The director also owes a duty of undivided loyalty and honesty, which is why a prudent one avoids conflicts of interest as much as possible.

When associations have capital needs, there are three options for obtaining funds: Use existing reserves. Approve a Special Assessment. Borrow the funds from a bank. Option 3 is the subject of this article. First, determine if the association can borrow money by reading the Bylaws and Declaration, which will often cap what the board can [...]