Lot Owners

Our Bylaws and our Deed of Dedication state the following:

Proxies At all meeting of members each member may vote in person or by proxy. All proxies shall be in writing signed by all the owners of the lot, and filed with the Secretary. Every proxy shall be revocable and shall automatically cease upon the conveyance by the member of the lot.

My question: If a home is financed with a 15 year loan and has not been paid off is the bank a lot owner as well?

Joe, the answer can be yes mortgagees are lot owners. Thus for certain conditions, your Declaration may require notification to mortgagees. Following is an example from a Declaration. With the qualification on "Eligible Holders" mortgagees rarely qualify. However if this qualification is not included in the Declaration, then mortgagees would be notified for the items listed below.

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ARTICLE TWELVE: CERTAIN RIGHTS OF THE FIRST MORTOAGEES
The following provisions are for the benefit of holders, insurers, or guarantors of holders of first mortgages recorded against Lots within The Properties. To the extent applicable, necessary, or proper, the provisions of this ARTICLE TWELVE apply to both this Declaration and to the Articles and Bylaws of the Association.

12.1 Notices of Action. A holder, insurer or guarantor of a first mortgage who has delivered a written request to the Association containing its name, address, the legal description and the address of the Lot encumbered by its mortgage shall be considered an “Eligible Holder” hereunder and shall be entitled to timely written notice of:
(a) any condemnation loss or any casualty loss which affects a material portion of The Properties or which affects any Lot on which there is a first mortgage held, insured, or guaranteed by such Eligible Holder;
(b) any delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to the mortgage of such Eligible Holder, where such delinquency has continued for a period of sixty days; provided however, notwithstanding this provision, any holder of a first mortgage, upon request, is entitled to written notice from the Association of any default in the performance by an Owner of a Lot of any obligation under this Declaration or Articles or Bylaws of the Association which is not cured within sixty days;
(c) any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association; or
(d) any proposed action which would require the consent of a specified percentage of Eligible Holders.

12.2 Other Provisions for the Benefit of Eligible Holders. To the extent permitted under Colorado law, the approval of fifty-one percent of the Eligible Holders of mortgages on Lots subject to Eligible Holder mortgages shall be obtained before taking the following actions:
(a) a decision by the Association to establish self-management when professional management had been required previously by an Eligible Holder;
(b) restoration or repair of The Properties (after a hazard damage or partial condemnation) in a manner other than that specified in this Declaration;
(c) any action to terminate the legal status of The Properties after substantial destruction or condemnation occurs.

12.3 Amendment to Documents/Special Approvals.
(a) The consent of Owners who are entitled to cast at least sixty-seven percent of the votes in the Association allocated to each Class of Membership and the approval of at least sixty-seven percent of the Eligible Holders of mortgages recorded against Lots within The Properties subject to Eligible Holder mortgages shall be required to commence any action to terminate the legal status of The Properties for reasons other than substantial destruction or condemnation of The Properties.
(b) The consent of Owners who are entitled to cast at least sixty-seven percent of the votes in the Association allocated to each class of Membership and the approval of at least fifty-one percent of the Eligible Holders of mortgages recorded against a Lot within The Properties subject to Eligible Holder mortgages shall be required to add to or amend any material provisions of this Declaration or the Articles or Bylaws of the Association which establish, provide for, govern, or regulate any of the following:
(i) voting rights;
(ii) assessments, assessment liens, or subordination of such liens;
(iii) reserves for maintenance, repair and replacement of property maintained by the Association;
(iv) responsibility for maintenance and repairs;
(v) reallocation of interests in the property maintained by the Association or the rights to its use;
(vi) boundaries of any Lot;
(vii) expansion or contraction of The Properties or the addition, annexation or withdrawal of property to or from The Properties;
(viii) insurance or fidelity bonds;
(ix) leasing of Dwelling Units;
(x) imposition of any restrictions on an Owner’s right to sell or transfer his or her Lot or Dwelling Unit;
(xi) any provision that expressly benefits the Eligible Holders.

(c) If the Properties have been or are to be approved by the Federal Housing Administration and/or Veterans Administration, then so long as there are Class B Memberships, the following actions will require the prior approval of the Federal Housing Administration and/or the Veterans Administration; (a) amendment of this Declaration, (b) amendment of the Articles of Incorporation or the Bylaws of the Association, (c) annexation of additional properties to this Declaration, and (d) merger, consolidation, or dissolution of the Association.