TITLE 34

Property

CHAPTER 34-36.1

Condominium Law

ARTICLE 34-36.1-3.01

Management of Condominium

SECTION 34-36.1-3.03



   § 34-36.1-3.03  Executive board members and

officers. –

(a) Except as provided in the declaration, the bylaws, subsection (b), or in

other provisions of this chapter, the executive board may act in all instances

on behalf of the association. In the performance of their duties, the officers

and members of the executive board are required to exercise:



   (1) If appointed by the declarant, the care required of

fiduciaries of the unit owners; and



   (2) If elected by the unit owners, ordinary and reasonable

care.



   (b) The executive board may not act on behalf of the

association to amend the declaration (§ 34-36.1-2.17), to terminate the

condominium, or to elect members of the executive board or determine the

qualifications, powers and duties, or terms of office of executive board

members, but the executive board may fill vacancies in its membership for the

unexpired portion of any term.



   (c) Within thirty (30) days after adoption of any proposed

budget for the condominium, the executive board shall provide a summary of the

budget to all the unit owners, and shall set a date for a meeting of the unit

owners to consider ratification of the budget not less than fourteen (14) nor

more than thirty (30) days after mailing of the summary. Unless at that meeting

a majority of all the unit owners or any larger vote specified in the

declaration reject the budget, the budget is ratified, whether or not a quorum

is present. In the event the proposed budget is rejected, the periodic budget

last ratified by the unit owners shall be continued until such time as the unit

owners ratify a subsequent budget proposed by the executive board.



   (d)(1) Subject to subsection (e), the declaration may provide

for a period of declarant control of the association, during which period a

declarant, or persons designated by him, may appoint and remove the officers

and members of the executive board. Regardless of the period provided in the

declaration, a period of declarant control terminates no later than the earlier

of:



   (i) Sixty (60) days after conveyance of eighty percent (80%)

of the units which may be created to unit owners other than a declarant;



   (ii) Two (2) years after all declarants have ceased to offer

units for sale in the ordinary course of business; or



   (iii) Two (2) years after any development right to add new

units was last exercised.



   (2) A declarant may voluntarily surrender the right to

appoint and remove officers and members of the executive board before

terminations of that period, but in that event he or she may require, for the

duration of the period of declarant control, that specified actions of the

association or executive board, as described in a recorded instrument executed

by the declarant, be approved by the declarant before they become effective.



   (e) Not later than sixty (60) days after conveyance of

twenty-five percent (25%) of the units which may be created to unit owners

other than a declarant, at least one member and not less than twenty-five

percent (25%) of the members of the executive board must be elected by unit

owners other than the declarant. Not later than sixty (60) days after

conveyance of fifty percent (50%) of the units which may be created to unit

owners other than a declarant, not less than one-third (1/3) of the members of

the executive board must be elected by unit owners other than the declarant.



   (f) Not later than the termination of any period of declarant

control, the unit owners shall elect an executive board of at least three (3)

members, at least a majority of whom must be unit owners. The executive board

shall elect the officers. The executive board members and officers shall take

office upon election.



   (g) Notwithstanding any provision of the declaration or

bylaws to the contrary, the unit owners, by a two-thirds (2/3) vote of all

persons present and entitled to vote at any meeting of the unit owners at which

a quorum is present, may remove any member of the executive board with or

without cause, other than a member appointed by the declarant.



History of Section.

(P.L. 1982, ch. 329, § 2.)