[WSBARP] Member Loan to Condo Assn

[nestor at pplsweb.com]

I would include a collateral assignment and pledge of right to collect
condominium General and special assessments and assignment of Lien Rights.
Also record a UCC 1 with the state.

 

Nestor Gorfinkel, Attorney at Law 

Admitted to practice law in Washington & Florida 

Florida Civil-Law (International) Notary

Puget Property Legal Services

11900 NE First Street Suite 300

Bellevue, WA 98005

Tel. (425) 961-0519

Fax. (888) 522-3601

 

 

 

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Paul Neumiller
Sent: Thursday, March 28, 2019 10:02 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Member Loan to Condo Assn

 

Listservers:  I am looking for guidance to get me in the right direction.
Client has a condo in a Condo Association.  Asso. needs to perform about
$180K of capital improvements but has only $80K in a reserve fund.  Client
and Asso. are in preliminary talks about the Client lending from $80K to
$100K to the Asso. for 5 years, fully amortized and 5%.   I know that I will
need to review the Asso.'s governing documents to ascertain if the Asso. can
even borrow money (or maybe require they provide an attorney's opinion
letter?).  What about security?  The common areas are worthless to a
creditor (not to mention the logistics of every condo owner owning a small
percentage of the common areas.)  Attach right to collect dues? (Or is the
advice to run away.  Very fast.) Help!  

 

 

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