Section 1.    Notice to Board of Directors.  A Unit Owner who mortgages his Unit shall notify the Board of Directors through the Managing Agent of the name and address of his Mortgagee and any changes thereto.  The Board of Directors shall maintain such information in a book entitled "Mortgagees of Units."   All notices given pursuant to these By-laws shall be given only to those Mortgagees listed in the "Mortgagees of Units".

Section 2.    Notice of Unpaid Assessments.  The Board of Directors, whenever so requested in writing by a Mortgagee, shall promptly report any then unpaid assessments due from, or any other default by, the owner of the mortgaged Unit. 

Section 3.    Notice of Default.  The Board of Directors shall give written notice to a Unit Owner of any default by the Unit Owner in the performance of any obligations under the Condominium Act or Condominium Instruments, and, if such default is not cured within sixty (60) days, shall promptly send a copy of such notice to the appropriate Mortgagee.

Section 4.    Examination of Books.  Each Unit Owner and each Mortgagee shall be permitted to examine the books of account of the Association at reasonable times and upon reasonable notice, on a business day, but not more often than once a month.  The Association may charge a fee for providing copies of documents.

Section 5.    Notices of Damages, Condemnation.  To the extent that it has such knowledge, the Board of Directors shall timely notify: (i) the Mortgagee of a Unit whenever damage to the Unit covered by the mortgage exceeds $1,000, or whenever the Unit or portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by a condemning authority; and (ii) Mortgagees whenever damage to the Common Elements exceeds $20,000, which is not covered by insurance, or whenever the Common Elements or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise sought to be acquired by a condemning authority.  For purposes of this Section, the Board of Directors, when giving notice to any Mortgagee, shall also notify the Federal Home Loan Mortgage Corporation (FHLMC), the Federal National Mortgage Association (FNMA) or the Veterans Administration (VA) and any other public or private secondary mortgage market entity participating in purchasing or guarantying mortgages of Units in the Condominium if the Board of Directors has notice of such participation. 

Section 6.    Audited Financial Statement.  Each Mortgagee shall be entitled to receive, upon request, a copy of the annual audited financial statement within one hundred twenty (120) days following the end of the Association's fiscal year.  The Association may charge a copying fee for the statement.

Section 7.    Rights of First Mortgagees.  Unless at least two thirds (2/3) of the First Mortgagees (based upon one vote for each first mortgage owned) have given their prior written approval, the Unit Owners Association shall not amend the Condominium Instruments to:

Section 8.    Presumptive Approval.  Notwithstanding the foregoing, a Mortgagee who is notified by certified or registered mail, return receipt requested, of additions or amendments to the Condominium Instruments pursuant to this Article and who does not deliver or post to the requesting party a negative response within thirty (30) days shall be deemed to have approved such request.

Section 9.    Other Mortgagees Rights.  All Mortgagees or their representatives shall be entitled to attend and speak at meetings of the Unit Owners Association.  In addition all Mortgagees shall have the right to examine the books and records of the Condominium and require the submission of annual financial reports and other budgetary information.