<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
p.MsoPlainText, li.MsoPlainText, div.MsoPlainText
{mso-style-priority:99;
mso-style-link:"Plain Text Char";
margin:0in;
font-size:12.0pt;
font-family:"Times New Roman",serif;}
span.PlainTextChar
{mso-style-name:"Plain Text Char";
mso-style-priority:99;
mso-style-link:"Plain Text";
font-family:"Times New Roman",serif;}
span.EmailStyle20
{mso-style-type:personal-reply;
font-family:"Calibri",sans-serif;
color:windowtext;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72">
<div class="WordSection1">
<p class="MsoNormal">RCW 64.34.304(1)(n) provides that a condominium association can assign its right to future income “only to the extent the declaration provides.” This provision also applies to associations governed by the older Horizontal Property Regimes
Act under RCW 64.34.010. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">So, yes, for an association governed by the Horizontal Property Regimes Act or the Washington Condominium Act, the declaration must expressly provide for the authority to assign future assessment income. Many associations, especially the
older ones, have to amend their declarations as a starting point before obtaining a loan and securitizing it with future assessment income.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The provision in WUCIOA addressing this issue wouldn’t apply to your association client unless it opted in to be governed by that statute.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Patrick McDonald<o:p></o:p></p>
<div>
<p class="MsoNormal"><b>_______________________<o:p></o:p></b></p>
<p class="MsoNormal"><b>Pody & McDonald, PLLC<o:p></o:p></b></p>
<p class="MsoNormal">1200 Fifth Avenue, Suite 1410<o:p></o:p></p>
<p class="MsoNormal">Seattle, WA 98101-3106<o:p></o:p></p>
<p class="MsoNormal">T: 206-467-1559<o:p></o:p></p>
<p class="MsoNormal">F: 206-467-4489<o:p></o:p></p>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> September 1, 2020 4:33 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] Condo Borrowings Under RCW 64.32<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoPlainText">Listmates, I have a Condo Asso. client which is formed under the Horizontal Property Regimes Act. It needs to borrow money to replace siding on buildings. I anticipate that the bank will want the Asso. to assign its future right to
income as security which is permitted under the WCA and the new WUCIOA. But Chapter 64.32 seems silent on the question on this ability. So, does a Chapter 64.32 Condo Asso. have the right to assign its right to future income to secure a loan because Chapter
64.32 <i>does not</i> prohibit it OR does a Chapter 64.32 Condo Asso. not have the right to assign its right to a future income because Chapter 64.32 does not permit it? Not sure, but I would anticipate that I will need to provide a formal opinion letter
for the loan. <o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">IMPORTANT NOTICE: This e-mail message is intended to be received only by persons entitled to receive the confidential information it may contain. E-mail messages to clients of Paul A. Neumiller presumptively contain information that
is confidential and legally privileged; e-mail messages to non-clients are normally confidential and may also be legally privileged. Please do not read, copy, forward or store this message unless you are the intended recipient of it. If you have received this
message in error, please forward it back to the sender and delete it completely from your computer system.<o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
<p class="MsoPlainText">E-mail communication on the Internet may NOT be secure. There is a risk that this confidential communication may be intercepted illegally. There may also be a risk of waiving attorney-client and/or work-product privileges that may attach
to this communication. DO NOT forward this message to a third party. If you have any questions regarding this notice, please contact the sender.<o:p></o:p></p>
<p class="MsoPlainText"> <o:p></o:p></p>
<p class="MsoPlainText"><o:p> </o:p></p>
</div>
</body>
</html>