Nevada § 116B.410 - Merger or consolidation of condominium hotels; reallocation of liability for shared expenses

§ 116B.410. Merger or consolidation of condominium hotels; reallocation of liability for shared expenses

1. Any two or more condominium hotels, by agreement of the declarants or hotel unit

owners and ratified by the associations as provided in subsection 2, may be merged

or consolidated into a single condominium hotel. In the event of a merger or consolidation, unless the agreement otherwise provides,

the resultant condominium hotel is the legal successor, for all purposes, of all of

the preexisting condominium hotels, and the operations and activities of all associations

of the preexisting condominium hotels are merged or consolidated into a single association

that holds all powers, rights, obligations, assets and liabilities of all preexisting

associations. 2. An agreement of two or more condominium hotels to merge or consolidate pursuant

to subsection 1 must be evidenced by an agreement prepared, executed, recorded and

certified by the declarant or hotel unit owner, as applicable, of each of the preexisting

condominium hotels. The agreement must be ratified in each condominium hotel by the percentage of votes

required to terminate that condominium hotel. The agreement must be recorded in every county in which a portion of the condominium

hotel is located and is not effective until recorded. 3. Every agreement for merger or consolidation must provide for the reallocation of

the allocated interests in the new association among the units of the resultant condominium

hotel either by stating the reallocations or the formulas upon which they are based

or by stating the percentage of overall allocated interests of the new condominium

hotel which are allocated to all of the units comprising each of the preexisting condominium

hotels, and providing that the portion of the percentages allocated to each unit formerly

constituting a part of the preexisting condominium hotel must be equal to the percentages

of allocated interests and shared expenses allocated to that unit by the declaration

of the preexisting condominium hotel. 4. Every agreement for merger or consolidation must provide for the reallocation of

the liability for shared expenses among the residential units of the resultant condominium

hotel either by stating the reallocations or the formulas upon which they are based.