Full Text of SB0885 100th General Assembly
SB0885 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0885 Introduced 2/7/2017, by Sen. David Koehler SYNOPSIS AS INTRODUCED: |
| New Act | | 735 ILCS 5/15-1106 | from Ch. 110, par. 15-1106 | 765 ILCS 70/Act rep. | | 765 ILCS 75/Act rep. | | 765 ILCS 605/18 | from Ch. 30, par. 318 | 765 ILCS 605/18.5 | from Ch. 30, par. 318.5 |
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Repeals the Dwelling Structure Contract Act and the Dwelling Unit Installment Contract Act. Creates the Installment Sales Contract Act. Adds provisions governing: definitions; terms and conditions of installment sales contracts; applicability of other Acts; sales of condemned dwelling structures; repairs; account statements; transfer of payments; insurance proceeds; unlawful acts; waivers; and penalties. Makes corresponding changes in the Condominium Property Act. Amends the Code of Civil Procedure. Provides that a real estate installment contract for residential real estate is subject to the foreclosure provisions of the Code if the purchase price is to be paid in installments over a period in excess of one year (instead of 5 years) and the amount unpaid under the terms of the contract at
the time of the filing of the foreclosure complaint, including principal
and due and unpaid interest, at the rate prior to default, is less than 90% (instead of 80%) of the original purchase price of the real estate as
stated in the contract. Effective January 1, 2018.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Installment Sales Contract Act. | 6 | | Section 5. Definitions. As used in this Act, unless the | 7 | | context otherwise requires: | 8 | | "Amortization schedule" means a written schedule which | 9 | | sets forth the date of each periodic payment, the amount of | 10 | | each periodic payment that will be applied to the principal | 11 | | balance, and the amount of each periodic payment that will be | 12 | | applied to any interest charged, if applicable, pursuant to the | 13 | | contract.
| 14 | | "Balloon payment" means a payment, other than the initial | 15 | | down payment, in which more than the ordinary periodic payment | 16 | | is charged during the contract.
| 17 | | "Buyer" means the person who is obligated to make payments | 18 | | to the seller pursuant to the contract.
| 19 | | "Date of sale" means the date that the seller and buyer | 20 | | sign the written contract.
| 21 | | "Dwelling structure" means any private home or residence or | 22 | | any building or structure intended for residential use. | 23 | | "Installment sales contract" or "contract" means any |
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| 1 | | contract or agreement, including a contract for deed, bond for | 2 | | deed, or any other sale or legal device whereby a seller agrees | 3 | | to sell and the buyer agrees to buy a dwelling structure, in | 4 | | which the consideration for the sale is payable in installments | 5 | | for a period of at least one year after the buyer takes | 6 | | possession of the dwelling structure and the seller continues | 7 | | to have an interest or security for the purchase price or | 8 | | otherwise in the property. | 9 | | "Seller" means the owner of a legal or beneficial interest | 10 | | in a dwelling structure, or the owner's agent, who utilizes an | 11 | | installment sales contract to sell the dwelling structure.
| 12 | | Section 10. Terms and conditions of installment sales | 13 | | contracts.
| 14 | | (a) The seller of residential real estate by installment | 15 | | sales contract, on the date of sale, shall provide the buyer | 16 | | with a written contract that complies with the requirements set | 17 | | forth in this Section.
| 18 | | (b) Until the buyer is provided with a copy of the | 19 | | contract, the buyer has the right to rescind the contract, in | 20 | | addition to all other remedies provided by this Act. Upon | 21 | | rescission pursuant to this Section, the seller shall refund to | 22 | | the buyer all money paid to the seller as of the date of | 23 | | rescission.
| 24 | | (c) An installment sales contract for the sale of a | 25 | | dwelling structure shall clearly and conspicuously disclose |
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| 1 | | the following:
| 2 | | (1) The price of the dwelling structure.
| 3 | | (2) The amount, if any, of any down payment applied to | 4 | | the price of the dwelling structure and the resulting | 5 | | principal on the loan.
| 6 | | (3) The amount, if any, of any security deposit.
| 7 | | (4) The amount of the periodic payment.
| 8 | | (5) The interest rate being charged, if any, expressed | 9 | | only as an annual percentage rate. | 10 | | (6) The amount, if any, of any balloon payment.
| 11 | | (7) A statement outlining whether the seller or the | 12 | | buyer is responsible for paying real estate taxes and | 13 | | insurance and how responsibilities of the buyer and seller | 14 | | change based on the time period the dwelling is occupied by | 15 | | the buyer and what percentage of the principal is paid | 16 | | down. In all circumstances not defined in the statement | 17 | | required by this item, the seller has the responsibility of | 18 | | paying real estate taxes and insurance.
| 19 | | (8) The amount that will be charged periodically, if | 20 | | any, for the first year to pay real estate taxes. | 21 | | (9) The amount that will be charged periodically, if | 22 | | any, for the first year to pay insurance.
| 23 | | (10) A statement that the amounts listed in items (8) | 24 | | and (9) of this subsection are subject to change each year.
| 25 | | (11) The assessed value of the property as set forth on | 26 | | the real estate tax bill for the year immediately prior to |
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| 1 | | the sale.
| 2 | | (12) The amount of real estate taxes for the year | 3 | | immediately prior to the sale.
| 4 | | (13) Any unpaid amounts owing on prior real estate | 5 | | taxes.
| 6 | | (14) The amount of the annual insurance payment for the | 7 | | year immediately prior to the sale.
| 8 | | (15) The type of insurance coverage that will be | 9 | | required or provided.
| 10 | | (16) The seller's interest in the structure being sold.
| 11 | | (17) Any known liens or mortgages or other title | 12 | | limitations existing on the property and an explanation of | 13 | | the meaning of the liens, mortgages, or title limitations.
| 14 | | (18) An explanation as to when the buyer will obtain | 15 | | the title. | 16 | | (19) An explanation of the consequences of the failure | 17 | | of the buyer to make timely payments before the title is | 18 | | transferred.
| 19 | | (20) A statement defining what repairs the buyer is | 20 | | financially responsible for, if any, and how | 21 | | responsibilities of the buyer and seller to repair the | 22 | | property change based on the time period the dwelling is | 23 | | occupied by the buyer and what percentage of the principal | 24 | | is paid down. In all circumstances not defined in this | 25 | | item, the seller has responsibility for repairs. | 26 | | (21) Any additional charges due.
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| 1 | | (22) An amortization schedule.
| 2 | | (23) A certificate of compliance with applicable | 3 | | dwelling codes, or in the absence of such a certificate: | 4 | | (i) an express written warranty that no notice from any | 5 | | municipality or other governmental authority of a dwelling | 6 | | code violation that existed in the dwelling structure | 7 | | before the installment sales contract was executed had been | 8 | | received by the seller, his or her principal, or his or her | 9 | | agent within 10 years of the date of execution of the | 10 | | installment sales contract; or (ii) if any notice of a | 11 | | violation had been received, a list of all such notices | 12 | | with a detailed statement of all violations referred to in | 13 | | the notice. | 14 | | (24) A statement that the contract is subject to the | 15 | | Lead Poisoning Prevention Act and that the seller has | 16 | | complied with all obligations of an owner required by the | 17 | | that Act. | 18 | | (25) A statement indicating whether the terms of the | 19 | | contract qualify as a high risk home loan as defined by the | 20 | | High Risk Home Loan Act and, if the terms qualify as a high | 21 | | risk home loan, that the seller has complied with all | 22 | | obligations of a lender under the High Risk Home Loan Act. | 23 | | (d) The requirements of this Section cannot be waived by | 24 | | the buyer or seller.
| 25 | | Section 15. Applicability of other Acts. An installment |
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| 1 | | sales contract under this Act is subject to the Lead Poisoning | 2 | | Prevention Act and the High Risk Home Loan Act. This Act does | 3 | | not preclude any remedies available to a buyer under other law. | 4 | | Section 20. Sales of condemned dwelling structures.
The | 5 | | sale of a dwelling structure by installment sales contract is | 6 | | expressly prohibited if the structure has been condemned for | 7 | | demolition by the unit of government having jurisdiction.
| 8 | | Section 25. Recording of contract required.
| 9 | | (a) Within 5 business days of the date of sale of a | 10 | | dwelling structure by installment sales contract, and prior to | 11 | | any subsequent sale or other transfer of interest in the | 12 | | dwelling structure or contract by the seller, the seller shall | 13 | | record the contract with the county recorder of deeds.
| 14 | | (b) If the seller fails to record the contract as required | 15 | | by subsection (a) of this Section, the buyer has the right to | 16 | | rescind the contract until such time as the seller records the | 17 | | contract. If the seller fails to record the contract and title | 18 | | to the property becomes clouded for any reason, including, but | 19 | | not limited to, that another person buys the property, a | 20 | | judgment lien is placed on the property, or a consensual | 21 | | mortgage or some other third party interest affecting the title | 22 | | arises, the buyer has the option to rescind, not just before | 23 | | the seller records, but at any time within 90 days of | 24 | | discovering the title problem.
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| 1 | | (c) Upon rescission under this Section, the seller shall | 2 | | refund to the buyer all money paid to the seller as of the date | 3 | | of rescission. This Section does not limit any other remedies | 4 | | provided to the buyer by this Act or State law.
| 5 | | Section 30. Repairs. | 6 | | (a) In all cases not included in the statement required by | 7 | | item (20) of subsection (c) of Section 10, the seller has | 8 | | responsibility for repairs.
| 9 | | (b) If the seller deems certain repairs necessary to | 10 | | protect the seller's interest in the property, the seller may, | 11 | | at the seller's own cost, proceed to make the repairs in | 12 | | compliance with this Section. Before the performance of | 13 | | nonemergency repairs on a dwelling unit inhabited by a buyer, | 14 | | the seller shall provide the buyer with at least 72 hours' | 15 | | written notice of the seller's intent to make the proposed | 16 | | repairs.
| 17 | | (c) Nothing in this Section limits the buyer's right to | 18 | | obtain the services of a building contractor to make repairs | 19 | | that are chargeable to the buyer under this Act.
| 20 | | (d) No seller may require, by contract or otherwise, that | 21 | | only the seller or an agent of the seller may make repairs on a | 22 | | dwelling structure and adjacent property. The buyer has the | 23 | | right to contract with other building contractors to make | 24 | | repairs for which the buyer is financially responsible.
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| 1 | | Section 35. Account statements.
| 2 | | (a) Except as provided in subsection (b), at least once | 3 | | annually and upon the buyer's demand the seller shall, without | 4 | | charge, provide the buyer with an account statement showing | 5 | | payments made during the past year, the principal balance on | 6 | | the contract, and an amortization schedule. | 7 | | (b) A seller is not required to provide a buyer with | 8 | | account statements without charge more than once in any 3-month | 9 | | period unless the buyer's request is made in response to a | 10 | | change in the amount of the buyer's periodic payment amount; | 11 | | however, the seller may not charge the buyer more than the | 12 | | reasonable costs of copying and producing the account | 13 | | statement.
| 14 | | Section 40. Transfer of payments.
The seller shall duly | 15 | | record and credit the account of a buyer for all payments made | 16 | | on the principal balance of the installment sales contract. A | 17 | | seller shall not use payments for any purpose other than to | 18 | | reduce the principal and interest due in accordance with the | 19 | | most recent amortization schedule required under Section 30 or | 20 | | to pay property taxes and insurance, unless the seller first | 21 | | obtains from the buyer a written, signed consent to another use | 22 | | of the funds.
| 23 | | Section 45. Insurance proceeds.
A seller who receives | 24 | | payment of insurance proceeds as a result of damage to a |
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| 1 | | dwelling structure shall apply the proceeds to the repair of | 2 | | the damage.
| 3 | | Section 50. Unlawful acts.
It is a violation of this Act | 4 | | for a seller to make an oral or written misrepresentation to a | 5 | | buyer concerning a contract or regarding the buyer's rights or | 6 | | the seller's duties under this Act or to induce a buyer to sign | 7 | | incomplete forms, contracts, notices, or written statements | 8 | | relating to the sale of a dwelling structure.
| 9 | | Section 55. No waiver. The provisions of this Act may not | 10 | | be waived by written contract or otherwise. Any contractual | 11 | | provisions or other agreements contrary to this Act are void | 12 | | and unenforceable. It is a violation of this Act to | 13 | | intentionally include in a written contract any provision that | 14 | | is contrary to this Act or any other requirement by a seller | 15 | | that is contrary to this Act. | 16 | | Section 60. Penalties. A person who knowingly violates this | 17 | | Act or fails to perform any duty prescribed by this Act or | 18 | | discloses any information required by this Act that he or she | 19 | | knows to be false shall be liable in the amount of actual | 20 | | damages and court costs, and the court may award reasonable | 21 | | attorney's fees incurred by the prevailing party. | 22 | | Section 905. The Code of Civil Procedure is amended by |
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| 1 | | changing Section 15-1106 as follows:
| 2 | | (735 ILCS 5/15-1106) (from Ch. 110, par. 15-1106)
| 3 | | Sec. 15-1106. Applicability of Article. | 4 | | (a) Exclusive Procedure. From and after July 1, 1987 ( the
| 5 | | effective date of Public Act 84-1462) this amendatory Act of | 6 | | 1986 , the following shall be
foreclosed in a foreclosure | 7 | | pursuant to this Article:
| 8 | | (1) any mortgage created prior to, on or after July 1, | 9 | | 1987 ( the effective date of Public Act 84-1462) this
| 10 | | amendatory Act of 1986 ;
| 11 | | (2) any real estate installment contract for | 12 | | residential real estate
entered into on or after July 1, | 13 | | 1987 ( the effective date of Public Act 84-1462) this | 14 | | amendatory Act of 1986
and under which (i)
the purchase | 15 | | price is to be paid in installments over a period in excess | 16 | | of one year
five years and (ii) the amount unpaid under the | 17 | | terms of the contract at
the time of the filing of the | 18 | | foreclosure complaint, including principal
and due and | 19 | | unpaid interest, at the rate prior to default, is less than | 20 | | 90%
80% of the original purchase price of the real estate | 21 | | as
stated in the contract;
| 22 | | (3) any collateral assignment of beneficial interest | 23 | | made on or after July 1, 1987 ( the
effective date of Public | 24 | | Act 84-1462) this amendatory Act of 1986 (i) which is made | 25 | | with respect to a land
trust which was created |
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| 1 | | contemporaneously with the collateral assignment of
| 2 | | beneficial interest, (ii) which is made pursuant to a | 3 | | requirement of the
holder of the obligation to secure the | 4 | | payment of money or performance of
other obligations and | 5 | | (iii) as to which the security agreement or other
writing | 6 | | creating the collateral assignment permits the real estate | 7 | | which is
the subject of the land trust to be sold to | 8 | | satisfy the obligations.
| 9 | | (b) Uniform Commercial Code. A secured party, as defined in | 10 | | Article
9 of the Uniform Commercial Code, may at its election | 11 | | enforce its security interest in a
foreclosure under this | 12 | | Article if its security interest was created on or after July | 13 | | 1, 1987 ( the effective date of Public Act 84-1462) this | 14 | | amendatory Act of 1986 and is created by (i) a collateral
| 15 | | assignment of beneficial interest in a land trust or (ii) an | 16 | | assignment for
security of a buyer's interest in a real estate | 17 | | installment contract. Such
election shall be made by filing a | 18 | | complaint stating that it is brought
under this Article, in | 19 | | which event the provisions of this Article shall be
exclusive | 20 | | in such foreclosure.
| 21 | | (c) Real Estate Installment Contracts. A contract seller | 22 | | may at its
election enforce in a foreclosure under this Article | 23 | | any real estate
installment contract entered into on or after | 24 | | July 1, 1987 ( the effective date of Public Act 84-1462) this
| 25 | | Amendatory Act of 1986
and not required to be foreclosed under | 26 | | this Article. Such election shall
be made by filing a complaint |
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| 1 | | stating that it is brought under this
Article, in which event | 2 | | the provisions of this Article shall be exclusive
in such | 3 | | foreclosure. A contract seller must enforce its contract under
| 4 | | this Article if the real estate installment contract is one | 5 | | described in
paragraph (2) of subsection (a) of this Section | 6 | | 15-1106 .
| 7 | | (d) Effect of Election. An election made pursuant to | 8 | | subsection (b) or
(c) of this Section 15-1106 shall be binding | 9 | | only in the foreclosure and shall be
void if
the foreclosure is | 10 | | terminated prior to entry of judgment.
| 11 | | (e) Supplementary General Principles of Law. General | 12 | | principles of law
and equity, such as those relating to | 13 | | capacity to contract, principal and
agent, marshalling of | 14 | | assets, priority, subrogation, estoppel, fraud,
| 15 | | misrepresentations, duress, collusion, mistake, bankruptcy or | 16 | | other
validating or invalidating cause, supplement this | 17 | | Article unless displaced
by a particular provision of it.
| 18 | | Section 9-110 of this the Code of Civil Procedure shall not be | 19 | | applicable to
any real estate installment contract which is | 20 | | foreclosed under this Article.
| 21 | | (f) Pending Actions. A complaint to foreclose a mortgage | 22 | | filed before
July 1, 1987, and all proceedings and third party | 23 | | actions in connection
therewith, shall be adjudicated pursuant | 24 | | to the Illinois statutes and
applicable law in effect | 25 | | immediately prior to July 1, 1987. Such statutes
shall remain | 26 | | in effect with respect to such complaint, proceedings and
third |
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| 1 | | party actions notwithstanding the amendment or repeal of such
| 2 | | statutes on or after July 1, 1987.
| 3 | | (Source: P.A. 85-907.)
| 4 | | (765 ILCS 70/Act rep.)
| 5 | | Section 910. The Dwelling Structure Contract Act is | 6 | | repealed.
| 7 | | (765 ILCS 75/Act rep.)
| 8 | | Section 915. The Dwelling Unit Installment Contract Act is | 9 | | repealed. | 10 | | Section 920. The Condominium Property Act is amended by | 11 | | changing Sections 18 and 18.5 as follows:
| 12 | | (765 ILCS 605/18) (from Ch. 30, par. 318)
| 13 | | Sec. 18. Contents of bylaws. The bylaws shall provide for | 14 | | at least
the following:
| 15 | | (a)(1) The election from among the unit owners of a | 16 | | board of managers,
the number of persons constituting such | 17 | | board, and that the terms of at
least one-third of the | 18 | | members of the board shall expire annually and that
all | 19 | | members of the board shall be elected at large; if there | 20 | | are multiple owners of a single unit, only one of the | 21 | | multiple
owners shall be eligible to serve as a member of | 22 | | the board at any one time;
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| 1 | | (2) the powers and duties of the board;
| 2 | | (3) the compensation, if any, of the members of the | 3 | | board;
| 4 | | (4) the method of removal from office of members of the | 5 | | board;
| 6 | | (5) that the board may engage the services of a manager | 7 | | or managing agent;
| 8 | | (6) that each unit owner shall receive, at least 25 | 9 | | days prior to the
adoption thereof by the board of | 10 | | managers, a copy of the proposed annual
budget together | 11 | | with an indication of which portions are intended for
| 12 | | reserves, capital expenditures or repairs or payment of | 13 | | real estate taxes;
| 14 | | (7) that the board of managers shall annually supply to
| 15 | | all unit owners an itemized accounting of the common | 16 | | expenses
for the preceding year actually incurred or paid, | 17 | | together
with an indication of which portions were for | 18 | | reserves, capital
expenditures or repairs or payment of | 19 | | real estate taxes and
with a tabulation of the amounts | 20 | | collected pursuant to the
budget or assessment, and showing | 21 | | the net excess or
deficit of income over expenditures plus | 22 | | reserves;
| 23 | | (8)(i) that each unit owner shall receive notice, in | 24 | | the same manner
as is provided in this Act for membership | 25 | | meetings, of any meeting of the
board of managers | 26 | | concerning the adoption of the proposed annual budget and
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| 1 | | regular assessments pursuant thereto or to adopt a separate | 2 | | (special)
assessment, (ii) that except as provided in | 3 | | subsection (iv) below, if an
adopted
budget or any separate | 4 | | assessment adopted by the board would result in the
sum of | 5 | | all regular and separate assessments payable in the current | 6 | | fiscal year
exceeding 115% of the sum of all regular and | 7 | | separate
assessments payable during the
preceding fiscal | 8 | | year, the
board of managers, upon written petition by unit | 9 | | owners with 20 percent of
the votes of the association | 10 | | delivered to the board within 14
days of the board action,
| 11 | | shall call a meeting of the unit owners within 30 days of | 12 | | the date of
delivery of the petition to consider the budget | 13 | | or separate
assessment; unless a
majority of
the total | 14 | | votes of the unit owners are cast at the meeting to reject | 15 | | the
budget or separate assessment,
it is ratified, (iii) | 16 | | that any common expense not set forth in the budget or
any | 17 | | increase in assessments over the amount adopted in the | 18 | | budget shall be
separately assessed against all unit | 19 | | owners, (iv) that separate assessments for
expenditures | 20 | | relating to emergencies or mandated by law may be adopted | 21 | | by the
board of managers without being subject to unit | 22 | | owner approval or the
provisions of item (ii) above or item | 23 | | (v) below. As used
herein, "emergency" means an immediate | 24 | | danger to the structural integrity of
the
common elements | 25 | | or to the life, health, safety or property of the unit | 26 | | owners,
(v) that assessments
for additions and alterations |
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| 1 | | to the common elements or to association-owned
property not | 2 | | included in the adopted annual budget, shall be separately
| 3 | | assessed and are subject to approval of two-thirds of the | 4 | | total votes of all
unit owners, (vi) that the board of | 5 | | managers may adopt separate assessments
payable over more | 6 | | than one fiscal year. With respect to multi-year | 7 | | assessments
not governed by items (iv) and (v), the entire | 8 | | amount of the multi-year
assessment shall be deemed | 9 | | considered and authorized in the first fiscal year
in which | 10 | | the assessment is approved;
| 11 | | (9)(A) that every meeting of the board of managers | 12 | | shall be open to any unit
owner, except that the board may | 13 | | close any portion of a noticed meeting or meet separately | 14 | | from a noticed meeting to: (i) discuss litigation
when an | 15 | | action against or on behalf of the particular association | 16 | | has been
filed and is pending in a court or administrative | 17 | | tribunal,
or when the board of managers finds that such an | 18 | | action is probable
or imminent, (ii) discuss the | 19 | | appointment, employment, engagement,
or dismissal of an | 20 | | employee, independent contractor, agent, or other provider | 21 | | of goods and services, (iii) interview a potential | 22 | | employee, independent contractor, agent, or other provider | 23 | | of goods and services, (iv) discuss violations of rules and
| 24 | | regulations of the association, (v) discuss a unit owner's | 25 | | unpaid share of common
expenses, or (vi) consult with the | 26 | | association's legal counsel; that any vote on these matters |
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| 1 | | shall take place at a meeting of the board of managers or
| 2 | | portion thereof open to any unit owner; | 3 | | (B) that board members may participate in and act at | 4 | | any meeting of the board of managers in person, by | 5 | | telephonic means, or by use of any acceptable technological | 6 | | means whereby all persons participating in the meeting can | 7 | | communicate with each other; that participation | 8 | | constitutes attendance and presence in person at the | 9 | | meeting; | 10 | | (C) that any unit owner may record the
proceedings at | 11 | | meetings of the board of managers or portions thereof | 12 | | required to be open by this
Act by tape, film or other | 13 | | means, and that the board may prescribe reasonable
rules | 14 | | and regulations to govern the right to make such | 15 | | recordings; | 16 | | (D) that
notice of every meeting of the board of | 17 | | managers shall be given to every board member at least 48 | 18 | | hours
prior thereto, unless the board member waives notice | 19 | | of the meeting pursuant to subsection (a) of Section 18.8; | 20 | | and | 21 | | (E) that notice of every meeting
of the board of | 22 | | managers shall be posted in entranceways,
elevators, or | 23 | | other conspicuous places in the condominium at least 48 | 24 | | hours
prior to the meeting of the board of managers except | 25 | | where there is no
common entranceway for 7 or more units, | 26 | | the board of managers may designate
one or more locations |
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| 1 | | in the proximity of these units where the notices of
| 2 | | meetings shall be posted; that notice of every meeting of | 3 | | the board of managers shall also be given at least 48 hours | 4 | | prior to the meeting, or such longer notice as this Act may | 5 | | separately require, to: (i) each unit owner who has | 6 | | provided the association with written authorization to | 7 | | conduct business by acceptable technological means, and | 8 | | (ii) to the extent that the condominium instruments of an | 9 | | association require, to each other unit owner, as required | 10 | | by subsection (f) of Section 18.8, by mail or delivery, and | 11 | | that no other notice of a meeting of the board of managers | 12 | | need be given to any unit owner;
| 13 | | (10) that the board shall meet at least 4 times | 14 | | annually;
| 15 | | (11) that no member of the board or officer shall be | 16 | | elected for a term
of more than 2 years, but that officers | 17 | | and board members may succeed
themselves;
| 18 | | (12) the designation of an officer to mail and receive | 19 | | all notices and
execute amendments to condominium | 20 | | instruments as provided for in this Act
and in the | 21 | | condominium instruments;
| 22 | | (13) the method of filling vacancies on the board
which | 23 | | shall include authority for the remaining members of the | 24 | | board to
fill the vacancy by two-thirds vote until the next | 25 | | annual meeting of unit
owners or for a period terminating | 26 | | no later than 30 days following the
filing of a petition |
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| 1 | | signed by unit owners holding 20% of the votes of the
| 2 | | association requesting a meeting of the unit owners to fill | 3 | | the vacancy for
the balance of the term, and that a meeting | 4 | | of the unit owners shall be
called for purposes of filling | 5 | | a vacancy on the board no later than 30 days
following the | 6 | | filing of a petition signed by unit owners holding 20% of | 7 | | the
votes of the association requesting such a meeting, and | 8 | | the method of filling
vacancies among the officers that | 9 | | shall include the authority for the members
of the board to | 10 | | fill the vacancy for the unexpired portion of the term;
| 11 | | (14) what percentage of the board of managers, if other | 12 | | than a majority,
shall constitute a quorum;
| 13 | | (15) provisions concerning notice of board meetings to | 14 | | members of the
board;
| 15 | | (16) the board of managers may not enter into a | 16 | | contract with a
current board member
or with a corporation | 17 | | or partnership in which a board
member or a member of the | 18 | | board member's immediate family has 25% or
more interest, | 19 | | unless notice of intent to enter the
contract is given to | 20 | | unit owners within 20 days after a decision is made
to | 21 | | enter into the contract and the unit owners are
afforded an | 22 | | opportunity by filing a petition, signed by 20% of the unit
| 23 | | owners, for an election to approve or disapprove the | 24 | | contract;
such petition shall be filed within 20 days after | 25 | | such notice and such
election shall be held within 30 days | 26 | | after filing the petition; for purposes
of this subsection, |
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| 1 | | a board member's immediate family means the board member's
| 2 | | spouse, parents, and children;
| 3 | | (17) that the board of managers may disseminate
to unit | 4 | | owners biographical and background information about | 5 | | candidates for
election to the board if (i) reasonable | 6 | | efforts to identify all candidates are
made and all | 7 | | candidates are given an opportunity to include | 8 | | biographical and
background information in the information | 9 | | to be disseminated; and (ii) the
board does not express a | 10 | | preference in favor of any candidate;
| 11 | | (18) any proxy distributed for board elections
by the | 12 | | board of managers gives unit owners the
opportunity to | 13 | | designate any person as the proxy holder, and gives the | 14 | | unit
owner the opportunity to express a preference for any | 15 | | of the known
candidates for the board or to write in a | 16 | | name;
| 17 | | (19) that special meetings of the board of managers can | 18 | | be called by
the president or 25% of the members of the | 19 | | board;
| 20 | | (20) that the board of managers may establish
and | 21 | | maintain a system of master metering of public utility | 22 | | services and
collect payments in connection therewith, | 23 | | subject to the requirements of the
Tenant Utility Payment | 24 | | Disclosure Act; and
| 25 | | (21) that the board may ratify and confirm actions of | 26 | | the
members of the board taken in response to an emergency, |
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| 1 | | as that
term is defined in subdivision (a)(8)(iv) of this | 2 | | Section; that
the board shall give notice to the unit | 3 | | owners of: (i) the
occurrence of the emergency event within | 4 | | 7 business days after
the emergency event, and (ii) the | 5 | | general description of the
actions taken to address the | 6 | | event within 7 days after the
emergency event. | 7 | | The intent of the provisions of Public Act 99-472 | 8 | | adding this paragraph (21) is to empower and support boards | 9 | | to act in
emergencies. | 10 | | (b)(1) What percentage of the unit owners, if other | 11 | | than 20%, shall
constitute a quorum provided that, for | 12 | | condominiums with 20 or more units,
the percentage of unit | 13 | | owners constituting a quorum shall be 20% unless the
unit | 14 | | owners holding a majority of the percentage interest in the
| 15 | | association provide for a higher percentage, provided that | 16 | | in voting on amendments to the association's bylaws, a unit | 17 | | owner who is in arrears on the unit owner's regular or | 18 | | separate assessments for 60 days or more, shall not be | 19 | | counted for purposes of determining if a quorum is present, | 20 | | but that unit owner retains the right to vote on amendments | 21 | | to the association's bylaws;
| 22 | | (2) that the association shall have one class of | 23 | | membership;
| 24 | | (3) that the members shall hold an annual meeting, one | 25 | | of the purposes
of which shall be to elect members of the | 26 | | board of managers;
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| 1 | | (4) the method of calling meetings of the unit owners;
| 2 | | (5) that special meetings of the members can be called | 3 | | by the president,
board of managers, or by 20% of unit | 4 | | owners;
| 5 | | (6) that written notice of any membership meeting shall | 6 | | be mailed
or delivered giving members no less than 10 and | 7 | | no more than 30 days
notice of the time, place and purpose | 8 | | of such meeting except that notice may be sent, to the | 9 | | extent the condominium instruments or rules adopted | 10 | | thereunder expressly so provide, by electronic | 11 | | transmission consented to by the unit owner to whom the | 12 | | notice is given, provided the director and officer or his | 13 | | agent certifies in writing to the delivery by electronic | 14 | | transmission;
| 15 | | (7) that voting shall be on a percentage basis, and | 16 | | that the percentage
vote to which each unit is entitled is | 17 | | the percentage interest of the
undivided ownership of the | 18 | | common elements appurtenant thereto, provided
that the | 19 | | bylaws may provide for approval by unit owners in | 20 | | connection with
matters where the requisite approval on a | 21 | | percentage basis is not specified
in this Act, on the basis | 22 | | of one vote per unit;
| 23 | | (8) that, where there is more than one owner of a unit, | 24 | | if only one
of the multiple owners is present at a meeting | 25 | | of the association, he is
entitled to cast all the votes | 26 | | allocated to that unit, if more than one of
the multiple |
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| 1 | | owners are present, the votes allocated to that unit may be
| 2 | | cast only in accordance with the agreement of a majority in | 3 | | interest of the
multiple owners, unless the declaration | 4 | | expressly provides otherwise, that
there is majority | 5 | | agreement if any one of the multiple owners cast the
votes | 6 | | allocated to that unit without protest being made promptly | 7 | | to the
person presiding over the meeting by any of the | 8 | | other owners of the unit;
| 9 | | (9)(A) except as provided in subparagraph (B) of this | 10 | | paragraph (9) in
connection with board elections, that
a | 11 | | unit owner may vote by proxy executed in writing by the | 12 | | unit
owner or by his duly authorized attorney in fact; that | 13 | | the proxy must bear the date of
execution
and, unless the | 14 | | condominium instruments or the written proxy itself | 15 | | provide
otherwise, is
invalid after 11 months from the date | 16 | | of its execution; to the extent the condominium instruments | 17 | | or rules adopted thereunder expressly so provide, a vote or | 18 | | proxy may be submitted by electronic transmission, | 19 | | provided that any such electronic transmission shall | 20 | | either set forth or be submitted with information from | 21 | | which it can be determined that the electronic transmission | 22 | | was authorized by the unit owner or the unit owner's proxy;
| 23 | | (B) that if a rule adopted at least 120 days before a | 24 | | board election
or the
declaration or bylaws provide for | 25 | | balloting as set forth in this subsection,
unit
owners may | 26 | | not vote by proxy in board elections, but may vote only (i) |
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| 1 | | by
submitting an association-issued ballot in person at the | 2 | | election meeting or
(ii) by
submitting an | 3 | | association-issued ballot to the association or its | 4 | | designated
agent
by mail or other means of delivery | 5 | | specified in the declaration, bylaws, or
rule; that
the | 6 | | ballots shall be mailed or otherwise distributed to unit | 7 | | owners not less
than 10
and not more than 30 days before | 8 | | the election meeting, and the board shall give
unit owners | 9 | | not less than 21 days' prior written notice of the deadline | 10 | | for
inclusion of a candidate's name on the ballots; that | 11 | | the deadline shall be no
more
than 7 days before the | 12 | | ballots are mailed or otherwise distributed to unit
owners; | 13 | | that
every such ballot must include the names of all | 14 | | candidates who have given the
board or its authorized agent | 15 | | timely written notice of their candidacy and must
give the | 16 | | person casting the ballot the opportunity to cast votes for | 17 | | candidates
whose names do not appear on the ballot; that a | 18 | | ballot received by the
association
or
its designated agent | 19 | | after the close of voting shall not be counted; that a
unit
| 20 | | owner
who submits a ballot by mail or other means of | 21 | | delivery specified in the
declaration, bylaws, or rule may | 22 | | request and cast a ballot in person at the
election
| 23 | | meeting, and thereby void any ballot previously submitted | 24 | | by that unit owner; | 25 | | (B-5) that if a rule adopted at least 120 days before a | 26 | | board election or the declaration or bylaws provide for |
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| 1 | | balloting as set forth in this subparagraph, unit owners | 2 | | may not vote by proxy in board elections, but may vote only | 3 | | (i) by submitting an association-issued ballot in person at | 4 | | the election meeting; or (ii) by any acceptable | 5 | | technological means as defined in Section 2 of this Act; | 6 | | instructions regarding the use of electronic means for | 7 | | voting shall be distributed to all unit owners not less | 8 | | than 10 and not more than 30 days before the election | 9 | | meeting, and the board shall give unit owners not less than | 10 | | 21 days' prior written notice of the deadline for inclusion | 11 | | of a candidate's name on the ballots; the deadline shall be | 12 | | no more than 7 days before the instructions for voting | 13 | | using electronic or acceptable technological means is | 14 | | distributed to unit owners; every instruction notice must | 15 | | include the names of all candidates who have given the | 16 | | board or its authorized agent timely written notice of | 17 | | their candidacy and must give the person voting through | 18 | | electronic or acceptable technological means the | 19 | | opportunity to cast votes for candidates whose names do not | 20 | | appear on the ballot; a unit owner who submits a vote using | 21 | | electronic or acceptable technological means may request | 22 | | and cast a ballot in person at the election meeting, | 23 | | thereby voiding any vote previously submitted by that unit | 24 | | owner;
| 25 | | (C) that if a written petition by unit owners with at | 26 | | least 20% of the
votes of
the association is delivered to |
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| 1 | | the board within 14 days after the board's
approval
of a | 2 | | rule adopted pursuant to subparagraph (B) or subparagraph | 3 | | (B-5) of this paragraph (9), the board
shall call a meeting | 4 | | of the unit owners within 30 days after the date of
| 5 | | delivery of
the petition; that unless a majority of the | 6 | | total votes of the unit owners are
cast
at the
meeting to | 7 | | reject the rule, the rule is ratified;
| 8 | | (D) that votes cast by ballot under subparagraph (B) or | 9 | | electronic or acceptable technological means under | 10 | | subparagraph (B-5) of this paragraph (9) are valid for the | 11 | | purpose of establishing a quorum; | 12 | | (10) that the association may, upon adoption of the | 13 | | appropriate rules by
the board of managers, conduct | 14 | | elections by secret ballot whereby the voting
ballot is | 15 | | marked only with the percentage interest for the unit and | 16 | | the vote
itself, provided that the board further adopt | 17 | | rules to verify the status of the
unit owner issuing a | 18 | | proxy or casting a ballot; and further, that a candidate
| 19 | | for election to the board of managers or such
candidate's | 20 | | representative shall have the right to be present at the
| 21 | | counting of ballots at such election;
| 22 | | (11) that in the event of a resale of a condominium | 23 | | unit the purchaser
of a unit from a seller other than the | 24 | | developer pursuant to an installment sales
contract for | 25 | | purchase shall during such times as he or she resides in | 26 | | the
unit be counted toward a quorum for purposes of |
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| 1 | | election of members of the
board of managers at any meeting | 2 | | of the unit owners called for purposes of
electing members | 3 | | of the board, shall have the right to vote for the
election | 4 | | of members of the board of managers and to be elected to | 5 | | and serve
on the board of managers unless the seller | 6 | | expressly retains in writing any
or all of such rights. In | 7 | | no event may the seller and purchaser both be
counted | 8 | | toward a quorum, be permitted to vote for a particular | 9 | | office or be
elected and serve on the board. Satisfactory | 10 | | evidence of the installment sales contract
shall be made | 11 | | available to the association or its agents. For
purposes of | 12 | | this subsection, "installment sales contract" shall have | 13 | | the same
meaning as set forth in Section 5 of the | 14 | | Installment Sales Contract Act Section 1(e) of the Dwelling | 15 | | Unit Installment Contract Act ;
| 16 | | (12) the method by which matters subject to the | 17 | | approval of unit owners
set forth in this Act, or in the | 18 | | condominium instruments, will be
submitted to the unit | 19 | | owners at special membership meetings called for such
| 20 | | purposes; and
| 21 | | (13) that matters subject to the affirmative vote of | 22 | | not less than 2/3
of the votes of unit owners at a meeting | 23 | | duly called for that purpose,
shall include, but not be | 24 | | limited to:
| 25 | | (i) merger or consolidation of the association;
| 26 | | (ii) sale, lease, exchange, or other disposition |
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| 1 | | (excluding the mortgage
or pledge) of all, or | 2 | | substantially all of the property and assets of the
| 3 | | association; and
| 4 | | (iii) the purchase or sale of land or of units on | 5 | | behalf of all unit owners.
| 6 | | (c) Election of a president from among the board of | 7 | | managers, who shall
preside over the meetings of the board | 8 | | of managers and of the unit owners.
| 9 | | (d) Election of a secretary from among the board of | 10 | | managers, who shall
keep the minutes of all meetings
of the | 11 | | board of managers and of the unit owners and who shall, in | 12 | | general,
perform all the duties incident to the office of | 13 | | secretary.
| 14 | | (e) Election of a treasurer from among the board of | 15 | | managers, who shall
keep the financial records and
books of | 16 | | account.
| 17 | | (f) Maintenance, repair and replacement of the common | 18 | | elements and
payments therefor, including the method of | 19 | | approving payment vouchers.
| 20 | | (g) An association with 30 or more units shall obtain | 21 | | and maintain
fidelity insurance covering persons who | 22 | | control or disburse funds of the
association for the | 23 | | maximum amount of coverage available to protect funds
in | 24 | | the custody or control of the association plus the | 25 | | association reserve
fund. All management companies which | 26 | | are responsible for the funds held or
administered by the |
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| 1 | | association shall maintain and furnish to the
association a | 2 | | fidelity bond for the maximum amount of coverage available | 3 | | to
protect funds in the custody of the management company | 4 | | at any time. The
association shall bear the cost of the | 5 | | fidelity insurance and fidelity
bond, unless otherwise | 6 | | provided by contract between the association and a
| 7 | | management company. The association shall be the direct | 8 | | obligee of any
such fidelity bond. A management company | 9 | | holding reserve funds of an
association shall at all times | 10 | | maintain a separate account for each
association, | 11 | | provided, however, that for investment purposes, the Board | 12 | | of
Managers of an association may authorize a management | 13 | | company to maintain
the association's reserve funds in a | 14 | | single interest bearing account with
similar funds of other | 15 | | associations. The management company shall at all
times | 16 | | maintain records identifying all moneys of each | 17 | | association in such
investment account. The management | 18 | | company may hold all operating funds of
associations which | 19 | | it manages in a single operating account but shall at
all | 20 | | times maintain records identifying all moneys of each | 21 | | association in
such operating account. Such operating and | 22 | | reserve funds held by the
management company for the | 23 | | association shall not be subject to attachment
by any | 24 | | creditor of the management company.
| 25 | | For the purpose of this subsection, a management | 26 | | company shall be
defined as a person, partnership, |
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| 1 | | corporation, or other legal entity
entitled to transact | 2 | | business on behalf of others, acting on behalf of or
as an | 3 | | agent for a unit owner, unit owners or association of unit | 4 | | owners for
the purpose of carrying out the duties, | 5 | | responsibilities, and other
obligations necessary for the | 6 | | day to day operation and management of any
property subject | 7 | | to this Act. For purposes of this subsection, the term
| 8 | | "fiduciary insurance coverage" shall be defined as both a | 9 | | fidelity bond and
directors and officers liability | 10 | | coverage, the fidelity bond in the full
amount of | 11 | | association funds and association reserves that will be in | 12 | | the
custody of the association, and the directors and | 13 | | officers liability
coverage at a level as shall be | 14 | | determined to be reasonable by the board of
managers, if | 15 | | not otherwise established by the declaration or by laws.
| 16 | | Until one year after September 21, 1985 (the effective | 17 | | date of Public Act 84-722),
if a condominium association | 18 | | has reserves plus assessments in excess of
$250,000 and | 19 | | cannot reasonably obtain 100% fidelity bond coverage for | 20 | | such
amount, then it must obtain a fidelity bond coverage | 21 | | of $250,000.
| 22 | | (h) Method of estimating the amount of the annual | 23 | | budget, and the manner
of assessing and collecting from the | 24 | | unit owners their respective shares of
such estimated | 25 | | expenses, and of any other expenses lawfully agreed upon.
| 26 | | (i) That upon 10 days notice to the manager or board of |
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| 1 | | managers and
payment of a reasonable fee, any unit owner | 2 | | shall be furnished a statement
of his account setting forth | 3 | | the amount of any unpaid assessments or other
charges due | 4 | | and owing from such owner.
| 5 | | (j) Designation and removal of personnel necessary for | 6 | | the maintenance,
repair and replacement of the common | 7 | | elements.
| 8 | | (k) Such restrictions on and requirements respecting | 9 | | the use and
maintenance of the units and the use of the | 10 | | common elements, not set forth
in the declaration, as are | 11 | | designed to prevent unreasonable interference
with the use | 12 | | of their respective units and of the common elements by the
| 13 | | several unit owners.
| 14 | | (l) Method of adopting and of amending administrative | 15 | | rules and
regulations governing the operation and use of | 16 | | the common elements.
| 17 | | (m) The percentage of votes required to modify or amend | 18 | | the bylaws, but
each one of the particulars set forth in | 19 | | this section shall always be
embodied in the bylaws.
| 20 | | (n)(i) The provisions of this Act, the declaration, | 21 | | bylaws, other
condominium instruments, and rules and | 22 | | regulations that relate to the use
of the individual unit | 23 | | or the common elements shall be applicable to
any person | 24 | | leasing a unit and shall be deemed to be incorporated in | 25 | | any
lease executed or renewed on or after August 30, 1984 | 26 | | (the effective date of Public Act 83-1271). |
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| 1 | | (ii) With regard to any lease entered into subsequent | 2 | | to July 1, 1990 (the
effective date of Public Act 86-991), | 3 | | the unit owner leasing the
unit shall deliver a copy of the | 4 | | signed lease to the board or if the
lease is oral, a | 5 | | memorandum of the lease, not later than the date of
| 6 | | occupancy or 10 days after the lease is signed, whichever | 7 | | occurs first. In
addition to any other remedies, by filing | 8 | | an action jointly against the
tenant and the unit owner, an | 9 | | association may seek to enjoin a tenant from
occupying a | 10 | | unit or seek to evict a tenant under the provisions of | 11 | | Article
IX of the Code of Civil Procedure for failure of | 12 | | the lessor-owner to
comply with the leasing requirements | 13 | | prescribed by
this Section or by the declaration, bylaws, | 14 | | and
rules and regulations. The board of managers may | 15 | | proceed directly against a
tenant, at law or in equity, or | 16 | | under the provisions of Article IX of the
Code of Civil | 17 | | Procedure, for any other breach by tenant of any
covenants, | 18 | | rules, regulations or bylaws.
| 19 | | (o) The association shall have no authority to forbear | 20 | | the payment
of assessments by any unit owner.
| 21 | | (p) That when 30% or fewer of the units, by number,
| 22 | | possess over 50% in the aggregate of the votes in the | 23 | | association,
any percentage vote of members specified | 24 | | herein or in the condominium
instruments shall require the | 25 | | specified percentage by number of units
rather than by | 26 | | percentage of interest in the common elements allocated
to |
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| 1 | | units that would otherwise be applicable and garage units | 2 | | or storage units, or both, shall have, in total, no more | 3 | | votes than their aggregate percentage of ownership in the | 4 | | common elements; this shall mean that if garage units or | 5 | | storage units, or both, are to be given a vote, or portion | 6 | | of a vote, that the association must add the total number | 7 | | of votes cast of garage units, storage units, or both, and | 8 | | divide the total by the number of garage units, storage | 9 | | units, or both, and multiply by the aggregate percentage of | 10 | | ownership of garage units and storage units to determine | 11 | | the vote, or portion of a vote, that garage units or | 12 | | storage units, or both, have. For purposes of this | 13 | | subsection (p), when making a determination of whether 30% | 14 | | or fewer of the units, by number, possess over 50% in the | 15 | | aggregate of the votes in the association, a unit shall not | 16 | | include a garage unit or a storage unit.
| 17 | | (q) That a unit owner may not assign, delegate, | 18 | | transfer, surrender, or
avoid the duties, | 19 | | responsibilities, and liabilities of a unit owner under | 20 | | this
Act, the condominium instruments, or the rules and | 21 | | regulations of the
Association; and that such an attempted | 22 | | assignment, delegation, transfer,
surrender, or avoidance | 23 | | shall be deemed void.
| 24 | | The provisions of this Section are applicable to all | 25 | | condominium
instruments recorded under this Act. Any portion of | 26 | | a condominium
instrument which contains provisions contrary to |
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| 1 | | these provisions shall be
void as against public policy and | 2 | | ineffective. Any such instrument which
fails to contain the | 3 | | provisions required by this Section shall be deemed to
| 4 | | incorporate such provisions by operation of law.
| 5 | | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | 6 | | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
| 7 | | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| 8 | | Sec. 18.5. Master Associations.
| 9 | | (a) If the declaration, other condominium instrument, or | 10 | | other duly
recorded covenants provide that any of the powers of | 11 | | the unit owners
associations are to be exercised by or may be | 12 | | delegated to a nonprofit
corporation or unincorporated | 13 | | association that exercises
those or other powers on behalf of | 14 | | one or more condominiums, or for the
benefit of the unit owners | 15 | | of one or more condominiums, such
corporation or association | 16 | | shall be a master association.
| 17 | | (b) There shall be included in the declaration, other
| 18 | | condominium instruments, or other duly recorded covenants | 19 | | establishing
the powers and duties of the master association | 20 | | the provisions set forth in
subsections (c) through (h).
| 21 | | In interpreting subsections (c) through (h), the courts | 22 | | should
interpret these provisions so that they are interpreted | 23 | | consistently with
the similar parallel provisions found in | 24 | | other parts of this Act.
| 25 | | (c) Meetings and finances.
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| 1 | | (1) Each unit owner of a condominium subject to the | 2 | | authority of
the board of the master association shall | 3 | | receive, at least 30 days prior
to the adoption thereof by | 4 | | the board of the master association, a copy of
the proposed | 5 | | annual budget.
| 6 | | (2) The board of the master association shall annually | 7 | | supply to
all unit owners of condominiums subject to the | 8 | | authority of the board
of the master association an | 9 | | itemized accounting of the common
expenses for the | 10 | | preceding year actually incurred or paid, together with a
| 11 | | tabulation of the amounts collected pursuant to the budget | 12 | | or assessment,
and showing the net excess or deficit of | 13 | | income over expenditures plus
reserves.
| 14 | | (3) Each unit owner of a condominium subject to the | 15 | | authority of
the board of the master association shall | 16 | | receive written notice mailed
or delivered no less than 10 | 17 | | and no more than 30 days prior to any meeting
of the board | 18 | | of the master association concerning the adoption of the | 19 | | proposed
annual budget or any increase in the budget, or | 20 | | establishment of an
assessment.
| 21 | | (4) Meetings of the board of the master association | 22 | | shall be open
to any unit owner in a condominium subject to | 23 | | the authority of the board
of the master association, | 24 | | except for the portion of any meeting held:
| 25 | | (A) to discuss litigation when an action against or | 26 | | on behalf of the
particular master association has been |
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| 1 | | filed and is pending in a court or
administrative | 2 | | tribunal, or when the board of the master association | 3 | | finds
that such an action is probable or imminent,
| 4 | | (B) to consider information regarding appointment, | 5 | | employment or
dismissal of an employee, or
| 6 | | (C) to discuss violations of rules and regulations | 7 | | of the master
association or unpaid common expenses | 8 | | owed to the master association.
| 9 | | Any vote on these matters shall be taken at a meeting or | 10 | | portion thereof
open to any unit owner of a condominium | 11 | | subject to the authority of the
master association.
| 12 | | Any unit owner may record the proceedings at meetings | 13 | | required
to be open by this Act by tape, film or other | 14 | | means; the board may
prescribe reasonable rules and | 15 | | regulations to govern the right to make such
recordings. | 16 | | Notice of meetings shall be mailed or delivered at least 48
| 17 | | hours prior thereto, unless a written waiver of such notice | 18 | | is signed by
the persons entitled to notice before the | 19 | | meeting is convened. Copies of
notices of meetings of the | 20 | | board of the master association shall be posted
in | 21 | | entranceways, elevators, or other conspicuous places in | 22 | | the condominium
at least 48 hours prior to the meeting of | 23 | | the board of the master
association. Where there is no | 24 | | common entranceway for 7 or more units, the
board of the | 25 | | master association may designate one or more locations in | 26 | | the
proximity of these units where the notices of meetings |
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| 1 | | shall be posted.
| 2 | | (5) If the declaration provides for election by unit | 3 | | owners of members
of the board of directors in the event of | 4 | | a resale of a unit in the master
association, the purchaser | 5 | | of a unit from a seller other than the developer
pursuant | 6 | | to an installment sales contract for purchase shall, during | 7 | | such
times as he or she resides in the unit, be counted | 8 | | toward a quorum for
purposes of election of members of the | 9 | | board of directors at any
meeting of the unit owners called | 10 | | for purposes of electing members of the
board, and shall | 11 | | have the right to vote for the election of members of
the | 12 | | board of directors and to be elected to and serve on the | 13 | | board of
directors unless the seller expressly retains in | 14 | | writing
any or all of those rights. In no event may the | 15 | | seller and
purchaser both be counted toward a quorum, be | 16 | | permitted to vote for a
particular office, or be elected | 17 | | and serve on the board. Satisfactory
evidence of the | 18 | | installment sales contract shall be made available to the
| 19 | | association or its agents. For purposes of this subsection, | 20 | | "installment sales
contract" shall have the same meaning as | 21 | | set forth in Section 5 of the Installment Sales Contract | 22 | | Act subsection (e) of
Section 1 of the Dwelling Unit | 23 | | Installment Contract Act .
| 24 | | (6) The board of the master association shall have the | 25 | | authority to
establish and maintain a system of master | 26 | | metering of public utility
services and to collect payments |
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| 1 | | in connection therewith, subject to the
requirements of the | 2 | | Tenant Utility Payment Disclosure Act.
| 3 | | (7) The board of the master association or a common | 4 | | interest community
association shall have the power, after | 5 | | notice and an opportunity to be heard,
to levy and collect | 6 | | reasonable fines from members for violations of the
| 7 | | declaration, bylaws, and rules and regulations of the | 8 | | master association or
the common interest community | 9 | | association. Nothing contained in this
subdivision (7) | 10 | | shall give rise to a statutory lien for unpaid fines.
| 11 | | (8) Other than attorney's fees, no fees pertaining to | 12 | | the collection of a unit owner's financial obligation to | 13 | | the Association, including fees charged by a manager or | 14 | | managing agent, shall be added to and deemed a part of an | 15 | | owner's respective share of the common expenses unless: (i) | 16 | | the managing agent fees relate to the costs to collect | 17 | | common expenses for the Association; (ii) the fees are set | 18 | | forth in a contract between the managing agent and the | 19 | | Association; and (iii) the authority to add the management | 20 | | fees to an owner's respective share of the common expenses | 21 | | is specifically stated in the declaration or bylaws of the | 22 | | Association. | 23 | | (d) Records.
| 24 | | (1) The board of the master association shall maintain | 25 | | the following
records of the association and make them | 26 | | available for examination and
copying at convenient hours |
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| 1 | | of weekdays by any unit owners in a condominium
subject to | 2 | | the authority of the board or their mortgagees and their | 3 | | duly
authorized agents or attorneys:
| 4 | | (i) Copies of the recorded declaration, other | 5 | | condominium instruments,
other duly recorded covenants | 6 | | and bylaws and any amendments, articles of
| 7 | | incorporation of the master association, annual | 8 | | reports and any rules and
regulations adopted by the | 9 | | master association or its board shall
be available. | 10 | | Prior to the organization of the master association, | 11 | | the
developer shall maintain and make available the | 12 | | records set forth in this
subdivision (d)(1) for | 13 | | examination and copying.
| 14 | | (ii) Detailed and accurate records in | 15 | | chronological order of the
receipts and expenditures | 16 | | affecting the common areas, specifying and
itemizing | 17 | | the maintenance and repair expenses of the common areas | 18 | | and any
other expenses incurred, and copies of all | 19 | | contracts, leases, or other
agreements entered into by | 20 | | the master association, shall be maintained.
| 21 | | (iii) The minutes of all meetings of the master | 22 | | association and the
board of the master association | 23 | | shall be maintained for not less than 7 years.
| 24 | | (iv) Ballots and proxies related thereto, if any, | 25 | | for any election
held for the board of the master | 26 | | association and for any other matters
voted on by the |
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| 1 | | unit owners shall be maintained for
not less than one | 2 | | year.
| 3 | | (v) Such other records of the master association as | 4 | | are available
for inspection by members of a | 5 | | not-for-profit corporation pursuant to
Section 107.75 | 6 | | of the General Not For Profit Corporation Act of 1986 | 7 | | shall
be maintained.
| 8 | | (vi) With respect to units owned by a land trust, | 9 | | if a trustee
designates in writing a person to cast | 10 | | votes on behalf of the unit
owner, the designation | 11 | | shall remain in effect until a subsequent document
is | 12 | | filed with the association.
| 13 | | (2) Where a request for records under this subsection | 14 | | is made in writing
to the board of managers or its agent, | 15 | | failure to provide the requested
record or to respond | 16 | | within 30 days shall be deemed a denial by the board
of | 17 | | directors.
| 18 | | (3) A reasonable fee may be charged by the master | 19 | | association or its
board for the cost of copying.
| 20 | | (4) If the board of directors fails to provide records | 21 | | properly
requested under subdivision (d)(1) within the
| 22 | | time period provided in subdivision (d)(2), the
unit owner | 23 | | may seek appropriate relief, including an award of
| 24 | | attorney's fees and costs.
| 25 | | (e) The board of directors shall have standing and capacity | 26 | | to act in
a representative capacity in relation to matters |
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| 1 | | involving the common areas
of the master association or more | 2 | | than one unit, on behalf of the unit
owners as their interests | 3 | | may appear.
| 4 | | (f) Administration of property prior to election of the | 5 | | initial board
of directors.
| 6 | | (1) Until the election, by the unit owners or the | 7 | | boards of
managers of the underlying condominium | 8 | | associations, of the initial board
of directors of a master | 9 | | association whose declaration is recorded on
or after | 10 | | August 10, 1990, the same rights, titles, powers, | 11 | | privileges,
trusts, duties and obligations that are vested | 12 | | in or imposed upon the board
of directors by this Act or in | 13 | | the declaration or other duly recorded
covenant shall be | 14 | | held and performed by the developer.
| 15 | | (2) The election of the initial board of directors of a | 16 | | master
association whose declaration is recorded on or | 17 | | after August 10, 1990, by
the unit owners or the boards of | 18 | | managers of the underlying condominium
associations, shall | 19 | | be held not later than 60 days after the conveyance by
the | 20 | | developer of 75% of the units, or 3 years after the | 21 | | recording of the
declaration, whichever is earlier. The | 22 | | developer shall give at least 21
days notice of the meeting | 23 | | to elect the initial board of directors and
shall upon | 24 | | request provide to any unit owner, within 3 working days of | 25 | | the
request, the names, addresses, and weighted vote of | 26 | | each unit owner entitled to vote at the
meeting. Any unit |
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| 1 | | owner shall upon receipt of the request be provided with
| 2 | | the same
information, within 10 days of the request, with | 3 | | respect to
each
subsequent meeting to elect members of the | 4 | | board of directors.
| 5 | | (3) If the initial board of directors of a master | 6 | | association
whose declaration is recorded on or after | 7 | | August 10, 1990 is not elected by
the unit owners or the | 8 | | members of the underlying condominium association
board of | 9 | | managers at the time established in subdivision (f)(2), the
| 10 | | developer shall continue in office for a period of 30 days, | 11 | | whereupon
written notice of his resignation shall be sent | 12 | | to all of the unit owners
or members of the underlying | 13 | | condominium board of managers entitled to vote
at an | 14 | | election for members of the board of directors.
| 15 | | (4) Within 60 days following the election of a majority | 16 | | of the board
of directors, other than the developer, by | 17 | | unit owners, the developer shall
deliver to the board of | 18 | | directors:
| 19 | | (i) All original documents as recorded or filed | 20 | | pertaining to the
property, its administration, and | 21 | | the association, such as the declaration,
articles of | 22 | | incorporation, other instruments, annual reports, | 23 | | minutes,
rules and regulations, and contracts, leases, | 24 | | or other
agreements entered into by the association. If | 25 | | any original documents are
unavailable, a copy may be | 26 | | provided if certified by affidavit of the
developer, or |
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| 1 | | an officer or agent of the developer, as being a | 2 | | complete
copy of the actual document recorded or filed.
| 3 | | (ii) A detailed accounting by the developer, | 4 | | setting forth the
source and nature of receipts and | 5 | | expenditures in connection with the
management, | 6 | | maintenance and operation of the property, copies
of | 7 | | all insurance policies, and a list of any loans or | 8 | | advances to the
association which are outstanding.
| 9 | | (iii) Association funds, which shall have been at | 10 | | all times
segregated from any other moneys of the | 11 | | developer.
| 12 | | (iv) A schedule of all real or personal property, | 13 | | equipment and
fixtures belonging to the association, | 14 | | including documents transferring the
property, | 15 | | warranties, if any, for all real and personal property | 16 | | and
equipment, deeds, title insurance policies, and | 17 | | all tax bills.
| 18 | | (v) A list of all litigation, administrative | 19 | | action and arbitrations
involving the association, any | 20 | | notices of governmental bodies involving
actions taken | 21 | | or which may be taken concerning the association, | 22 | | engineering and
architectural drawings and | 23 | | specifications as approved by any governmental
| 24 | | authority, all other documents filed with any other | 25 | | governmental authority,
all governmental certificates, | 26 | | correspondence involving enforcement of any
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| 1 | | association requirements, copies of any documents | 2 | | relating to disputes
involving unit owners, and | 3 | | originals of all documents relating to
everything | 4 | | listed in this subparagraph.
| 5 | | (vi) If the developer fails to fully comply with | 6 | | this paragraph (4)
within
the 60 days
provided and | 7 | | fails to fully comply within 10 days of written demand | 8 | | mailed by
registered
or certified mail to his or her | 9 | | last known address, the board may bring an
action to
| 10 | | compel compliance with this paragraph (4).
If the court | 11 | | finds that any of the
required
deliveries were not made | 12 | | within the required period, the board shall be
entitled | 13 | | to recover
its reasonable attorneys' fees and costs | 14 | | incurred from and after the date of
expiration of
the | 15 | | 10 day demand.
| 16 | | (5) With respect to any master association whose | 17 | | declaration is
recorded on or after August 10, 1990, any | 18 | | contract, lease, or other
agreement made prior to the | 19 | | election of a majority of the board of
directors other than | 20 | | the developer by or on behalf of unit owners or
underlying | 21 | | condominium associations, the association or the board of
| 22 | | directors, which extends for a period of more than 2 years | 23 | | from the
recording of the declaration, shall be subject to | 24 | | cancellation by more than
1/2 of the votes of the unit | 25 | | owners, other than the developer, cast at a
special meeting | 26 | | of members called for that purpose during a period of 90
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| 1 | | days prior to the expiration of the 2 year period if the | 2 | | board of managers
is elected by the unit owners, otherwise | 3 | | by more than 1/2 of the underlying
condominium board of | 4 | | managers. At least 60 days prior to the expiration of
the 2 | 5 | | year period, the board of directors, or, if the board is | 6 | | still under
developer control, then the board of managers | 7 | | or the developer shall send
notice to every unit owner or | 8 | | underlying condominium board of managers,
notifying them | 9 | | of this provision, of what contracts, leases and other
| 10 | | agreements are affected, and of the procedure for calling a | 11 | | meeting of the
unit owners or for action by the underlying | 12 | | condominium board of managers
for the purpose of acting to | 13 | | terminate such contracts, leases or other
agreements. | 14 | | During the 90 day period the other party to the contract,
| 15 | | lease, or other agreement shall also have the right of | 16 | | cancellation.
| 17 | | (6) The statute of limitations for any actions in law | 18 | | or equity which
the master association may bring shall not | 19 | | begin to run until the unit
owners or underlying | 20 | | condominium board of managers have elected a majority
of | 21 | | the members of the board of directors.
| 22 | | (g) In the event of any resale of a unit in a master | 23 | | association by a unit
owner other than the developer, the owner | 24 | | shall obtain from
the board of directors and shall make | 25 | | available for inspection to the
prospective purchaser, upon | 26 | | demand, the following:
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| 1 | | (1) A copy of the declaration, other instruments and | 2 | | any rules and
regulations.
| 3 | | (2) A statement of any liens, including a statement of | 4 | | the account of
the unit setting forth the amounts of unpaid | 5 | | assessments and other charges
due and owing.
| 6 | | (3) A statement of any capital expenditures | 7 | | anticipated by the
association within the current or | 8 | | succeeding 2 fiscal years.
| 9 | | (4) A statement of the status and amount of any reserve | 10 | | for
replacement fund and any portion of such fund earmarked | 11 | | for any specified
project by the board of directors.
| 12 | | (5) A copy of the statement of financial condition of | 13 | | the association
for the last fiscal year for which such a | 14 | | statement is available.
| 15 | | (6) A statement of the status of any pending suits or | 16 | | judgments in which
the association is a party.
| 17 | | (7) A statement setting forth what insurance coverage | 18 | | is provided for
all unit owners by the association.
| 19 | | (8) A statement that any improvements or alterations | 20 | | made to the unit,
or any part of the common areas assigned | 21 | | thereto, by the prior unit owner
are in good faith believed | 22 | | to be in compliance with the declaration of the
master | 23 | | association.
| 24 | | The principal officer of the unit owner's association or | 25 | | such
other officer as is specifically designated shall furnish | 26 | | the above
information when requested to do so in writing, |
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| 1 | | within
30 days of receiving the request.
| 2 | | A reasonable fee covering the direct out-of-pocket cost of | 3 | | copying
and providing such information may be charged
by the | 4 | | association or its board of directors to the unit
seller for | 5 | | providing the information.
| 6 | | (g-1) The purchaser of a unit of a common interest | 7 | | community at a judicial foreclosure sale, other than a | 8 | | mortgagee, who takes possession of a unit of a common interest | 9 | | community pursuant to a court order or a purchaser who acquires | 10 | | title from a mortgagee shall have the duty to pay the | 11 | | proportionate share, if any, of the common expenses for the | 12 | | unit that would have become due in the absence of any | 13 | | assessment acceleration during the 6 months immediately | 14 | | preceding institution of an action to enforce the collection of | 15 | | assessments and the court costs incurred by the association in | 16 | | an action to enforce the collection that remain unpaid by the | 17 | | owner during whose possession the assessments accrued. If the | 18 | | outstanding assessments and the court costs incurred by the | 19 | | association in an action to enforce the collection are paid at | 20 | | any time during any action to enforce the collection of | 21 | | assessments, the purchaser shall have no obligation to pay any | 22 | | assessments that accrued before he or she acquired title. The | 23 | | notice of sale of a unit of a common interest community under | 24 | | subsection (c) of Section 15-1507 of the Code of Civil | 25 | | Procedure shall state that the purchaser of the unit other than | 26 | | a mortgagee shall pay the assessments and court costs required |
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| 1 | | by this subsection (g-1).
| 2 | | (h) Errors and omissions.
| 3 | | (1) If there is an omission or error in the declaration | 4 | | or other
instrument of the master association, the master | 5 | | association may correct
the error or omission by an | 6 | | amendment to the declaration or other
instrument, as may be | 7 | | required to conform it to this Act, to any other
applicable | 8 | | statute, or to the declaration. The amendment shall be | 9 | | adopted
by vote of two-thirds of the members of the board | 10 | | of directors or by a
majority vote of the unit owners at a | 11 | | meeting called for that purpose,
unless the Act or the | 12 | | declaration of the master association specifically
| 13 | | provides for greater percentages or different procedures.
| 14 | | (2) If, through a scrivener's error, a unit has not | 15 | | been
designated as owning an appropriate undivided share of | 16 | | the common areas
or does not bear an appropriate share of | 17 | | the common expenses, or if
all of the common expenses or | 18 | | all of the common elements in
the condominium have not been | 19 | | distributed in the declaration, so that the
sum total of | 20 | | the shares of common areas which have been distributed or | 21 | | the
sum total of the shares of the common expenses fail to | 22 | | equal 100%, or if it
appears that more than 100% of the | 23 | | common elements or common expenses have
been distributed, | 24 | | the error may be corrected by operation of law by filing
an | 25 | | amendment to the declaration, approved by vote of | 26 | | two-thirds of the
members of the board of directors or a |
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| 1 | | majority vote of the unit owners at
a meeting called for | 2 | | that purpose, which proportionately
adjusts all percentage | 3 | | interests so that the total is equal to 100%,
unless the | 4 | | declaration specifically provides for a different | 5 | | procedure or
different percentage vote by the owners of the | 6 | | units and the owners of
mortgages thereon affected by | 7 | | modification being made in the undivided
interest in the | 8 | | common areas, the number of votes in the unit owners
| 9 | | association or the liability for common expenses | 10 | | appertaining to the unit.
| 11 | | (3) If an omission or error or a scrivener's error in | 12 | | the
declaration or other instrument is corrected by vote of | 13 | | two-thirds of
the members of the board of directors | 14 | | pursuant to the authority established
in subdivisions | 15 | | (h)(1) or (h)(2) of this Section, the board, upon
written | 16 | | petition by unit owners with 20% of the votes of the | 17 | | association or
resolutions adopted by the board of managers | 18 | | or board of directors of the
condominium and common | 19 | | interest community associations which select 20% of
the | 20 | | members of the board of directors of the master | 21 | | association, whichever
is applicable, received within 30 | 22 | | days of the board action, shall call a
meeting of the unit | 23 | | owners or the boards of the condominium and common
interest | 24 | | community associations which select members of the board of
| 25 | | directors of the master association within 30 days of the | 26 | | filing of the
petition or receipt of the condominium and |
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| 1 | | common interest community
association resolution to | 2 | | consider the board action. Unless a majority of
the votes | 3 | | of the unit owners of the association are cast at the | 4 | | meeting to
reject the action, or board of managers or board | 5 | | of directors of
condominium and common interest community | 6 | | associations which select over
50% of the members of the | 7 | | board of the master association adopt resolutions
prior to | 8 | | the meeting rejecting the action of the board of directors | 9 | | of the
master association, it is ratified whether or not a | 10 | | quorum is present.
| 11 | | (4) The procedures for amendments set forth in this | 12 | | subsection (h)
cannot be used if such an amendment would | 13 | | materially or adversely affect
property rights of the unit | 14 | | owners unless the affected unit owners consent
in writing. | 15 | | This Section does not restrict the powers of the | 16 | | association
to otherwise amend the declaration, bylaws, or | 17 | | other condominium
instruments, but authorizes a simple | 18 | | process of amendment requiring a
lesser vote for the | 19 | | purpose of correcting defects, errors, or omissions
when | 20 | | the property rights of the unit owners are not materially | 21 | | or adversely
affected.
| 22 | | (5) If there is an omission or error in the declaration | 23 | | or other
instruments that may not be corrected by an | 24 | | amendment procedure
set forth in subdivision (h)(1) or | 25 | | (h)(2) of this Section, then
the circuit court in the | 26 | | county in which the master
association is located shall |
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| 1 | | have jurisdiction to hear a petition of one or
more of the | 2 | | unit owners thereon or of the association, to correct the | 3 | | error
or omission, and the action may be a class action. | 4 | | The court may require
that one or more methods of | 5 | | correcting the error or omission be submitted
to the unit | 6 | | owners to determine the most acceptable correction. All | 7 | | unit
owners in the association must be joined as parties to | 8 | | the action. Service
of process on owners may be by | 9 | | publication, but the plaintiff shall furnish
all unit | 10 | | owners not personally served with process with copies of | 11 | | the
petition and final judgment of the court by certified | 12 | | mail, return receipt
requested, at their last known | 13 | | address.
| 14 | | (6) Nothing contained in this Section shall be | 15 | | construed to invalidate
any provision of a declaration | 16 | | authorizing the developer to amend
an instrument prior to | 17 | | the latest date on which the initial
membership meeting of | 18 | | the unit owners must be held, whether or not it has
| 19 | | actually been held, to bring the instrument into compliance | 20 | | with the legal
requirements of the Federal National | 21 | | Mortgage Association, the Federal Home
Loan Mortgage | 22 | | Corporation, the Federal Housing Administration, the | 23 | | United
States Veterans Administration or their respective | 24 | | successors and assigns.
| 25 | | (i) The provisions of subsections (c) through (h) are | 26 | | applicable
to all declarations, other condominium instruments, |
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| 1 | | and other
duly recorded covenants establishing the powers and | 2 | | duties of the master
association recorded under this Act. Any | 3 | | portion of a declaration,
other condominium instrument, or | 4 | | other duly recorded covenant establishing
the powers and duties | 5 | | of a master association which contains provisions
contrary to | 6 | | the provisions of subsection (c) through (h) shall be void as
| 7 | | against public policy and ineffective. Any declaration, other | 8 | | condominium
instrument, or other duly recorded covenant | 9 | | establishing the powers and
duties of the master association | 10 | | which fails to contain the provisions
required by subsections | 11 | | (c) through (h) shall be deemed to incorporate such
provisions | 12 | | by operation of law.
| 13 | | (j) (Blank).
| 14 | | (Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12; | 15 | | 97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
| 16 | | Section 999. Effective date. This Act takes effect January | 17 | | 1, 2018.
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