Collective bank borrowing of a condominium

Borrowing by the syndicate of co-owners on its behalf or for the benefit of consenting co-owners

Bank borrowing made in the name of condominium pool or on behalf of voluntary co-owners may finance the following projects:

• Voted work on common areas
• Collective interest work on private parts (for example, setting up of individual meters)
• Acquisition of property
• PrefinLaunch of public subsidies (e.g. works subsidized by the National Housing Agency if they concern the common or private areas and are of common interest)

Borrowing subscribed to the benefit of the co-owners who have not refused

Bank borrowing with the presumption of membership of all co-owners can finance the following projects:

• Work necessary for the conservation of the building and for the preservation of the health and physical safety of the occupants, which includes work on the stability of the building, the fence, the canopy or the networks and work to ensure that the dwellings comply with the health, safety and equipment standards

• Work made mandatory by law, regulation or by-law relating to public safety or health
• Work involved in the implementation of real estate restoration programs, within the framework of plans for the safeguarding and development and restoration of real estate
• Accessibility work for disabled persons or persons with reduced mobility, provided that it does not affect the structure of the building or its essential equipment
• Hygiene requirements for garbage disposal
• Energy saving or greenhouse gas emission reduction work, which may include work of common interest carried out on private parts and at the cost of the co-owner of the lot concerned, except where the latter is able to produce evidence of equivalent work carried out in the preceding 10 years.

1. Inclusion of the subscription to the bank loan on the agenda of the general meeting

The trustee must register on theagenda of the general assembly:

• The acquisition or the work envisaged by the co-ownership
• The question of the subscription of bank loans, intended to finance the acquisition or the desired works.

The general and specific conditions of the draft loan contract and the proposal for a guarantee undertaking must be communicated simultaneously than the agenda. These documents ensure the validity of the decision from the co-owners' union.

2. General meeting vote on the subscription of a bank loan

At the same general meeting, the co-owners must vote on the operations financed (works or acquisition) and the subscription to the bank loan. These two questions shall be voted on separately.

Content of the decision

The general meeting cannot simply vote on the principle of using a loan to finance the proposed works or acquisition.

The resolution The vote must specify the essential conditions of the loan to be subscribed, in particular:

• The loan amount
• The duration of the loan
• General terms and conditions of the loan
• Sound overall effective rate.

The authorization of the general meeting, ratifying the terms of the loan, allows the trustee to borrow on behalf of the syndicate of co-owners.

Majority rules

In principle, the decision to take out a loan is taken at unanimity the voices of the co-owners.

By way of exception, the decision may be adopted by the same majority than that necessary for the vote on the work concerned. This concerns 3 cases:

• Where the loan is used to pre-finance public subsidies granted to the syndicate of co-owners for carrying out voted work
• When the loan benefits only the co-owners who decide to participate
• When the loan benefits the co-owners who are considered to have agreed to participate (no express refusal to be subject to the loan).

3. Membership or refusal of co-owners to participate in the loan

Adherence to the loan

co-owners who wish to borrow must notify their decision to the trustee where the loan relates to:

• Work on the voted common areas
• Collective interest work on the private parts voted
• Acquisition acts in accordance with the union's purpose and voted on.

Notification shall be by registered letter with acknowledgement of receipt. It must indicate the amount of the loan that the co-owner wishes to request, within the limit of his share of expenses.

This notification of accession must take place in a two-month period from the notification of the minutes of the general meeting, without its annexes, to all co-owners.

Refusal to participate in the loan

All co-owners are considered as adhering the underwriting of the loan where the loan relates to:

• Work necessary to preserve the building and to preserve the health and physical safety of the occupants
• Work made mandatory under a law, regulation or municipal by-law relating to public safety or health
• Work involved in the realization of real estate restoration programs
• Accessibility works for disabled people or people with reduced mobility
• The elimination of garbage empties for hygiene reasons
• Work to save energy or reduce greenhouse gas emissions.

The co-owners may, however, refuse to participate in the loan.

They must then to notify their refusal to the liquidator in a two-month period from the notification of the minutes of the general meeting. Such notification shall be by registered letter with acknowledgement of receipt.

They also have an obligation to pay their share of the cost of the works in the 6 months notification of the minutes. This share corresponds to the personal contribution payable for the reimbursement of capital and interest, as well as the payment of fees and expenses.

4. Borrowing

The loan agreement is signed by the trustee. It shall be in accordance with the draft attached to the agenda and voted on by the General Assembly.

The signature of the loan contract shall take place after the two-month period from the notification of the decision of the general meeting to the co-owners. After this period, the general meeting can no longer be challenged by the co-owners opponents or defaulting. The decision to borrow thus becomes final.

5. Payment of amounts

The amount of the loan is paid to the syndicate of the co-owners by the credit institution (bank).