1. (1) The declaration may require that all or a specified number or percentage of the lenders who hold security interests 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. (a) Deny or delegate control over the general administrative affairs of the association by the unit owners or the executive board; or
   2. (b) Prevent the association or the executive board from commencing, intervening in, or settling any solicitation or proceeding; or
   3. (c) Prevent any insurance trustee or the association from receiving and distributing any insurance proceeds pursuant to section 38-33.3-313.

Source: L. 91: Entire article added, p. 1732, § 1, effective July 1, 1992.