(8) “Member” shall mean a person or Entity that has been granted a Membership in the Association.
(9) “Membership” shall mean the rights, privileges, and benefits granted to a Member by the Association, including, without limitation, the right to organize and operate a professional basketball team to play in the league operated by the Association.
(12) “Owner” shall mean a Member and each individual or Entity (including both the trustees and beneficiaries of any trust) that, directly or indirectly (including through one or
more intermediate Entities), owns of record or beneficially an interest in, or has effective control over, a Member or its Membership.
(17) “Prospective Owner” shall mean any person or Entity that directly or indirectly owns, seeks to own, or has been identified to the Association as a prospective owner of, an interest in an applicant for Membership under Article 4 or a proposed transferee under Article 5.
APPLICATION FOR MEMBERSHIP
(a) Each applicant for Membership shall make a written application to the Commissioner specifying the city that the applicant wishes to represent in the Association.
(b) The Association shall have no obligation to consider any application that is submitted under this Article or to solicit applications from more than one applicant for any potential new
Membership.
(c) All applications shall contain a binding agreement of the applicant and each Prospective Owner providing that if the application is approved by the Association, the applicant and each Prospective Owner shall be bound by the Constitution and By-Laws, rules, regulations, resolutions, and agreements of the Association, and any modifications or amendments thereof.
(d) Upon receipt of any application for Membership in the Association that the Association wishes to consider, the Commissioner shall conduct such investigation thereof as the Commissioner deems appropriate. Following the completion of such investigation, the Commissioner shall submit the application to the Members for approval, together with such information as the Commissioner deems pertinent. Each Prospective Owner must be approved by the affirmative vote of not less than three-fourths (3/4) of all Governors at a meeting duly called for such purpose.
(e) Each application for Membership shall be accompanied by a certified check in the amount of $1,000,000 (the “Application Fee”). If the application for admission is accepted, the Application Fee shall be used to pay the fees, costs, and expenses (including attorneys’ fees) incurred by the Association in considering the application and all related matters, and any remaining balance shall
be applied as a credit against the Membership fee to be paid by the applicant. If the application for admission is denied, the Application Fee shall be used to pay the fees, costs, and expenses (including attorneys’ fees) incurred by the Association in considering the application and all related matters, and any remaining balance shall be repaid to the applicant. There shall be no obligation to pay interest on any Application Fee submitted to and held by the Association.