Condo Bylaws on Borrowing
Condo boards often ask if their corporation's original borrowing bylaw (the one passed while under developer control) is sufficient to authorize major borrowings many years later. It is not. Corporations require a specific borrowing bylaw to authorize each specific borrowing. It's important to know the most your corporation may need to borrow, so the borrowing bylaw can be drafted with an adequate upper limit. It is the Board (and not owners) who start the process of enacting bylaws. The owners of a majority of all the units must vote to confirm the borrowing bylaw. Electronic meetings with e-voting platforms are very useful and holding town hall meetings with owners ahead of the voting meeting is a great practice as it allows the owners to gain the insight needed before they are voting. A lawyer will work with the lender to review the documents and not all lenders are created equally. Many banks are not well aware of the specific needs of condominium corporations so working with a lender with condo expertise will reduce delays, complexity and cost of the loan transaction.
Chris Jaglowitz, Common Ground Condo Law