<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>78680</law_id><section_number>55.1-2150</section_number><catch_line>Limitation of assumption of debt and encumbrances</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="55.1">Property and Conveyances</unit><unit label="subtitle" level="2" order_by="1" identifier="IV">Common Interest Communities</unit><unit label="chapter" level="3" order_by="1" identifier="21">Virginia Real Estate Cooperative Act</unit><unit label="article" level="4" order_by="1" identifier="3">Management of Cooperatives</unit></structure><text>
						<section><p>Unless approved by <span class="dictionary">persons</span> entitled to cast at least 80 percent of the votes in the <span class="dictionary">association</span>, including a simple majority of the votes allocated to <span class="dictionary">cooperative interests</span> not owned by a <span class="dictionary">declarant</span> or any larger percentage the <span class="dictionary">declaration</span> specifies, (i) the <span class="dictionary">association</span> shall not assume or take subject to any debt, inclusive of any principal and interest accrued thereon, incurred in the original acquisition, development, or construction of or the conversion of the cooperative in excess of the amounts disclosed in the public <span class="dictionary">offering</span> statement pursuant to &#xA7;&#xA0;<a class="law" title="Public offering statement; general provisions" href="/55.1-2155/">55.1-2155</a> or <a class="law" title="Public offering statement; cooperatives subject to development rights" href="/55.1-2156/">55.1-2156</a>, nor shall the cooperative or any <span class="dictionary">proprietary lessee</span>&#x2019;s interest be encumbered by a <span class="dictionary">security interest</span> for any greater amount incurred for such purposes, and (ii) the <span class="dictionary">declarant</span> shall not <span class="dictionary">amend</span> the public <span class="dictionary">offering</span> statement to change the amounts disclosed after conveyance of the first <span class="dictionary">unit</span> to a <span class="dictionary">proprietary lessee</span>. However, the amounts disclosed shall not be subject to adjustment such that the <span class="dictionary">association</span> or the <span class="dictionary">proprietary lessees</span> are subjected to the construction or market risks of the <span class="dictionary">declarant</span>.</p></section></text><history>2004, c. 242, &#xA7; 55-473.1; 2019, c. 712.</history><metadata></metadata></law>
