| Return Reference | Explanation |
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| FORM 990, PART VI, SECTION A, LINE 3 | THE ASSOCIATION HAS DELEGATED THE MANAGEMENT OF ITS DAILY OPERATIONS TO SMITHBUCKLIN CORPORATION (SMITHBUCKLIN) IN CHICAGO. SMITHBUCKLIN IS A MANAGEMENT COMPANY WHICH MANAGES ALL ASPECTS OF THE ASSOCIATION IN ACCORDANCE WITH THE ASSOCIATION'S BYLAWS AND POLICIES. OPERATIONS MAY INCLUDE, BUT ARE NOT LIMITED TO, ADMINISTRATION, MEMBERSHIP, FINANCE AND ACCOUNT, CONVENTION/TRADESHOW/MEETING PLANNING, EDUCATION, MARKETING, INFORMATION TECHNOLOGY AND GOVERNMENT RELATIONS. SMITHBUCKLIN EMPLOYEES PROVIDE THESE SERVICES. |
| FORM 990, PART VI, SECTION A, LINE 6 | THE ASSOCIATION HAS FIVE CLASSES OF MEMBERSHIP: DISTRIBUTOR, ASSOCIATE, ALLIED, ORGANIZATIONAL, AND HONORARY. DISTRIBUTOR MEMBERSHIP INCLUDES ANY PERSONAL OR LEGAL ENTITY PRIMARILY AND ACTIVELY ENGAGED IN THE DISTRIBUTION OF BUILDING MATERIALS AND OTHER RELATED PRODUCTS AT THE WHOLESALE LEVEL. SUCH PERSONS OR ENTITIES MUST: - BE RECOGNIZED AS A WHOLESALER OF SUCH PRODUCTS BY REPRESENTATIVE MANUFACTURERS AND BY A SUFFICIENT NUMBER OF CUSTOMERS TO CLEARLY ESTABLISH THE FACT THAT A BONA FIDE WHOLESALING SERVICE IS PERFORMED FOR CUSTOMERS. - MAINTAIN A FULL-TIME SALES ORGANIZATION ACTIVELY AND CONTINUOUSLY ENGAGED IN CALLING UPON AND SELLING AT WHOLESALE TO CUSTOMERS DURING NORMAL BUSINESS HOURS. - MAINTAIN ADEQUATELY STAFFED AND EQUIPPED OFFICE, WAREHOUSE AND SHIPPING FACILITIES, WHICH SHALL BE CONTINUOUSLY OPEN TO CUSTOMERS DURING NORMAL BUSINESS HOURS. - NORMALLY PURCHASE BUILDING MATERIALS OR OTHER RELATED PRODUCTS IN CAR/TRUCKLOT BULK QUANTITIES AND MAINTAINS A WAREHOUSE STOCK OF SUCH PRODUCTS LARGE ENOUGH TO SERVE CUSTOMERS ADEQUATELY. - PERIODICALLY ISSUE A STOCK LIST OR CATALOG COVERING BUILDING MATERIALS OR OTHER RELATED PRODUCTS AVAILABLE FOR SALE AT WHOLESALE TO CUSTOMERS. - PROVIDE INVOICING AND CREDIT SERVICES IN CONNECTION WITH ITS SALES - NOT DISTRIBUTE TO ITS MEMBERS OR TO CUSTOMERS ITS ANNUAL NET OR SURPLUS RESULTING FROM TRADING OPERATIONS. ASSOCIATE MEMBERSHIP INCLUDES ANY PERSON OR LEGAL ENTITY WHICH MANUFACTURES BUILDING MATERIALS OR RELATED PRODUCTS OR IMPORTS SUCH PRODUCTS AND SELLS THEM TO WHOLESALE DISTRIBUTORS FOR RESALE IN THE NORMAL CONDUCT OF THEIR BUSINESS. ALLIED MEMBERSHIP INCLUDES ANY PERSON OR LEGAL ENTITY EXCEPT FOR A MANUFACTURER'S REPRESENTATIVE OR AGENT ACTING ON BEHALF OF A BUILDING MATERIALS MANUFACTURER, WHICH FURNISHES SERVICES OR SUPPLIES, OTHER THAN BUILDING MATERIALS OR RELATED PRODUCTS, TO WHOLESALE DISTRIBUTORS FOR USE IN THEIR BUSINESSES AND NOT NORMALLY FOR RESALE. ORGANIZATIONAL MEMBERSHIP INCLUDES ANY ASSOCIATION, GROUP, SOCIETY OR OTHER TYPE OF ORGANIZED ENTITY WHOSE MEMBERS OR PARTICIPANTS ARE INVOLVED IN THE DISTRIBUTION OR MANUFACTURE OF BUILDING MATERIALS OR RELATED PRODUCTS, PROVIDED THAT ALL OF ITS MEMBERS OR PARTICIPANTS ARE DISTRIBUTOR OR ASSOCIATE MEMBERS OF NBMDA HONORARY MEMBERSHIP - THE BOARD MAY BY MAJORITY VOTE ELECT AS AN HONORARY MEMBER ANY PERSON NO LONGER ACTIVE IN THE INDUSTRY WHO HAS DEMONSTRATED AN INTEREST IN THE SALE AND DISTRIBUTION OF BUILDING MATERIALS AND WHOSE PAST EXPERIENCE IN, OR SERVICE TO, THE INDUSTRY, OR OTHER SPECIAL QUALIFICATIONS, JUSTIFIES SUCH ELECTION. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE ASSOCIATION'S BOARD OF DIRECTORS IS ELECTED BY A VOTE OF ITS DISTRIBUTOR, ASSOCIATE, AND ALLIED MEMBERS WITH THE ASSISTANCE OF A NOMINATING COMMITTEE. |
| FORM 990, PART VI, SECTION B, LINE 11B | THE ASSOCIATION'S FORM 990 IS PREPARED BY INDEPENDENT ACCOUNTANTS AND SUBMITTED TO THE ASSOCIATION'S MANAGEMENT COMPANY FOR INITIAL REVIEW. THE FORM IS THEN SUBMITTED TO THE BOARD OF DIRECTORS FOR REVIEW AND DISCUSSION PRIOR TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | DIRECTORS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST STATEMENT AT THE BEGINNING OF THEIR TERMS AND REMINDED TO DISCLOSE ANY CONFLICTS OF INTEREST AS THEY ARISE. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ASSOCIATION'S GOVERNING DOCUMENTS, POLICIES, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. |
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