KRS 381.9159: Rights of secured lenders.

The declaration may require that all or a specified number or percentage of the

mortgagees encumbering the units approve specified actions of the unit owners or the

association as a condition to the effectiveness of those actions, but a requirement for

approval shall not operate to:

(1) Deny or delegate control over the general administrative affairs of the association

by the unit owners or the executive board; or

(2) Prevent the association or the executive board from commencing, intervening in, or

settling any litigation or proceeding, or receiving and distributing any insurance

proceeds except as provided in KRS 381.9187.