[WSBARP] Member Loan to Condo Assn

[Catherine Clark]

Isn't this the situation that a special assessment is designed to address?

Catherine "Cat" Clark
Law Office of Catherine C. Clark PLLC
2200 Sixth Avenue, Suite 1250
Seattle, WA 98121
Phone:  (206) 838-2528
Cell:  (206) 409-8938
Fax: (206) 374-3003
Email:  cat at loccc.com<mailto:cat at loccc.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of nestor at pplsweb.com
Sent: Thursday, March 28, 2019 11:04 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Member Loan to Condo Assn

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<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto: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<mailto: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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