Section 339-JJ. Borrowing by board of managers

1. To the extent authorized
  by the declaration or the by-laws, the board of managers, on  behalf  of
  the unit owners, may incur debt. In addition, subject to any limitations
  set  forth  in the declaration or the by-laws, the board of managers, on
  behalf of the unit owners, may  incur  debt  for  any  of  the  purposes
  enumerated  in paragraph (b) of subdivision two of section three hundred
  thirty-nine-v of this article, provided that (a) such debt  is  incurred
  no  earlier than the fifth anniversary of the first conveyance of a unit
  and (b) the incurrence of such debt  shall  require  the  consent  of  a
  majority in common interest of the unit owners.
    2. In connection with a debt incurred by it, the board of managers, on
  behalf  of  the unit owners, may (a) assign the rights in and to receive
  future income and common charges, (b) create  a  security  interest  in,
  assign,  pledge,  mortgage  or otherwise encumber funds or other real or
  personal property that it holds, (c) agree that, to the  extent  of  any
  amounts  due  under  any of the provisions of the agreements under which
  the debt was incurred and subject to the provisions of  subdivision  two
  of  section  three  hundred  thirty-nine-l  of  this article, all common
  charges received and to be received by it, and the right to receive such
  funds, shall constitute trust funds for the purpose of paying such  debt
  and  the  same  shall  be expended for such purpose before expending any
  part of the same for any other  purpose,  and  (d)  agree  that  at  the
  lender's  direction  it  will  increase  common  charges  to  the extent
  necessary to pay any amount when due under any of the provisions of  the
  agreements  under  which  the  debt was incurred. The preceding sentence
  shall not be construed to authorize the board of managers  to  create  a
  lien  on  the  common elements. Any such assignment may provide that, in
  the event of a default, the lender shall have the right of the board  of
  managers  to  file liens in the lender's name on units for unpaid common
  charges pursuant to  sections  three  hundred  thirty-nine-z  and  three
  hundred  thirty-nine-aa  of this article and the right to foreclose such
  liens pursuant to section three hundred thirty-nine-aa of this article.
    3. Nothing in this section shall impair rights under any loan or other
  agreement existing prior to the effective date of this section or  limit
  any right or power that a board of managers would otherwise have.