperson shall be last year’s Vice Chair unless resignation has occurred.
   •   The three Sub Committee Chairs shall be appointed by the current President of the Association.
   •   The Sub Committees shall be named and be responsible to reporting to the full committee.


                                                       56
   •   Recommendations from the Sub Committees shall pass through the whole Public Relations Committee
       and on to the Board of Directors for approval.
   •   Attendance by members shall be required. Upon the third absences during the entire term of the
       appointment, resignation shall be automatic. An excused absence is only when the member is
       attending another REALTOR® Meeting held at the same time. The chair shall determine such
       resignations. Should such resignation be instituted, the members may file a written request to the
       President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
       shall automatically be a final resignation without the ability to submit for reinstatement.

        PROFESSIONAL STANDARDS & GRIEVANCE COMMITTEE JOB DESCRIPTION


The Professional Standards & Grievance Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association
   •   Is composed of members of the “Association who meet the recommended requirements in the job
       description for a committee member, each having three year terms staggered so that 1/3rd of the
       members are appointed each year by the President of the “Association”.
   •   Requires that each member shall attend the annual Professional Standards training seminar once a
       year.
   •   Is responsible for all matters relating to the REALTORS® Code of Ethics as adopted by the National
       Association of REALTORS®.
   •   Will direct the operation and maintenance of the Arkansas REALTORS® Association’s State-Wide
       Professional Standards Program.
   •   Will serve as a “Grand Jury” on all ethics and arbitration complaints filed with The Arkansas
       REALTORS® Association’s State-Wide Professional Standards Program.
   •   Implements Professional Standards training for all members and technical training for members of the
       Professional Standards & Grievance Committee and Professional Standards & Grievance Pool.
   •   Will promote higher ethical standards among all members.
   •   Distribute all published materials and changes in policy issued by the National REALTORS®
       Association.
   •   Directs the administration of all Ethics and Arbitration processes including the hearing.
   •   Directs the operation of the Grievance process directly through ARA’s Director of Professional
       Standards of the Arkansas REALTORS® Association.
   •   Maintains a Mediation Pool and trains its members.
   •   Files a report of activity to be presented at each Board of Directors meeting.
   •   Attendance by members shall be required. Upon the third absences during the entire term of the
       appointment, resignation shall be automatic. An excused absence is only when the member is
       attending another REALTOR® Meeting held at the same time. The chair shall determine such
       resignations. Should such resignation be instituted, the members may file a written request to the
       President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
       shall automatically be a final resignation without the ability to submit for reinstatement.
   •   Attendance at ARA’s Annual Professional Standards training is MANDATORY annually for all members
       of this committee. The attendance policy in # 14 above does not apply to the annual training as a
       meeting and shall be mandatory in order to maintain your membership in the committee.




                                                     57
                         RISK REDUCTION COMMITTEE JOB DESCRIPTION


The Risk Reduction Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association composed of members of the
       “Association”, each having three year terms staggered so that 1/3rd of the members are appointed
       each year by the President of the “Association” and one Ex-Officio member, the legal counsel for the
       “Association”.
   •   Is the central focal point of all subjects involving the legal protection of the REALTOR®.
   •   Shall bring all legal issues and concerns expressed by ANY member to the committee’s attention and
       act accordingly.
   •   Review, correct and develop legal forms offered by the Arkansas REALTORS® Association.
   •   Direct the distribution of ARA forms including methods of distribution, pricing and format delivery of
       same.
   •   Maintain an open dialog with ARA’s appointed attorney, employing their services whenever necessary
       as determined by the committee.
   •   Maintain task forces within the committee as the chairman determines.
   •   Monitor all legal action taken against any REALTOR® in conjunction with any other committee whose
       area of responsibility is involved.
   •   Develop and distribute education to local Boards and through the “Association” concerning protection of
       the legal rights of REALTORS®, which will include published articles in the ARA REALTOR®
       ‘Rightings.
   •   Chairperson shall present all changes, additions or corrections in legal real estate forms or procedures
       to the Executive Committee for their recommendation and then to the Board of Directors for approval.
       Once approved, ARA’s Legal Counsel shall approve all changes. If the Board of Directors does not
       approve a suggested change, as submitted, it will be returned to the Risk Reduction Full Committee for
       further evaluation and direction.
   •   Maintain a “Frequently Asked Questions” Board on the ARA web site.
   •   Publish and maintain electronic and print information on forms and their pricing to all members and
       those non-members who are customers.
   •   13. Chairperson shall appoint a roster of persons deemed qualified to instruct the membership on the
       changes made annually in the ARA real estate forms. The roster of instructors shall be provided to the
       ARA Executive Officer and Staff Liaison to be distributed to Member Boards and Brokers annually upon
       request for instruction in annual forms change classes. Public demand and instructor availability shall
       determine instructor selection for the teaching assignments.
   •   14. Attendance by members shall be required. Upon the third absences during the entire term of the
       appointment, resignation shall be automatic. An excused absence is only when the member is
       attending another REALTOR® Meeting held at the same time. The chair shall determine such
       resignations. Should such resignation be instituted, the members may file a written request to the
       President for reinstatement explaining the reasons for absences. If reinstated, one additional absence
       shall automatically be a final resignation without the ability to submit for reinstatement.


                    REALTOR® OF THE YEAR COMMITTEE JOB DESCRIPTION


The REALTOR® of the Year Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association chaired by a member who has been
       a state REALTOR® of the Year. The term for the members of the committee is one year or until their
       work is completed.

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   •   Chairperson is named by the current President of the Arkansas REALTORS® Association. The
       Chairman selects the remaining members of the committee from past state REALTORS® of the Year.
       The Committee shall consist of the Chair plus 4 members. All members’ identification except the
       chairman shall be held as a confidential matter.
   •   Assists the staff in notifying all local Boards of the selection process for the local Board to follow in the
       local Board program and submit their local REALTOR® of the year to ARA by the deadline set by the
       Chairman.
   •   Approves the forms distributed to and to be used by the local Boards for submission including the listing
       of the grading point system.
   •   Meets in private prior to the annual convention as many times as necessary to fully consider all
       nominees and select the state REALTOR® of the Year. Except for the meeting at which the final
       selection is made, the meeting may be by teleconference or conference call.
   •   Assures ARA that the decision of the Committee was validly and democratically arrived at and that all
       committee members shall not reveal their membership on the committee nor discuss any meeting(s)
       details to anyone other than with other committee members even after performing its duty and after the
       committee is permanently adjourned.
   •   Is to announce the selected person at the banquet set aside at the annual convention. The Chairman
       may serve as master of ceremonies of the event, or may designate the MC duties to another person.
   •   Communicates the announcement ceremony’s order of events, the procedures for recognition of the
       local Board nominees and all other details which will enhance the recognition of both the local Board
       and state REALTOR® of the Year, to the President, the Convention Chairman and the ARA staff.
   •   Serves in an advisory capacity to the ARA staff in publicizing the REALTOR® of the Year.
   •   Will perform other duties as assigned by the President or the Chairman in upgrading and performing
       the duties necessary for selection of the REALTOR® of the Year.
   •   Review Rules and Regulations, Application, and Selection Criteria. Recommend changes as needed to
       the Board of Directors for review and approval.

                            NOMINATING COMMITTEE JOB DESCRIPTION

The Nominating Committee:

   •   Is a standing committee of the Arkansas REALTORS® Association comprised of a chairman and one
       representative from each zone based upon population (see below) and appointed by the current
       President for a one year period.
   •   The chair shall be appointed by the President (the Immediate Past President when there is no conflict
       of interest) and shall not occupy his/her zone allocation and shall not have a vote unless there is a tie
       by the members of this committee.
   •   Shall meet at the June Directors/Committee meetings and this meeting will be closed to all members
       including all Officers & Directors unless they are appointed to the committee. (see below concerning set
       date for the committee meeting) A staff member other than an officer shall be assigned to that
       committee shall serve as administrative assistant to the chair but not have any voting power.
   •   Shall follow the bylaws of the ‘Association’. The number of members from each zone will be decided by
       the number of carry-over terms plus the number of ‘to be elected for the upcoming year’ zone Directors.
       Zone positions are determined by the member population according to active members listed in NRDS
       as of April 30th of the current year. (Rationale; That number represents a true member population of
       the zone for the current year)
   •   There should be a mix a broker/owners, and salesperson/broker or salespersons.
   •   At least 21 days before the scheduled meeting of the nominating committee, a committee shall be
       appointed by the president. The nominating committee shall select one candidate for each office and
       one candidate for each place to be filled on the Board of Directors and any other position which may be
       required. Upon the complete selection and acceptance, the names of the nominating committee will be
       sent to all nominees seeking terms.

                                                        59
   •   The Committee Chair, with the assistance of the ARA staff liaison and the Committee Liaison shall
       gather all nominee information and contact each nominee within three days of the deadline for
       nominations to verify the position they are seeking and reconfirm their time commitment and
       understanding of the attendance the importance of this assignment. The Association shall post the job
       descriptions for each elected position on the web site and shall, in the application, note to the nominees
       that they should review the description for the position they are seeking.
   •   The President shall appoint such members but members selected shall respond to the Association
       concerning their acceptance of the position.
   •   A deadline will be set for accepting nominations 10 business days prior to the meeting date of the
       Nominating Committee which shall be the day prior to the start of the June Committee Meetings and
       the Meeting of the Board of Directors. If a nomination is received after 5:00 PM on the day of the
       deadline and nominees already exist for that requested position, the application shall not be
       considered. If an application is received after the deadline for a vacancy for which there is no
       nominees, the committee, at its discretion, shall choose whether to accept or decline the application.
   •   When a member of the Nominating Committee has a familial status with a proposed nominee, that
       committee member shall excuse themselves from the room during discussion of and voting for that
       nominee.
   •   The responsibility for recruiting candidates for positions on the BOD shall fall upon the Executive
       Committee and passed on to Zone and At Large Directors and that we not be in a position where we
       approach the nominating committee without candidates in positions that are not filled.

                   PAST PRESIDENT’S ADVISORY COUNCIL JOB DESCRIPTION


The Past President’s Advisory Council:

   •   Shall consist of the immediate past four (4) Past Presidents of the Arkansas REALTORS® Association.
   •   The Chair of this Council will be the immediate Past President of the Arkansas REALTORS®
       Association.
   •   This Council shall not have regularly scheduled meetings.
   •   The Council shall be on-call as directed by the current President of the Arkansas REALTORS®
       Association for the following and with restrictions stated below:
   •   To advise the current President as needed based upon past experience of the positions which each
       member has held in the past for council on such subject as:
   •   New Programs
   •   Elimination of Programs in place
   •   Special council on areas the President may have concern
   •   As an established focus group for a project or need
   •   Shall not be a policy making body of the Association
   •   Shall not be available to other Leadership of this Association including Committee Chairs, Board of
       Directors, staff members or other members of the Executive Committee
   •   Support for this Council shall be the ARA Staff as directed by the current President.


                              FINANCE COMMITTEE JOB DESCRIPTION


   •   Is a standing committee of the Arkansas REALTORS® Association composed of members of the
       “Association”, each having three year terms staggered so that 1/3 of the members are appointed each
       year by the President of the “Association”.



                                                      60
   •   Is responsible for formulating and making recommendations concerning strategic & financial planning,
       investment management, budgeting and to oversee all of the Association’s finances and resources, so
       as to provide efficient and effective usage of all its assets.
   •   The Committee shall consist of the Chairman plus five (5) members, of which no more than two were
       members of the Executive Committee when appointed.
   •   The Secretary-Treasurer of the Association shall serve as Chairman of the Finance Committee.
   •   The Incoming Secretary-Treasurer is invited to join the Finance Committee meetings prior to the date of
       their official duties as an Ex-Officio member.
   •   Attendance by members shall be required. Upon the third absence during the entire term of the
       appointment, resignation shall be automatic. An excused absence is only when the member is
       attending another NAR or ARA meeting at the same time. The Chair shall determine such
       resignations. Should such resignation be instituted, the members may file a written request to the
       President for reinstatement explaining the reasons for absence. If reinstated, one additional absence
       shall automatically be a final resignation without the ability to submit for reinstatement.


                 DUTIES & EXPECTATIONS OF OFFICERS & DIRECTORS

DUTIES OF THE PRESIDENT

The primary duty of the President of the Arkansas REALTORS® Association is that of leadership-setting goals,
providing the leadership in meeting them, appointing committees, inspiring the committees to meet their overall
goals and objectives, and working to achieve the overall goals of the Association. The President is an ex-
officio member of all committees except the Nominating Committee and the REALTOR® of the Year
Committee. The President presides at all meetings of the Board of Directors, at all meetings of the Executive
Committees, and during the State Convention.

The President works directly with the Executive Vice President, the Chief Financial Officer and the Government
Affairs Director in translating goals and objectives into staff operations. The President has the authority to sign
all checks of the Association in disbursing funds. The President meets periodically with the Executive
Committee and jointly makes administrative decisions. The President meets with as many Local Boards as
possible during his or her term of office.

The President is expected to attend the following meetings:
      -All Board of Directors Meetings. *
      -NAR’s Mid-Year Conference in Washington, D.C. *
      -NAR’s Region IX Four-State Conference (if scheduled)
      -ARA’s State Convention and its Board of Directors Meeting. *
      -NAR’s Convention *
      -ARA’s Leadership Conference *
      -All meetings of the Executive Committee *
      -ARA’s Annual Business Meeting *
      -As many REALTORS® Institute Courses as possible.
      -As many Local Board meetings as convenient and/or as invited by the Board President.
      -Any additional NAR and other meetings as deemed necessary on behalf of the ‘Association’.

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA or NAR meeting held at the same time. The President
and/or Chair shall determine such resignations. Should such resignation be instituted, the members may file a
written request to the President for reinstatement explaining the reasons for absences. If reinstated, one
additional absence shall automatically be a final resignation without the ability to submit for reinstatement.

                                                        61
AS PRESIDENT, YOU ARE EXPECTED TO:
   •   Work closely with the EVP, the COO/CFO and the Governmental Affairs Director (if filled).
   •   Work through the EVP and/or COO/CFO and not directly with ARA Staff.
   •   Help the President-Elect and seek help from him/her.
   •   Help the Board make decisions deliberately and without undue haste or pressure.
   •   Be as thoroughly and completely prepared before each meeting.
   •   Read and understand the information presented on issues and proposals.
   •   When NOT understanding information presented in advance of a meeting, will exercise care to receive
       clarification before the meeting.
   •   If this is not possible, will seek clarification during such time as the issue is before the Board.
   •   Ask questions which will clarify an issue or proposal and see that all Board/committee members
       completely understand.
   •   Serve as the moderator and not become actively involved in deliberations during the Board meeting but
       will surrender the Chair position should it be necessary to voice support or opposition to an issue or
       proposal.
   •   Comment as appropriate on written materials and other's comments but not in support or opposition to
       an issue or proposal.
   •   Ensure that written records of Board preparation and deliberation are kept and safe guard confidential
       information. This paper trail will show compliance with procedural due care requirements under the law.
   •   Remember that as President, you do not represent any constituency within the Association and do not
       represent a company, a franchise, or a specific group. The President’s fiduciary responsibility is to the
       corporation under Arkansas law.
   •   Support the Board's decision and not undermine that decision understanding that the Board acts as a
       whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Shall not formulate a strong opinion until deliberations are heard from other Board members in a
       meeting where the issue or proposal is on the agenda and express only when stepping down as chair
       in a meeting.
   •   Attempt to reach consensus on each issue before the Board if possible.
   •   Read and become informed about the Association's Strategic Plan, governing documents, and
       services.
   •   Name members of all committees except where policy prohibits.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest the President may have on any issue or proposal.
   •   Serve as a NAR Director. President is automatically a voting member of the NAR Board of Directors.
   •   Request to serve on a NAR Committee
   •   Have ARA staff arrange for all travel as needed for any meeting connected with his/her position.


DUTIES OF THE PRESIDENT-ELECT

The President Elect of the Arkansas REALTORS® Association is second in command in Association
leadership. The President Elect succeeds to the Presidency the following year.

The primary duty of the President Elect is to support the President and be ready to assume the President’s
duties at any time.

The President Elect is the at-large liaison between the Zone Directors and the Little Rock office. Thus, the
President Elect should be familiar with the duties of the Zone Directors, as well as the duties of the other
Officers.



                                                       62
This Officer is the Chair and solely responsible for the Annual Leadership Conference during their year as
President Elect for the purposes of preparing state and local Board Officers and Chairs for the upcoming year
when serving as President of ARA. This Officer shall select all Vice Chairpersons for the year they will serve
as President Elect. All Vice Chairpersons shall understand that the appointment is not an automatic elevation
to Chair the following year and the President Elect shall so inform each appointee.

The President Elect shall nominate the Federal Political Coordinators in November for the following year
whose job shall be to serve as contacts to specific Representatives and Senators in Washington, DC.

The President Elect is also responsible for the Annual Review of all ARA Insurance policies.

The President Elect is expected to attend the following meetings:

       -All meetings of the Board of Directors and Executive Committee. *
       -NAR’s Mid-Year Conference in Washington, D.C. *
       -NAR’s Region IX Four-State Conference.
       -ARA’s State Convention and its Board of Directors Meeting. *
       -NAR’s Convention *
       -President Elect and Executive Officers Leadership Meetings held by NAR. *
       -ARA’s Leadership Conference. *
       -ARA’s Annual Business Meeting *
       -As many Local Board meetings as convenient and/or as invited by the Board President.
       -NAR’s Leadership Summit held in Chicago in August prior to your term as President*

-You are automatically a full voting member of the ARA Member Services Committee for the year of your term
serving as Chair of that Committee*.

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.


                          AS PRESIDENT ELECT, YOU ARE EXPECTED TO:

   •   Work closely with the EVP, the COO/CFO and the Governmental Affairs Director.
   •   Work through the EVP and/or COO/CFO and not directly with ARA Staff.
   •   Help the President and seek help from him/her.
   •   Shall nominate the Federal Political Coordinators in November for the following year.
   •   Be as thoroughly and completely prepared before each meeting.
   •   Read and understand the information presented on issues and proposals.
   •   Comment as appropriate on written materials and other's comments to the Board and/or Executive
       Committee.
   •   Ensure that written records of Board preparation and deliberation are kept and I will safe guard
       confidential information. This paper trail will show compliance with procedural due care requirements
       under the law.
   •   Remember that as President Elect, do not represent any constituency within the Association and do not
       represent a company, a franchise, or a specific group. The President Elect’s fiduciary responsibility is to
       the corporation under Arkansas law.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
                                                       63
   •   Seek input from the REALTOR members regarding issues.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Attempt to reach consensus on each issue before the Board meets if possible.
   •   Read and become informed about the Association's Business Plan, governing documents, and
       services.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest the President Elect may have on any issue or proposal.
   •   Apply to serve on a NAR Committee


                              DUTIES OF THE SECRETARY-TREASURER

The Secretary-Treasurer of the Arkansas REALTORS® Association works closely with the President, the
President Elect and the Chief Financial Officer. The Secretary Treasurer shall serve as Chair of the Finance
Committee. The Finance Committee, the Secretary Treasurer and the Chief Financial Officer are required to
prepare a budget of the forthcoming year and budget estimates for the two years beyond the upcoming year.
This budget is presented first to the Executive Committee for their approval and to the Board of Directors for
their approval. If the Directors have changes, the Secretary-Treasurer, the Chief Financial Officer, the Finance
Committee, and the Executive Committee work again in establishing another budget until one is approved by
the Executive Committee and the Board of Directors.

The Secretary-Treasurer receives a monthly accounting of the ARA expenditures and as a general rule is
requested to sign the checks which pay the indebtedness. The Secretary-Treasurer, along with the other
Officers and Directors, receives a monthly financial report from The Chief Financial Officer. The Secretary-
Treasurer reviews the actual expenditures and income against the budget, and advises the President of any
variances that may cause a financial problem. This Officer is required to present a financial report to the
monthly Executive Committee meeting.

The Secretary Treasurer is one of the people authorized to sign checks for the ‘Association’. The Little Rock
Office does not have authority within itself to disburse funds. Five persons are authorized to sign checks of
over $1,000, and two signatures out of these five are required before the bank will honor payment. The
Executive Vice President and the Governmental Affairs Director of the Association, together as two signatories,
may sign checks for $1,000 or less. The Secretary-Treasurer is knowledgeable in the operational accounting
and bookkeeping and is expected to become familiar with these procedures and policies in the Little Rock
office.

While he/she is Secretary/Treasurer, select a site for the convention the year this Officer may be President
Elect and to select the chairman at least 24 months prior to that convention.

The Secretary-Treasurer keeps the Board of Directors informed on the financial status of the Association and
gives an annual financial report to the membership during the State Convention, and at other times when
requested by the President.

The Secretary-Treasurer is expected to attend the following meetings:

   •   -All Meetings of the ARA Board of Directors. *
   •   -All Meetings of the Executive Committee. *
   •   -NAR’s Region IX Four-State Conference.
   •   -ARA’s State Convention and its Board of Directors Meeting. *
   •   -ARA’s Annual Business Meeting *
   •   -NAR’s Mid-year Conference in Washington, D.C.
   •   -NAR’s Annual Convention
                                                      64
   •   -ARA’s Leadership Conference *.

-Incoming Secretary Treasurer is expected to attend the NAR Convention the year prior to holding this office.
-You are automatically a full voting member of the ARA Member Services Committee for the year of your
term.*
As a nominated Secretary Treasurer the year prior to the term, shall become a member of the Finance
Committee within thirty days of the nomination. In the event that the Nominee is not elect6ed to the position of
Secretary Treasurer by the General Membership, this membership on the Finance Committee shall cease and
the newly elected Secretary Treasurer shall replace the Nominee.

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.

AS SECRETARY TREASURER, YOU ARE EXPECTED TO:

   •   Work closely with the CFO/COO and the EVP.
   •   Work through the EVP and not directly with ARA Staff.
   •   Help the President and seek help from him/her.
   •   Be as thoroughly and completely prepared before each meeting.
   •   Read and understand the information presented on issues and proposals.
   •   Comment as appropriate on written materials and other's comments to the Board and/or Executive
       Committee.
   •   Ensure that written records of Board preparation and deliberation are kept and I will safe guard
       confidential information. This paper trail will show compliance with procedural due care requirements
       under the law.
   •   Remember that as Secretary-Treasurer, do not represent any constituency within the Association and
       do not represent a company, a franchise, or a specific group. The Secretary-Treasurer’s fiduciary
       responsibility is to the corporation under Arkansas law.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Attempt to reach consensus on each issue before the Board meets if possible.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest the Secretary/Treasurer may have on any issue or proposal.
   •   Apply to serve on a NAR Committee


DUTIES OF THE ARA DISTRICT VICE PRESIDENT

The four District Vice-Presidents of the Arkansas REALTORS® Association are elected to a two-year term,
one from each of the four Districts as mapped out for the Arkansas REALTORS® Association. The District
Vice Presidents will have served previously in other capacities on the ARA Board of Directors, such as Zone
Director or Director-at-Large. As part of the ARA Executive Committee, the District Vice-Presidents share in
the responsibility of overall leadership in carrying out the goals and objectives of the Association and
President. The District Vice-Presidents work closely with the President, President Elect, and the Secretary-
Treasurer on the Executive Committee.



                                                      65
The District Vice-Presidents are to be available, if requested by the President, to preside at meetings or
perform any other task. The District Vice-Presidents study the needs and problems of ARA and the real estate
industry in general. The District Vice-President is expected to keep abreast of the political climate in his or her
District and to assist in keeping a good rapport with the Congressman in the District.

The District Vice-Presidents are charged with the duty of maintaining communications and other contact with
the ARA Zone Directors and the Board Officers in their District, and to represent this overall consensus within
the Executive Committee and the Board of Directors. Conversely, the District Vice-Presidents are expected to
keep the Zone Directors and Board Officers informed on issues within the Executive Committee, for full two-
way communications.

The District Vice-Presidents are expected to attend the following meetings.

-All meetings of the ARA Executive Committee *
-All meetings of the ARA Board of Directors. *
-NAR’s Mid-year Conference in Washington D.C.
-NAR’s Annual Convention
-At least one meeting of each Local Board in the District.
-ARA’s State Convention *
-ARA’s Leadership Conference during and the year prior to the term starts *
-At least one meeting in his or her District for the DVP, the Zone Directors, and the Board of Directors, as most
convenient and as arranged by the DVP.
-The District Vice Presidents are automatically full voting members of the ARA Member Services Committee
for the years of their Directorship.*

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.


AS A DISTRICT VICE PRESIDENT, YOU ARE EXPECTED TO:

   •   Make decisions deliberately and without undue haste or pressure.
   •   Be as thoroughly and completely prepared as possible before making decisions.
   •   Read and understand the information presented on issues and proposals.
   •   Exercise care to receive clarification prior to the meeting, if possible.
   •   Become actively involved in deliberations during the Board meeting. Comment as appropriate on
       written materials and other's comments.
   •   Ensure that written records of Board preparation and deliberation are kept and safe guard confidential
       information. This paper trail will show compliance with procedural due care requirements under the law.
   •   The position as District Vice President does not represent any constituency within the Association and
       do not represent a company, a franchise, or a specific group. The District Vice President’s fiduciary
       responsibility is to the corporation under Arkansas law.
   •   Accept assignments from the President.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Will not formulate strong opinions until other Board members, supporters and opposition make their
       presentation on issues and proposals.

                                                        66
   •   Voice concern whenever the Board may take action that is contrary to the best interests of the
       corporation.
   •   Attempt to reach consensus on each issue before the Board.
   •   Read and become informed about the Association's Business Plan, governing documents, and
       services.
   •   Suggest possible nominees who can make significant contributions to the work of the Board and
       Committees.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest the District VP may have on any issue or proposal.
   •   Support all Leadership including Staff and refrain from making unsolicited comments. If a Director
       believes that a comment is necessary they should offer their opinion in an objective, professional
       manner, uninfluenced by any personal motivation. (This wording change comes from the preamble to
       the Realtor Code of Ethics)
   •   Work through the EVP and not directly with ARA Staff.


DUTIES OF THE DIRECTORS-AT-LARGE, PAST PRESIDENTS ELECTED TO THE BOARD AND
COMMITTEE CHAIRS APPOINTED TO THE BOARD.

These Directors of the Arkansas REALTORS® Association are elected to three-year terms.

These Directors are expected to attend all meetings of the Board of Directors, the ARA State Convention and
its Board of Directors Meeting, All Districts Caucuses as set by the President and the ARA Leadership
Conference.

These Directors hear reports from all ARA Committee (Generally at Board of Directors meetings) and vote for
action or cessation.

These Directors hear proposed policies and procedures of the Arkansas REALTORS® Association (generally
at Board of Directors Meetings) and vote for action or cessation.

These Directors work with the President in carrying out the approved policies, procedures, goals and
objectives.

Through reports from the Secretary-Treasurer, the Directors administer the finances of the Association and as
members of the Board of Directors have the sole authority to appropriate money. The ARA budget must be
approved by the ARA Board of Directors, of which these Directors are a majority.

These Directors are expected to promote and encourage involvement in ARA programs to Local Board
members, including, but not limited to attendance at educational sessions, political programs, participation in
the REALTOR®-of-the-Year program, participation in the elective process for ARA Officers, charitable fund
raising programs, etc.

These Directors are expected to establish as much as possible communication with the members who are
outside the jurisdiction of a Local Board so that effective input from these individual members can be included
in actions by the Board of Directors.
These Directors are expected to be constantly attuned to the attitudes and atmosphere of the membership and
to be prepared to follow-up as needed on the Arkansas REALTORS® Association’s Board of Directors.

These Directors are automatically full voting members of the ARA Member Services Committee for the year(s)
of their Directorship.


                                                       67
These Directors are expected to attend the following meetings:

       -All meetings of the ARA Board of Directors. *
       -ARA’s State Convention and its Board of Directors * Meeting.
       -ARA’s Leadership Conference during and the year prior to the term starts *
       -As many Local Board meetings as convenient and/or as invited by the Board President.
       -As a Director you are automatically full voting members of the ARA Member Services Committee
       for the years of their Directorship.*

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.


AS A DIRECTOR, YOU ARE EXPECTED TO:

   •   Make decisions deliberately and without undue haste or pressure.
   •   Be as thoroughly and completely prepared as possible before making decisions.
   •   Read and understand the information presented on issues and proposals.
   •   Exercise care to receive clarification prior to the meeting, if possible.
   •   Become actively involved in deliberations during the Board meeting. Comment as appropriate on
       written materials and other's comments.
   •   Ensure that written records of Board preparation and deliberation are kept and safe guard confidential
       information. This paper trail will show compliance with procedural due care requirements under the law.
   •   The position as Director does not represent any constituency within the Association and do not
       represent a company, a franchise, or a specific group. The Director’s fiduciary responsibility is to the
       corporation under Arkansas law.
   •   Accept assignments from the President.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Will not formulate strong opinions until other Board members, supporters and opposition make their
       presentation on issues and proposals.
   •   Voice concern whenever the Board may take action that is contrary to the best interests of the
       corporation.
   •   Attempt to reach consensus on each issue before the Board.
   •   Read and become informed about the Association's Business Plan, governing documents, and
       services.
   •   Suggest possible nominees who can make significant contributions to the work of the Board and
       Committees.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest the Director may have on any issue or proposal.
   •   Support all Leadership including Staff and refrain from making unsolicited comments. If a Director
       believes that a comment is necessary they should offer their opinion in an objective, professional
       manner, uninfluenced by any personal motivation. (This wording change comes from the preamble to
       the Realtor Code of Ethics)
   •   Work through the EVP and not directly with ARA Staff.



                                                      68
DUTIES OF THE ARA ZONE DIRECTOR

The Zone Directors of the Arkansas REALTORS® Association are elected to three-year terms. There is one
Zone Director for each Zone as mapped by the ‘Association for each member population of 500 or less. An
additional zone Director shall be elected for each segment of the membership numbering 500 members. The
Zone Directors are the primary liaisons between the Board of Directors and the Local Boards and members in
the Zone.

The Zone Directors are expected to attend all meetings of the Board of Directors, the ARA State Convention
and its Board of Directors Meeting, All Districts Caucuses as set by the President and the ARA Leadership
Conference.

The Zone Directors hear reports from all ARA Committee (Generally at Board of Directors meetings) and vote
for action or cessation.

The Zone Directors hear proposed policies and procedures of the Arkansas REALTORS® Association
(generally at Board of Directors Meetings) and vote for action or cessation.

The Zone Directors work with the President in carrying out the approved policies, procedures, goals and
objectives.

Through reports from the Secretary-Treasurer, the Zone Directors administer the finances of the Association
and as members of the Board of Directors have the sole authority to appropriate money. The ARA budget
must be approved by the ARA Board of Directors.

The Zone Directors will carry out all other duties and responsibilities and initiate action within the Board of
Directors as needed to insure a sound organization base for the Arkansas REALTORS® Association.

The Zone Directors are expected to visit each Local Board in his or her Zone as soon as possible after
assuming office and report on the visit to their respective District Vice President directly or through the Zone
Director Report Form which is located on the ARA Web Site. During the visit, the Zone Director should try to
open all lines of communication with the Board membership, in order to give effective input to the Board of
Directors.

The Zone Directors are expected to communicate with the Board Presidents in the Zone at least once a month
to stay attuned to progress or problems within the Board, and report as needed to the respective District Vice
President either directly to the District Vice President or through the Zone Director Report Form which is
located on the ARA Web Site.

The Zone Directors are expected to promote and encourage involvement in ARA programs to Local Board
members in the Zone, including, but not limited to attendance at educational sessions, political programs,
participation in the REALTOR®-of-the-Year program, participation in the elective process for ARA Officers,
charitable fund raising programs, etc.

The Zone Directors are expected to be constantly attuned to the attitudes and atmosphere of the membership
and to be prepared to follow-up as needed on the Arkansas REALTORS® Association’s Board of Directors.

The Zone Directors are automatically full voting members of the ARA Member Services Committee for the
year(s) of their Directorship.




                                                         69
The Zone Directors are expected to attend the following meetings:
       -All meetings of the ARA Board of Directors. *
       -ARA’s State Convention and its Board of Directors* Meeting.
       -ARA’s Leadership Conference during and the year prior to the term starts *
       -Attend at least twice annually Local Board meetings in your Zone and/or as invited by the Board
       President.
You are automatically full voting members of the ARA Member Services Committee for the year of your term.*

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.

AS A ZONE DIRECTOR, I AM EXPECTED TO:

   •   Make decisions deliberately and without undue haste or pressure.
   •   Be as thoroughly and completely prepared as possible before making decisions.
   •   Read and understand the information presented on issues and proposals.
   •   Exercise care to receive clarification prior to the meeting, if possible.
   •   Become actively involved in deliberations during the Board meeting. Comment as appropriate on
       written materials and other's comments.
   •   Ensure that written records of Board preparation and deliberation are kept and safe guard confidential
       information. This paper trail will show compliance with procedural due care requirements under the law.
   •   The position as Director does not represent any constituency within the Association and do not
       represent a company, a franchise, or a specific group. The Director’s fiduciary responsibility is to the
       corporation under Arkansas law.
   •   Accept assignments from the President.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Will not formulate strong opinions until other Board members, supporters and opposition make their
       presentation on issues and proposals.
   •   Voice concern whenever the Board may take action that is contrary to the best interests of the
       corporation.
   •   Attempt to reach consensus on each issue before the Board.
   •   Read and become informed about the Association's Business Plan, governing documents, and
       services.
   •   Suggest possible nominees who can make significant contributions to the work of the Board and
       Committees.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest.
   •   Support all Leadership including Staff and refrain from making unsolicited comments. If a Director
       believes that a comment is necessary they should offer their opinion in an objective, professional
       manner, uninfluenced by any personal motivation. (This wording change comes from the preamble to
       the Realtor Code of Ethics)
   •   Work through the EVP and not directly with ARA Staff.
   •   Report monthly any Local Board activities either directly to the District Vice President or through the
       Zone Director’s Report Form on the ARA Web Site.



                                                      70
                           DUTIES OF THE IMMEDIATE PAST PRESIDENT

The Immediate Past President of the Arkansas REALTORS® Association is a full voting member of the
Executive Committee, Assisting the Committee with the experience from previously held offices.

As a member of the Executive Committee, the immediate Past President shares in the responsibility of
governing the day-to-day activities of the Association and to make recommendations to the Board of Directors.

The Immediate Past President is a full voting member of the Board of Directors and serves on or Chairs
committees as requested by the President. He/she is automatically chairman of the Distinguished Service
Award Committee and the Life Membership Task Force.

The Immediate Past President is expected to attend the following meetings:
       -All meetings of the ARA Executive Committee. *
       -All meetings of the ARA Board of Directors. *
       -ARA’s State Convention and its Board of Directors * Meeting.
       -NAR’s Mid-Year Conference in Washington D. C.
       -NAR’s Annual Convention
       -ARA’s Leadership Conference *
       -As many Local Board meetings as convenient and/or as invited by the
        Board President
-You are automatically full voting members of the ARA Member Services Committee for the year of your
term.*

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.

THE IMMEDITIATE PAST PRESIDENT WILL:
   •   Work closely with the CFO/COO and the EVP.
   •   Will work through the EVP and not directly with ARA Staff.
   •   Help the President and seek help from him/her.
   •   Be as thoroughly and completely prepared before each meeting.
   •   Will read and understand the information presented on issues and proposals.
   •   Comment as appropriate on written materials and other's comments to the Board and/or Executive
       Committee.
   •   Ensure that written records of Board preparation and deliberation are kept and will safeguard
       confidential information. This paper trail will show compliance with procedural due care requirements
       under the law.
   •   Remember that as Immediate Past President, do not represent any constituency within the Association
       and do not represent a company, a franchise, or a specific group. The Immediate Past President’s
       fiduciary responsibility is to the corporation under Arkansas law.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Attempt to reach consensus on each issue before the Board meets if possible.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest
   •   Apply to serve on a NAR Committee

                                                     71
                               DUTIES OF THE NATIONAL DIRECTORS

The Directors of the National Association of REALTORS® from Arkansas are the liaison between the Arkansas
REALTORS® Association and NAR. As such, they assume a position of leadership, not administration.
National Directors represent
Arkansas REALTORS® at the national level, providing effective, accurate input to NAR for its consideration in
decisions concerning NAR positions and policies. Thus, National Directors must maintain communication with
the ARA Board of Directors and must be aware of and open to the needs and desires of ARA membership.

Conversely, the National Directors are expected to keep the ARA Board of Directors informed on relevant
issues and positions of the National Association of REALTORS®.

National Directors are expected to attend the following meetings:

       -All meetings of the Arkansas REALTORS® Association’s Board of Directors *
       -NAR’s Mid-Year Conference in Washington D. C. *
       -NAR Board of Director Meetings. *
       -ARA’s State Convention and its Board of Directors * meeting.
       -NAR’s Annual Convention
       -ARA’s Leadership Conference *

You are automatically full voting members of the ARA Member Services Committee for the year of your term.*

* Mandatory meetings with required attendance policy: Attendance by members shall be required. Upon the
third absences during the entire term of the appointment, resignation shall be automatic. An excused absence
is only when the member is attending another ARA Meeting held at the same time. The chair shall determine
such resignations. Should such resignation be instituted, the members may file a written request to the
President for reinstatement explaining the reasons for absences. If reinstated, one additional absence shall
automatically be a final resignation without the ability to submit for reinstatement.


A NATIONAL DIRECTOR AND MEMBER OF THE ARA BOARD OF DIRECTORS IS EXPECTED
TO:

   •   Make decisions deliberately and without undue haste or pressure.
   •   Be as thoroughly and completely prepared as possible before making decisions.
   •   Read and understand the information presented on issues and proposals.
   •   Exercise care to receive clarification prior to the meeting, if possible.
   •   Become actively involved in deliberations during the Board meeting. Comment as appropriate on
       written materials and other's comments.
   •   Ensure that written records of Board preparation and deliberation are kept and safe guard confidential
       information. This paper trail will show compliance with procedural due care requirements under the law.
   •   As an NAR and ARA Director, do not represent any constituency within the Association and do not
       represent a company, a franchise, or a specific group. The Director’s fiduciary responsibility is to the
       corporation under Arkansas law.
   •   Accept assignments from the President.
   •   Support the Board's decision and will not undermine any decision understanding that the Board acts as
       a whole.
   •   Seek input from the REALTOR members regarding issues.
   •   Not formulate strong opinions until other Board members, supporters and opposition make their
       presentation on issues and proposals.


                                                      72
   •   Voice concern whenever the Board may take action that is contrary to the best interests of the
       corporation.
   •   Attempt to reach consensus on each issue before the Board.
   •   Read and become informed about the Association's Business Plan, governing documents, and
       services.
   •   Suggest possible nominees who can make significant contributions to the work of the Board and
       Committees.
   •   Keep up-to-date on industry trends and share these with the Board
   •   Disclose any potential conflict of interest.
   •   Support all Leadership including Staff and refrain from making unsolicited comments. If a Director
       believes that a comment is necessary they should offer their opinion in an objective, professional
       manner, uninfluenced by any personal motivation. (This wording change comes from the preamble to
       the Realtor Code of Ethics)
   •   Not direct staff but will seek help from the EVP, which, in turn, may assign a staff member as deemed
       necessary by EVP.



                REALTOR®-OF-THE-YEAR POLICIES AND PROCEDURES

PROGRAM AND PURPOSES

Selection of the REALTOR®-of-the-Year is by the Arkansas REALTORS® Association from among candidates
selected by the local Boards or Associations. The REALTOR®-of-the-Year award is granted to the
REALTOR® member who in the opinion of the judges has contribute the most to the advancement of his
profession and the community at large during the current year.

The program has four purposes:
   1) To recognize and award REALTOR® members of the Arkansas REALTORS® Association for effort
       and work expended in the interest of their fellow REALTOR®, their profession, and the community;
   2) To demonstrate to the general public by these outstanding examples the work done by REALTORS®;
   3) To point up the qualifications of those REALTORS® best fitted to be considered for leadership
       positions in organized real estate; and
   4) To foster a spirit of competition among those who are in a position to do the real productive work of our
       local Boards and Associations, the Arkansas REALTORS® Association, and the NATIONAL
       ASSOCIATION OF REALTORS®.


SELECTION OF THE REALTOR®-OF-THE-YEAR COMMITTEE

   1) The President of the Arkansas REALTORS® Association shall appoint the Chairman of the
      REALTOR®-of-the-Year Committee from past State REALTORS®-of-the-Year.
   2) The Chairman shall appoint the remaining members of the Committee from past State REALTORS®-
      of-the-Year. The Committee shall consist of the Chair plus 4 members.
   3) The name of the Chairman of the REALTOR®-of-the-Year Committee shall be made known publicly;
      the remaining members shall be held in confidence.
   4) If for any reason a Committee member cannot attend all committee meetings, it is his or her
      responsibility to notify the Chairman, who in turn shall have the right to select a replacement provided
      he or she is a past State REALTOR®-of-the-Year.
   5) The Chairman shall contact each member of the Committee thirty (30) days prior to the Arkansas
      REALTORS® Association Convention to insure that all Committee members plan to attend.
   6) The Chairman shall set a definite time for the first meeting of the Committee at the Convention.

                                                      73
  7) The Chairman does not vote unless there is a tie.
  8) The Committee shall select one of its members to make the presentation.
  9) Under no circumstances shall any individual including the President of the Arkansas REALTORS®
      Association be allowed to attend any meeting of the REALTOR®-of-the-Year Committee nor read the
      REALTOR-of-the-Year submissions.
  10) After the business of the Committee has been concluded and the selection made, the submission forms
      shall be destroyed, except that the copy retained at the Arkansas REALTORS® Association shall be
      filed in a confidential file which may be examined only by unanimous vote of the current committee
      members.


SELECTION OF THE REALTOR-OF-THE-YEAR

  1) Each local Board is encouraged to submit the name of one nominee to the State REALTOR®-of-the-
     Year Committee Chairman, based on the standards that follow in Paragraph 3. The Committee
     Chairman shall furnish to the local Boards the Submission Forms for the Board’s nominee. The
     Submission Form shall include a request for a photograph of the nominee. Local Boards shall use the
     Submission Form for their nominee.

  2) As soon as all nominations are received by a deadline to be specified by the REALTOR®-of-the-Year
     Committee Chairman, the Chairman shall forward a copy of all Submission Forms to each Committee
     member ONLY.

  3) The following set of standards for choosing a State REALTOR®-of-the-Year is mandatory:

     a. REALTOR Spirit - 5%
            High principles, faithfulness to laws and regulations of the Code of Ethics and the
     Local Board and furtherance of the principles of good real estate practice among brokers and the
     general public;

     b. Civic Activity - 20%
              Participation at local, state and national levels in; civic and service clubs, charitable
     activities, political commissions, fraternal or religious groups, etc.

     c. Business Accomplishments - 15%
            Recognized good business conduct, service to clients, imaginative and creative advertising
     programs, rehabilitation work, land utilization, etc.

     d. Local Board Activity - 30%
            Board offices and committee work, special assignments, seminar activity and educational
     work, membership and offices held in local Chapters of the Institutes, Societies and Council, etc.

     e. State Association Activity - 25%
             Offices held and committee work, attendance and participation at State Conventions,
     Directors meetings, educational conferences, etc.

     f. National Association Activity - 5%
             National offices and committee work, membership and work in Institutes, attendance at
     National Conventions, etc.

  4) Upon selection of the REALTOR®-of-the-Year the Chairman or a member of the ARA staff shall
     immediately forward the name of Arkansas REALTOR®-of-the-Year to the NATIONAL ASSOCIATION
     OF REALTORS®. An invitation is then extended to the State REALTOR®-of-the-Year to be a guest at

                                                       74
       the Awards Ceremony during the National Convention. Spouses are also invited to the Ceremony as
       guests of the National Association.

Forms for application and for the use by the local and state Associations are located at
www.arkansasrealtors.org.



               THE SHAFFER HALEY REALTOR®-OF-THE-YEAR AWARD
                                        ®

The person who is named Arkansas REALTOR®-of-the-Year is the recipient of the Shaffer Haley REALTOR®-
of-the-Year Award, and is expected to attend the NATIONAL ASSOCIATION OF REALTORS® Convention. It
was established in 1988 by an agreement between the Arkansas REALTORS® Association and the Arkansas
Community Foundation.

Shaffer Haley was President of the Arkansas REALTORS® Association in 1955. He was in the real estate
business in Pine Bluff for 62 years and became known as Jefferson County’s walking abstract company from
his instant recall of past property ownership in the County. A pioneer in the professionalism of real estate, he
helped organize the Arkansas REALTORS® Association in 1925 and in 1929 helped get the state’s first real
estate licensing law passed. He remained active in ARA leadership until the few years preceding his death on
June 7, 1987.

In memory of their father, his two daughters, Mrs. Mollie Haley Grober and Mrs. Ann S. Rogers, donated the
funds that established the Shaffer Haley REALTOR®-of-the-Year Award. Mrs. Grober, a resident of Fort
Smith, died in late 1996; Mrs. Rogers passed away in Pine Bluff.


                           DISTINGUISHED SERVICE AWARD (DSA)
Qualifying Criteria for Nomination

   The Committee will not consider nominations that do not meet the Criteria.

   The following basic criteria will apply to members who are nominated for the Distinguished Service Award:

   •   Have attained the age of 60 or have at least 25 years service in the Arkansas REALTORS®
       Association including leadership positions in the Member Board and the State Association.

   •   Candidates must HAVE CONTRIBUTED outstanding service of the Association – Local and State.
       Especially important will be activities at the state and/or local Board in any and all areas of services to
       the members.

   •   Have been recognized as a local or regional leader whose performance of service and involvement in
       political and/or community activities is extraordinary.

   •   Have not served as President of the Arkansas REALTORS® Association nor having been selected as
       the state REALTOR® of the Year and currently is an active member of this Association.

Please Note: The Distinguished Service award will not be awarded posthumously.



                                                        75
The Distinguished Service Award (DSA) Committee will be made up of six members, all being past
presidents of ARA. Each member will serve a three-year term and the Committee will be an official committee
of ARA according to the bylaws. The Immediate Past President shall automatically be appointed to a 3 year
term and serve as chairman for his/her year as Past President. The President shall nominate one additional
member with a three-year term. In year one, the current President will appoint two members each for terms of
two and three years and one member for a term of one year.

A reminder that a photograph of the candidate will be required if selected.

The deadline for receipt of all forms is August 15th (postmark date).

An individual may be nominated more than once; however, a new form must be re-submitted each year a
person is nominated. Information will not be carried over from one year to the next. Signatures of both the
Local Board/Association President and the State Association President are mandatory prior to the form being
submitted to the committee.

The DSA Selection Committee feels that "honor seeks the candidate; not the reverse." Therefore, politicking
and campaigning are strongly discouraged.

SELECTION GUIDELINES - DISTINGUISHED SERVICE AWARD

   •   State Association and/or Member Boards may nominate candidates for the Distinguished Service
       Award. There can be more than one nominee per Board/state; however, the Committee strongly
       encourages the local Board to nominate only one person for the Distinguished Service Award.
   • The Selection Committee will review all nomination forms that are submitted to it for consideration.
   • The Selection Committee does not solicit or encourage use of supportive documents and materials
       (letters of recommendation, newspaper articles, news releases, etc.) with the candidate nomination
       form. All such materials will be discarded and not included with the nomination forms reviewed by the
       Selection Committee.
   • Only nominations submitted on the official nomination form will be considered. Nominations that do not
       follow this exact format will be discarded.
   • A current photograph of the candidate will be required if selected.
   • The President of the local Board and the President of the State Association must sign all nominations.
   • The Committee shall select no more than two nominees each year but has the option to select none or
       one nominee but not more than two annually.
   • Nominations are not carried over from year to year. Nominees from the previous year will not be
       automatically reconsidered. Notwithstanding the foregoing, the DSA Selection Committee may, at its
       option, select up to two nominations to be carried over to the next year for consideration in its
       deliberations. These nominations must have been the 3rd and 4th ranking of the Committee in its
       deliberations. A new nomination form must be submitted for consideration each year.
   • All DSA nomination forms submitted for consideration are kept strictly confidential. All materials
       submitted become the property of ARA and will not be returned. After the DSA Selection Committee
       determines the recipients, all materials are destroyed.
The recipients will be honored with a plaque presentation at the Annual past President’s Luncheon at the
Annual Convention each year.

The deadline for receipt of all forms is August 20 (postmarked no later than August 15th) - mail to the attention
of Carolyn Cahill at the address below.

There is no charge or application fee for nominating a DSA Candidate.

Mail completed Nomination form or direct questions to:
DSA Selection Committee -- Attn: Carolyn Cahill, Arkansas REALTORS® Association
                                                       76
11224 Executive Center Drive, Little Rock, AR 72211; Phone: (501)225-2020 or (888)333-2206, FAX: (501)
225-7131, email: Carolyn@ArkansasRealtors.com


                                     PERSONAL AND CONFIDENTIAL
                                    Arkansas REALTORS® Association
                                                     ®
                                    DISTINGUISHED SERVICE AWARD
                                        CANDIDATE NOMINATION

Nominee must comply with all criteria -- please note the requirement that the Nominee must continue to
participate and be involved in activities at all levels of the Association. All information must be completed on
the form and resumes may be attached in addition to the completed nomination form. Only nominations
submitted on this form will be considered. Any other attachments will be considered but this form is
required.

Nominee Name:

Date of Birth:

Address:

Telephone:

Nominated By:
Association/Board Name:

Address:

Telephone:

Date Submitted:

In which Local Board does the Nominee hold membership in?

How long has the nominee been an active member?

Is the nominee still an active, participating member (please circle)
LOCAL BOARD/ASSOCIATION                        yes   no
STATE ASSOCIATION                              yes   no

The candidate has been a continuous member of the Arkansas REALTORS® Association for                        years.

Signatures:

Local Board/Association President                            State Association President


Please return to: DSA Selection Committee -- Attn: Carolyn Cahill, Arkansas REALTORS® Association.
11224 Executive Center Drive, Little Rock, AR 72211. Phone: (501)225-2020 or (888) 333-2206 FAX: (501)
225-7131 email: Carolyn@ArkansasRealtors.com
                       Deadline is August 20th (postmarked no later than August 15th).



                                                        77
                                   ARA Life Membership Application
The applicant may be granted Life Membership in the Arkansas REALTORS® Association under the following
criteria:
         Held membership in the Arkansas REALTORS® Association as a REALTOR® or REALTOR®
         Associate or combination of these two membership status for a continuous period of 25 years or for a
         total of 30 years which may not have been continuous.
         Has reached the age of 65.
         Made (and attached to this application) notable contribution to the Arkansas REALTORS® Association.
         Examples would be serving on the ARA Board of Directors, serving on ARA committees for more than
         a year or two or had a variety of positions over the years with ARA but would not be based upon local
         Board leadership or involvement. The ARA Executive Committee shall make the determination of
         eligible activities.
         Has been recommended for Life Membership by his/her Local Board or ARA’s Executive Committee.
         Local Board must state if the applicant has been granted the same status in his/her Local Board.
         Holds an active real estate license.

Applicant’s Name:

Current Local Board:

Mailing Address (incl. City/Zip)



___ Has been granted “REALTOR®-Emeritus” status in the National Association of REALTORS®

___ Held membership in the Arkansas REALTORS® Association as a REALTOR® or REALTOR® Associate
or combination of these two membership status for a continuous period of 25 years or more. Starting
______________________ through date of application.

___ If held for 30 years non-consecutive,          From __________     To   _____________
                                                   From __________     To   _____________
                                                   From __________     To   _____________
                                                   From __________     To   _____________

______ Years as a REALTOR® Member

______ Years as a REALTOR® Associate Member

The applicant’s date of birth is            ,      . Photo copy of applicant’s Driver’s License is attached.

All ARA Life Membership applications will be submitted no later than September 30th of the current year for
members who reach the age of 65 on or before December 31st of the current year for consideration to waive
the next year’s dues. Applications for Life Membership received after September 30th shall be held for
consideration for the year following next year’s dues only.




                                                     78
The applicant’s contribution to the Arkansas REALTORS® Association:




Additional comments may be attached.

Recommendation for Life Membership is made by:


Local Board President                                     Local Board


I am aware that my application for Life Membership in the Arkansas REALTORS® Association is being
submitted by my Local Board:



Signature of Applicant                                    Date


                                  AWARD FOR EXCELLENCE
                               GUIDELINES AND REQUIREMENTS
                                  For transactions in calendar year 2009

CONCEPT AND PURPOSE

The Arkansas REALTORS® Association through the cooperation of Member Boards throughout Arkansas
creates and establishes the Award for Excellence as stated above. The purpose is to provide a statewide
vehicle for recognizing outstanding professional performance utilizing a uniform criterion. This shall be an
annual recognition to those REALTORS® and REALTOR-ASSOCIATES® throughout Arkansas whose real
estate achievements meet or exceed the criteria and qualifications set forth herein. The spirit of the Award
shall be a declaration to epitomize the REALTORS® professionalism, as expressed in the aspirational ideals
and specific obligations of the Code of Ethics, with adherence to the Code being the first great bond among
REALTORS® throughout the country. Adherence to this spirit and its inherent obligations are innate to the
AWARD FOR EXCELLENCE.
                                                     79
LEVELS OF ACHIEVEMENT

The Award for Excellence will have five levels of achievement, as set forth in these Guidelines and
Requirements. The levels of achievement are

       Level 1: Bronze
       Level 2: Silver
       Level 3: Gold
       Level 4: Platinum
       Level 5: Diamond

ELIGIBILITY

The Award for Excellence will include REALTORS® in good standing with the Arkansas REALTORS®
Association at the time the transaction(s) occurred and at the time of application for the award. Eligible
REALTORS® may apply for the Award for Excellence as an Individual Applicant or as a Team Applicant. An
Individual Applicant is one who consummated the transaction without the aid or involvement of any licensed
assistants. A Team Applicant is one who consummated the transaction with the aid or involvement of one or
more actively licensed assistants. There will be only one award per Individual applicant. For a Team
applicant, the transmittal to ARA will specify the official Team Name (such as “The John Doe Team” or “The
ABC Realty Team”) and the name and membership number of the Team Leader. A certificate will be issued to
the Team Leader. As authorized by a written addendum by the Team Leader to the Board’s transmittal to
ARA, additional certificates may be issued in the name of the team to all the team members, and lapel pins
may be purchased for all the team members as approved by the Team Leader. The Guidelines and
Requirements for the Award for Excellence will be reviewed every two years to make sure they are current.

                                            Methods of Attainment

Method of Attainment Level 1:           BRONZE AWARD

An Individual Applicant or a Team Applicant may qualify for the Bronze Award in any one of five categories: 1.
Listings; 2. Sales; 3. Volume; 4. Income; 5. Leasing and Property Management. An Individual Applicant or a
Team Applicant need only to qualify under one category to be included in the Bronze Award.


LISTINGS CATEGORY:
The Individual or Team applicant must have listed and closed a minimum of ten (10) properties during the
given calendar year with a minimum listing closed volume of One Million Dollars. Each listing will count as
100% of the actual closed sales and purchase price. To every transaction there are two and only two sides.
The listing side, for volume credit toward the Award, will be awarded to the listing agency. If a joint effort is
involved in getting the listing closed, each agent within the listing agency participating in the transaction will be
entitled to receive credit equivalent to the percentage of commission earned as determined by the listing
agency’s supervising broker. An Individual or Team applicant, however, shall be entitled to receive credit,
even if no compensation is received from his or her broker, when a property is closed, with the consent of and
under the supervision of the applicant’s broker, through an arms length, negotiated transaction. An applicant,
for example, may have offered his or her own property for sale but chose not to receive a brokerage fee when
the transaction closed.




                                                         80
SALES CATEGORY:

An Individual or Team applicant must have sold and closed a minimum of ten (10) properties during the given
calendar year with a minimum of sales closed volume totaling One Million Dollars. Each sale will count as
100% of the total sales price. If a joint effort is involved in getting the sale closed, each agent within the selling
agency participating in the transaction will be entitled to receive credit equivalent to the percentage of the
commission earned, as determined by the selling agency’s supervising broker. An Individual or Team
applicant, however, shall be entitled to receive credit, even if no compensation is received from his or her
broker, when a property is closed, with the consent of and under the supervision of the applicant’s broker,
through an arms length, negotiated transaction. An applicant, for example, may have purchased property for
his or her own account but chose not to receive a brokerage fee when the transaction closed.


VOLUME CATEGORY:

An Individual or Team applicant must have, during the given calendar year, closed a minimum of twelve (12)
properties with a combined minimum volume total of $1,800,000.00 (One Million Eight Hundred Thousand
Dollars) of listings sold and closed, sales made and closed, and executed leases.


INCOME CATEGORY:

An Individual or Team applicant must have $60,000 gross closed commission income brought into the
brokerage firm during the given calendar year. This may be derived from the share of the listings, sales,
leasing and property management, and referral commissions earned. The gross but shared in-house
transactions between two agents will be divided equally.


LEASING AND PROPERTY MANAGEMENT CATEGORY:

An Individual or Team applicant must have had leasing transactions during the given calendar year that the
lease commences. The lease term must be for a minimum of three (3) years, and the maximum will be initial
lease term. Credit shall be calculated by multiplying the annual gross rent times the lease term. Each
transaction shall be no less than $50,000. The lease listing agent and the leasing agent will each receive
100% of the leasing transaction. A minimum of ten (10) different transactions with a minimum volume credit
total of one million dollars is required.


Method of Attainment Level 2: SILVER AWARD

An Individual or Team applicant who has met the requirements for the Bronze Award may achieve the Level 2
SILVER AWARD by having additionally increased his or her closed combined volume of credit during the given
calendar year to no less than Two Million Dollars. The additional volume of credit may be derived from each
side of listings sold and closed; sales made and closed, and executed leases.


Method of Attainment Level 3: GOLD AWARD

An Individual or Team applicant who has met the requirements for the Bronze Award may achieve the Level 3
GOLD AWARD by having additionally increased his or her closed combined volume of credit during the given
calendar year to no less than Three and One Half (3 ½) Million Dollars. The additional volume of credit may
be derived from each side of listings sold and closed; sales made and closed, and executed leases.


                                                          81
Method of Attainment Level 4: PLATINUM AWARD

An Individual or Team applicant who has met the requirements for the Bronze Award may achieve the Level 4
PLATINUM AWARD by having additionally increased his or her closed volume of credit during the given
calendar year to no less than Five (5) Million Dollars. The additional volume of credit may be derived from
each side of listings sold and closed; sales made and closed, and executed leases.


Method of Attainment Level 5: DIAMOND AWARD

An Individual or Team applicant who has met the requirements for the Bronze Award may achieve the Level 5
DIAMOND AWARD by having additionally increased his or her closed volume of credit during the given
calendar year to no less than Seven (7) Million Dollars. The additional volume of credit may be derived from
each side of listings sold and closed; sales made and closed, and executed leases.


PROCEDURES

The Arkansas REALTORS® Association will send out information to the Member Boards on the Award for
Excellence in November of each year for the next year’s awards. Each Member Board shall determine
whether or not it will participate in the Arkansas REALTORS® Association’s Award for Excellence program.
The Board President shall notify the Arkansas REALTORS® Association of its decision annually.


MEMBER BOARD AWARDS COMMITTEE

The President of each participating Member Board shall appoint a three-member-minimum Award Committee
including a Chairperson. Its function will be to remind the membership of applicable deadlines, to distribute the
application forms upon member’s request, to receive and verify completed applications, and to submit the
applications to the Board President for his or her signature. The application forms are to contain the signature
of the applicant’s broker. If the applicant has had more than one broker during the year, a separate application
form is to be submitted for each broker. The Committee Chairperson will sign each application and will assist
the Board President as needed to submit all eligible applicants to the Arkansas REALTORS® Association on
or before the annual deadline. All persons involved in the application forms shall consider the application
forms as confidential and once verified by the Award Committee shall be returned to the applicant immediately
for his or her own records. The Member Board’s President and the Board’s Award Committee shall take full
responsibility for the confidential processing and verification of each application received. Application and
remittance of the participation fee must be made annually by eligible applicants, through the Member Board.


NOTIFICATION TO ARKANSAS REALTORS® ASSOCIATION

The Board President shall submit a statement written on Board stationery and containing the signature of the
Board President of verification to the Arkansas REALTORS® Association, no later than February 15th of the
current year, the names of all eligible participants in its jurisdiction The following shall be included:

The applicants name;

The applicant’s principal broker’s name;

The applicant’s company name;


                                                       82
The category in which the applicant is eligible;

The applicant’s mailing address and telephone number;

A $30 participation fee for each applicant who does not want a lapel pin and a $35 participation fee for each
applicant who wants a lapel pin. The total fee will be sent to the Arkansas REALTORS® Association. Then the
Member Board may submit, no later than June 15th of the current year, a bill or invoice to show the Board’s
costs for local publicity, and ARA will reimburse the Member Board for that amount up to but not exceeding
$15.00 per each applicant submitted. The publicity expenses must be verifiable by way of a bill, invoice, or
other method showing the amount spent by the Local Board.
ADVERTISING AND PROMOTION

The Board, the Individual applicants, and the Team applicants may advertise their achievement upon receipt of
authorization from their local Board. Individual members outside the jurisdiction of a local Board will receive
authorization from the Arkansas REALTORS® Association. The Arkansas REALTORS® Association will
design logos specific to the levels of achievement and specific to Individual or Team application, and will
furnish the logos to the Member Boards and Individual Members outside the jurisdiction of a Member Board.
The Board, the Individual applicant, and the Team applicant shall use the appropriate logo in all advertising,
promotion, and representations to the public. No other logo will be allowed in connection with the ARA
AWARD FOR EXCELLENCE. After the Member Board or Individual Member has received the letter from the
Arkansas REALTORS® Association, the Member Board shall arrange for local publicity for its members that
participate in the Award for Excellence program in the manner deemed appropriate by the Member Board. The
cost of such publicity and recognition for local publicity will be the responsibility of the Member Board for its
members. The Member Board, in its publicity, shall use the phrase “Certified by the Arkansas REALTORS®
Association.”

The Arkansas REALTORS® Association shall publicize the participants in the Award for Excellence program
with no less than the following recognitions:
Each participant will be issued a certificate through the Member Board to be presented at the Board’s
discretion. The year shown on the Certificate will be the year of the transactions. Only one certificate will be
awarded, and that will be for the highest award qualified for. Certificates will distinguish between Individual and
Team participants in a manner established by the ARA Public Relations Committee.
Each participant will be furnished a lapel ribbon for the name badge at the ARA State Convention, the design
of which is to be approved by the Chair of the ARA Public Relations Committee.
Additional recognition at the State Convention for the members in the AWARD FOR EXCELLENCE, in the
form of a brochure or banner, may be made at the discretion of the ARA Public Relations Committee.

REVIEW PANEL

The Public Relations Committee or a Task Force thereof of the Arkansas REALTORS® Association will assist
in interpreting the Guidelines and Requirements regulating the AWARD FOR EXCELLENCE. A Member
Board or an Individual or Team applicant may request a Review at the ARA level of an application made to the
Member Board. A written request must first be received by the Arkansas REALTORS® Association as set
forth in the “Procedures for Requesting a Review.” As of June 1st of the current year, all Award for Excellence
decisions will be final and therefore no appeals or changes may be made after that date.


INDIVIDUAL MEMBERS

Persons outside the jurisdiction of a Member Board who wish to participate in the Award for Excellence
program shall notify the Arkansas REALTORS® Association of such non-Board status. He or she shall submit
an Individual or Team application direct to the Arkansas REALTORS® Association for the Review Panel to


                                                        83
verify. All requirements and procedures, including the deadlines and participation fee, shall apply as if the
applicant were a member of a Member Board.


ENFORCEMENT

Failure to abide by these Guidelines and Requirements may result in disqualification of the company and/or the
individual(s) involved for the current and/or following award year. Any member Board, any Board Member or
any Individual Member of the Arkansas REALTORS® Association may initiate a violation inquiry through the
ARA Public Relations Committee against any Individual Applicant or Team Applicant if the Member Board, the
Board Member or the Individual Member has evidence that the Individual Applicant or the Team Applicant is in
violation of these Guidelines and Requirements. Such inquiry may result in an ethics complaint filed with the
ARA Professional Standards Committee.



                  GENERAL EXPENSE/REIMBURSEMENT POLICY

General expense/reimbursement policy will apply to all Officers, Members and Association Staff who are
entitled to and seek reimbursement for travel and/or other expenses incurred on behalf of the Association.
Those Officers, Members and Association Staff who are entitled to expense reimbursement for specific events
are detailed later in this policy document. The Internal Revenue Service allows reimbursement for travel and
other expenses that are ordinary, necessary and directly related to the purpose of the Association.


At some point, the membership may require you to justify your travel and expense reimbursement cost. Totally
complying with this policy will assure that your reimbursements are due to you.


Expense Reimbursement Forms:
This Association requires that all expenses are filed with ARA on an approved expense report form; a blank to
be photocopied is attached to this policy manual. All travel and expense reimbursement forms are to be
completed and turned in to the Association within 90 days of the actual event. Those expenses that are
incurred within the last 90 days of the calendar year must be submitted by January 10th of the following year.
You will attach original receipts for all expenses over $24.99 to the expense report. On the expense report,
you are to indicate the function and the type of expense so that a charge to the proper account can be
determined. For the President and Staff issued ARA credit cards, receipts must also accompany the expense
report. Failure to comply with this policy will mean that authorization of payment will be deferred to the
Executive Committee and if approved for payment, that amount of reimbursement will be treated as income
with the recipient to receive a 1099 form at the end of the year.


Reimbursement from more than one source:
If a member is entitled to reimbursement from two sources within the organization, they are entitled to submit
expenses first to the policy, which has the largest allowance, and then to submit unpaid reimbursement
expenses to the second entity. In no event shall the member be reimbursed in excess of actual expenses,
collecting from both entities for the same expense.


Association Credit Cards:
The President, The Executive Vice President, The Chief Operating Officer, The Governmental Affairs Director
and the Arkansas REALTORS® Association full-time staff shall be issued Association credit cards for
                                                       84
Association related travel and business expenses. Each is required to complete an expense account form
listing charges to the card as detailed in the paragraph above. Credit card receipts for these expenses MUST
be attached to the expense account form. These expense reports are due within 15 days of the date of the
incurred expense. Should an Association credit card be required for on-line registration for NAR events and
hotel guarantees, a “print screen” is always available and will be attached to the expense report in lieu of an
actual credit card receipt. UNDER NO CIRCUMSTANCES SHALL THE ASSOCIATION’S CREDIT CARD BE
USED FOR PERSONAL CHARGES. If personal charges are included in a credit card receipt, such as hotel or
non-reimbursed dining while on ARA business, that amount will be deducted from any cash you have spent on
that expense account or deducted from your (employee) next paycheck.


Spouse Travel:
The Omnibus Budge Reconciliation Act of 1993 will apply to this entire policy that also requires that all
reimbursement for spouse travel be treated as income to either the Officer or employee who is entitled to
spouse travel expenses. Employees will have the amount included on their W2 forms at the end of the year
and Officers will be issued a 1099 form.


Authorization of Travel/Expense Claims:
The Association’s Treasurer will be responsible for authorizing payment of all claims for expense
reimbursement from Officers of the Association other than himself/herself. This authority may be delegated to
the Executive Vice President or the Chief Financial Officer/Chief Operating Officer except for the EVP &
CFO/COO’s expense, which shall have to be authorized by the Treasurer or other Officer of the Association. It
shall be the responsibility of the Association’s CFO to fax or otherwise present the EVP & Chief Financial
Officer/Chief Operating Officer’s expense account reports to the Treasurer for prior approval. This is normally
accomplished when the Treasurer is presented the check for signature.


Required Written Reports:
Each NAR Director and NAR Committee member who is granted the travel reimbursement for attendance will
file a written report of the activities of their committee to ARA for distribution to appropriate ARA committee(s)
including a copy of the minutes of that committee which are available on REALTOR.org.


Allowable Dates of Travel:
Reimbursement as defined in this policy shall be for expenses incurred for arrival at meetings one day prior to
the beginning of the meeting and one-day after the end of the meeting.


Form of Travel:
Officers, Members and staff of the Association, who are entitled, are required to use the most cost effective,
but reasonable form of travel. This means that, when traveling by air, reservations must be made as far in
advance as is reasonable, for coach class, three weeks in advance of departure to receive the best possible
price.


Travel by Car and Mileage Reimbursement:
Officers, Members and staff who are entitled to travel reimbursement by auto shall charge the current IRS
mileage allowance. This amount is issued annually in late December for the following year. All Officers,
Members and staff claiming mileage reimbursement shall maintain the state’s minimum liability insurance level.




                                                        85
Rental Cars:
Unless a group of ARA Officers, Members and staff are traveling together, rental cars are not reimbursed.
Public transportation to/from airports/hotels should be used affording the lowest cost.


Accommodations:
Those Officers, Members and staff entitled to reimbursement shall be limited to rates plus taxes published for
NAR or ARA meetings or conventions. Upgrade of accommodation difference shall be at the expense of the
traveler.


Non-Reimbursable Items:
The following items are generally excluded unless authorized by the Executive Committee
Personal entertainment (i.e.: movies, health clubs, airline headphones, etc.)
Purchase of books and magazines
Barber, hair stylist or beautician fees
Baby-sitting
Kennel
Laundry and dry cleaning
Mini-bars and in-room safes
Personal telephone calls


Cell Phone Allowance for President
The current President of the Association shall receive a $50.00 per monthly allowance for using their cell
phone for Association Business.


The following are charts of allowable expenses for reimbursements:

POSITION: PRESIDENT
EVENT/ACTIVITY              Air        Mileage Hotel           Meals    Bus/Taxi Parking Regist.
NAR Mid-Year Meeting        A          LOW        A            A        A         A
NAR Convention              A          LOW        A            A        A         A          A
Region IX Annual Conf.      A          LOW        A            A        A         A          A
ARA Annual Convention                  A          A            A                  A          A
ARA Board of Directors                 A          A            A                  A
ARA Leadership Conf.                   A          A            A                  A
Local Board Visits/Install             A          A            A        A         A
Executive Committee                    A          A            A                  A
Misc. ARA Meetings                     A          A            A                  A
Business Planning                      A          A            A                  A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,


POSITION: SPOUSE/GUEST (1) OF PRESIDENT
EVENT/ACTIVITY         Air     Mileage Hotel                   Meals      Bus/Taxi   Parking    Regist.
NAR Mid-Year Meeting   A
NAR Convention         A                                                                        A
Region IX Annual Conf. A
ARA Annual Convention                                                                           A

                                                      86
Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,


POSITION: PRESIDENT ELECT
EVENT/ACTIVITY              Air        Mileage Hotel          Meals      Bus/Taxi   Parking   Regist.
NAR Mid-Year Meeting        A          LOW        A           A          A          A
NAR Convention              A          LOW        A           A          A          A         A
NAR Leadership Conf.        A          A                      A                               A
Region IX Annual Conf.      A          LOW        A                      A          A         A
ARA Annual Convention                  A          A                                 A         A
ARA Board of Directors                 A          A                                 A
ARA Leadership Conf.                   A          A                                           A
Local Board Visits/Install             A          A
Executive Committee                    A          A
Misc. ARA Meetings                     A          A
Business Planning                      A          A                               A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,


POSITION: SECRETARY-TREASURER
EVENT/ACTIVITY              Air        Mileage Hotel          Meals      Bus/Taxi   Parking   Regist.
NAR Mid-Year Meeting        A          LOW        A           A          A          A
NAR Convention              A          LOW        A           A          A          A         A
Region IX Annual Conf.      A          LOW        A           A          A          A         A
ARA Annual Convention                  A          A                                 A         A
ARA Board of Directors                 A          A                                 A
ARA Leadership Conf.                   A          A                                 A         A
Local Board Visits/Install             A          A
Executive Committee                    A          A
Misc. ARA Meetings                     A          A
Business Planning                      A          A                               A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,


POSITION: SECRETARY-TREASURER ELECT (FOR YEAR PREVIOUS TO TERM)
EVENT/ACTIVITY             Air Mileage Hotel Meals   Bus/Taxi Parking                         Regist.
NAR Mid-Year Meeting
NAR Convention             A   LOW     A             A        A                               A
Region IX Annual Conf.
ARA Annual Convention
ARA Board of Directors
ARA Leadership Conf.       A   LOW     A                                                      A
Local Board Visits/Install
Executive Committee

Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,



                                                     87
POSITION: IMMEDIATE PAST PRESIDENT
EVENT/ACTIVITY              Air        Mileage Hotel          Meals      Bus/Taxi Parking Regist.
NAR Mid-Year Meeting        A          LOW        A           A          A        A
NAR Convention              A          LOW        A           A          A        A          A
Region IX Annual Conf.      A          LOW        A           A          A        A          A
ARA Annual Convention                  A          A                               A          A
ARA Board of Directors                 A          A                               A
ARA Leadership Conf.                   A          A                               A          A
Local Board Visits/Install             A          A                               A
Executive Committee                    A          A                               A
Misc. ARA Meetings                     A          A                               A
Business Planning                      A          A                               A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,


POSITION: DISTRICT VICE PRESIDENTS
EVENT/ACTIVITY              Air        Mileage Hotel         Meals    Bus/Taxi Parking Regist.
NAR Mid-Year Meeting        @          @LOW       @                   @         @
NAR Convention              @          @LOW       @
Region IX Annual Conf.      @          A          @
ARA Annual Convention                  A          A                             A          A
ARA Board of Directors                 A          A
ARA Leadership Conf.                   A          A                                        A
Local Board Visits/Install             A          A
Executive Committee                    A          A
Business Planning                      A          A                             A
Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,
                             DISTRICT VICE PRESIDENTS
 At the NAR Mid-Year meetings, normally in Washington D.C., and the NAR National
 Convention, a maximum allowance of $1000.00 shall be allowed which shall include
 expenses noted above with receipts required.



POSITION: DISTRICT VICE PRESIDENTS ELECT
EVENT/ACTIVITY         Air     Mileage Hotel                  Meals      Bus/Taxi   Parking   Regist.
NAR Convention         @       @LOW    @                                 @          @
Executive Committee            A       A
ARA Leadership Retreat         A       A

           DISTRICT VICE PRESIDENT ELECT for the year prior to taking office:
  At the NAR Convention, a maximum allowance of $1000.00 shall be allowed which shall
  include expenses noted above with receipts required.




                                                     88
POSITION: NAR DIRECTORS
EVENT/ACTIVITY              Air        Mileage Hotel         Meals    Bus/Taxi Parking Regist.
NAR Mid-Year Meeting        @          @LOW       @                   @         @
NAR Convention              @          @LOW       @                   @         @          @
Region IX Annual Conf.      @          @LOW       @                   @         @          @
ARA Annual Convention                  A
ARA Board of Directors                 A
ARA Leadership Conf.                   A
Local Board Visits/Install             A
Executive Committee
Misc. ARA/NAR Meetings @               A          A
Business Planning                      A
Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,


                                      NAR DIRECTORS
 National Association Directors from ARA are entitled up to $1,200.00 per meeting on the NAR
  Mid-Year Meeting and the NAR Convention for expenses indicated above. Directors shall
  receive up to $800.00 allowance for the Region IX Annual Conference for those expenses
                                        noted above.


POSITION: ZONE & AT LARGE DIRECTORS, COMMITTEE CHAIRS, PAST PRESIDENTS (ELECTED TO
THE BOARD OF DIRECTORS)
EVENT/ACTIVITY              Air        Mileage Hotel         Meals    Bus/Taxi Parking Regist.
NAR Mid-Year Meeting
NAR Convention
Region IX Annual Conf.
ARA Annual Convention
ARA Board of Directors                 A
ARA Leadership Conf.                   A*
Local Board Visits/Install             A
Executive Committee
Misc. ARA Meetings                     A
Business Planning                      A
Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,


                                       ZONE DIRECTORS
 The ARA Zone Directors Elect are expected to attend the Leadership Conference held at the
 end of the year previous to their term. Item marked with “*” above shall cover that expense.
 When they are in a multiple-year term, the same policy applies.


Special Travel Request Any member who is requested by the Executive Committee to attend a specific
function or meeting shall be reimbursed for air/mileage (lowest), hotel and reasonable meals. This
reimbursement is not to be considered an entertainment allowance under any circumstances. This shall be
approved only prior to the event by the Board of Directors or, in the event of a timing emergency, the Executive
Committee.

                                                      89
POSITION: ANY MEMBER REQUESTED BY THE BOD OR EC TO ATTEND A SPECIAL EVENT OR
MEETING ON BEHALF OF ARA
EVENT/ACTIVITY         Air  Mileage Hotel    Meals    Bus/Taxi Parking Regist.
Any requested/approved @Low @LOW     A       A        A        A
event/activity


POSITION: CHIEF EXECUTIVE OFFICER
EVENT/ACTIVITY             Air Mileage              Hotel      Meals       Bus/Taxi   Parking    Regist.
NAR Mid Year Meetings      A   LOW                  A          A           A          A
NAR Convention             A   LOW                  A          A           A          A          A
AE Institute               A   LOW                  A          A           A          A          A
NAR Leadership Retreat     A   LOW                             A           A
Region IX Annual Conf.     A   LOW                  A          A           A          A          A
ARA Annual Convention          A                    A          A           A          A          INCL
ARA Board of Directors         A                    A          A
ARA Leadership Conf.           A                    A          A
Local Board Visits/Install     A                    A
Executive Committee            A
Misc. ARA Meetings             A                    A
Business Planning              A                    A          A                      A
AE Annual Retreat          A   LOW                  A          A           A          A          A

Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,

                           EXECUTIVE VICE PRESIDENT EXPENSES:
       1. Need and budget determines the meetings attended by the EVP
       2. The EVP may be reimbursed for cost in excess of the approved plan above when required
          to purchase banquet or function tickets at meetings of NAR knowing that the expenses
          are part of the total travel budget line item for the event.
       3. Entertainment expenditures draw the greatest scrutiny by the IRS and require a greater
          degree of discretion. The IRS requires a receipt for the expenditure, a list of individuals in
          attendance showing their title and the organizations they represent, the purpose and the
          date.
       4. The Association will reimburse the actual cost incurred in “hosting” situations when
          deemed appropriate for the EVP to do so. The details of such expenses are the same as
          in #2 above.



POSITION: CHIEF OPERATING OFFICER/CHIEF FINANCIAL OFFICER
EVENT/ACTIVITY             Air Mileage Hotel   Meals    Bus/Taxi                      Parking    Regist.
NAR Mid Year Meetings      A   LOW     A       A        A                             A
NAR Convention             A   LOW     A       A        A                             A          A
AE Institute               A   LOW     A       A        A                             A          A
NAR Leadership Conf.       A   LOW             A        A
Region IX Annual Conf.     A   LOW     A       A        A                             A          A
ARA Annual Convention          A       A       A        A                             A          INCL
ARA Board of Directors         A       A       A
ARA Leadership Conf.           A       A       A
Local Board Visits/Install     A       A
Executive Committee            A
                                                        90
Misc. ARA Meetings                     A          A
Business Planning                      A          A          A                  A
Key: A = Actual, @ = Items included in allowance for event, Low = Lowest between air/mileage or lowest air
fare,


POSITION: GOVERNMENTAL AFFAIRS DIRECTOR
EVENT/ACTIVITY              Air        Mileage Hotel           Meals       Bus/Taxi   Parking    Regist.
NAR Mid Year Meetings       A          LOW        A            A           A          A
NAR Convention              A          LOW        A            A           A          A          A
Region IX Annual Conf.      A          LOW        A            A           A          A          A
ARA Annual Convention                  A          A            A           A          A          INCL
ARA Board of Directors                 A          A            A
ARA Leadership Conf.                   A          A            A
Local Board Visits/Install             A          A
Executive Committee                    A
Misc. ARA Meetings                     A          A
Annual NAR GAD Conf.        A          LOW        A            A        A         A          A
Business Planning                      A          A            A                  A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,

                             GOVERNMENTAL AFFAIRS DIRECTOR:
 1   Need and budget determines the meetings attended by the Governmental Affairs Director.
 2   The Governmental Affairs Director may be reimbursed for cost in excess of the approved plan
     above when required to purchase banquet or function tickets at meetings of NAR knowing that
     the expenses are part of the total travel budget line item for the event.
 3   Entertainment expenditures draw the greatest scrutiny by the IRS and require a greater degree
     of discretion. The IRS requires a receipt for the expenditure, a list of individuals in attendance
     showing their title and the organizations they represent, the purpose and the date.
 4   The Association will reimburse the actual cost incurred in “hosting” situations when deemed
     appropriate for the GAD to do so. The details of such expenses are the same as in #2 above.



POSITION: ARA STAFF
EVENT/ACTIVITY              Air        Mileage Hotel           Meals       Bus/Taxi
                                                                                  Parking Regist.
NAR Mid-Year Meeting        A          LOW        A            A           A      A
NAR Convention              A          LOW        A            A           A      A          A
AE Institute                A          LOW        A            A           A      A          A
Region IX Annual Conf.      A          LOW        A            A           A      A          A
ARA Annual Convention                  A          A            A           A      A          INCL
ARA Board of Directors                 A          A            A                  A
ARA Leadership Conf.                   A          A            A                  A
Local Board Visits/Install             A          A                               A
Executive Committee                    A          A                               A
Misc. ARA Meetings                     A          A            A                  A
Business Planning                      A          A            A                  A
Key: A = Actual, @ = Items included in allowance for event,   Low = Lowest between air/mileage or lowest air
fare,




                                                       91
                                  ARA STAFF TRAVEL EXPENSES
1. Actual events traveled to at discretion of the EVP. All travel by staff must be approved in advance by the
   EVP.
2. Staff has been granted permission to use the Association credit card for purchases for ARA other than for
   travel, such as office supplies.
3. Under no circumstances shall the ARA credit card be used for personal purchases. See use of
   Association’s credit card in the general policy section of this manual. All policies apply.
4. Cash advances may be requested 15 days prior to the start of the event. Receipts and unused cash to be
   turned in immediately (5 days) upon return from the trip.
5. Staff members are instructed to record their mileage driven on ARA business and to turn in for
   reimbursement every 30 days.




POSITION: NAR COMMITTEE MEMBERS
EVENT/ACTIVITY       Air    Mileage                   Hotel       Meals       Bus/Taxi    Parking    Regist.
NAR Mid-Year Meeting @      @LOW                      @                       @           @
NAR Convention       @      @LOW                      @                       @           @          @




               ARA MEMBERS HOLDING NAR COMMITTEE APPOINTMENTS
   ARA members who are NAR Committee Members are entitled to reimbursement of up to
      $800.00 per meeting listed above for items indicated. To qualify for reimbursement,
  committee members must submit a written report on their committee’s activities and include
   their opinions of how the programs and activities of that committee affect ARA. Also, you
      must submit a copy of the minutes of the meeting you attended which is available at
                                       REALTOR.org.



    THE ABOVE POLICY HAS BEEN DEVELOPED BY A SPECIAL PRESIDENTIAL ADVISORY GROUP
   APPOINTED BY PRESIDENT CLIFF GOODIN AND AMENDED AND APPROVED BY THE ARKANSAS
  REALTORS® ASSOCIATION EXECUTIVE COMMITTEE ON MAY 12, 1999. IT IS TO BE PRESENTED TO
             ®
     THE BOARD OF DIRECTORS ON JUNE 10, 1999 FOR ADOPTION WITH AN EFFECTIVE DATE OF
  JANUARY 1, 2000. AMENDED 1/1/2003, JANUARY 22, 2004, MARCH 22, 2006, MARCH 2, 2007, JUNE
    17, 2008. AS A POLICY OF THIS ASSOCIATION, IT IS INTENDED TO COVER AS MANY POSSIBLE
      EXPENSES AS POSSIBLE. WHEN ADOPTED AND EFFECTIVE, EXPENSES, WHICH ARE NOT
     EXPRESSLY DESCRIBED WITHIN, SHALL NOT BE COVERED. ANY EXPENSES WHICH MAY BE
   INCURRED AND ARE NOT ADDRESSED WITHIN SHOULD BE DIRECTED TO THE ARA EXECUTIVE
                               COMMITTEE FOR CONSIDERATION.




                                                         92
                         Line of authority



                          Board of Directors
                         Executive Committee
                              President



                         Chief Executive Officer


                       Chief Operating Officer,
              Chief Financial Officer & ARPAC Liaison

                                                   Professional Development,
           Contract
                                                       Meeting Planning,
           Lobbyist
                                                      Equal Opportunity &
                                                     Leadership Academy.
Professional Standards,
   Legislative Affairs                                   Technology,
                                                         Tech Support

   Risk Reduction                                    Membership Records,
  BOD & EC Liaison                                 Administrative Assistant to
 Board Certification &                                CEO, Receptionist
  Special Olympics.

                                                        Media Relations,
                                                         Editor/Writer &
                                                        Public Relations




                                      93

				
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