Indiana § 32-25.5-3-5 Borrowing money; approval by members

Indiana Statutes

§ 32-25.5-3-5 — Borrowing money; approval by members

Indiana § 32-25.5-3-5

Title 32PROPERTY

Art. 25.5HOMEOWNERS ASSOCIATIONS

This text of Indiana § 32-25.5-3-5 (Borrowing money; approval by members) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 32-25.5-3-5 (2026).

Text

(a)This section does not apply to money borrowed by a homeowners association that is needed to:

(1)resolve, settle, or otherwise satisfy an act of enforcement against the homeowners association for violating a state or local law; or

(2)address an emergency that affects the public health, safety, or welfare.

(b)A homeowners association may not borrow money during any calendar year on behalf of the homeowners association in an amount that exceeds the greater of:

(1)five thousand dollars ($5,000) during any calendar year; or

(2)if the homeowners association operated under an annual budget in the previous calendar year, an amount equal to at least ten percent (10%) of the previous annual budget of the homeowners association; unless borrowing the money is approved by the affirmative vote

Free access — add to your briefcase to read the full text and ask questions with AI

(a) This section does not apply to money
borrowed by a homeowners association that is needed to:
(1) resolve, settle, or otherwise satisfy an act of enforcement
against the homeowners association for violating a state or local
law; or
(2) address an emergency that affects the public health, safety, or
welfare.
(b) A homeowners association may not borrow money during any
calendar year on behalf of the homeowners association in an amount
that exceeds the greater of:
(1) five thousand dollars ($5,000) during any calendar year; or
(2) if the homeowners association operated under an annual
budget in the previous calendar year, an amount equal to at least
ten percent (10%) of the previous annual budget of the
homeowners association;
unless borrowing the money is approved by the affirmative vote of a
majority of the members of the homeowners association voting under
this section.
(c) A person who owns a lot, parcel, tract, unit, or interest in land in
a subdivision may cast one (1) vote under this section for each lot,
parcel, tract, unit, or interest in land in the subdivision that is owned by
the person unless the governing documents provide for a different
voting procedure.
(d) A vote held under this section must be conducted by paper
ballot.
(e) A homeowners association shall distribute paper ballots to
persons eligible to vote under this section at least thirty (30) days
before the date the votes are to be opened and counted.
(f) Votes cast under this section shall be opened and counted at a
public meeting held by the homeowners association.