55-455 - Rights of secured lenders. - Virginia Statutes

§ 55-455. Rights of secured lenders.

The declaration may require that all or a specified number or percentage ofthe lenders holding security interests encumbering the cooperative interestsapprove specified actions of the proprietary lessees or the association as acondition to the effectiveness of those actions, but no requirement forapproval may operate to (i) deny or delegate control over the generaladministrative affairs of the association by the proprietary lessees or theexecutive board, (ii) prevent the association or the executive board fromcommencing, intervening in or settling any litigation or proceeding, or (iii)receive and distribute any insurance proceeds except pursuant to § 55-470.

(1982, c. 277.)