(1)  As used in this section, “organizational documents” means the documents related to the formation or operation of a nonprofit corporation or other legal entity formed by the management committee or the declarant.

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Terms Used In Utah Code 57-8-40

  • association: means all of the unit owners:
(a) acting as a group in accordance with the declaration and bylaws; or
(b) organized as a legal entity in accordance with the declaration. See Utah Code 57-8-3
  • Condominium: means the ownership of a single unit in a multiunit project together with an undivided interest in common in the common areas and facilities of the property. See Utah Code 57-8-3
  • Condominium project: means a real estate condominium project; a plan or project whereby two or more units, whether contained in existing or proposed apartments, commercial or industrial buildings or structures, or otherwise, are separately offered or proposed to be offered for sale. See Utah Code 57-8-3
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Declarant: means all persons who execute the declaration or on whose behalf the declaration is executed. See Utah Code 57-8-3
  • Declaration: means the instrument by which the property is submitted to the provisions of this act, as it from time to time may be lawfully amended. See Utah Code 57-8-3
  • Document: means every instrument in writing, including every conveyance, affecting, purporting to affect, describing, or otherwise concerning any right, title, or interest in real property, except wills and leases for a term not exceeding one year. See Utah Code 57-1-1
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Management committee: means the committee as provided in the declaration charged with and having the responsibility and authority to make and to enforce all of the reasonable rules covering the operation and maintenance of the property. See Utah Code 57-8-3
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Statute: A law passed by a legislature.
  • Unit: includes one or more rooms or spaces located in one or more floors or a portion of a floor in a building. See Utah Code 57-8-3
    • (2)  If permitted, required, or acknowledged by the declaration, the management committee may organize an association of unit owners as:

    (a)  a nonprofit corporation in accordance with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act; or

    (b)  any other entity organized under other law.

    (3)  To the extent possible, organizational documents for a nonprofit corporation or other entity formed in accordance with Subsection (2) may not conflict with the rights and obligations found in the declaration or any of the association of unit owners’ bylaws recorded at the time of the formation of a nonprofit corporation or other entity.

    (4)  Notwithstanding any conflict with the declaration or any recorded bylaws, the organizational documents of a nonprofit corporation or other entity formed in accordance with Subsection (2) may include an additional indemnification and liability limitation provision for:

    (a)  management committee members or officers; or

    (b)  similar persons in a position of control.

    (5)  In the event of a conflict between this chapter’s provisions, a statute under which the association of unit owners is organized, documents concerning the organization of the association of unit owners as a nonprofit corporation or other entity, the plat, the declaration, the bylaws, and rules or policies of the association of unit owners, the following order prevails:

    (a)  this chapter controls over a conflicting provision found in any of the sources listed in Subsections (5)(b) through (f);

    (b)  Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or any other law under which an entity is organized controls over a conflicting provision in any of the sources listed in Subsections (5)(c) through (f);

    (c)  the plat and the declaration control equally over a conflicting provision in any of the sources listed in Subsections (5)(d) through (f);

    (d)  an organizational document filed in accordance with Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, or any other law under which an entity is organized, controls over a conflicting provision in any of the sources listed in Subsections (5)(e) through (f);

    (e)  the bylaws control over a conflicting provision in a source described in Subsection (5)(f); and

    (f)  a rule or policy of the association of unit owners that is adopted by the management committee yields to a conflicting provision in any of the sources listed in Subsections (5)(a) through (e).

    (6)  Immediately upon the legal formation of an entity in compliance with this section, the association and unit owners are subject to any right, obligation, procedure, and remedy applicable to that entity.

    (7) 

    (a)  The management committee may modify a form “articles of incorporation” or similar organizational document attached to a declaration for filing or re-filing if the modified version is otherwise consistent with this section’s provisions.

    (b)  An organizational document attached to a declaration that is filed and concerns the organization of an entity may be amended in accordance with the organizational document’s own terms or any applicable law, regardless of whether the organizational document is recorded.

    (c)  Except for amended bylaws, an initial or amended organizational document properly filed with the state does not need to be recorded.

    (8)  This section applies to the reorganization of an association of unit owners previously organized if the entity’s status is terminated or dissolved without the possibility of reinstatement.

    (9) 

    (a)  This section applies to a condominium project regardless of when the condominium project is established.

    (b)  This section does not validate or invalidate the organization of an association of unit owners that occurred before May 5, 2008, regardless of whether the association of unit owners was otherwise in compliance with this section.

    Amended by Chapter 324, 2017 General Session

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