Verbatim from the public record. The law itself is a government work — always confirm the current version on the official source before you rely on it.
(a) All costs and expenses, including reasonable attorneys'
fees, incurred by or on behalf of the association for:
(1) Collecting any delinquent assessments against any
unit or the owner of any unit;
(2) Foreclosing any lien on any unit; or
(3) Enforcing any provision of the association
documents or this chapter;
against a member, occupant, tenant, employee of a
member, or any other person who in any manner may use the property, shall be
promptly paid on demand to the association by such person or persons; provided
that if the association is not the prevailing party, all costs and expenses,
including reasonable attorneys' fees, incurred by any such person or persons as
a result of the action of the association, shall be promptly paid on demand to
the person by the association. The reasonableness of any attorney's fees paid
by a person or by an association as a result of an action pursuant to paragraph
(2) shall be determined by the court.
(b) If any member is the prevailing party in
any action against an association, any of its officers or directors, or its
board of directors to enforce any provision of the association documents or
this chapter, then all reasonable and necessary expenses, costs, and attorneys'
fees incurred by the member shall be awarded to the member; provided that no
such award shall be made in any derivative action unless:
(1) The member first shall have demanded and allowed
reasonable time for the board of directors to pursue an enforcement action; or
(2) The member demonstrates to the satisfaction of
the court that a demand for enforcement made to the board of directors would
have been fruitless.
If a member is not the prevailing party in any
court action against an association, any of its officers or directors, or its
board of directors, to enforce any provision of the association documents or
this chapter, then all reasonable and necessary expenses, costs, and attorneys'
fees incurred by the association shall be awarded to the association, unless
the action was filed in small claims court, or, prior to filing the action in a
higher court, the owner has first submitted the claim to mediation pursuant to
section 421J-13, and made a good faith effort to resolve the dispute under any
of those procedures.
(c) Nothing in this section shall be construed
to prohibit the board of directors from authorizing the use of a collection
agency. [L 1997, c 132, pt of §1]