§514B-105 
Association; limitations on powers.  (a)  The declaration and bylaws may not impose
limitations on the power of the association to deal with the developer which
are more restrictive than the limitations imposed on the power of the
association to deal with other persons.



(b)  Unless otherwise permitted by the
declaration, bylaws, or this chapter, an association may adopt rules and
regulations that affect the use of or behavior in units that may be used for
residential purposes only to:



(1)  Prevent any use of a unit which violates the
declaration or bylaws;



(2)  Regulate any behavior in or occupancy of a unit
which violates the declaration or bylaws or unreasonably interferes with the
use and enjoyment of other units or the common elements by other unit owners;
or



(3)  Restrict the leasing of residential units to the
extent those rules are reasonably designed to meet underwriting requirements of
institutional lenders who regularly lend money secured by first mortgages on
units in condominiums or regularly purchase those mortgages.



Otherwise, the association may not regulate any use
of or behavior in units by means of the rules and regulations.



(c)  No association shall deduct and apply
portions of common expense payments received from a unit owner to unpaid late
fees, legal fees, fines, and interest (other than amounts remitted by a unit in
payment of late fees, legal fees, fines, and interest) unless the board adopts
and distributes to all owners a policy stating that:



(1)  Failure to pay late fees, legal fees, fines, and
interest may result in the deduction of such late fees, legal fees, fines, and
interest from future common expense payments, so long as a delinquency
continues to exist; and



(2)  Late fees may be imposed against any future
common expense payment that is less than the full amount owed due to the
deduction of unpaid late fees, legal fees, fines, and interest from the
payment.



(d)  No unit owner who requests legal or other
information from the association, the board, the managing agent, or their
employees or agents, shall be charged for the reasonable cost of providing the
information unless the association notifies the unit owner that it intends to
charge the unit owner for the reasonable cost.  The association shall notify
the unit owner in writing at least ten days prior to incurring the reasonable
cost of providing the information, except that no prior notice shall be
required to assess the reasonable cost of providing information on delinquent
assessments or in connection with proceedings to enforce the law or the
association's governing documents.



After being notified of the reasonable cost of
providing the information, the unit owner may withdraw the request, in
writing.  A unit owner who withdraws a request for information shall not be
charged for the reasonable cost of providing the information.



(e)  Subject to any approval requirements and
spending limits contained in the declaration or bylaws, the association may
authorize the board to borrow money for the repair, replacement, maintenance,
operation, or administration of the common elements and personal property of
the project, or the making of any additions, alterations, and improvements
thereto; provided that written notice of the purpose and use of the funds is
first sent to all unit owners and owners representing fifty per cent of the
common interest vote or give written consent to the borrowing.  In connection
with the borrowing, the board may grant to the lender the right to assess and
collect monthly or special assessments from the unit owners and to enforce the
payment of the assessments or other sums by statutory lien and foreclosure
proceedings.  The cost of the borrowing, including, without limitation, all
principal, interest, commitment fees, and other expenses payable with respect
to the borrowing or the enforcement of the obligations under the borrowing,
shall be a common expense of the project.  For purposes of this section, the
financing of insurance premiums by the association within the policy period
shall not be deemed a loan and no lease shall be deemed a loan if it provides
that at the end of the lease the association may purchase the leased equipment
for its fair market value. [L 2004, c 164, pt of §2; am L 2006, c 273, §15]