Bill Amendment: IL SB0885 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INSTALLMENT SALES CONTRACTS
Status: 2017-08-25 - Public Act . . . . . . . . . 100-0416 [SB0885 Detail]
Download: Illinois-2017-SB0885-Senate_Amendment_001.html
Bill Title: INSTALLMENT SALES CONTRACTS
Status: 2017-08-25 - Public Act . . . . . . . . . 100-0416 [SB0885 Detail]
Download: Illinois-2017-SB0885-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 885
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2 | AMENDMENT NO. ______. Amend Senate Bill 885 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Installment Sales Contract Act.
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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 resulting principal balance, and the amount of | ||||||
12 | each periodic payment that will be applied to any interest | ||||||
13 | charged, if applicable, pursuant to the contract.
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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.
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1 | "Business day" means any calendar day except Saturday, | ||||||
2 | Sunday, or a State or federal holiday. | ||||||
3 | "Buyer" means the person who is seeking to obtain title to | ||||||
4 | a property by an installment sales contract or is obligated to | ||||||
5 | make payments to the seller pursuant to the contract.
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6 | "Date of sale" means the date that both the seller and | ||||||
7 | buyer have signed the written contract.
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8 | "Dwelling structure" means any private home or residence or | ||||||
9 | any building or structure intended for residential use with not | ||||||
10 | less than one nor more than 4 residential dwelling units. | ||||||
11 | "Installment sales contract" or "contract" means any | ||||||
12 | contract or agreement, including a contract for deed, bond for | ||||||
13 | deed, or any other sale or legal device whereby a seller agrees | ||||||
14 | to sell and the buyer agrees to buy a dwelling structure, in | ||||||
15 | which the consideration for the sale is payable in installments | ||||||
16 | for a period of at least one year after the date of sale, and | ||||||
17 | the seller continues to have an interest or security for the | ||||||
18 | purchase price or otherwise in the property. | ||||||
19 | "Seller" means the owner of a legal or beneficial interest | ||||||
20 | in a dwelling structure, or the owner's agent, who utilizes an | ||||||
21 | installment sales contract to sell the dwelling structure.
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22 | Section 10. Terms and conditions of installment sales | ||||||
23 | contracts.
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24 | (a) The seller of residential real estate by installment | ||||||
25 | sales contract shall provide the buyer with a written contract |
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1 | that complies with the requirements set forth in this Section.
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2 | (b) Until both parties have a copy of the executed contract | ||||||
3 | signed by the buyer and the seller with the signatures | ||||||
4 | notarized, either party has the right to rescind the contract, | ||||||
5 | in addition to all other remedies provided by this Act. Upon | ||||||
6 | rescission, pursuant to this Section, the seller shall refund | ||||||
7 | to the buyer all money paid to the seller as of the date of | ||||||
8 | rescission.
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9 | (c) An installment sales contract for the sale of a | ||||||
10 | dwelling structure and any residential real estate subject to | ||||||
11 | the contract shall clearly and conspicuously disclose the | ||||||
12 | following:
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13 | (1) The address, permanent index number, and legal | ||||||
14 | description of the residential real estate subject to the | ||||||
15 | contract. | ||||||
16 | (2) The price of the dwelling structure and any | ||||||
17 | residential real estate subject to the contract.
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18 | (3) The amount, if any, of any down payment applied to | ||||||
19 | the price of the dwelling structure and any residential | ||||||
20 | real estate subject to the contract and the resulting | ||||||
21 | principal on the loan.
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22 | (4) The amount of the periodic payment, any grace | ||||||
23 | periods for late payments, late payment fees, and to whom, | ||||||
24 | where, and how the buyer should deliver each payment.
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25 | (5) The interest rate being charged, if any, expressed | ||||||
26 | only as an annual percentage rate. |
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1 | (6) The term of the loan expressed in years and months | ||||||
2 | and the total number of periodic payments due. | ||||||
3 | (7) The amount, if any, of any balloon payments and | ||||||
4 | when each balloon payment is due.
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5 | (8) A statement outlining whether the seller or the | ||||||
6 | buyer is responsible for paying real estate taxes and | ||||||
7 | insurance and how responsibilities of the buyer and seller | ||||||
8 | change based on the time period the dwelling or any | ||||||
9 | residential real estate subject to the contract is occupied | ||||||
10 | by the buyer and what percentage of the principal is paid | ||||||
11 | down. In all circumstances not defined in the disclosure | ||||||
12 | required by this subsection, the seller has the | ||||||
13 | responsibility for paying real estate taxes and insurance.
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14 | (9) The amount that will be charged periodically, if | ||||||
15 | any, for the first year to pay real estate taxes. | ||||||
16 | (10) The amount that will be charged periodically, if | ||||||
17 | any, for the first year to pay insurance.
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18 | (11) A statement that the amounts listed in items (9) | ||||||
19 | and (10) of this subsection are subject to change each | ||||||
20 | year.
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21 | (12) The fair cash value as defined in the Property Tax | ||||||
22 | Code and set forth on the real estate tax bill for the year | ||||||
23 | immediately prior to the sale, and the assessed value of | ||||||
24 | the property as set forth on the real estate tax bill for | ||||||
25 | the year immediately prior to the sale.
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26 | (13) The amount of real estate taxes for the year |
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1 | immediately prior to the sale.
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2 | (14) Any unpaid amounts owing on prior real estate | ||||||
3 | taxes.
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4 | (15) The amount of the annual insurance payment for the | ||||||
5 | year immediately prior to the sale.
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6 | (16) The type of insurance coverage, including, but not | ||||||
7 | limited to, property insurance and title insurance, for the | ||||||
8 | buyer and seller that will be required or provided.
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9 | (17) The seller's interest in the structure being sold.
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10 | (18) Any known liens or mortgages or other title | ||||||
11 | limitations existing on the property.
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12 | (19) An explanation as to when the buyer will obtain | ||||||
13 | the title. | ||||||
14 | (20) A statement defining what repairs the buyer is | ||||||
15 | financially responsible for making to the dwelling | ||||||
16 | structure and any residential real estate subject to the | ||||||
17 | contract, if any, and how responsibilities of the buyer and | ||||||
18 | seller to repair the property change based on the time | ||||||
19 | period the residential real estate subject to the contract | ||||||
20 | is occupied by the buyer and what percentage of the | ||||||
21 | principal is paid down by any repairs made by the buyer. In | ||||||
22 | all circumstances not defined in the disclosure required by | ||||||
23 | this subsection, the seller has the financial | ||||||
24 | responsibility for all repairs required to be made pursuant | ||||||
25 | to the installment sales contract. | ||||||
26 | (21) A statement defining what, if any, alterations of |
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1 | the property must be approved by both the buyer and the | ||||||
2 | seller prior to the alterations being made, including | ||||||
3 | requirements to provide evidence of proper permits, | ||||||
4 | insurance, and lien waiver agreements. | ||||||
5 | (22) Any additional charges or fees due at the time of | ||||||
6 | the date of sale or at a later date.
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7 | (23) An amortization schedule, as defined in Section 5.
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8 | (24) A certificate of compliance with applicable | ||||||
9 | dwelling codes, or in the absence of such a certificate: | ||||||
10 | (i) an express written warranty that no notice from any | ||||||
11 | municipality or other governmental authority of a dwelling | ||||||
12 | code violation that existed with respect to the residential | ||||||
13 | real estate or dwelling structure subject to the contract | ||||||
14 | before the installment sales contract was executed had been | ||||||
15 | received by the seller, his or her principal, or his or her | ||||||
16 | agent within 10 years of the date of execution of the | ||||||
17 | installment sales contract; or (ii) if any notice of a | ||||||
18 | violation had been received, a list of all such notices | ||||||
19 | with a detailed statement of all violations referred to in | ||||||
20 | the notice. | ||||||
21 | (25) A statement, in large bold font stating in | ||||||
22 | substantially similar form: "NOTE TO BUYER: BEFORE SIGNING | ||||||
23 | THE CONTRACT THE BUYER HAS THE OPTION OF OBTAINING AN | ||||||
24 | INDEPENDENT THIRD PARTY INSPECTION AND/OR APPRAISAL SO | ||||||
25 | THAT THE BUYER CAN DETERMINE THE CONDITION AND ESTIMATED | ||||||
26 | MARKET VALUE OF THE RESIDENTIAL REAL ESTATE AND DECIDE |
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1 | WHETHER TO SIGN THE CONTRACT."
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2 | (26) If the residential real estate or any dwelling | ||||||
3 | structure thereon that is subject to the contract has been | ||||||
4 | condemned by the unit of government having jurisdiction, | ||||||
5 | the contract shall include a statement, in large bold font | ||||||
6 | stating in substantially similar form: "NOTE TO BUYER: THE | ||||||
7 | RESIDENTIAL REAL ESTATE BEING SOLD THROUGH THIS CONTRACT | ||||||
8 | HAS BEEN CONDEMNED BY THE UNIT OF GOVERNMENT HAVING | ||||||
9 | JURISDICTION."
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10 | (27) A statement that the seller provided the buyer the | ||||||
11 | installment sales contract disclosure prepared by the | ||||||
12 | Office of the Attorney General as required under Illinois | ||||||
13 | State law. The statement shall include the date on which | ||||||
14 | the buyer was provided with the disclosure, which must be | ||||||
15 | at least 3 full business days before the contract was | ||||||
16 | executed.
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17 | (28) A statement that: (i) if the buyer defaults in | ||||||
18 | payment, any action brought against the buyer under the | ||||||
19 | contract shall be initiated only after the expiration of 30 | ||||||
20 | days from the date of the default; and (ii) a buyer in | ||||||
21 | default may, prior to the expiration of the 30-day period, | ||||||
22 | make all payments, fees and charges currently due under the | ||||||
23 | contract to cure the default.
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24 | (d) The requirements of this Section cannot be waived by | ||||||
25 | the buyer or seller.
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1 | Section 15. Applicability of other Acts. An installment | ||||||
2 | sales contract under this Act is subject to the Lead Poisoning | ||||||
3 | Prevention Act, the Residential Real Property Disclosure Act, | ||||||
4 | the Illinois Radon Awareness Act, and the High Risk Home Loan | ||||||
5 | Act. The remedies available to the buyer pursuant to this Act | ||||||
6 | are cumulative and do not preclude any remedies otherwise | ||||||
7 | available to a buyer at law or in equity.
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8 | Section 20. Recording of contract required.
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9 | (a) Within 5 business days of the date of sale of any | ||||||
10 | residential real estate or dwelling structure subject to an | ||||||
11 | installment sales contract, and prior to any subsequent sale or | ||||||
12 | other transfer of any interest in the residential real estate, | ||||||
13 | dwelling structure, or contract by the seller, the seller shall | ||||||
14 | record the contract or a memorandum of the contract with the | ||||||
15 | county recorder of deeds.
A memorandum of the contract shall be | ||||||
16 | titled "Memorandum of an Installment Sales Contract" either in | ||||||
17 | capital letters or underscored above the body of the | ||||||
18 | memorandum. At a minimum, the memorandum of the contract shall | ||||||
19 | include: the address, permanent index number, and legal | ||||||
20 | description of the residential real estate subject to the | ||||||
21 | contract; the names of the buyer and seller; and the date the | ||||||
22 | contract was executed. The memorandum of the contract shall be | ||||||
23 | signed by the buyer and the seller with the signatures | ||||||
24 | notarized. | ||||||
25 | (b) If the seller fails to record the contract or the |
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1 | memorandum of the contract as required by subsection (a) of | ||||||
2 | this Section, the buyer has the right to rescind the contract | ||||||
3 | until such time as the seller records the contract. If the | ||||||
4 | seller fails to record the contract or the memorandum of the | ||||||
5 | contract and title to the property becomes clouded for any | ||||||
6 | reason, including, but not limited to, that another person buys | ||||||
7 | the property, a judgment lien is placed on the property, or a | ||||||
8 | consensual mortgage or some other third party interest | ||||||
9 | affecting the title arises, the buyer has the option to | ||||||
10 | rescind, not just before the seller records, but at any time | ||||||
11 | within 90 days of discovering the title problem.
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12 | (c) Upon rescission under this Section, the seller shall | ||||||
13 | refund to the buyer all money paid to the seller as of the date | ||||||
14 | of rescission. This Section does not limit any other remedies | ||||||
15 | provided to the buyer by this Act or State law.
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16 | Section 25. Repairs. | ||||||
17 | (a) In all cases not included in the statement required by | ||||||
18 | item (20) of subsection (c) of Section 10, the seller has the | ||||||
19 | responsibility to make and pay for repairs.
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20 | (b) If the seller deems certain repairs necessary to | ||||||
21 | protect the seller's interest in the property, the seller may, | ||||||
22 | at the seller's own cost, proceed to make the repairs in | ||||||
23 | compliance with this Section. Before the performance of | ||||||
24 | nonemergency repairs on a dwelling unit inhabited by a buyer, | ||||||
25 | the seller shall provide the buyer with at least 72 hours' |
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1 | written notice of the seller's intent to make the proposed | ||||||
2 | repairs.
Nothing in this Section limits the seller's right to | ||||||
3 | negotiate or secure recovery of the seller's actual cost to | ||||||
4 | make repairs caused due to negligence or malicious damage on | ||||||
5 | the part of the buyer. | ||||||
6 | (c) Except for limitations included in the statement | ||||||
7 | required by
item (20) of subsection (c) of Section 10, nothing | ||||||
8 | in this Section limits the buyer's right to obtain the services | ||||||
9 | of a building contractor to make repairs that are chargeable to | ||||||
10 | the buyer under this Act.
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11 | (d) No seller may require, by contract or otherwise, that | ||||||
12 | only the seller or an agent of the seller may make repairs. The | ||||||
13 | buyer has the right to contract with other building contractors | ||||||
14 | to make repairs for which the buyer is financially responsible.
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15 | Section 30. Account statements.
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16 | (a) The seller shall provide the buyer with an account | ||||||
17 | statement, including amounts applied to principal, interest, | ||||||
18 | tax, insurance, fees, and other charges, upon the buyer's | ||||||
19 | request. | ||||||
20 | (b) A seller is not required to provide a buyer with | ||||||
21 | account statements without charge more than once in any | ||||||
22 | 12-month period. | ||||||
23 | (c) If the buyer's request for an account statement is made | ||||||
24 | in response to a change in the terms of an installment sales | ||||||
25 | contract, then the seller must provide the account statement |
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1 | without charge. | ||||||
2 | (d) For other buyer requests for account statements, the | ||||||
3 | seller may not charge the buyer more than the reasonable costs | ||||||
4 | of copying and producing the account statement.
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5 | Section 35. Insurance proceeds.
A buyer or seller who | ||||||
6 | receives payment of insurance proceeds as a result of damage to | ||||||
7 | a dwelling structure shall apply the proceeds to the repair of | ||||||
8 | the damage.
However, the buyer and seller may make a fair and | ||||||
9 | reasonable distribution of the insurance proceeds between each | ||||||
10 | of them by a signed written agreement. The written agreement | ||||||
11 | shall not be made until at least 7 days after any award of | ||||||
12 | insurance on a claim has been settled and written notice of the | ||||||
13 | settlement and award has been made by the insurer to both the | ||||||
14 | buyer and seller.
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15 | Section 40. Right to cure default. If the buyer defaults in | ||||||
16 | payment, any action brought against the buyer under the | ||||||
17 | contract shall be initiated only after the expiration of 30 | ||||||
18 | days from the date of the default. A buyer in default may, | ||||||
19 | prior to the expiration of the 30-day period, make all | ||||||
20 | payments, fees, and charges currently due under the contract to | ||||||
21 | cure the default.
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22 | Section 45. Unlawful acts.
It is a violation of this Act | ||||||
23 | for either party to make an oral or written misrepresentation |
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1 | to the other party concerning a contract or regarding the | ||||||
2 | rights or duties of either party under this Act or to induce | ||||||
3 | either party to sign incomplete forms, contracts, notices, or | ||||||
4 | written statements relating to the sale of a dwelling | ||||||
5 | structure.
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6 | Section 50. No waiver. The buyer or the seller may not | ||||||
7 | waive any provisions of this Act by written contract or | ||||||
8 | otherwise. Any contractual provisions or other agreements | ||||||
9 | contrary to this Act are void and unenforceable.
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10 | Section 55. Circumstances voiding mandatory arbitration | ||||||
11 | provisions. A mandatory arbitration provision of an | ||||||
12 | installment sales contract that is oppressive, unfair, | ||||||
13 | unconscionable, or substantially in derogation of the rights of | ||||||
14 | either party is void.
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15 | Section 60. Prepayment penalties prohibited. The seller | ||||||
16 | may not charge or collect a prepayment penalty or any similar | ||||||
17 | fee or finance charge if the buyer elects to pay the | ||||||
18 | outstanding principal balance of the purchase price under the | ||||||
19 | contract before the scheduled payment date under the contract.
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20 | Section 65. Prohibited contract terms. Any contract term | ||||||
21 | that would put the buyer in default of the contract for failure | ||||||
22 | to make improvements and repairs to residential real estate for |
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1 | conditions that existed prior to the date of sale is prohibited | ||||||
2 | and unenforceable.
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3 | Section 70. Cooling-off period.
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4 | (a) The buyer or the seller shall not be bound for 3 full | ||||||
5 | business days after an unexecuted installment sales contract | ||||||
6 | has been accepted by the buyer and the seller in the contract's | ||||||
7 | full and final form.
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8 | (b) No later than the time the unexecuted installment sales | ||||||
9 | contract has been accepted by the buyer and the seller in the | ||||||
10 | contract's full and final form, the seller shall provide to the | ||||||
11 | buyer the document described in Section 75 of this Act.
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12 | (c) An executed installment sales contract shall include a | ||||||
13 | statement acknowledging that the seller provided the buyer with | ||||||
14 | the installment sales contract disclosure prepared by the | ||||||
15 | Office of the Attorney General, as required under Section 75 of | ||||||
16 | this Act. | ||||||
17 | (d) An executed installment sales contract shall include | ||||||
18 | the date the seller provided the buyer with the installment | ||||||
19 | sales contract disclosure prepared by the Office of the | ||||||
20 | Attorney General.
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21 | (e) The requirements of this Section cannot be waived by
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22 | the buyer or the seller.
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23 | Section 75. Installment sales contract disclosures.
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24 | (a) The Office of the Attorney General shall develop the |
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1 | content and format of an educational document providing | ||||||
2 | independent consumer information regarding installment sales | ||||||
3 | contracts and the availability of independent housing | ||||||
4 | counseling services, including services provided by nonprofit | ||||||
5 | agencies certified by the federal government to provide housing | ||||||
6 | counseling. The document shall be updated and revised as often | ||||||
7 | as deemed necessary by the Office of the Attorney General.
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8 | (b) The document described in subsection (a) of this | ||||||
9 | Section shall include the following statement: "IMPORTANT | ||||||
10 | NOTICE REGARDING THE COOLING-OFF PERIOD: Illinois State law | ||||||
11 | requires a 3-day cooling-off period for installment sales | ||||||
12 | contracts, during which time a potential buyer cannot be | ||||||
13 | required to close or proceed with the contract. The purpose of | ||||||
14 | this requirement is to provide a potential buyer with 3 | ||||||
15 | business days to consider his or her decision whether to sign | ||||||
16 | an installment sales contract. Potential buyers may want to | ||||||
17 | seek additional information from a HUD-approved housing | ||||||
18 | counselor during this 3-day period. The 3-day cooling-off | ||||||
19 | period cannot be waived."
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20 | Section 80. Credits towards deficiency in the case of | ||||||
21 | default. If the buyer defaults, the seller shall credit toward | ||||||
22 | the buyer deficiency any amount the buyer spent to repair | ||||||
23 | defects in the property that existed before the sale.
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24 | Section 85. Enforcement.
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1 | (a) Any violation of this Act shall constitute an unlawful | ||||||
2 | practice under the Consumer Fraud and Deceptive Business | ||||||
3 | Practices Act.
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4 | (b) Any violation of this Act by a licensee under the | ||||||
5 | Residential Mortgage License Act of 1987 shall also be | ||||||
6 | considered a violation of the Residential Mortgage License Act | ||||||
7 | of 1987.
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8 | Section 90. Applicability of Act.
This Act applies to | ||||||
9 | installment sales contracts executed on or after the effective | ||||||
10 | date of this Act.
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11 | Section 905. The Code of Civil Procedure is amended by | ||||||
12 | changing Section 15-1106 as follows:
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13 | (735 ILCS 5/15-1106) (from Ch. 110, par. 15-1106)
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14 | Sec. 15-1106. Applicability of Article. | ||||||
15 | (a) Exclusive Procedure. From and after July 1, 1987 ( the
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16 | effective date of Public Act 84-1462) this amendatory Act of | ||||||
17 | 1986 , the following shall be
foreclosed in a foreclosure | ||||||
18 | pursuant to this Article:
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19 | (1) any mortgage created prior to, on or after July 1, | ||||||
20 | 1987 ( the effective date of Public Act 84-1462) this
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21 | amendatory Act of 1986 ;
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22 | (2) any real estate installment contract for | ||||||
23 | residential real estate
entered into on or after July 1, |
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1 | 1987 ( the effective date of Public Act 84-1462) this | ||||||
2 | amendatory Act of 1986
and under which the sum of all | ||||||
3 | payments made by the buyer is greater than or equal to 10% | ||||||
4 | of the original purchase price (i)
the purchase price is to | ||||||
5 | be paid in installments over a period in excess of
five | ||||||
6 | years and (ii) the amount unpaid under the terms of the | ||||||
7 | contract at
the time of the filing of the foreclosure | ||||||
8 | complaint, including principal
and due and unpaid | ||||||
9 | interest, at the rate prior to default, is less than
80% of | ||||||
10 | the original purchase price of the real estate as
stated in | ||||||
11 | the contract ;
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12 | (3) any collateral assignment of beneficial interest | ||||||
13 | made on or after July 1, 1987 ( the
effective date of Public | ||||||
14 | Act 84-1462) this amendatory Act of 1986 (i) which is made | ||||||
15 | with respect to a land
trust which was created | ||||||
16 | contemporaneously with the collateral assignment of
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17 | beneficial interest, (ii) which is made pursuant to a | ||||||
18 | requirement of the
holder of the obligation to secure the | ||||||
19 | payment of money or performance of
other obligations and | ||||||
20 | (iii) as to which the security agreement or other
writing | ||||||
21 | creating the collateral assignment permits the real estate | ||||||
22 | which is
the subject of the land trust to be sold to | ||||||
23 | satisfy the obligations.
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24 | (b) Uniform Commercial Code. A secured party, as defined in | ||||||
25 | Article
9 of the Uniform Commercial Code, may at its election | ||||||
26 | enforce its security interest in a
foreclosure under this |
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1 | Article if its security interest was created on or after July | ||||||
2 | 1, 1987 ( the effective date of Public Act 84-1462) this | ||||||
3 | amendatory Act of 1986 and is created by (i) a collateral
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4 | assignment of beneficial interest in a land trust or (ii) an | ||||||
5 | assignment for
security of a buyer's interest in a real estate | ||||||
6 | installment contract. Such
election shall be made by filing a | ||||||
7 | complaint stating that it is brought
under this Article, in | ||||||
8 | which event the provisions of this Article shall be
exclusive | ||||||
9 | in such foreclosure.
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10 | (c) Real Estate Installment Contracts. A contract seller | ||||||
11 | may at its
election enforce in a foreclosure under this Article | ||||||
12 | any real estate
installment contract entered into on or after | ||||||
13 | July 1, 1987 ( the effective date of Public Act 84-1462) this
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14 | Amendatory Act of 1986
and not required to be foreclosed under | ||||||
15 | this Article. Such election shall
be made by filing a complaint | ||||||
16 | stating that it is brought under this
Article, in which event | ||||||
17 | the provisions of this Article shall be exclusive
in such | ||||||
18 | foreclosure. A contract seller must enforce its contract under
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19 | this Article if the real estate installment contract is one | ||||||
20 | described in
paragraph (2) of subsection (a) of this Section | ||||||
21 | 15-1106 .
| ||||||
22 | (d) Effect of Election. An election made pursuant to | ||||||
23 | subsection (b) or
(c) of this Section 15-1106 shall be binding | ||||||
24 | only in the foreclosure and shall be
void if
the foreclosure is | ||||||
25 | terminated prior to entry of judgment.
| ||||||
26 | (e) Supplementary General Principles of Law. General |
| |||||||
| |||||||
1 | principles of law
and equity, such as those relating to | ||||||
2 | capacity to contract, principal and
agent, marshalling of | ||||||
3 | assets, priority, subrogation, estoppel, fraud,
| ||||||
4 | misrepresentations, duress, collusion, mistake, bankruptcy or | ||||||
5 | other
validating or invalidating cause, supplement this | ||||||
6 | Article unless displaced
by a particular provision of it.
| ||||||
7 | Section 9-110 of this the Code of Civil Procedure shall not be | ||||||
8 | applicable to
any real estate installment contract which is | ||||||
9 | foreclosed under this Article.
| ||||||
10 | (f) Pending Actions. A complaint to foreclose a mortgage | ||||||
11 | filed before
July 1, 1987, and all proceedings and third party | ||||||
12 | actions in connection
therewith, shall be adjudicated pursuant | ||||||
13 | to the Illinois statutes and
applicable law in effect | ||||||
14 | immediately prior to July 1, 1987. Such statutes
shall remain | ||||||
15 | in effect with respect to such complaint, proceedings and
third | ||||||
16 | party actions notwithstanding the amendment or repeal of such
| ||||||
17 | statutes on or after July 1, 1987. | ||||||
18 | (g) The changes made to this Section by this amendatory Act | ||||||
19 | of the 100th General Assembly apply to real estate installment | ||||||
20 | contracts for residential real estate executed on or after the | ||||||
21 | effective date of this amendatory Act of the 100th General | ||||||
22 | Assembly.
| ||||||
23 | (Source: P.A. 85-907.)
| ||||||
24 | Section 910. The Condominium Property Act is amended by | ||||||
25 | changing Sections 18 and 18.5 as follows:
|
| |||||||
| |||||||
1 | (765 ILCS 605/18) (from Ch. 30, par. 318)
| ||||||
2 | Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||||
3 | at least
the following:
| ||||||
4 | (a)(1) The election from among the unit owners of a | ||||||
5 | board of managers,
the number of persons constituting such | ||||||
6 | board, and that the terms of at
least one-third of the | ||||||
7 | members of the board shall expire annually and that
all | ||||||
8 | members of the board shall be elected at large; if there | ||||||
9 | are multiple owners of a single unit, only one of the | ||||||
10 | multiple
owners shall be eligible to serve as a member of | ||||||
11 | the board at any one time;
| ||||||
12 | (2) the powers and duties of the board;
| ||||||
13 | (3) the compensation, if any, of the members of the | ||||||
14 | board;
| ||||||
15 | (4) the method of removal from office of members of the | ||||||
16 | board;
| ||||||
17 | (5) that the board may engage the services of a manager | ||||||
18 | or managing agent;
| ||||||
19 | (6) that each unit owner shall receive, at least 25 | ||||||
20 | days prior to the
adoption thereof by the board of | ||||||
21 | managers, a copy of the proposed annual
budget together | ||||||
22 | with an indication of which portions are intended for
| ||||||
23 | reserves, capital expenditures or repairs or payment of | ||||||
24 | real estate taxes;
| ||||||
25 | (7) that the board of managers shall annually supply to
|
| |||||||
| |||||||
1 | all unit owners an itemized accounting of the common | ||||||
2 | expenses
for the preceding year actually incurred or paid, | ||||||
3 | together
with an indication of which portions were for | ||||||
4 | reserves, capital
expenditures or repairs or payment of | ||||||
5 | real estate taxes and
with a tabulation of the amounts | ||||||
6 | collected pursuant to the
budget or assessment, and showing | ||||||
7 | the net excess or
deficit of income over expenditures plus | ||||||
8 | reserves;
| ||||||
9 | (8)(i) that each unit owner shall receive notice, in | ||||||
10 | the same manner
as is provided in this Act for membership | ||||||
11 | meetings, of any meeting of the
board of managers | ||||||
12 | concerning the adoption of the proposed annual budget and
| ||||||
13 | regular assessments pursuant thereto or to adopt a separate | ||||||
14 | (special)
assessment, (ii) that except as provided in | ||||||
15 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
16 | assessment adopted by the board would result in the
sum of | ||||||
17 | all regular and separate assessments payable in the current | ||||||
18 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
19 | separate
assessments payable during the
preceding fiscal | ||||||
20 | year, the
board of managers, upon written petition by unit | ||||||
21 | owners with 20 percent of
the votes of the association | ||||||
22 | delivered to the board within 14
days of the board action,
| ||||||
23 | shall call a meeting of the unit owners within 30 days of | ||||||
24 | the date of
delivery of the petition to consider the budget | ||||||
25 | or separate
assessment; unless a
majority of
the total | ||||||
26 | votes of the unit owners are cast at the meeting to reject |
| |||||||
| |||||||
1 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
2 | that any common expense not set forth in the budget or
any | ||||||
3 | increase in assessments over the amount adopted in the | ||||||
4 | budget shall be
separately assessed against all unit | ||||||
5 | owners, (iv) that separate assessments for
expenditures | ||||||
6 | relating to emergencies or mandated by law may be adopted | ||||||
7 | by the
board of managers without being subject to unit | ||||||
8 | owner approval or the
provisions of item (ii) above or item | ||||||
9 | (v) below. As used
herein, "emergency" means an immediate | ||||||
10 | danger to the structural integrity of
the
common elements | ||||||
11 | or to the life, health, safety or property of the unit | ||||||
12 | owners,
(v) that assessments
for additions and alterations | ||||||
13 | to the common elements or to association-owned
property not | ||||||
14 | included in the adopted annual budget, shall be separately
| ||||||
15 | assessed and are subject to approval of two-thirds of the | ||||||
16 | total votes of all
unit owners, (vi) that the board of | ||||||
17 | managers may adopt separate assessments
payable over more | ||||||
18 | than one fiscal year. With respect to multi-year | ||||||
19 | assessments
not governed by items (iv) and (v), the entire | ||||||
20 | amount of the multi-year
assessment shall be deemed | ||||||
21 | considered and authorized in the first fiscal year
in which | ||||||
22 | the assessment is approved;
| ||||||
23 | (9)(A) that every meeting of the board of managers | ||||||
24 | shall be open to any unit
owner, except that the board may | ||||||
25 | close any portion of a noticed meeting or meet separately | ||||||
26 | from a noticed meeting to: (i) discuss litigation
when an |
| |||||||
| |||||||
1 | action against or on behalf of the particular association | ||||||
2 | has been
filed and is pending in a court or administrative | ||||||
3 | tribunal,
or when the board of managers finds that such an | ||||||
4 | action is probable
or imminent, (ii) discuss the | ||||||
5 | appointment, employment, engagement,
or dismissal of an | ||||||
6 | employee, independent contractor, agent, or other provider | ||||||
7 | of goods and services, (iii) interview a potential | ||||||
8 | employee, independent contractor, agent, or other provider | ||||||
9 | of goods and services, (iv) discuss violations of rules and
| ||||||
10 | regulations of the association, (v) discuss a unit owner's | ||||||
11 | unpaid share of common
expenses, or (vi) consult with the | ||||||
12 | association's legal counsel; that any vote on these matters | ||||||
13 | shall take place at a meeting of the board of managers or
| ||||||
14 | portion thereof open to any unit owner; | ||||||
15 | (B) that board members may participate in and act at | ||||||
16 | any meeting of the board of managers in person, by | ||||||
17 | telephonic means, or by use of any acceptable technological | ||||||
18 | means whereby all persons participating in the meeting can | ||||||
19 | communicate with each other; that participation | ||||||
20 | constitutes attendance and presence in person at the | ||||||
21 | meeting; | ||||||
22 | (C) that any unit owner may record the
proceedings at | ||||||
23 | meetings of the board of managers or portions thereof | ||||||
24 | required to be open by this
Act by tape, film or other | ||||||
25 | means, and that the board may prescribe reasonable
rules | ||||||
26 | and regulations to govern the right to make such |
| |||||||
| |||||||
1 | recordings; | ||||||
2 | (D) that
notice of every meeting of the board of | ||||||
3 | managers shall be given to every board member at least 48 | ||||||
4 | hours
prior thereto, unless the board member waives notice | ||||||
5 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
6 | and | ||||||
7 | (E) that notice of every meeting
of the board of | ||||||
8 | managers shall be posted in entranceways,
elevators, or | ||||||
9 | other conspicuous places in the condominium at least 48 | ||||||
10 | hours
prior to the meeting of the board of managers except | ||||||
11 | where there is no
common entranceway for 7 or more units, | ||||||
12 | the board of managers may designate
one or more locations | ||||||
13 | in the proximity of these units where the notices of
| ||||||
14 | meetings shall be posted; that notice of every meeting of | ||||||
15 | the board of managers shall also be given at least 48 hours | ||||||
16 | prior to the meeting, or such longer notice as this Act may | ||||||
17 | separately require, to: (i) each unit owner who has | ||||||
18 | provided the association with written authorization to | ||||||
19 | conduct business by acceptable technological means, and | ||||||
20 | (ii) to the extent that the condominium instruments of an | ||||||
21 | association require, to each other unit owner, as required | ||||||
22 | by subsection (f) of Section 18.8, by mail or delivery, and | ||||||
23 | that no other notice of a meeting of the board of managers | ||||||
24 | need be given to any unit owner;
| ||||||
25 | (10) that the board shall meet at least 4 times | ||||||
26 | annually;
|
| |||||||
| |||||||
1 | (11) that no member of the board or officer shall be | ||||||
2 | elected for a term
of more than 2 years, but that officers | ||||||
3 | and board members may succeed
themselves;
| ||||||
4 | (12) the designation of an officer to mail and receive | ||||||
5 | all notices and
execute amendments to condominium | ||||||
6 | instruments as provided for in this Act
and in the | ||||||
7 | condominium instruments;
| ||||||
8 | (13) the method of filling vacancies on the board
which | ||||||
9 | shall include authority for the remaining members of the | ||||||
10 | board to
fill the vacancy by two-thirds vote until the next | ||||||
11 | annual meeting of unit
owners or for a period terminating | ||||||
12 | no later than 30 days following the
filing of a petition | ||||||
13 | signed by unit owners holding 20% of the votes of the
| ||||||
14 | association requesting a meeting of the unit owners to fill | ||||||
15 | the vacancy for
the balance of the term, and that a meeting | ||||||
16 | of the unit owners shall be
called for purposes of filling | ||||||
17 | a vacancy on the board no later than 30 days
following the | ||||||
18 | filing of a petition signed by unit owners holding 20% of | ||||||
19 | the
votes of the association requesting such a meeting, and | ||||||
20 | the method of filling
vacancies among the officers that | ||||||
21 | shall include the authority for the members
of the board to | ||||||
22 | fill the vacancy for the unexpired portion of the term;
| ||||||
23 | (14) what percentage of the board of managers, if other | ||||||
24 | than a majority,
shall constitute a quorum;
| ||||||
25 | (15) provisions concerning notice of board meetings to | ||||||
26 | members of the
board;
|
| |||||||
| |||||||
1 | (16) the board of managers may not enter into a | ||||||
2 | contract with a
current board member
or with a corporation | ||||||
3 | or partnership in which a board
member or a member of the | ||||||
4 | board member's immediate family has 25% or
more interest, | ||||||
5 | unless notice of intent to enter the
contract is given to | ||||||
6 | unit owners within 20 days after a decision is made
to | ||||||
7 | enter into the contract and the unit owners are
afforded an | ||||||
8 | opportunity by filing a petition, signed by 20% of the unit
| ||||||
9 | owners, for an election to approve or disapprove the | ||||||
10 | contract;
such petition shall be filed within 20 days after | ||||||
11 | such notice and such
election shall be held within 30 days | ||||||
12 | after filing the petition; for purposes
of this subsection, | ||||||
13 | a board member's immediate family means the board member's
| ||||||
14 | spouse, parents, and children;
| ||||||
15 | (17) that the board of managers may disseminate
to unit | ||||||
16 | owners biographical and background information about | ||||||
17 | candidates for
election to the board if (i) reasonable | ||||||
18 | efforts to identify all candidates are
made and all | ||||||
19 | candidates are given an opportunity to include | ||||||
20 | biographical and
background information in the information | ||||||
21 | to be disseminated; and (ii) the
board does not express a | ||||||
22 | preference in favor of any candidate;
| ||||||
23 | (18) any proxy distributed for board elections
by the | ||||||
24 | board of managers gives unit owners the
opportunity to | ||||||
25 | designate any person as the proxy holder, and gives the | ||||||
26 | unit
owner the opportunity to express a preference for any |
| |||||||
| |||||||
1 | of the known
candidates for the board or to write in a | ||||||
2 | name;
| ||||||
3 | (19) that special meetings of the board of managers can | ||||||
4 | be called by
the president or 25% of the members of the | ||||||
5 | board;
| ||||||
6 | (20) that the board of managers may establish
and | ||||||
7 | maintain a system of master metering of public utility | ||||||
8 | services and
collect payments in connection therewith, | ||||||
9 | subject to the requirements of the
Tenant Utility Payment | ||||||
10 | Disclosure Act; and
| ||||||
11 | (21) that the board may ratify and confirm actions of | ||||||
12 | the
members of the board taken in response to an emergency, | ||||||
13 | as that
term is defined in subdivision (a)(8)(iv) of this | ||||||
14 | Section; that
the board shall give notice to the unit | ||||||
15 | owners of: (i) the
occurrence of the emergency event within | ||||||
16 | 7 business days after
the emergency event, and (ii) the | ||||||
17 | general description of the
actions taken to address the | ||||||
18 | event within 7 days after the
emergency event. | ||||||
19 | The intent of the provisions of Public Act 99-472 | ||||||
20 | adding this paragraph (21) is to empower and support boards | ||||||
21 | to act in
emergencies. | ||||||
22 | (b)(1) What percentage of the unit owners, if other | ||||||
23 | than 20%, shall
constitute a quorum provided that, for | ||||||
24 | condominiums with 20 or more units,
the percentage of unit | ||||||
25 | owners constituting a quorum shall be 20% unless the
unit | ||||||
26 | owners holding a majority of the percentage interest in the
|
| |||||||
| |||||||
1 | association provide for a higher percentage, provided that | ||||||
2 | in voting on amendments to the association's bylaws, a unit | ||||||
3 | owner who is in arrears on the unit owner's regular or | ||||||
4 | separate assessments for 60 days or more, shall not be | ||||||
5 | counted for purposes of determining if a quorum is present, | ||||||
6 | but that unit owner retains the right to vote on amendments | ||||||
7 | to the association's bylaws;
| ||||||
8 | (2) that the association shall have one class of | ||||||
9 | membership;
| ||||||
10 | (3) that the members shall hold an annual meeting, one | ||||||
11 | of the purposes
of which shall be to elect members of the | ||||||
12 | board of managers;
| ||||||
13 | (4) the method of calling meetings of the unit owners;
| ||||||
14 | (5) that special meetings of the members can be called | ||||||
15 | by the president,
board of managers, or by 20% of unit | ||||||
16 | owners;
| ||||||
17 | (6) that written notice of any membership meeting shall | ||||||
18 | be mailed
or delivered giving members no less than 10 and | ||||||
19 | no more than 30 days
notice of the time, place and purpose | ||||||
20 | of such meeting except that notice may be sent, to the | ||||||
21 | extent the condominium instruments or rules adopted | ||||||
22 | thereunder expressly so provide, by electronic | ||||||
23 | transmission consented to by the unit owner to whom the | ||||||
24 | notice is given, provided the director and officer or his | ||||||
25 | agent certifies in writing to the delivery by electronic | ||||||
26 | transmission;
|
| |||||||
| |||||||
1 | (7) that voting shall be on a percentage basis, and | ||||||
2 | that the percentage
vote to which each unit is entitled is | ||||||
3 | the percentage interest of the
undivided ownership of the | ||||||
4 | common elements appurtenant thereto, provided
that the | ||||||
5 | bylaws may provide for approval by unit owners in | ||||||
6 | connection with
matters where the requisite approval on a | ||||||
7 | percentage basis is not specified
in this Act, on the basis | ||||||
8 | of one vote per unit;
| ||||||
9 | (8) that, where there is more than one owner of a unit, | ||||||
10 | if only one
of the multiple owners is present at a meeting | ||||||
11 | of the association, he is
entitled to cast all the votes | ||||||
12 | allocated to that unit, if more than one of
the multiple | ||||||
13 | owners are present, the votes allocated to that unit may be
| ||||||
14 | cast only in accordance with the agreement of a majority in | ||||||
15 | interest of the
multiple owners, unless the declaration | ||||||
16 | expressly provides otherwise, that
there is majority | ||||||
17 | agreement if any one of the multiple owners cast the
votes | ||||||
18 | allocated to that unit without protest being made promptly | ||||||
19 | to the
person presiding over the meeting by any of the | ||||||
20 | other owners of the unit;
| ||||||
21 | (9)(A) except as provided in subparagraph (B) of this | ||||||
22 | paragraph (9) in
connection with board elections, that
a | ||||||
23 | unit owner may vote by proxy executed in writing by the | ||||||
24 | unit
owner or by his duly authorized attorney in fact; that | ||||||
25 | the proxy must bear the date of
execution
and, unless the | ||||||
26 | condominium instruments or the written proxy itself |
| |||||||
| |||||||
1 | provide
otherwise, is
invalid after 11 months from the date | ||||||
2 | of its execution; to the extent the condominium instruments | ||||||
3 | or rules adopted thereunder expressly so provide, a vote or | ||||||
4 | proxy may be submitted by electronic transmission, | ||||||
5 | provided that any such electronic transmission shall | ||||||
6 | either set forth or be submitted with information from | ||||||
7 | which it can be determined that the electronic transmission | ||||||
8 | was authorized by the unit owner or the unit owner's proxy;
| ||||||
9 | (B) that if a rule adopted at least 120 days before a | ||||||
10 | board election
or the
declaration or bylaws provide for | ||||||
11 | balloting as set forth in this subsection,
unit
owners may | ||||||
12 | not vote by proxy in board elections, but may vote only (i) | ||||||
13 | by
submitting an association-issued ballot in person at the | ||||||
14 | election meeting or
(ii) by
submitting an | ||||||
15 | association-issued ballot to the association or its | ||||||
16 | designated
agent
by mail or other means of delivery | ||||||
17 | specified in the declaration, bylaws, or
rule; that
the | ||||||
18 | ballots shall be mailed or otherwise distributed to unit | ||||||
19 | owners not less
than 10
and not more than 30 days before | ||||||
20 | the election meeting, and the board shall give
unit owners | ||||||
21 | not less than 21 days' prior written notice of the deadline | ||||||
22 | for
inclusion of a candidate's name on the ballots; that | ||||||
23 | the deadline shall be no
more
than 7 days before the | ||||||
24 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
25 | that
every such ballot must include the names of all | ||||||
26 | candidates who have given the
board or its authorized agent |
| |||||||
| |||||||
1 | timely written notice of their candidacy and must
give the | ||||||
2 | person casting the ballot the opportunity to cast votes for | ||||||
3 | candidates
whose names do not appear on the ballot; that a | ||||||
4 | ballot received by the
association
or
its designated agent | ||||||
5 | after the close of voting shall not be counted; that a
unit
| ||||||
6 | owner
who submits a ballot by mail or other means of | ||||||
7 | delivery specified in the
declaration, bylaws, or rule may | ||||||
8 | request and cast a ballot in person at the
election
| ||||||
9 | meeting, and thereby void any ballot previously submitted | ||||||
10 | by that unit owner; | ||||||
11 | (B-5) that if a rule adopted at least 120 days before a | ||||||
12 | board election or the declaration or bylaws provide for | ||||||
13 | balloting as set forth in this subparagraph, unit owners | ||||||
14 | may not vote by proxy in board elections, but may vote only | ||||||
15 | (i) by submitting an association-issued ballot in person at | ||||||
16 | the election meeting; or (ii) by any acceptable | ||||||
17 | technological means as defined in Section 2 of this Act; | ||||||
18 | instructions regarding the use of electronic means for | ||||||
19 | voting shall be distributed to all unit owners not less | ||||||
20 | than 10 and not more than 30 days before the election | ||||||
21 | meeting, and the board shall give unit owners not less than | ||||||
22 | 21 days' prior written notice of the deadline for inclusion | ||||||
23 | of a candidate's name on the ballots; the deadline shall be | ||||||
24 | no more than 7 days before the instructions for voting | ||||||
25 | using electronic or acceptable technological means is | ||||||
26 | distributed to unit owners; every instruction notice must |
| |||||||
| |||||||
1 | include the names of all candidates who have given the | ||||||
2 | board or its authorized agent timely written notice of | ||||||
3 | their candidacy and must give the person voting through | ||||||
4 | electronic or acceptable technological means the | ||||||
5 | opportunity to cast votes for candidates whose names do not | ||||||
6 | appear on the ballot; a unit owner who submits a vote using | ||||||
7 | electronic or acceptable technological means may request | ||||||
8 | and cast a ballot in person at the election meeting, | ||||||
9 | thereby voiding any vote previously submitted by that unit | ||||||
10 | owner;
| ||||||
11 | (C) that if a written petition by unit owners with at | ||||||
12 | least 20% of the
votes of
the association is delivered to | ||||||
13 | the board within 14 days after the board's
approval
of a | ||||||
14 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
15 | (B-5) of this paragraph (9), the board
shall call a meeting | ||||||
16 | of the unit owners within 30 days after the date of
| ||||||
17 | delivery of
the petition; that unless a majority of the | ||||||
18 | total votes of the unit owners are
cast
at the
meeting to | ||||||
19 | reject the rule, the rule is ratified;
| ||||||
20 | (D) that votes cast by ballot under subparagraph (B) or | ||||||
21 | electronic or acceptable technological means under | ||||||
22 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
23 | purpose of establishing a quorum; | ||||||
24 | (10) that the association may, upon adoption of the | ||||||
25 | appropriate rules by
the board of managers, conduct | ||||||
26 | elections by secret ballot whereby the voting
ballot is |
| |||||||
| |||||||
1 | marked only with the percentage interest for the unit and | ||||||
2 | the vote
itself, provided that the board further adopt | ||||||
3 | rules to verify the status of the
unit owner issuing a | ||||||
4 | proxy or casting a ballot; and further, that a candidate
| ||||||
5 | for election to the board of managers or such
candidate's | ||||||
6 | representative shall have the right to be present at the
| ||||||
7 | counting of ballots at such election;
| ||||||
8 | (11) that in the event of a resale of a condominium | ||||||
9 | unit the purchaser
of a unit from a seller other than the | ||||||
10 | developer pursuant to an installment sales
contract for | ||||||
11 | purchase shall during such times as he or she resides in | ||||||
12 | the
unit be counted toward a quorum for purposes of | ||||||
13 | election of members of the
board of managers at any meeting | ||||||
14 | of the unit owners called for purposes of
electing members | ||||||
15 | of the board, shall have the right to vote for the
election | ||||||
16 | of members of the board of managers and to be elected to | ||||||
17 | and serve
on the board of managers unless the seller | ||||||
18 | expressly retains in writing any
or all of such rights. In | ||||||
19 | no event may the seller and purchaser both be
counted | ||||||
20 | toward a quorum, be permitted to vote for a particular | ||||||
21 | office or be
elected and serve on the board. Satisfactory | ||||||
22 | evidence of the installment sales contract
shall be made | ||||||
23 | available to the association or its agents. For
purposes of | ||||||
24 | this subsection, "installment sales contract" shall have | ||||||
25 | the same
meaning as set forth in Section 5 of the | ||||||
26 | Installment Sales Contract Act Section 1(e) of the Dwelling |
| |||||||
| |||||||
1 | Unit Installment Contract Act ;
| ||||||
2 | (12) the method by which matters subject to the | ||||||
3 | approval of unit owners
set forth in this Act, or in the | ||||||
4 | condominium instruments, will be
submitted to the unit | ||||||
5 | owners at special membership meetings called for such
| ||||||
6 | purposes; and
| ||||||
7 | (13) that matters subject to the affirmative vote of | ||||||
8 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
9 | duly called for that purpose,
shall include, but not be | ||||||
10 | limited to:
| ||||||
11 | (i) merger or consolidation of the association;
| ||||||
12 | (ii) sale, lease, exchange, or other disposition | ||||||
13 | (excluding the mortgage
or pledge) of all, or | ||||||
14 | substantially all of the property and assets of the
| ||||||
15 | association; and
| ||||||
16 | (iii) the purchase or sale of land or of units on | ||||||
17 | behalf of all unit owners.
| ||||||
18 | (c) Election of a president from among the board of | ||||||
19 | managers, who shall
preside over the meetings of the board | ||||||
20 | of managers and of the unit owners.
| ||||||
21 | (d) Election of a secretary from among the board of | ||||||
22 | managers, who shall
keep the minutes of all meetings
of the | ||||||
23 | board of managers and of the unit owners and who shall, in | ||||||
24 | general,
perform all the duties incident to the office of | ||||||
25 | secretary.
| ||||||
26 | (e) Election of a treasurer from among the board of |
| |||||||
| |||||||
1 | managers, who shall
keep the financial records and
books of | ||||||
2 | account.
| ||||||
3 | (f) Maintenance, repair and replacement of the common | ||||||
4 | elements and
payments therefor, including the method of | ||||||
5 | approving payment vouchers.
| ||||||
6 | (g) An association with 30 or more units shall obtain | ||||||
7 | and maintain
fidelity insurance covering persons who | ||||||
8 | control or disburse funds of the
association for the | ||||||
9 | maximum amount of coverage available to protect funds
in | ||||||
10 | the custody or control of the association plus the | ||||||
11 | association reserve
fund. All management companies which | ||||||
12 | are responsible for the funds held or
administered by the | ||||||
13 | association shall maintain and furnish to the
association a | ||||||
14 | fidelity bond for the maximum amount of coverage available | ||||||
15 | to
protect funds in the custody of the management company | ||||||
16 | at any time. The
association shall bear the cost of the | ||||||
17 | fidelity insurance and fidelity
bond, unless otherwise | ||||||
18 | provided by contract between the association and a
| ||||||
19 | management company. The association shall be the direct | ||||||
20 | obligee of any
such fidelity bond. A management company | ||||||
21 | holding reserve funds of an
association shall at all times | ||||||
22 | maintain a separate account for each
association, | ||||||
23 | provided, however, that for investment purposes, the Board | ||||||
24 | of
Managers of an association may authorize a management | ||||||
25 | company to maintain
the association's reserve funds in a | ||||||
26 | single interest bearing account with
similar funds of other |
| |||||||
| |||||||
1 | associations. The management company shall at all
times | ||||||
2 | maintain records identifying all moneys of each | ||||||
3 | association in such
investment account. The management | ||||||
4 | company may hold all operating funds of
associations which | ||||||
5 | it manages in a single operating account but shall at
all | ||||||
6 | times maintain records identifying all moneys of each | ||||||
7 | association in
such operating account. Such operating and | ||||||
8 | reserve funds held by the
management company for the | ||||||
9 | association shall not be subject to attachment
by any | ||||||
10 | creditor of the management company.
| ||||||
11 | For the purpose of this subsection, a management | ||||||
12 | company shall be
defined as a person, partnership, | ||||||
13 | corporation, or other legal entity
entitled to transact | ||||||
14 | business on behalf of others, acting on behalf of or
as an | ||||||
15 | agent for a unit owner, unit owners or association of unit | ||||||
16 | owners for
the purpose of carrying out the duties, | ||||||
17 | responsibilities, and other
obligations necessary for the | ||||||
18 | day to day operation and management of any
property subject | ||||||
19 | to this Act. For purposes of this subsection, the term
| ||||||
20 | "fiduciary insurance coverage" shall be defined as both a | ||||||
21 | fidelity bond and
directors and officers liability | ||||||
22 | coverage, the fidelity bond in the full
amount of | ||||||
23 | association funds and association reserves that will be in | ||||||
24 | the
custody of the association, and the directors and | ||||||
25 | officers liability
coverage at a level as shall be | ||||||
26 | determined to be reasonable by the board of
managers, if |
| |||||||
| |||||||
1 | not otherwise established by the declaration or by laws.
| ||||||
2 | Until one year after September 21, 1985 (the effective | ||||||
3 | date of Public Act 84-722),
if a condominium association | ||||||
4 | has reserves plus assessments in excess of
$250,000 and | ||||||
5 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
6 | such
amount, then it must obtain a fidelity bond coverage | ||||||
7 | of $250,000.
| ||||||
8 | (h) Method of estimating the amount of the annual | ||||||
9 | budget, and the manner
of assessing and collecting from the | ||||||
10 | unit owners their respective shares of
such estimated | ||||||
11 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
12 | (i) That upon 10 days notice to the manager or board of | ||||||
13 | managers and
payment of a reasonable fee, any unit owner | ||||||
14 | shall be furnished a statement
of his account setting forth | ||||||
15 | the amount of any unpaid assessments or other
charges due | ||||||
16 | and owing from such owner.
| ||||||
17 | (j) Designation and removal of personnel necessary for | ||||||
18 | the maintenance,
repair and replacement of the common | ||||||
19 | elements.
| ||||||
20 | (k) Such restrictions on and requirements respecting | ||||||
21 | the use and
maintenance of the units and the use of the | ||||||
22 | common elements, not set forth
in the declaration, as are | ||||||
23 | designed to prevent unreasonable interference
with the use | ||||||
24 | of their respective units and of the common elements by the
| ||||||
25 | several unit owners.
| ||||||
26 | (l) Method of adopting and of amending administrative |
| |||||||
| |||||||
1 | rules and
regulations governing the operation and use of | ||||||
2 | the common elements.
| ||||||
3 | (m) The percentage of votes required to modify or amend | ||||||
4 | the bylaws, but
each one of the particulars set forth in | ||||||
5 | this section shall always be
embodied in the bylaws.
| ||||||
6 | (n)(i) The provisions of this Act, the declaration, | ||||||
7 | bylaws, other
condominium instruments, and rules and | ||||||
8 | regulations that relate to the use
of the individual unit | ||||||
9 | or the common elements shall be applicable to
any person | ||||||
10 | leasing a unit and shall be deemed to be incorporated in | ||||||
11 | any
lease executed or renewed on or after August 30, 1984 | ||||||
12 | (the effective date of Public Act 83-1271). | ||||||
13 | (ii) With regard to any lease entered into subsequent | ||||||
14 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
15 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
16 | signed lease to the board or if the
lease is oral, a | ||||||
17 | memorandum of the lease, not later than the date of
| ||||||
18 | occupancy or 10 days after the lease is signed, whichever | ||||||
19 | occurs first. In
addition to any other remedies, by filing | ||||||
20 | an action jointly against the
tenant and the unit owner, an | ||||||
21 | association may seek to enjoin a tenant from
occupying a | ||||||
22 | unit or seek to evict a tenant under the provisions of | ||||||
23 | Article
IX of the Code of Civil Procedure for failure of | ||||||
24 | the lessor-owner to
comply with the leasing requirements | ||||||
25 | prescribed by
this Section or by the declaration, bylaws, | ||||||
26 | and
rules and regulations. The board of managers may |
| |||||||
| |||||||
1 | proceed directly against a
tenant, at law or in equity, or | ||||||
2 | under the provisions of Article IX of the
Code of Civil | ||||||
3 | Procedure, for any other breach by tenant of any
covenants, | ||||||
4 | rules, regulations or bylaws.
| ||||||
5 | (o) The association shall have no authority to forbear | ||||||
6 | the payment
of assessments by any unit owner.
| ||||||
7 | (p) That when 30% or fewer of the units, by number,
| ||||||
8 | possess over 50% in the aggregate of the votes in the | ||||||
9 | association,
any percentage vote of members specified | ||||||
10 | herein or in the condominium
instruments shall require the | ||||||
11 | specified percentage by number of units
rather than by | ||||||
12 | percentage of interest in the common elements allocated
to | ||||||
13 | units that would otherwise be applicable and garage units | ||||||
14 | or storage units, or both, shall have, in total, no more | ||||||
15 | votes than their aggregate percentage of ownership in the | ||||||
16 | common elements; this shall mean that if garage units or | ||||||
17 | storage units, or both, are to be given a vote, or portion | ||||||
18 | of a vote, that the association must add the total number | ||||||
19 | of votes cast of garage units, storage units, or both, and | ||||||
20 | divide the total by the number of garage units, storage | ||||||
21 | units, or both, and multiply by the aggregate percentage of | ||||||
22 | ownership of garage units and storage units to determine | ||||||
23 | the vote, or portion of a vote, that garage units or | ||||||
24 | storage units, or both, have. For purposes of this | ||||||
25 | subsection (p), when making a determination of whether 30% | ||||||
26 | or fewer of the units, by number, possess over 50% in the |
| |||||||
| |||||||
1 | aggregate of the votes in the association, a unit shall not | ||||||
2 | include a garage unit or a storage unit.
| ||||||
3 | (q) That a unit owner may not assign, delegate, | ||||||
4 | transfer, surrender, or
avoid the duties, | ||||||
5 | responsibilities, and liabilities of a unit owner under | ||||||
6 | this
Act, the condominium instruments, or the rules and | ||||||
7 | regulations of the
Association; and that such an attempted | ||||||
8 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
9 | shall be deemed void.
| ||||||
10 | The provisions of this Section are applicable to all | ||||||
11 | condominium
instruments recorded under this Act. Any portion of | ||||||
12 | a condominium
instrument which contains provisions contrary to | ||||||
13 | these provisions shall be
void as against public policy and | ||||||
14 | ineffective. Any such instrument which
fails to contain the | ||||||
15 | provisions required by this Section shall be deemed to
| ||||||
16 | incorporate such provisions by operation of law.
| ||||||
17 | (Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16; | ||||||
18 | 99-567, eff. 1-1-17; 99-642, eff. 7-28-16 .)
| ||||||
19 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| ||||||
20 | Sec. 18.5. Master Associations.
| ||||||
21 | (a) If the declaration, other condominium instrument, or | ||||||
22 | other duly
recorded covenants provide that any of the powers of | ||||||
23 | the unit owners
associations are to be exercised by or may be | ||||||
24 | delegated to a nonprofit
corporation or unincorporated | ||||||
25 | association that exercises
those or other powers on behalf of |
| |||||||
| |||||||
1 | one or more condominiums, or for the
benefit of the unit owners | ||||||
2 | of one or more condominiums, such
corporation or association | ||||||
3 | shall be a master association.
| ||||||
4 | (b) There shall be included in the declaration, other
| ||||||
5 | condominium instruments, or other duly recorded covenants | ||||||
6 | establishing
the powers and duties of the master association | ||||||
7 | the provisions set forth in
subsections (c) through (h).
| ||||||
8 | In interpreting subsections (c) through (h), the courts | ||||||
9 | should
interpret these provisions so that they are interpreted | ||||||
10 | consistently with
the similar parallel provisions found in | ||||||
11 | other parts of this Act.
| ||||||
12 | (c) Meetings and finances.
| ||||||
13 | (1) Each unit owner of a condominium subject to the | ||||||
14 | authority of
the board of the master association shall | ||||||
15 | receive, at least 30 days prior
to the adoption thereof by | ||||||
16 | the board of the master association, a copy of
the proposed | ||||||
17 | annual budget.
| ||||||
18 | (2) The board of the master association shall annually | ||||||
19 | supply to
all unit owners of condominiums subject to the | ||||||
20 | authority of the board
of the master association an | ||||||
21 | itemized accounting of the common
expenses for the | ||||||
22 | preceding year actually incurred or paid, together with a
| ||||||
23 | tabulation of the amounts collected pursuant to the budget | ||||||
24 | or assessment,
and showing the net excess or deficit of | ||||||
25 | income over expenditures plus
reserves.
| ||||||
26 | (3) Each unit owner of a condominium subject to the |
| |||||||
| |||||||
1 | authority of
the board of the master association shall | ||||||
2 | receive written notice mailed
or delivered no less than 10 | ||||||
3 | and no more than 30 days prior to any meeting
of the board | ||||||
4 | of the master association concerning the adoption of the | ||||||
5 | proposed
annual budget or any increase in the budget, or | ||||||
6 | establishment of an
assessment.
| ||||||
7 | (4) Meetings of the board of the master association | ||||||
8 | shall be open
to any unit owner in a condominium subject to | ||||||
9 | the authority of the board
of the master association, | ||||||
10 | except for the portion of any meeting held:
| ||||||
11 | (A) to discuss litigation when an action against or | ||||||
12 | on behalf of the
particular master association has been | ||||||
13 | filed and is pending in a court or
administrative | ||||||
14 | tribunal, or when the board of the master association | ||||||
15 | finds
that such an action is probable or imminent,
| ||||||
16 | (B) to consider information regarding appointment, | ||||||
17 | employment or
dismissal of an employee, or
| ||||||
18 | (C) to discuss violations of rules and regulations | ||||||
19 | of the master
association or unpaid common expenses | ||||||
20 | owed to the master association.
| ||||||
21 | Any vote on these matters shall be taken at a meeting or | ||||||
22 | portion thereof
open to any unit owner of a condominium | ||||||
23 | subject to the authority of the
master association.
| ||||||
24 | Any unit owner may record the proceedings at meetings | ||||||
25 | required
to be open by this Act by tape, film or other | ||||||
26 | means; the board may
prescribe reasonable rules and |
| |||||||
| |||||||
1 | regulations to govern the right to make such
recordings. | ||||||
2 | Notice of meetings shall be mailed or delivered at least 48
| ||||||
3 | hours prior thereto, unless a written waiver of such notice | ||||||
4 | is signed by
the persons entitled to notice before the | ||||||
5 | meeting is convened. Copies of
notices of meetings of the | ||||||
6 | board of the master association shall be posted
in | ||||||
7 | entranceways, elevators, or other conspicuous places in | ||||||
8 | the condominium
at least 48 hours prior to the meeting of | ||||||
9 | the board of the master
association. Where there is no | ||||||
10 | common entranceway for 7 or more units, the
board of the | ||||||
11 | master association may designate one or more locations in | ||||||
12 | the
proximity of these units where the notices of meetings | ||||||
13 | shall be posted.
| ||||||
14 | (5) If the declaration provides for election by unit | ||||||
15 | owners of members
of the board of directors in the event of | ||||||
16 | a resale of a unit in the master
association, the purchaser | ||||||
17 | of a unit from a seller other than the developer
pursuant | ||||||
18 | to an installment sales contract for purchase shall, during | ||||||
19 | such
times as he or she resides in the unit, be counted | ||||||
20 | toward a quorum for
purposes of election of members of the | ||||||
21 | board of directors at any
meeting of the unit owners called | ||||||
22 | for purposes of electing members of the
board, and shall | ||||||
23 | have the right to vote for the election of members of
the | ||||||
24 | board of directors and to be elected to and serve on the | ||||||
25 | board of
directors unless the seller expressly retains in | ||||||
26 | writing
any or all of those rights. In no event may the |
| |||||||
| |||||||
1 | seller and
purchaser both be counted toward a quorum, be | ||||||
2 | permitted to vote for a
particular office, or be elected | ||||||
3 | and serve on the board. Satisfactory
evidence of the | ||||||
4 | installment sales contract shall be made available to the
| ||||||
5 | association or its agents. For purposes of this subsection, | ||||||
6 | "installment sales
contract" shall have the same meaning as | ||||||
7 | set forth in Section 5 of the Installment Sales Contract | ||||||
8 | Act subsection (e) of
Section 1 of the Dwelling Unit | ||||||
9 | Installment Contract Act .
| ||||||
10 | (6) The board of the master association shall have the | ||||||
11 | authority to
establish and maintain a system of master | ||||||
12 | metering of public utility
services and to collect payments | ||||||
13 | in connection therewith, subject to the
requirements of the | ||||||
14 | Tenant Utility Payment Disclosure Act.
| ||||||
15 | (7) The board of the master association or a common | ||||||
16 | interest community
association shall have the power, after | ||||||
17 | notice and an opportunity to be heard,
to levy and collect | ||||||
18 | reasonable fines from members for violations of the
| ||||||
19 | declaration, bylaws, and rules and regulations of the | ||||||
20 | master association or
the common interest community | ||||||
21 | association. Nothing contained in this
subdivision (7) | ||||||
22 | shall give rise to a statutory lien for unpaid fines.
| ||||||
23 | (8) Other than attorney's fees, no fees pertaining to | ||||||
24 | the collection of a unit owner's financial obligation to | ||||||
25 | the Association, including fees charged by a manager or | ||||||
26 | managing agent, shall be added to and deemed a part of an |
| |||||||
| |||||||
1 | owner's respective share of the common expenses unless: (i) | ||||||
2 | the managing agent fees relate to the costs to collect | ||||||
3 | common expenses for the Association; (ii) the fees are set | ||||||
4 | forth in a contract between the managing agent and the | ||||||
5 | Association; and (iii) the authority to add the management | ||||||
6 | fees to an owner's respective share of the common expenses | ||||||
7 | is specifically stated in the declaration or bylaws of the | ||||||
8 | Association. | ||||||
9 | (d) Records.
| ||||||
10 | (1) The board of the master association shall maintain | ||||||
11 | the following
records of the association and make them | ||||||
12 | available for examination and
copying at convenient hours | ||||||
13 | of weekdays by any unit owners in a condominium
subject to | ||||||
14 | the authority of the board or their mortgagees and their | ||||||
15 | duly
authorized agents or attorneys:
| ||||||
16 | (i) Copies of the recorded declaration, other | ||||||
17 | condominium instruments,
other duly recorded covenants | ||||||
18 | and bylaws and any amendments, articles of
| ||||||
19 | incorporation of the master association, annual | ||||||
20 | reports and any rules and
regulations adopted by the | ||||||
21 | master association or its board shall
be available. | ||||||
22 | Prior to the organization of the master association, | ||||||
23 | the
developer shall maintain and make available the | ||||||
24 | records set forth in this
subdivision (d)(1) for | ||||||
25 | examination and copying.
| ||||||
26 | (ii) Detailed and accurate records in |
| |||||||
| |||||||
1 | chronological order of the
receipts and expenditures | ||||||
2 | affecting the common areas, specifying and
itemizing | ||||||
3 | the maintenance and repair expenses of the common areas | ||||||
4 | and any
other expenses incurred, and copies of all | ||||||
5 | contracts, leases, or other
agreements entered into by | ||||||
6 | the master association, shall be maintained.
| ||||||
7 | (iii) The minutes of all meetings of the master | ||||||
8 | association and the
board of the master association | ||||||
9 | shall be maintained for not less than 7 years.
| ||||||
10 | (iv) Ballots and proxies related thereto, if any, | ||||||
11 | for any election
held for the board of the master | ||||||
12 | association and for any other matters
voted on by the | ||||||
13 | unit owners shall be maintained for
not less than one | ||||||
14 | year.
| ||||||
15 | (v) Such other records of the master association as | ||||||
16 | are available
for inspection by members of a | ||||||
17 | not-for-profit corporation pursuant to
Section 107.75 | ||||||
18 | of the General Not For Profit Corporation Act of 1986 | ||||||
19 | shall
be maintained.
| ||||||
20 | (vi) With respect to units owned by a land trust, | ||||||
21 | if a trustee
designates in writing a person to cast | ||||||
22 | votes on behalf of the unit
owner, the designation | ||||||
23 | shall remain in effect until a subsequent document
is | ||||||
24 | filed with the association.
| ||||||
25 | (2) Where a request for records under this subsection | ||||||
26 | is made in writing
to the board of managers or its agent, |
| |||||||
| |||||||
1 | failure to provide the requested
record or to respond | ||||||
2 | within 30 days shall be deemed a denial by the board
of | ||||||
3 | directors.
| ||||||
4 | (3) A reasonable fee may be charged by the master | ||||||
5 | association or its
board for the cost of copying.
| ||||||
6 | (4) If the board of directors fails to provide records | ||||||
7 | properly
requested under subdivision (d)(1) within the
| ||||||
8 | time period provided in subdivision (d)(2), the
unit owner | ||||||
9 | may seek appropriate relief, including an award of
| ||||||
10 | attorney's fees and costs.
| ||||||
11 | (e) The board of directors shall have standing and capacity | ||||||
12 | to act in
a representative capacity in relation to matters | ||||||
13 | involving the common areas
of the master association or more | ||||||
14 | than one unit, on behalf of the unit
owners as their interests | ||||||
15 | may appear.
| ||||||
16 | (f) Administration of property prior to election of the | ||||||
17 | initial board
of directors.
| ||||||
18 | (1) Until the election, by the unit owners or the | ||||||
19 | boards of
managers of the underlying condominium | ||||||
20 | associations, of the initial board
of directors of a master | ||||||
21 | association whose declaration is recorded on
or after | ||||||
22 | August 10, 1990, the same rights, titles, powers, | ||||||
23 | privileges,
trusts, duties and obligations that are vested | ||||||
24 | in or imposed upon the board
of directors by this Act or in | ||||||
25 | the declaration or other duly recorded
covenant shall be | ||||||
26 | held and performed by the developer.
|
| |||||||
| |||||||
1 | (2) The election of the initial board of directors of a | ||||||
2 | master
association whose declaration is recorded on or | ||||||
3 | after August 10, 1990, by
the unit owners or the boards of | ||||||
4 | managers of the underlying condominium
associations, shall | ||||||
5 | be held not later than 60 days after the conveyance by
the | ||||||
6 | developer of 75% of the units, or 3 years after the | ||||||
7 | recording of the
declaration, whichever is earlier. The | ||||||
8 | developer shall give at least 21
days notice of the meeting | ||||||
9 | to elect the initial board of directors and
shall upon | ||||||
10 | request provide to any unit owner, within 3 working days of | ||||||
11 | the
request, the names, addresses, and weighted vote of | ||||||
12 | each unit owner entitled to vote at the
meeting. Any unit | ||||||
13 | owner shall upon receipt of the request be provided with
| ||||||
14 | the same
information, within 10 days of the request, with | ||||||
15 | respect to
each
subsequent meeting to elect members of the | ||||||
16 | board of directors.
| ||||||
17 | (3) If the initial board of directors of a master | ||||||
18 | association
whose declaration is recorded on or after | ||||||
19 | August 10, 1990 is not elected by
the unit owners or the | ||||||
20 | members of the underlying condominium association
board of | ||||||
21 | managers at the time established in subdivision (f)(2), the
| ||||||
22 | developer shall continue in office for a period of 30 days, | ||||||
23 | whereupon
written notice of his resignation shall be sent | ||||||
24 | to all of the unit owners
or members of the underlying | ||||||
25 | condominium board of managers entitled to vote
at an | ||||||
26 | election for members of the board of directors.
|
| |||||||
| |||||||
1 | (4) Within 60 days following the election of a majority | ||||||
2 | of the board
of directors, other than the developer, by | ||||||
3 | unit owners, the developer shall
deliver to the board of | ||||||
4 | directors:
| ||||||
5 | (i) All original documents as recorded or filed | ||||||
6 | pertaining to the
property, its administration, and | ||||||
7 | the association, such as the declaration,
articles of | ||||||
8 | incorporation, other instruments, annual reports, | ||||||
9 | minutes,
rules and regulations, and contracts, leases, | ||||||
10 | or other
agreements entered into by the association. If | ||||||
11 | any original documents are
unavailable, a copy may be | ||||||
12 | provided if certified by affidavit of the
developer, or | ||||||
13 | an officer or agent of the developer, as being a | ||||||
14 | complete
copy of the actual document recorded or filed.
| ||||||
15 | (ii) A detailed accounting by the developer, | ||||||
16 | setting forth the
source and nature of receipts and | ||||||
17 | expenditures in connection with the
management, | ||||||
18 | maintenance and operation of the property, copies
of | ||||||
19 | all insurance policies, and a list of any loans or | ||||||
20 | advances to the
association which are outstanding.
| ||||||
21 | (iii) Association funds, which shall have been at | ||||||
22 | all times
segregated from any other moneys of the | ||||||
23 | developer.
| ||||||
24 | (iv) A schedule of all real or personal property, | ||||||
25 | equipment and
fixtures belonging to the association, | ||||||
26 | including documents transferring the
property, |
| |||||||
| |||||||
1 | warranties, if any, for all real and personal property | ||||||
2 | and
equipment, deeds, title insurance policies, and | ||||||
3 | all tax bills.
| ||||||
4 | (v) A list of all litigation, administrative | ||||||
5 | action and arbitrations
involving the association, any | ||||||
6 | notices of governmental bodies involving
actions taken | ||||||
7 | or which may be taken concerning the association, | ||||||
8 | engineering and
architectural drawings and | ||||||
9 | specifications as approved by any governmental
| ||||||
10 | authority, all other documents filed with any other | ||||||
11 | governmental authority,
all governmental certificates, | ||||||
12 | correspondence involving enforcement of any
| ||||||
13 | association requirements, copies of any documents | ||||||
14 | relating to disputes
involving unit owners, and | ||||||
15 | originals of all documents relating to
everything | ||||||
16 | listed in this subparagraph.
| ||||||
17 | (vi) If the developer fails to fully comply with | ||||||
18 | this paragraph (4)
within
the 60 days
provided and | ||||||
19 | fails to fully comply within 10 days of written demand | ||||||
20 | mailed by
registered
or certified mail to his or her | ||||||
21 | last known address, the board may bring an
action to
| ||||||
22 | compel compliance with this paragraph (4).
If the court | ||||||
23 | finds that any of the
required
deliveries were not made | ||||||
24 | within the required period, the board shall be
entitled | ||||||
25 | to recover
its reasonable attorneys' fees and costs | ||||||
26 | incurred from and after the date of
expiration of
the |
| |||||||
| |||||||
1 | 10 day demand.
| ||||||
2 | (5) With respect to any master association whose | ||||||
3 | declaration is
recorded on or after August 10, 1990, any | ||||||
4 | contract, lease, or other
agreement made prior to the | ||||||
5 | election of a majority of the board of
directors other than | ||||||
6 | the developer by or on behalf of unit owners or
underlying | ||||||
7 | condominium associations, the association or the board of
| ||||||
8 | directors, which extends for a period of more than 2 years | ||||||
9 | from the
recording of the declaration, shall be subject to | ||||||
10 | cancellation by more than
1/2 of the votes of the unit | ||||||
11 | owners, other than the developer, cast at a
special meeting | ||||||
12 | of members called for that purpose during a period of 90
| ||||||
13 | days prior to the expiration of the 2 year period if the | ||||||
14 | board of managers
is elected by the unit owners, otherwise | ||||||
15 | by more than 1/2 of the underlying
condominium board of | ||||||
16 | managers. At least 60 days prior to the expiration of
the 2 | ||||||
17 | year period, the board of directors, or, if the board is | ||||||
18 | still under
developer control, then the board of managers | ||||||
19 | or the developer shall send
notice to every unit owner or | ||||||
20 | underlying condominium board of managers,
notifying them | ||||||
21 | of this provision, of what contracts, leases and other
| ||||||
22 | agreements are affected, and of the procedure for calling a | ||||||
23 | meeting of the
unit owners or for action by the underlying | ||||||
24 | condominium board of managers
for the purpose of acting to | ||||||
25 | terminate such contracts, leases or other
agreements. | ||||||
26 | During the 90 day period the other party to the contract,
|
| |||||||
| |||||||
1 | lease, or other agreement shall also have the right of | ||||||
2 | cancellation.
| ||||||
3 | (6) The statute of limitations for any actions in law | ||||||
4 | or equity which
the master association may bring shall not | ||||||
5 | begin to run until the unit
owners or underlying | ||||||
6 | condominium board of managers have elected a majority
of | ||||||
7 | the members of the board of directors.
| ||||||
8 | (g) In the event of any resale of a unit in a master | ||||||
9 | association by a unit
owner other than the developer, the owner | ||||||
10 | shall obtain from
the board of directors and shall make | ||||||
11 | available for inspection to the
prospective purchaser, upon | ||||||
12 | demand, the following:
| ||||||
13 | (1) A copy of the declaration, other instruments and | ||||||
14 | any rules and
regulations.
| ||||||
15 | (2) A statement of any liens, including a statement of | ||||||
16 | the account of
the unit setting forth the amounts of unpaid | ||||||
17 | assessments and other charges
due and owing.
| ||||||
18 | (3) A statement of any capital expenditures | ||||||
19 | anticipated by the
association within the current or | ||||||
20 | succeeding 2 fiscal years.
| ||||||
21 | (4) A statement of the status and amount of any reserve | ||||||
22 | for
replacement fund and any portion of such fund earmarked | ||||||
23 | for any specified
project by the board of directors.
| ||||||
24 | (5) A copy of the statement of financial condition of | ||||||
25 | the association
for the last fiscal year for which such a | ||||||
26 | statement is available.
|
| |||||||
| |||||||
1 | (6) A statement of the status of any pending suits or | ||||||
2 | judgments in which
the association is a party.
| ||||||
3 | (7) A statement setting forth what insurance coverage | ||||||
4 | is provided for
all unit owners by the association.
| ||||||
5 | (8) A statement that any improvements or alterations | ||||||
6 | made to the unit,
or any part of the common areas assigned | ||||||
7 | thereto, by the prior unit owner
are in good faith believed | ||||||
8 | to be in compliance with the declaration of the
master | ||||||
9 | association.
| ||||||
10 | The principal officer of the unit owner's association or | ||||||
11 | such
other officer as is specifically designated shall furnish | ||||||
12 | the above
information when requested to do so in writing, | ||||||
13 | within
30 days of receiving the request.
| ||||||
14 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
15 | copying
and providing such information may be charged
by the | ||||||
16 | association or its board of directors to the unit
seller for | ||||||
17 | providing the information.
| ||||||
18 | (g-1) The purchaser of a unit of a common interest | ||||||
19 | community at a judicial foreclosure sale, other than a | ||||||
20 | mortgagee, who takes possession of a unit of a common interest | ||||||
21 | community pursuant to a court order or a purchaser who acquires | ||||||
22 | title from a mortgagee shall have the duty to pay the | ||||||
23 | proportionate share, if any, of the common expenses for the | ||||||
24 | unit that would have become due in the absence of any | ||||||
25 | assessment acceleration during the 6 months immediately | ||||||
26 | preceding institution of an action to enforce the collection of |
| |||||||
| |||||||
1 | assessments and the court costs incurred by the association in | ||||||
2 | an action to enforce the collection that remain unpaid by the | ||||||
3 | owner during whose possession the assessments accrued. If the | ||||||
4 | outstanding assessments and the court costs incurred by the | ||||||
5 | association in an action to enforce the collection are paid at | ||||||
6 | any time during any action to enforce the collection of | ||||||
7 | assessments, the purchaser shall have no obligation to pay any | ||||||
8 | assessments that accrued before he or she acquired title. The | ||||||
9 | notice of sale of a unit of a common interest community under | ||||||
10 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
11 | Procedure shall state that the purchaser of the unit other than | ||||||
12 | a mortgagee shall pay the assessments and court costs required | ||||||
13 | by this subsection (g-1).
| ||||||
14 | (h) Errors and omissions.
| ||||||
15 | (1) If there is an omission or error in the declaration | ||||||
16 | or other
instrument of the master association, the master | ||||||
17 | association may correct
the error or omission by an | ||||||
18 | amendment to the declaration or other
instrument, as may be | ||||||
19 | required to conform it to this Act, to any other
applicable | ||||||
20 | statute, or to the declaration. The amendment shall be | ||||||
21 | adopted
by vote of two-thirds of the members of the board | ||||||
22 | of directors or by a
majority vote of the unit owners at a | ||||||
23 | meeting called for that purpose,
unless the Act or the | ||||||
24 | declaration of the master association specifically
| ||||||
25 | provides for greater percentages or different procedures.
| ||||||
26 | (2) If, through a scrivener's error, a unit has not |
| |||||||
| |||||||
1 | been
designated as owning an appropriate undivided share of | ||||||
2 | the common areas
or does not bear an appropriate share of | ||||||
3 | the common expenses, or if
all of the common expenses or | ||||||
4 | all of the common elements in
the condominium have not been | ||||||
5 | distributed in the declaration, so that the
sum total of | ||||||
6 | the shares of common areas which have been distributed or | ||||||
7 | the
sum total of the shares of the common expenses fail to | ||||||
8 | equal 100%, or if it
appears that more than 100% of the | ||||||
9 | common elements or common expenses have
been distributed, | ||||||
10 | the error may be corrected by operation of law by filing
an | ||||||
11 | amendment to the declaration, approved by vote of | ||||||
12 | two-thirds of the
members of the board of directors or a | ||||||
13 | majority vote of the unit owners at
a meeting called for | ||||||
14 | that purpose, which proportionately
adjusts all percentage | ||||||
15 | interests so that the total is equal to 100%,
unless the | ||||||
16 | declaration specifically provides for a different | ||||||
17 | procedure or
different percentage vote by the owners of the | ||||||
18 | units and the owners of
mortgages thereon affected by | ||||||
19 | modification being made in the undivided
interest in the | ||||||
20 | common areas, the number of votes in the unit owners
| ||||||
21 | association or the liability for common expenses | ||||||
22 | appertaining to the unit.
| ||||||
23 | (3) If an omission or error or a scrivener's error in | ||||||
24 | the
declaration or other instrument is corrected by vote of | ||||||
25 | two-thirds of
the members of the board of directors | ||||||
26 | pursuant to the authority established
in subdivisions |
| |||||||
| |||||||
1 | (h)(1) or (h)(2) of this Section, the board, upon
written | ||||||
2 | petition by unit owners with 20% of the votes of the | ||||||
3 | association or
resolutions adopted by the board of managers | ||||||
4 | or board of directors of the
condominium and common | ||||||
5 | interest community associations which select 20% of
the | ||||||
6 | members of the board of directors of the master | ||||||
7 | association, whichever
is applicable, received within 30 | ||||||
8 | days of the board action, shall call a
meeting of the unit | ||||||
9 | owners or the boards of the condominium and common
interest | ||||||
10 | community associations which select members of the board of
| ||||||
11 | directors of the master association within 30 days of the | ||||||
12 | filing of the
petition or receipt of the condominium and | ||||||
13 | common interest community
association resolution to | ||||||
14 | consider the board action. Unless a majority of
the votes | ||||||
15 | of the unit owners of the association are cast at the | ||||||
16 | meeting to
reject the action, or board of managers or board | ||||||
17 | of directors of
condominium and common interest community | ||||||
18 | associations which select over
50% of the members of the | ||||||
19 | board of the master association adopt resolutions
prior to | ||||||
20 | the meeting rejecting the action of the board of directors | ||||||
21 | of the
master association, it is ratified whether or not a | ||||||
22 | quorum is present.
| ||||||
23 | (4) The procedures for amendments set forth in this | ||||||
24 | subsection (h)
cannot be used if such an amendment would | ||||||
25 | materially or adversely affect
property rights of the unit | ||||||
26 | owners unless the affected unit owners consent
in writing. |
| |||||||
| |||||||
1 | This Section does not restrict the powers of the | ||||||
2 | association
to otherwise amend the declaration, bylaws, or | ||||||
3 | other condominium
instruments, but authorizes a simple | ||||||
4 | process of amendment requiring a
lesser vote for the | ||||||
5 | purpose of correcting defects, errors, or omissions
when | ||||||
6 | the property rights of the unit owners are not materially | ||||||
7 | or adversely
affected.
| ||||||
8 | (5) If there is an omission or error in the declaration | ||||||
9 | or other
instruments that may not be corrected by an | ||||||
10 | amendment procedure
set forth in subdivision (h)(1) or | ||||||
11 | (h)(2) of this Section, then
the circuit court in the | ||||||
12 | county in which the master
association is located shall | ||||||
13 | have jurisdiction to hear a petition of one or
more of the | ||||||
14 | unit owners thereon or of the association, to correct the | ||||||
15 | error
or omission, and the action may be a class action. | ||||||
16 | The court may require
that one or more methods of | ||||||
17 | correcting the error or omission be submitted
to the unit | ||||||
18 | owners to determine the most acceptable correction. All | ||||||
19 | unit
owners in the association must be joined as parties to | ||||||
20 | the action. Service
of process on owners may be by | ||||||
21 | publication, but the plaintiff shall furnish
all unit | ||||||
22 | owners not personally served with process with copies of | ||||||
23 | the
petition and final judgment of the court by certified | ||||||
24 | mail, return receipt
requested, at their last known | ||||||
25 | address.
| ||||||
26 | (6) Nothing contained in this Section shall be |
| |||||||
| |||||||
1 | construed to invalidate
any provision of a declaration | ||||||
2 | authorizing the developer to amend
an instrument prior to | ||||||
3 | the latest date on which the initial
membership meeting of | ||||||
4 | the unit owners must be held, whether or not it has
| ||||||
5 | actually been held, to bring the instrument into compliance | ||||||
6 | with the legal
requirements of the Federal National | ||||||
7 | Mortgage Association, the Federal Home
Loan Mortgage | ||||||
8 | Corporation, the Federal Housing Administration, the | ||||||
9 | United
States Veterans Administration or their respective | ||||||
10 | successors and assigns.
| ||||||
11 | (i) The provisions of subsections (c) through (h) are | ||||||
12 | applicable
to all declarations, other condominium instruments, | ||||||
13 | and other
duly recorded covenants establishing the powers and | ||||||
14 | duties of the master
association recorded under this Act. Any | ||||||
15 | portion of a declaration,
other condominium instrument, or | ||||||
16 | other duly recorded covenant establishing
the powers and duties | ||||||
17 | of a master association which contains provisions
contrary to | ||||||
18 | the provisions of subsection (c) through (h) shall be void as
| ||||||
19 | against public policy and ineffective. Any declaration, other | ||||||
20 | condominium
instrument, or other duly recorded covenant | ||||||
21 | establishing the powers and
duties of the master association | ||||||
22 | which fails to contain the provisions
required by subsections | ||||||
23 | (c) through (h) shall be deemed to incorporate such
provisions | ||||||
24 | by operation of law.
| ||||||
25 | (j) (Blank).
| ||||||
26 | (Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12; |
| |||||||
| |||||||
1 | 97-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
| ||||||
2 | (765 ILCS 70/Act rep.)
| ||||||
3 | Section 915. The Dwelling Structure Contract Act is | ||||||
4 | repealed.
| ||||||
5 | (765 ILCS 75/Act rep.)
| ||||||
6 | Section 920. The Dwelling Unit Installment Contract Act is | ||||||
7 | repealed.
| ||||||
8 | Section 925. The Consumer Fraud and Deceptive Business | ||||||
9 | Practices Act is amended by changing Section 2Z as follows:
| ||||||
10 | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| ||||||
11 | Sec. 2Z. Violations of other Acts. Any person who knowingly | ||||||
12 | violates
the Automotive Repair Act, the Automotive Collision | ||||||
13 | Repair Act,
the Home Repair and Remodeling Act,
the Dance | ||||||
14 | Studio Act,
the Physical Fitness Services Act,
the Hearing | ||||||
15 | Instrument Consumer Protection Act,
the Illinois Union Label | ||||||
16 | Act, the Installment Sales Contract Act,
the Job Referral and | ||||||
17 | Job Listing Services Consumer Protection Act,
the Travel | ||||||
18 | Promotion Consumer Protection Act,
the Credit Services | ||||||
19 | Organizations Act,
the Automatic Telephone Dialers Act,
the | ||||||
20 | Pay-Per-Call Services Consumer Protection Act,
the Telephone | ||||||
21 | Solicitations Act,
the Illinois Funeral or Burial Funds Act,
| ||||||
22 | the Cemetery Oversight Act, the Cemetery Care Act,
the Safe and |
| |||||||
| |||||||
1 | Hygienic Bed Act,
the Pre-Need Cemetery Sales Act,
the High | ||||||
2 | Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage | ||||||
3 | Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the
| ||||||
4 | Cigarette Tax Act, subsection
(a) or (b) of Section 3-10 of the | ||||||
5 | Cigarette Use Tax Act, the Electronic
Mail Act, the Internet | ||||||
6 | Caller Identification Act, paragraph (6)
of
subsection (k) of | ||||||
7 | Section 6-305 of the Illinois Vehicle Code, Section 11-1431, | ||||||
8 | 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the | ||||||
9 | Illinois Vehicle Code, Article 3 of the Residential Real | ||||||
10 | Property Disclosure Act, the Automatic Contract Renewal Act, | ||||||
11 | the Reverse Mortgage Act, Section 25 of the Youth Mental Health | ||||||
12 | Protection Act, or the Personal Information Protection Act | ||||||
13 | commits an unlawful practice within the meaning of this Act.
| ||||||
14 | (Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642, | ||||||
15 | eff. 7-28-16.)
| ||||||
16 | Section 999. Effective date. This Act takes effect January | ||||||
17 | 1, 2018.".
|