§ 34-36.1-2.19. Rights of secured lenders.
(a) The declaration may require that all or a specified number or percentage of the mortgagees or beneficiaries of deeds of trust encumbering the units approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions, but no requirement for approval may operate to:
(1) Deny or delegate control over the general administrative affairs of the association by the unit owners or the executive board, or
(2) Prevent the association or the executive board from commencing, intervening in, or settling any litigation or proceedings, or receiving and distributing any insurance proceeds except pursuant to § 34-36.1-3.13.
(b) When approval of any actions of the unit owners or the association is required of all or a specified number or percentage of the unit mortgagees by this chapter or the declaration or bylaws as a condition of the effectiveness of those actions, written requests for approval shall be mailed by United States Postal Service, regular mail and certified mail, return receipt requested, to unit mortgagees at the mailing addresses referenced on mortgage documents recorded in the land evidence records. If a unit mortgagee fails to provide a written denial of approval to the party requesting approval within sixty-five (65) days after the mailing of the request, the unit mortgagee shall be deemed to have approved the request. All written requests for approval to unit mortgagees shall reference this section.
History of Section.
P.L. 1982, ch. 329, § 2; P.L. 2025, ch. 179, § 1, effective June 24, 2025; P.L. 2025,
ch. 180, § 1, effective June 24, 2025.