Home - Previous - Next
Article VIII. Mortgages
A Unit Owner who mortgages his/her Unit shall notify the Board of Directors through the Managing Agent of the name and address of his/her mortgagee and shall promptly file a conformed copy of the note and deed of trust with the Board of Directors, and the Board of Directors shall maintain such information in a book entitled "Mortgagees of Units".
2. Notice of Unpaid Assessment
The Board of Directors whenever so requested in writing by a mortgagee shall promptly report any then unpaid Assessments due form, or any other default by, the Owner of the mortgaged Unit.
3. Notice of Default
The Board of Directors shall give written notice to a Unit Owner of any default by the Unit Owner in the performance of any obligations under the Act or Condominium Instruments, and, if such default is not cured within sixty (60) days, shall promptly send a copy of such notice to each holder of a mortgage covering such Unit whose name and address has theretofore been furnished to the Board of Directors.
4. Examination of the Books/Audit
Each Unit Owner and each Mortgagee shall be permitted to examine the books of account, including any audited statement, of the Condominium during regular business hours at the time and in the manner set by the Board of Directors. If there is no audited statement available, any mortgage holder shall be allowed to have an audited statement prepared at its own expense.
5. Rights of First Mortgagees
Notwithstanding any other provision of the Declaration, the Bylaws, or the Rules and Regulations, except as provided by the Act in case of condemnation or substantial loss to the Units and/or Common Elements of the Condominium, unless at least seventy-five percent (75%) of the First Mortgagees (based on one vote for each first mortgage owned) have given their prior written approval, the Condominium Association shall not:
A. By act or omission seek to abandon or terminate the Condominium regime;
B. Change the pro rata interest or obligations of any Unit in order to levy assessments or charges, allocate distribution of hazard insurance proceeds or condemnation awards, or determine the pro rata share of ownership of each Unit in the Common Elements;
C. Partition or subdivide any Unit;
D. Seek to abandon, partition, subdivide, encumber, sell, or transfer the Common Elements by act or omission (the granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Elements by the Condominium is not a transfer within the meaning of this clause); or
E. Use hazard insurance proceeds for losses to the Condominium (whether Units or Common Elements) for other than the repair, replacement, or reconstruction of the Condominium.