Utah Code 57-8a-220. Creditor approval may be required for lot owner or association action under declaration — Creditor approval presumed in certain circumstances — Notice to creditor or creditor’s successor
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Terms Used In Utah Code 57-8a-220
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Assessment: includes :(1)(b)(i) a common expense; and(1)(b)(ii) an amount assessed against a lot owner under Subsection
57-8a-405 (7). See Utah Code 57-8a-102- association: means a corporation or other legal entity, any member of which:
(2)(a)(i) is an owner of a residential lot located within the jurisdiction of the association, as described in the governing documents; and(2)(a)(ii) by virtue of membership or ownership of a residential lot is obligated to pay:(2)(a)(ii)(A) real property taxes;(2)(a)(ii)(B) insurance premiums;(2)(a)(ii)(C) maintenance costs; or(2)(a)(ii)(D) for improvement of real property not owned by the member. See Utah Code 57-8a-102- board: means the entity, regardless of name, with primary authority to manage the affairs of the association. See Utah Code 57-8a-102
- Common areas: means property that the association:
(5)(a) owns;(5)(b) maintains;(5)(c) repairs; or(5)(d) administers. See Utah Code 57-8a-102- Document: means every instrument in writing, including every conveyance, affecting, purporting to affect, describing, or otherwise concerning any right, title, or interest in real property, except wills and leases for a term not exceeding one year. See Utah Code 57-1-1
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Lot: means :
(16)(a) a lot, parcel, plot, or other division of land:(16)(a)(i) designated for separate ownership or occupancy; and(16)(a)(ii)(16)(a)(ii)(A) shown on a recorded subdivision plat; or(16)(a)(ii)(B) the boundaries of which are described in a recorded governing document; or(16)(b)(16)(b)(i) a unit in a condominium association if the condominium association is a part of a development; or(16)(b)(ii) a unit in a real estate cooperative if the real estate cooperative is part of a development. See Utah Code 57-8a-102- Person: means :
(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5- Trustee: A person or institution holding and administering property in trust.
- Writing: includes :
(48)(a) printing;(48)(b) handwriting; and(48)(c) information stored in an electronic or other medium if the information is retrievable in a perceivable format. See Utah Code 68-3-12.5(1)(a) Subject to Subsection (1)(b), a declaration may:(1)(a)(i) condition the effectiveness of lot owners’ actions specified in the declaration on the approval of a specified number or percentage of lenders holding a security interest in the lots; or(1)(a)(ii) condition the effectiveness of association actions specified in the declaration on the approval of a specified number or percentage of lenders that have extended credit to the association.(1)(b) A condition under Subsection (1)(a) may not:(1)(b)(i) deny or delegate the lot owners’ or board‘s control over the association’s general administrative affairs;(1)(b)(ii) prevent the association or board from commencing, intervening in, or settling any litigation or proceeding; or(1)(b)(iii) prevent an insurance trustee or the association from receiving or distributing insurance proceeds under Subsection 57-8a-405(11).(1)(c) A condition under Subsection (1)(a) does not violate a prohibition under Subsection (1)(b) by:(1)(c)(i) requiring the association to deposit the association’s assessments before default with the lender assigned the income; or(1)(c)(ii) requiring the association to increase an assessment at the lender’s direction by an amount reasonably necessary to pay the loan in accordance with the loan terms.(1)(d) This Subsection (1) applies to:(1)(d)(i) an association formed before, on, or after May 10, 2011; and(1)(d)(ii) documents created and recorded before, on, or after May 10, 2011.(2) Subject to this chapter and applicable law, a lender who has extended credit to an association secured by an assignment of income or an encumbrance of the common areas may enforce the lender’s security agreement as provided in the agreement.(3)(3)(a) Subject to Subsection (4), a security holder’s consent that is required under Subsection (1) to amend a declaration or bylaw or for another association action is presumed if:(3)(a)(i) the association sends written notice of the proposed amendment or action by certified or registered mail to the security holder’s address stated in a recorded document evidencing the security interest; and(3)(a)(ii) the person designated in a notice under Subsection (3)(a)(i) to receive the security holder’s response does not receive a response within 60 days after the association sends notice under Subsection (3)(a)(i).(3)(b) If a security holder’s address for receiving notice is not stated in a recorded document evidencing the security interest, an association:(3)(b)(i) shall use reasonable efforts to find a mailing address for the security holder; and(3)(b)(ii) may send the notice to any address obtained under Subsection (3)(b)(i).(4) If a security holder responds in writing within 60 days after the association sends notice under Subsection (3)(a)(i) that the security interest has been assigned or conveyed to another person, the association:(4)(a) shall:(4)(a)(i) send a notice under Subsection (3)(a)(i) to the person assigned or conveyed the security interest at the address provided by the security holder in the security holder’s response; or(4)(a)(ii) if no address is provided:(4)(a)(ii)(A) use reasonable efforts to find a mailing address for the person assigned or conveyed the security interest; and(4)(a)(ii)(B) send notice by certified or registered mail to the person at the address that the association finds under Subsection (4)(a)(ii)(A); and(4)(b) may not presume the security holder’s consent under Subsection (3)(a) unless the person designated in a notice under Subsection (4)(a) to receive the response from the person assigned or conveyed the security interest does not receive a response within 60 days after the association sends the notice. - association: means a corporation or other legal entity, any member of which: