2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 32 - Creation, Alteration and Termination of Condominiums
3221 - Rights of secured lenders.

     § 3221.  Rights of secured lenders.
        (a)  Secured lender approval.--The declaration may require
     that all or a specified number or percentage of the mortgagees
     or beneficiaries of deeds of trust encumbering the units approve
     specified actions of the unit owners or the association as a
     condition to the effectiveness of those actions but no
     requirement for approval may operate to:
            (1)  deny or delegate control over the general
        administrative affairs of the association by the unit owners
        or the executive board; or
            (2)  prevent the association or the executive board from
        commencing, intervening in or settling any litigation or
        proceeding or receiving and distributing any insurance
        proceeds pursuant to section 3312 (relating to insurance).
        (b)  Secured lender approval procedures.--If the declaration
     requires mortgagees or beneficiaries of deeds of trust
     encumbering the units to approve specified actions of the unit
     owners or the association as a condition to the effectiveness of
     those actions, then the executive board will provide the lender
     with written notice of the specified action proposed to be
     taken, together with a request for the secured lender to approve
     or disapprove the actions specified. If the notice to the
     secured lender, issued in accordance with the procedures set
     forth in this subsection, states that the secured lender will be
     deemed to have approved the actions specified in the written
     notice if it does not respond to the request within 45 days and
     the secured lender does not respond in writing within 45 days,
     then the secured lender will be deemed for all purposes to have
     approved the actions specified in the notice. Written notice to
     the secured lender shall be given by certified, registered or
     first-class mail, as evidenced by United States Postal Service
     certificate of mailing, postage prepaid, at the address provided
     by the secured lender or, in the absence thereof, at the address
     of the secured lender endorsed on any mortgage or deed of trust
     of record and at the address to which the unit owner mails any
     periodic payment paid to the secured lender. The notice to the
     secured lender shall include a statement of the specified action
     and a copy of the full text of any proposed amendment and a form
     prepared by the association upon which the secured lender may
     indicate its approval or rejection of the specified action or
     amendment.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days; Nov. 30, 2004,
     P.L.1509, No.191, eff. 60 days)

        Cross References.  Section 3221 is referred to in section
     3219 of this title.