Vermont § 2-119 Rights of secured lenders

Vermont Statutes

§ 2-119 — Rights of secured lenders

Vermont § 2-119

Title 27ATitle 27A: Uniform Common Interest Ownership Act (1994)

Ch. 2Article 002: Creation, Alteration, and Termination of Common Interest Communities

This text of Vermont § 2-119 (Rights of secured lenders) is published on Counsel Stack Legal Research, covering Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Vt. Stat. Ann. tit. 27A, § 2-119 (2026).

Text

(a)The declaration may require that all or a specified number or percentage of the lenders who hold security interests in the units or common elements approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions, but lack of approval will not have the effect of:

(1)denying or delegating control over the general administrative affairs of the association by the unit owners or the executive board;

(2)preventing the association or the executive board from participating in any litigation or proceeding; or

(3)preventing an insurance trustee or the association from receiving and distributing insurance proceeds except pursuant to section 3-113 of this title.

(b)A lender who has extended credit to an association secured by an assignment o

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(a) The declaration may require that all or a specified number or percentage of the lenders who hold security interests in the units or common elements approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions, but lack of approval will not have the effect of:
(1) denying or delegating control over the general administrative affairs of the association by the unit owners or the executive board;
(2) preventing the association or the executive board from participating in any litigation or proceeding; or
(3) preventing an insurance trustee or the association from receiving and distributing insurance proceeds except pursuant to section 3-113 of this title.
(b) A lender who has extended credit to an association secured by an assignment of income (subdivision 3-102(a)(14) of this title) or an encumbrance on the common elements (section 3-112) may enforce its security agreement in accordance with its terms, subject to the requirements of this title and other law. Requirements that the association must deposit its periodic common charges before default with the lender to which the association’s income has been assigned, or increase its common charges at the lender’s direction by amounts reasonably necessary to amortize the loan in accordance with its terms, do not violate the prohibitions on lender approval contained in subsection (a) of this section. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)