§36B-2-119. Rights of secured lenders.
The declaration may require that all or a specified number
or percentage of the lenders who hold security interests
encumbering the units approve specified actions of the unit
owners or the association as a condition to the effectiveness of
those actions, but no requirement for approval may operate to (i)
deny or delegate control over the general administrative affairs
of the association by the unit owners or the executive board, or
(ii) prevent the association or the executive board from
commencing, intervening in, or settling any litigation or
proceeding, or (iii) prevent any insurance trustee or the
association from receiving and distributing any insurance
proceeds except pursuant to section 3-113.