2-19 controls, is controlled by or is under common control with a declarant.

2-20 2. A person "controls" a declarant if the person:

2-21 (a) Is a general partner, officer, director or employer of the declarant;

2-22 (b) Directly or indirectly or acting in concert with one or more other

2-23 persons, or through one or more subsidiaries, owns, controls [,] or holds

2-24 with power to vote [or holds proxies representing,] more than 20 percent of

2-25 the voting interest in the declarant;

2-26 (c) Controls in any manner the election of a majority of the directors of

2-27 the declarant; or

2-28 (d) Has contributed more than 20 percent of the capital of the declarant.

2-29 3. A person "is controlled by" a declarant if the declarant:

2-30 (a) Is a general partner, officer, director or employer of the person;

2-31 (b) Directly or indirectly or acting in concert with one or more other

2-32 persons, or through one or more subsidiaries, owns, controls [,] or holds

2-33 with power to vote [or holds proxies representing,] more than 20 percent of

2-34 the voting interest in the person;

2-35 (c) Controls in any manner the election of a majority of the directors of

2-36 the person; or

2-37 (d) Has contributed more than 20 percent of the capital of the person.

2-38 4. Control does not exist if the powers described in this section are

3-3 benefit of a declarant to:

3-4 1. Complete improvements indicated on plats and plans or in the

3-5 declaration (NRS 116.2109) or, in a cooperative, to complete

3-6 improvements described in the public offering statement pursuant to

3-7 subsection 2 of NRS 116.4103;

3-8 2. Exercise any developmental right (NRS 116.211);

3-9 3. Maintain sales offices, management offices, signs advertising the

3-10 common-interest community and models (NRS 116.2115);

3-11 4. Use easements through the common elements for the purpose of

3-12 making improvements within the common-interest community or within

3-13 real estate which may be added to the common-interest community (NRS

3-14 116.2116);

3-15 5. Make the common-interest community subject to a master

3-16 association (NRS 116.212); or

3-17 6. Merge or consolidate a common-interest community with another

3-18 common-interest community of the same form of ownership (NRS

3-19 116.2121) . [; or

3-20 7. Appoint or remove any officer of the association or any master

3-21 association or any member of an executive board during any period of

3-25 subsections 5, 6 and 7 of NRS 116.2118 and in NRS 116.21183 are as

3-26 follows:

3-27 1. Except as otherwise provided in subsection 2, the respective

3-28 interests of units’ owners are the fair market values of their units, allocated

3-29 interests, and any limited common elements immediately before the

3-30 termination, as determined by one or more independent appraisers selected

3-31 by the association. The decision of the independent appraisers must be

3-32 distributed to the units’ owners and becomes final [unless disapproved] if

3-33 approved within 30 days after distribution by units’ owners to whom [25]

3-34 75 percent of the votes in the association are allocated. The proportion of

3-35 interest of any unit’s owner to that of all units’ owners is determined by

3-36 dividing the fair market value of that unit and its allocated interests by the

3-37 total fair market values of all the units and their allocated interests.

3-38 2. If any unit or any limited common element is destroyed to the extent

3-39 that an appraisal of the fair market value [thereto] of the unit or limited

3-40 common element before destruction cannot be made, the interests of all

3-41 units’ owners are:

3-42 (a) In a condominium, their respective interests in the common elements

4-7 bylaws, this section or other provisions of this chapter, the executive board

4-8 may act in all instances on behalf of the association. In the performance of

4-9 their duties, the officers and members of the executive board are fiduciaries

4-10 and are subject to the insulation from liability provided for directors of

4-11 corporations by the laws of this state. The members of the executive board

4-12 are required to exercise the ordinary and reasonable care of directors of a

4-13 corporation, subject to the business-judgment rule.

4-14 2. The executive board may not act on behalf of the association to

4-15 amend the declaration (NRS 116.2117), to terminate the common-interest

4-16 community (NRS 116.2118), [or] to elect members of the executive board

4-17 or determine their qualifications, powers and duties or terms of office

4-18 (subsection 1 of NRS 116.31034) [,] or to make assessments for common

4-19 expenses, but the executive board may fill vacancies in its membership for

4-20 the unexpired portion of any term.

4-21 3. Within 30 days after adoption of any proposed budget for the

4-22 common-interest community, the executive board shall provide a summary

4-23 of the budget to all the units’ owners, and shall set a date for a meeting of

4-24 the units’ owners to consider ratification of the budget not less than 14 nor

4-25 more than 30 days after mailing of the summary. [Unless at that meeting a

4-26 majority of all units’ owners or any larger vote specified in the declaration

4-27 reject the budget, the budget is ratified, whether or not] The units’ owners

4-28 must ratify the budget by at least a two-thirds vote of all persons present

4-29 and entitled to vote at any meeting of the units’ owners at which a

4-30 quorum is present. If the proposed budget is [rejected,] not ratified, the

4-31 periodic budget last ratified by the units’ owners must be continued until

4-32 such time as the units’ owners ratify a subsequent budget proposed by the

4-36 (a) The number of members of the executive board and the titles of the

4-37 officers of the association;

4-38 (b) For election by the executive board of a president, treasurer,

4-39 secretary and any other officers of the association the bylaws specify;

4-40 (c) [The] Except as otherwise provided in section 2 of this act, the

4-41 qualifications, powers and duties, terms of office and manner of electing

4-42 and removing officers of the association and members of the executive

5-13 present throughout any meeting of the association if persons entitled to cast

5-14 20 percent of the votes that may be cast for election of the executive board

5-15 are present in person [or by proxy] at the beginning of the meeting.

5-16 2. Unless the bylaws specify a larger percentage, a quorum is deemed

5-17 present throughout any meeting of the executive board if persons entitled to

5-18 cast 50 percent of the votes on that board are present at the beginning of the

5-22 meeting of the association, that owner is entitled to cast all the votes

5-23 allocated to that unit. If more than one of the owners are present, the votes

5-24 allocated to that unit may be cast only in accordance with the agreement of

5-25 a majority in interest of the owners, unless the declaration expressly

5-26 provides otherwise. There is majority agreement if any one of the owners

5-27 cast the votes allocated to that unit without protest made promptly to the

5-28 person presiding over the meeting by any of the other owners of the unit.

5-29 2. [Votes allocated to a unit may be cast pursuant to a proxy executed

5-30 by a unit’s owner. If a unit is owned by more than one person, each owner

5-31 of the unit may vote or register protest to the casting of votes by the other

5-32 owners of the unit through an executed proxy. A unit’s owner may revoke a

5-33 proxy given pursuant to this section only by actual notice of revocation to

5-34 the person presiding over a meeting of the association. A proxy is void if it

5-35 is not dated or purports to be revocable without notice. A proxy terminates

5-36 one year after its date, unless it specifies a shorter term.

5-37 3.] If the declaration requires that votes on specified matters affecting

5-38 the common-interest community be cast by lessees rather than units’

5-39 owners of leased units:

5-40 (a) The provisions of [subsections 1 and 2] subsection 1 apply to lessees

5-41 as if they were units’ owners;

5-42 (b) Units’ owners who have leased their units to other persons may not

6-9 expenses, the declarant shall pay all common expenses. After an assessment

6-10 has been made by the association, assessments must be made at least

6-11 annually, based on a budget adopted at least annually by the association.

6-12 Except for an association for a time-share project governed by the

6-13 provisions of chapter 119A of NRS, and unless the declaration imposes

6-14 more stringent standards, the budget must include a budget for the daily

6-15 operation of the association and the money for the reserve required by

6-16 paragraph (b) of subsection 2.

6-17 2. Except for assessments under subsections 4, 5 and 6:

6-18 (a) All common expenses, including a reserve, must be assessed against

6-19 all the units in accordance with the allocations set forth in the declaration

6-20 pursuant to subsections 1 and 2 of NRS 116.2107.

6-21 (b) The association shall establish a reserve for the repair and

6-22 replacement of the major components of the common elements. The reserve

6-23 may be used only for common expenses that involve major repairs or

6-24 replacement, including, without limitation, repairing and replacing roofs,

6-25 roads and sidewalks, and must not be used for daily maintenance.

6-26 3. Any past due assessment for common expenses or installment

6-27 thereof bears interest at the rate established by the association not

6-28 exceeding 18 percent per year.

6-29 4. To the extent required by the declaration:

6-30 (a) Any common expense associated with the maintenance, repair or

6-31 replacement of a limited common element must be assessed against the

6-32 units to which that limited common element is assigned, equally, or in any

6-33 other proportion the declaration provides;

6-34 (b) Any common expense or portion thereof benefiting fewer than all of

6-35 the units must be assessed exclusively against the units benefited; and

6-36 (c) The costs of insurance must be assessed in proportion to risk and the

6-37 costs of utilities must be assessed in proportion to usage.

6-38 5. Assessments to pay a judgment against the association may be made

6-39 only against the units in the common-interest community at the time the

6-40 judgment was entered, in proportion to their liabilities for common

6-41 expenses.

6-42 6. If any common expense is caused by the misconduct of any unit’s