Vermont § 2-119 - Rights of secured lenders
Full text of Vermont Vermont Statutes Online § 2-119 — Rights of secured lenders, with citation guidance and answers to common questions.
§ 2-119. Rights of secured lenders
- (a) The declaration may require that all or a specified number or percentage of the lenders
who hold security interests in the units or common elements approve specified actions
of the unit owners or the association as a condition to the effectiveness of those
actions, but lack of approval will not have the effect of: (1) denying or delegating control over the general administrative affairs of the association
by the unit owners or the executive board; (2) preventing the association or the executive board from participating in any litigation
or proceeding; or (3) preventing an insurance trustee or the association from receiving and distributing
insurance proceeds except pursuant to section 3-113 of this title. (b) A lender who has extended credit to an association secured by an assignment of income
(subdivision 3-102(a)(14) of this title) or an encumbrance on the common elements (section 3-112) may enforce its security
agreement in accordance with its terms, subject to the requirements of this title
and other law. Requirements that the association must deposit its periodic common
charges before default with the lender to which the association’s income has been
assigned, or increase its common charges at the lender’s direction by amounts reasonably
necessary to amortize the loan in accordance with its terms, do not violate the prohibitions
on lender approval contained in subsection (a) of this section. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)
Source: official Vermont text · Last verified 2026-08-27
Frequently Asked Questions About Vermont § 2-119
What does Vermont Statutes Online § 2-119 cover?
Section 2-119 ("Rights of secured lenders") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Vermont § 2-119?
A common citation format is "Vermont Statutes Online § 2-119" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 2-119 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.