Does the Association have any liability to repay LMF for money funded in the event LMF is unsuccessful recollecting the debt from unit owners?
No. LMF assumes all risks associated with collecting delinquent assessments and in the event we are unsuccessful in collecting the assessments funded to the Association, the Association has no financial obligation to LMF. LMF is actually purchasing an assignment of the Association’s collection proceeds rather than lending it money. This is a major difference between LMF and its competitors who require repayment of their initial funding under certain circumstances and also require the associations to pay legal fees that are not recovered from the debtor.
