(2).

100.407 (2).

����� (2)(a) A written ballot shall set forth each proposed action and provide an opportunity to vote for or against each proposed action.

����� (b) The board of directors must provide owners with at least 10 days� notice before written ballots are mailed or otherwise delivered. If, at least three days before written ballots are scheduled to be mailed or otherwise distributed, at least 10 percent of the owners petition the board of directors requesting secrecy procedures, subject to paragraph (d) of this subsection, a written ballot must be accompanied by:

����� (A) A secrecy envelope;

����� (B) A return identification envelope to be signed by the owner; and

����� (C) Instructions for marking and returning the ballot.

����� (c) The notice required under paragraph (b) of this subsection shall state:

����� (A) The general subject matter of the vote by written ballot;

����� (B) The right of owners to request secrecy procedures specified in paragraph (b) of this subsection;

����� (C) The date after which ballots may be distributed;

����� (D) The date and time by which any petition requesting secrecy procedures must be received by the board; and

����� (E) The address where any petition must be delivered.

����� (d) The requirements of paragraph (b)(A) and (B) of this subsection do not apply to a written ballot of a unit owner if the consent or approval of that unit owner is required by the declaration or bylaws or this chapter.

����� (3) Matters that may be voted on by written ballot shall be deemed approved or rejected as follows:

����� (a) If approval of a proposed action otherwise would require a meeting at which a certain quorum must be present and at which a certain percentage of total votes cast is required to authorize the action, the proposal shall be deemed to be approved when the date for return of ballots has passed, a quorum of unit owners has voted and the required percentage of approving votes has been received. Otherwise, the proposal shall be deemed to be rejected; and

����� (b) If approval of a proposed action otherwise would require a meeting at which a specified percentage of unit owners must authorize the action, the proposal shall be deemed to be approved when the percentage of total votes cast in favor of the proposal equals or exceeds the required percentage. The proposal shall be deemed to be rejected when the number of votes cast in opposition renders approval impossible or when both the date for return of ballots has passed and the required percentage has not been met.

����� (4) All solicitations for votes by written ballot shall state the following:

����� (a) If approval of a proposal by written ballot requires that the total number of votes cast equal or exceed a certain quorum requirement, the number of responses needed to meet the quorum requirement;

����� (b) If approval of a proposal by written ballot requires that a certain percentage of total votes cast approve the proposal, the required percentage of total votes needed for approval; and

����� (c) The period during which the association will accept written ballots for counting in accordance with subsection (5) of this section.

����� (5)(a) The association shall accept written ballots for counting during the period specified in the solicitation under subsection (4) of this section. Except as provided in paragraph (b) of this subsection, the period shall end on the earliest of the following dates:

����� (A) If approval of a proposed action by written ballot requires that a certain percentage of the unit owners approve the proposal, the date on which the association has received a sufficient number of approving ballots;

����� (B) If approval of a proposed action by written ballot requires that a certain percentage of the unit owners approve the proposal, the date on which the association has received a sufficient number of disapproving ballots to render approval impossible; or

����� (C) In all cases, a specified date certain on which all ballots must be returned to be counted.

����� (b) If the vote is by secrecy procedure under subsection (2)(b) of this section, the period shall end on the date specified in the solicitation or any extension under paragraph (c) of this subsection.

����� (c) Except as otherwise provided in the declaration, articles of incorporation or bylaws, in the discretion of the board of directors, if a date certain is specified in the solicitation under subsection (4) of this section, the period may be extended by written notice of the extension given to all unit owners before the end of the specified date certain.

����� (6) Except as otherwise provided in the declaration, articles of incorporation or bylaws, unless the vote is by secrecy procedure under subsection (2)(b) of this section, a written ballot may be revoked before the final return date of the ballots.

����� (7) Unless otherwise prohibited by the declaration, articles of incorporation or bylaws, the votes may be counted from time to time before the final return date of the ballots to determine whether the proposal has passed or failed by the votes already cast on the date the ballots are counted.

����� (8) Notwithstanding subsection (7) of this section, ballots that are returned in secrecy envelopes may not be examined or counted before the date certain specified in the solicitation or any extension under subsection (5)(c) of this section. [1997 c.816 �17; 2001 c.756 �44; 2003 c.569 �34; 2007 c.409 �27]

����� Note: 100.425 was added to and made a part of ORS chapter 100 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

����� 100.427 Methods of voting. (1) The voting rights or consent of a unit owner may be cast or given:

����� (a) In person at a meeting of the association of unit owners.

����� (b) In the discretion of the board of directors, by absentee ballot in accordance with subsection (3) of this section.

����� (c) Unless the declaration or bylaws or this chapter provide otherwise, pursuant to a proxy in accordance with subsection (2) of this section.

����� (d) By written ballot in lieu of a meeting under ORS 100.425.

����� (e) By any other method specified by the declaration or bylaws or this chapter.

����� (2)(a) A proxy:

����� (A) Must be dated and signed by the unit owner;

����� (B) Is not valid if it is undated or purports to be revocable without notice; and

����� (C) Terminates one year after its date unless the proxy specifies a shorter term.

����� (b) The board of directors may not require that a proxy be on a form prescribed by the board.

����� (c) A unit owner may not revoke a proxy given pursuant to this section except by actual notice of revocation to the person presiding over a meeting of the association of unit owners or to the board of directors if a vote is being conducted by written ballot in lieu of a meeting pursuant to ORS 100.425.

����� (d) A copy of a proxy in compliance with paragraph (a) of this subsection provided to the association by facsimile, electronic mail or other means of electronic communication utilized by the board of directors is valid.

����� (3)(a) An absentee ballot shall set forth each proposed action and provide an opportunity to vote for or against each proposed action.

����� (b) All solicitations for votes by absentee ballot shall include:

����� (A) Instructions for delivery of the completed absentee ballot, including the delivery location; and

����� (B) Instructions about whether the ballot may be canceled if the ballot has been delivered according to the instructions.

����� (c) An absentee ballot shall be counted as a unit owner present for the purpose of establishing a quorum.

����� (d) Even if an absentee ballot has been delivered to a unit owner, the unit owner may vote in person at a meeting if the unit owner has:

����� (A) Returned the absentee ballot; and

����� (B) Canceled the absentee ballot, if cancellation is permitted in the instructions given under paragraph (b) of this subsection. [1999 c.677 �61; 2003 c.569 �35; 2007 c.409 �28]

����� Note: 100.427 was added to and made a part of ORS chapter 100 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

����� 100.428 Electronic ballot. (1) As used in this section, �electronic ballot� means a ballot given by:

����� (a) Electronic mail;

����� (b) Facsimile transmission;

����� (c) Posting on a website; or

����� (d) Other means of electronic communication acceptable to the board of directors.

����� (2) Unless the declaration or bylaws prohibit or provide for other methods of electronic ballots, the board of directors of an association of unit owners, in the board�s discretion, may provide that a vote, approval or consent of a unit owner may be given by electronic ballot.

����� (3) An electronic ballot shall comply with the requirements of this section and the declaration or bylaws or this chapter.

����� (4) An electronic ballot may be accompanied by or contained in an electronic notice in accordance with ORS 100.423.

����� (5) If an electronic ballot is posted on a website, a notice of the posting shall be sent to each unit owner and shall contain instructions on obtaining access to the posting on the website.

����� (6) A vote made by electronic ballot is effective when it is electronically transmitted to an address, location or system designated by the board of directors for that purpose.

����� (7) Unless otherwise provided in the declaration or bylaws or rules adopted by the board of directors, a vote by electronic ballot may not be revoked.

����� (8) The board of directors may not elect to use electronic ballots unless there are procedures to ensure:

����� (a) Compliance with ORS 100.425 if the vote conducted by written ballot under ORS 100.425 uses the procedures specified in ORS 100.425 (2)(b); and

����� (b) That the electronic ballot is secret, if the declaration or bylaws or rules adopted by the board require that electronic ballots be secret. [2007 c.409 �21]

����� Note: 100.428 was added to and made a part of ORS chapter 100 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

����� 100.430 Unit deeds; contents. The deed of a unit shall contain:

����� (1) The name of the property, and the recording index numbers and date of recording of the declaration and in the case of a staged or flexible condominium, the applicable supplemental declaration or declaration amendment.

����� (2) The unit designation of the unit.

����� (3) Any further details the grantor and grantee may consider desirable. [Formerly 94.171]

����� 100.435 Insurance for individual units and common elements; fidelity bond. (1) If the bylaws provide that the association of unit owners has the sole authority to decide whether to repair or reconstruct a unit that has suffered damage or that a unit must be repaired or reconstructed, the board of directors shall obtain and maintain at all times and shall pay for out of the common expense funds, the following insurance covering both the common elements and individual units:

����� (a) Property insurance including, but not limited to, fire, extended coverage, vandalism and malicious mischief; and

����� (b) Insurance covering the legal liability of the association of unit owners, the unit owners individually and the manager including, but not limited to, the board of directors, the public and the unit owners and their invitees or tenants, incident to ownership, supervision, control or use of the property. There may be excluded from the policy required under this paragraph, coverage of a unit owner, other than coverage as a member of the association of unit owners or board of directors, for liability arising out of acts or omissions of that unit owner and liability incident to the ownership or use of the part of the property as to which that unit owner has the exclusive use or occupancy. Liability insurance required under this paragraph shall be issued on a comprehensive liability basis and shall provide a cross liability indorsement providing that the rights of a named insured under the policy do not prejudice any action against another named insured.

����� (2) If the bylaws require the individual unit owners to obtain insurance for their units, the bylaws also shall contain a provision requiring the board of directors to obtain the following insurance covering the common elements:

����� (a) Property insurance including, but not limited to, fire, extended coverage, vandalism and malicious mischief; and

����� (b) Insurance covering the legal liability of the association of unit owners and the manager including, but not limited to, the board of directors, to the public or the unit owners and their invitees or tenants, incident to supervision, control or use of the property.

����� (3) The board of directors shall obtain, if reasonably available, terms in insurance policies under this section that provide a waiver of subrogation by the insurer as to any claims against the board of directors of the association.

����� (4) Notwithstanding a provision in the declaration or bylaws of a condominium, including a condominium created before September 27, 2007, that imposes a maximum deductible amount of $10,000 or less in an association insurance policy, if the board of directors determines that it is in the best interest of the association of unit owners and of the unit owners, as provided in subsection (5) of this section, the board may adopt a resolution authorizing the association to obtain and maintain an insurance policy with a deductible amount exceeding the specified maximum, but not in excess of the greater of:

����� (a) The maximum deductible acceptable to the Federal National Mortgage Association; or

����� (b) $10,000.

����� (5) In making the determination under subsection (4) of this section, the board of directors shall consider such factors as the availability and cost of insurance and the loss experience of the association.

����� (6) If the declaration or bylaws of a condominium created before September 27, 2007, do not assign the responsibility for payment of the amount of the deductible in an association insurance policy, the board of directors may adopt a resolution that assigns the responsibility for payment of the amount of the deductible. The resolution must include, but need not be limited to:

����� (a) The circumstances under which the deductible will be charged against:

����� (A) A unit owner or the unit owners affected by a loss; or

����� (B) All unit owners;

����� (b) The allocation of the deductible charged under paragraph (a) of this subsection; and

����� (c) If a unit owner and the association have duplicate insurance coverage, the insurance policy that is primary, unless otherwise provided in the declaration or bylaws.

����� (7) If the board of directors adopts a resolution described in subsection (6) of this section, the resolution may require that a unit owner, in addition to any other insurance required by the declaration or bylaws, obtain and maintain:

����� (a) An insurance policy that insures the unit owner�s unit and appurtenant limited common elements for not less than the amount of the deductible in the association�s insurance policy for which the unit owner may be responsible and that insures the unit owner�s personal property for any loss or damage; and

����� (b) Comprehensive liability insurance that includes, but is not limited to, coverage for negligent acts of unit owners and tenants, guests of unit owners and tenants and occupants of other units for damage to the general and limited common elements, to other units and to the personal property of other persons that is located in other units or the common elements.

����� (8) Unless otherwise provided in the declaration or bylaws, the board of directors may adopt a resolution that:

����� (a) Prescribes a procedure for processing insurance claims. The procedure may require that all claims against the association�s insurance policy be processed through and coordinated by the board of directors or the managing agent, if authorized by the board.

����� (b) Assigns the responsibility for payment of charges for handling claims, including any charges by a managing agent.

����� (9) Not later than 10 days after adoption of a resolution under subsection (4), (6) or (8) of this section, the board of directors shall ensure that a copy of the resolution and a notice described in subsection (10) of this section are:

����� (a) Delivered to each unit owner; or

����� (b) Mailed to the mailing address of each unit owner or to the mailing address designated in writing by the unit owner.

����� (10) The notice required under subsection (9) of this section shall:

����� (a) Advise the unit owner to contact the unit owner�s insurance agent to determine the effect of the resolution on the unit owner�s individual insurance coverage; and

����� (b) Be in a form and style reasonably calculated to inform the unit owner of the importance of the notice.

����� (11) Failure to provide a copy of a resolution or a notice required under this section does not affect the responsibility of a unit owner to comply with a resolution adopted under this section.

����� (12)(a) An association of unit owners shall maintain fidelity bond coverage for:

����� (A) All persons with access to association funds, including directors, officers, employees, managing agents and employees of a management company or entity with which the association contracts.

����� (B) Computer fraud and funds transfer fraud.

����� (b) The fidelity bond required under paragraph (a) of this subsection must be in an amount that is at least equal to the combined amount of:

����� (A) Funds maintained in the name of the association in accounts under ORS 100.480; and

����� (B) Any obligations issued by the United States government purchased by the association under ORS 100.480.

����� (13) Subsection (12) of this section applies to a condominium created before, on or after January 1, 2020.

����� (14) Following the turnover meeting described in ORS 100.210, on an annual basis, with the approval of owners representing a majority of the voting rights present at a meeting, the board of directors may elect for the following year to not maintain the fidelity bond coverage required under subsection (12)(a) of this section or to maintain fidelity bond coverage in an amount less than required under subsection (12)(b) of this section. [Formerly 94.177; 1999 c.677 �50; 2007 c.409 �31; 2019 c.66 �2]

����� 100.440 Liens against property; removal from lien; effect of part payment. (1) Subsequent to recording a declaration and while the property remains subject to this chapter, no lien shall arise or be effective against the property. During such period liens or encumbrances shall arise or be created only against each unit and the undivided interest in the common elements appertaining thereto, in the same manner and under the same conditions as liens or encumbrances may arise or be created upon or against any other separate parcel of real property subject to individual ownership.

����� (2) No labor performed or materials furnished with the consent or at the request of a unit owner, the agent, contractor or subcontractor of the unit owner, shall be the basis for the filing of a mechanic�s or materialman�s lien against the unit of any other unit owner not consenting to or requesting the labor to be performed or the materials to be furnished, except that consent shall be considered given by the owner of any unit in the case of emergency repairs thereto performed or furnished with the consent or at the request of the board of directors.

����� (3) If a lien becomes effective against two or more units, the owner of each unit subject to such a lien shall have the right to have the unit of the owner released from the lien by payment of the amount of the lien attributable to the unit. The amount of the lien attributable to a unit and the payment required to satisfy such a lien, in the absence of agreement, shall be determined by application of the allocation established in the declaration. Such partial payment, satisfaction or discharge shall not prevent the lienor from proceeding to enforce the rights of the lienor against any unit and the undivided interest in the common elements appertaining thereto not so released by payment, satisfaction or discharge. [Formerly 94.185]

����� 100.445 Independent default clauses; option to purchase fee simple interest. Where a leasehold interest is submitted to the provisions of this chapter, the master lease shall:

����� (1) Contain independent default clauses, the effect of which shall be that a unit owner cannot be evicted because the board of directors of the association of unit owners has defaulted so long as the unit owner has paid the pro rata share of the unit owner of the funds necessary to correct the default or because another unit owner has defaulted.

����� (2) Contain the procedure for the submission of the fee simple interest in the property to the condominium if the lease includes an option for the unit owners to purchase the fee simple interest.

����� (3) Be recorded in the office of the recording officer before the declaration for the property is recorded in accordance with ORS 100.100. [Formerly 94.190; 2001 c.756 �45]

����� 100.450 Association lien against individual unit; recording notice of claim; foreclosure; effect of judgment and payment; priority of lien. (1) Whenever an association of unit owners levies any assessment against a unit, the association of unit owners shall have a lien upon the individual unit and the undivided interest in the common elements appertaining to such unit for any unpaid assessments. The lien includes interest, late charges, attorney fees, costs or other amounts levied under the declaration or bylaws. The lien is prior to a homestead exemption and all other liens or encumbrances upon the unit except:

����� (a) Tax and assessment liens; and

����� (b) A first mortgage or trust deed of record unless:

����� (A) The condominium consists of fewer than seven units, all of which are to be used for nonresidential purposes;

����� (B) The declaration provides that the lien of any mortgage or trust deed of record affecting the property shall be subordinate to the lien of the association provided under subsection (1) of this section; and

����� (C) The holder of any mortgage or trust deed of record affecting the property when the declaration is recorded executes a separate subordination of the holder�s interest to the declaration which is attached as an exhibit and which states that the holder understands that the declaration subordinates the holder�s lien to the assessment lien of the association provided under subsection (1) of this section.

����� (2) Recording of the declaration constitutes record notice and perfection of the lien for assessments. No further recording of a claim of lien for assessments or notice of a claim of lien under this section is required to perfect the association�s lien. The association shall record a notice of claim of lien for assessments under this section in the deed records of the county in which the unit is located before any suit to foreclose may proceed under subsection (4) of this section. The notice shall contain:

����� (a) A true statement of the amount due for the unpaid assessments after deducting all just credits and offsets;

����� (b) The name of the owner of the unit, or reputed owner, if known;

����� (c) The name of the condominium and the designation of the unit as stated in the declaration or applicable supplemental declaration; and

����� (d) A statement that if the owner of the unit thereafter fails to pay any assessments when due, as long as the original or any subsequent unpaid assessment remains unpaid, the unpaid amount of assessments automatically continue to accumulate with interest without the necessity of further recording.

����� (3) The notice shall be verified by the oath of some person having knowledge of the facts and shall be recorded by the county recording officer. The record shall be indexed as other liens are required by law to be indexed.

����� (4)(a) The proceedings to foreclose liens created by this section shall conform as nearly as possible to the proceedings to foreclose liens created by ORS 87.010 except, notwithstanding ORS 87.055, a lien may be continued in force for a period of time not to exceed six years from the date the assessment is due. For the purpose of determining the date the assessment is due in those cases when subsequent unpaid assessments have accumulated under a notice recorded as provided in subsection (2) of this section, the assessment and claim regarding each unpaid assessment shall be deemed to have been levied at the time the unpaid assessment became due.

����� (b) The lien may be enforced by the board of directors acting on behalf of the association of unit owners.

����� (c) An action to recover a money judgment for unpaid assessments may be maintained without foreclosing or waiving the lien securing the claim for unpaid assessments. A judgment entered on the action does not extinguish the lien. Payment on the judgment operates to satisfy the lien, or a portion of the lien, to the extent of the payment received.

����� (d) An action to foreclose a lien under this section or recover a money judgment for unpaid assessments may not be maintained unless the Condominium Information Report and the Annual Report described in ORS 100.250 are designated current as provided in ORS 100.255.

����� (5) Unless the declaration or bylaws provides otherwise, fees, late charges, fines and interest imposed pursuant to ORS 100.405 (4)(j), (k), (L) and (m) are enforceable as assessments under this section.

����� (6) With respect to condominium units also constituting timeshare property as defined by ORS