2792.4. Special Provision for Enforcement of Bonded Obligations.
When common-area improvements which are included in the subdivision offering have not been completed prior to the
issuance of the public report and the subdivision owners’ association (hereafter Association) is obligee under a bond or
other arrangement (hereafter Bond) to secure performance of the commitment of the subdivider to complete the
improvements, the covenants, conditions and restrictions for the subdivision shall include at least the following
substantive and procedural provisions relative to the initiation of action to enforce the obligations of the subdivider and
the surety under the Bond:
(1) The governing body of the Association shall be directed to consider and vote on the question of action by the
Association to enforce the obligations under the Bond with respect to any improvement for which a Notice of
Completion has not been filed within 60 days after the completion date specified for that improvement in the
Planned Construction Statement appended to the Bond. If the Association has given an extension in writing for the
completion of any common-area improvement, the governing body shall be directed to consider and vote on the
aforesaid question if a Notice of Completion has not been filed within 30 days after the expiration of the extension.
(2) A special meeting of members for the purpose of voting to override a decision by the governing body not to
initiate action to enforce the obligations under the Bond or on the failure of the governing body to consider and vote
on the question. The meeting shall be required to be held not less than 35 days nor more than 45 days after receipt
by the governing body of a petition for such a meeting signed by members representing 5% or more of the total
voting power of the Association.
(3) A vote by members of the Association other than the subdivider at the special meeting called for the purpose set
forth in (2) above.
(4) A vote of a majority of the voting power of the Association residing in members other than the subdivider to
take action to enforce the obligations under the Bond shall be deemed to be the decision of the Association and the
governing body shall thereafter implement this decision by initiating and pursuing appropriate action in the name
of the Association.