Sec. 3.5. (a) This section applies only to a condominium located on the shore of a lake located in a township with a population of more than two thousand (2,000) and less than two thousand seven hundred eighty (2,780) located in a county having a population of more than forty-six thousand (46,000) and less than forty-six thousand four hundred (46,400).
(b) Except as otherwise provided in a statement described in:
(1) IC 32-25-7-1(a)(10) and included in:
(A) the declaration; or
(B) an amendment to the declaration, if the amendment is approved by at least ninety-five percent (95%) of co-owners; or
(2) IC 32-25-8-2(12) and included in:
(A) the bylaws; or
(B) an amendment to the bylaws, if the amendment is approved by the percentage of votes set forth in the bylaws under IC 32-25-8-2(11);
part or all of the common areas and facilities of a condominium may be conveyed or subjected to a security interest by the association of co-owners if at least ninety-five percent (95%) of the co-owners, including at least ninety-five percent (95%) of the co-owners of condominium units not owned by the declarant, agree to the action. However, if the common areas and facilities proposed to be conveyed or encumbered under this section include any limited common areas and facilities, all the owners of the limited common areas and facilities to be conveyed or encumbered must agree to the conveyance or encumbrance.
(c) An agreement to convey or encumber common areas and facilities under this section must be evidenced by an agreement:
(1) executed in the same manner as a deed or any other instrument recognized by the state for the conveyance or transfer of interests in title; and
(2) signed by:
(A) at least ninety-five percent (95%) of the co-owners, as required by this section; or
(B) another percentage of the co-owners specified in a statement described in subsection (b)(1) or (b)(2).
An agreement under this subsection is effective upon being recorded.
(d) Proceeds from the conveyance or encumbrance of common areas and facilities under this section shall be distributed to co-owners as common profits under IC 32-25-8-6. However, if the common areas and facilities conveyed or encumbered under this section include limited common areas and facilities, proceeds from the conveyance or encumbrance of the limited common areas and facilities shall be distributed to the owners of the limited common areas and facilities according to the percentage of the owners' undivided interest in the limited common areas and facilities.
(e) A conveyance or encumbrance of common areas and facilities not made in accordance with:
(1) this section; or
(2) a statement described in subsection (b)(1) or (b)(2);
is void.
As added by P.L.181-2007, SEC.2. Amended by P.L.119-2012, SEC.161; P.L.104-2022, SEC.133.