66-27-321 - Master associations. - Tennessee Statutes

66-27-321. Master associations.

(a)  If the declaration for a condominium provides that any of the powers described in § 66-27-402 are to be exercised by or may be delegated to a profit or nonprofit corporation, or unincorporated association, that exercises those or other powers on behalf of one (1) or more condominiums or for the benefit of the unit owners of one (1) or more condominiums, all provisions of part 1, this part and parts 4 and 5 of this chapter applicable to unit owners' associations apply to any such corporation, or unincorporated association, except as modified by this section.

(b)  Unless a master association is acting in the capacity of an association described in § 66-27-401, it may exercise the powers set forth in § 66-27-402(a)(2) only to the extent expressly permitted in the declarations of condominiums that are part of the master association or expressly described in the delegations of power from those condominiums to the master association.

(c)  If the declaration of any condominium provides that the board of directors may delegate certain powers to a master association, the members of the board of directors have no liability for the acts or omissions of the master association with respect to those powers following delegation.

(d)  The rights and responsibilities of unit owners with respect to the unit owners' association set forth in §§ 66-27-403, 66-27-408 66-27-410 and 66-27-412 apply in the conduct of the affairs of a master association only to those persons who elect the board of a master association, whether or not those persons are otherwise unit owners within the meaning of part 1, this part, parts 4 and of this chapter.

(e)  Notwithstanding § 66-27-403(f) with respect to the election of the board of directors of an association, by all unit owners after the period of declarant control ends, and even if a master association is also an association described in § 66-27-401, the certificate of incorporation or other instrument creating the master association and the declaration of each condominium, the powers of which are assigned by the declaration or delegated to the master association, may provide that the board of directors of the master association must be elected after the period of declarant control in any of the following ways:

     (1)  All unit owners of all condominiums subject to the master association may elect all members of that board of directors;

     (2)  All members of the board of directors of all condominiums subject to the master association may elect all members of that board of directors;

     (3)  All unit owners of each condominium subject to the master association may elect specified members of that board of directors; or

     (4)  All members of the board of directors of each condominium subject to the master association may elect specified members of that board of directors.

[Acts 2008, ch. 766, § 1.]