State Codes and Statutes
Statutes > Utah > Title-57 > Chapter-08 > 57-8-4057-8-40. Organization of an association of unit owners under other law -- Priority-- Reorganization.
(1) As used in this section, "organizational documents" means the documents related tothe formation or operation of a legal entity formed by the management committee or thedeclarant.
(2) If permitted, required, or acknowledged by the declaration, the managementcommittee may organize an association of unit owners into a nonprofit corporation in accordancewith Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or other entity organizedunder other law.
(3) Organizational documents for a nonprofit corporation or other entity formed inaccordance with Subsection (2) shall, to the extent possible, not conflict with the rights andobligations found in the declaration and any of the association's bylaws recorded at the time ofthe formation of a nonprofit corporation or other entity under Subsection (2).
(4) Notwithstanding any conflict with the declaration or any recorded bylaws, theorganizational documents of an entity formed in accordance with Subsection (2) may include anyadditional indemnification and liability limitation provision for the management committeemembers and officers of the association that is permitted by the chapter under which theassociation is organized for board members, directors, and officers, or similar persons in aposition of control.
(5) In the event of a conflict between this chapter's provisions, a statute under which theassociation of unit owners is organized, documents concerning the organization of theassociation of unit owners as a nonprofit corporation or other entity, the declaration, the bylaws,and association rules, the following order prevails:
(a) this chapter controls over a conflicting provision found in any of the sources listed inSubsections (5)(b) through (f);
(b) Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or any other lawunder which an entity is organized controls over a conflicting provision in any of the sourceslisted in Subsections (5)(c) through (f);
(c) an organizational document filed in accordance with Title 16, Chapter 6a, UtahRevised Nonprofit Corporation Act, or any other law under which an entity is organized controlsover a conflicting provision in any of the sources listed in Subsections (5)(d) through (f);
(d) the declaration controls over a conflicting provision in any of the sources listed inSubsections (5)(e) or (f);
(e) the bylaws control over a conflicting provision in association rules; and
(f) the association rules yield to a conflicting provision in any of the sources listed inSubsection (5)(a) through (e).
(6) Immediately upon the legal formation of an entity in compliance with this section, theassociation and unit owners are subject to any right, obligation, procedure, and remedy applicableto that entity.
(7) (a) A form "articles of incorporation" or similar organizational document attached toa declaration may be modified by the management committee for filing or re-filing if themodified version is otherwise consistent with this section's provisions.
(b) An organizational document attached to a declaration that is filed and concerns theorganization of an entity may be amended in accordance with its own terms or any applicablelaw, notwithstanding the fact that the organizational document might be recorded.
(c) Except for amended bylaws, an initial or amended organizational document properlyfiled with the state does not need to be recorded.
(8) This section applies to the reorganization of an association of unit owners previouslyorganized if the entity's status is terminated or dissolved without the possibility of reinstatement.
(9) (a) This section applies to all condominium projects, whether established before orafter May 5, 2008.
(b) This section does not validate or invalidate the organization of an association thatoccurred before May 5, 2008, whether or not the association was otherwise in compliance withthis section.
Enacted by Chapter 291, 2008 General Session
