Texas Code § 82.069

RIGHTS OF SECURED LENDERS
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Sec. 82.069. RIGHTS OF SECURED LENDERS. The declaration may require that all or a specified number or percentage of the mortgagees or beneficiaries of deeds of trust 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 may not operate to:
(1) deny or delegate control over the general administrative affairs of the association by the unit owners or the board; or
(2) prevent the association or the board from:
(A) commencing, intervening in, or settling any litigation or proceeding; or
(B) receiving and distributing insurance proceeds under Section 82.111 .

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