New Mexico Statutes 47-16-7. Board members and officers; duties; budget
A. Except as provided in the community documents or other provisions of the Homeowner Association Act, the board acts on behalf of the association. In the performance of their duties, officers and members of the board shall exercise, if appointed by the declarant, the degree of care and loyalty required of a fiduciary of the lot owners and, if elected by the lot owners, ordinary and reasonable care free from any undisclosed conflict of interest.
Terms Used In New Mexico Statutes 47-16-7
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Fiduciary: A trustee, executor, or administrator.
- Uphold: The decision of an appellate court not to reverse a lower court decision.
B. Within ninety days after being elected or appointed to the board, each board member shall certify in writing to the secretary of the association that the member:
(1) has read the community documents;
(2) will work to uphold the community documents and policies to the best of the member’s ability; and
(3) will faithfully discharge the member’s duties to the association.
C. A board member who does not file the written certification pursuant to Subsection B of this section shall be suspended from the board until the member complies with Subsection B of this section.
D. The association shall retain each board member’s written certification for inspection by lot owners for five years after the board member’s election or appointment. The failure of an association to have a board member’s written certification on file does not affect the validity of any action taken by the board or any protections provided to board members under the:
(1) Homeowner Association Act; or
(2) Nonprofit Corporation Act [N.M. Stat. Ann. Chapter 53, Article 8], if the association is organized under the Nonprofit Corporation Act.
E. The board or the lot owners, as provided for in the community documents, shall adopt a budget annually. Within thirty calendar days after adoption of any proposed budget for the association, the board shall provide a copy of the budget to all the lot owners.
F. The board shall provide to all lot owners a statement included with a copy of the annual budget listing all fees and fines that may be charged to a lot owner by the association or any management company retained by the association to act on behalf of the association, including charges for a disclosure certificate pursuant to Subsection H of Section 47-16-12 N.M. Stat. Ann..
G. Any management contract negotiated between the board and a management company retained by the association to act on behalf of the association shall include:
(1) a disclosure to the board of any existing relationships the management company has with any vendor or contractor for the association from which a conflict of interest may arise; and
(2) a list of all fees to be charged to the association or lot owners by the management company during the term of the contract.