Association loans are secured by the special assessment approved by the membership. If the bank wants to lien the common areas as collateral, it means the bank is unfamiliar with how associations work.Personal Guarantees. Directors should never personally guarantee loans made to the association--directors are volunteers and should not be putting their own assets at risk for such loans. If the bank is not satisfied with the assignment of special assessment rights, look for another bank.
For a list of banks that specialize in loaning to homeowners associations, see "Banks" in the Business Directory.