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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Code of Civil Procedure is amended by |
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| changing Section 15-1507 as follows:
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| (735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
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| Sec. 15-1507. Judicial Sale.
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| (a) In General. Except as provided in
Sections 15-1402 and |
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| 15-1403, upon entry of a judgment of foreclosure, the
real |
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| estate which is the subject of the judgment shall be sold at a
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| judicial sale in accordance with this Section 15-1507.
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| (b) Sale Procedures. Upon expiration of the reinstatement |
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| period and
the redemption period in accordance with subsection |
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| (b) or (c) of Section
15-1603 or upon the entry of a judgment |
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| of foreclosure after the waiver of
all rights of redemption, |
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| except as provided in subsection (g) of Section
15-1506, the |
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| real estate shall be sold at a sale as provided in this
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| Article, on such terms and conditions as shall be specified by |
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| the court in
the judgment of foreclosure. A sale may be |
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| conducted by any judge or sheriff.
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| (c) Notice of Sale. The mortgagee, or such other party |
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| designated by the
court, in a foreclosure under this Article |
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| shall give public notice of the
sale as follows:
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| (1) The notice of sale shall include at least the |
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| following information,
but an immaterial error in the |
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| information shall not invalidate the legal
effect of the |
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| notice:
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| (A) the name, address and telephone number of the |
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| person to contact for
information regarding the real |
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| estate;
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| (B) the common address and other common |
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| description (other than legal
description), if any, of |
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| the real estate;
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| (C) a legal description of the real estate |
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| sufficient to identify it with
reasonable certainty;
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| (D) a description of the improvements on the real |
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| estate;
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| (E) the times specified in the judgment, if any, |
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| when the real estate
may be inspected prior to sale;
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| (F) the time and place of the sale;
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| (G) the terms of the sale;
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| (H) the case title, case number and the court in |
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| which
the foreclosure was filed;
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| (H-1) in the case of a condominium unit to which |
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| subsection (g) of Section 9 of the Condominium Property |
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| Act applies, the statement required by subdivision |
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| (g)(5) of Section 9 of the Condominium Property Act; |
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| and
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| (H-2) in the case of a unit of a common interest |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| community to which subsection (g-1) of Section 18.5 of |
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| the Condominium Property Act applies, the statement |
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| required by subdivision (g-1) of Section 18.5 of the |
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| Condominium Property Act; and
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| (I) such other information ordered by the Court.
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| (2) The notice of sale shall be published at least 3 |
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| consecutive
calendar weeks (Sunday through Saturday), once |
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| in each week, the first such
notice to be published not |
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| more than 45 days prior to the sale, the last
such notice |
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| to be published not less than 7 days prior to the sale, by:
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| (i) (A) advertisements in a newspaper circulated to the |
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| general public
in the county in which the real estate is |
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| located, in the section of that
newspaper where legal |
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| notices are commonly placed and (B) separate
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| advertisements in the section of such a newspaper, which |
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| (except in
counties with a population in excess of |
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| 3,000,000) may be the same
newspaper, in which real estate |
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| other than real estate being sold as part of
legal |
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| proceedings is commonly advertised to the general public; |
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| provided,
that the separate advertisements in the real |
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| estate section need not
include a legal description and |
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| that where both advertisements could be
published in the |
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| same newspaper and that newspaper does not have separate
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| legal notices and real estate advertisement sections, a |
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| single
advertisement with the legal description shall be |
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| sufficient; and
(ii) such other publications as may be |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| further ordered by the court.
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| (3) The party who gives notice of public sale in |
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| accordance with
subsection (c) of Section 15-1507 shall |
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| also give notice to all parties in
the action who have |
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| appeared and have not theretofore been found by the
court |
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| to be in default for failure to plead. Such notice shall be |
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| given in
the manner provided in the applicable rules of |
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| court for service of papers
other than process and |
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| complaint, not more than 45 days nor less
than 7
days prior |
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| to the day of sale. After notice is given as required in |
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| this
Section a copy thereof shall be filed in the office of |
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| the clerk of the
court entering the judgment, together with |
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| a certificate of counsel or
other proof that notice has |
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| been served in compliance with this Section.
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| (4) The party who gives notice of public sale in |
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| accordance with
subsection (c) of Section 15-1507 shall |
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| again give notice in accordance
with that Section of any |
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| adjourned sale; provided, however, that if the
adjourned |
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| sale is to occur less than 60 days after the last scheduled |
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| sale,
notice of any adjourned sale need not be given |
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| pursuant to this
Section. In the event of adjournment, the
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| person conducting the sale shall, upon adjournment, |
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| announce the date, time
and place upon which the adjourned |
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| sale shall be held. Notwithstanding any
language to the |
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| contrary, for any adjourned sale that is to be conducted
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| more than 60 days after the date on which it was to first |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| be held, the
party giving notice of such sale shall again |
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| give notice in accordance with
this Section.
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| (5) Notice of the sale may be given prior to the |
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| expiration of any
reinstatement period or redemption |
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| period.
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| (6) No other notice by publication or posting shall be |
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| necessary unless
required by order or rule of the court.
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| (7) The person named in the notice of sale to be |
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| contacted for
information about the real estate may, but |
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| shall not be required, to
provide additional information |
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| other than that set forth in the notice of sale.
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| (d) Election of Property. If the real estate which is the |
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| subject of a
judgment of foreclosure is susceptible of |
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| division, the court may order it to be sold
as necessary to |
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| satisfy the judgment. The court shall determine which real
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| estate shall be sold, and the court may determine the order in |
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| which
separate tracts may be sold.
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| (e) Receipt upon Sale.
Upon and at the sale
of mortgaged |
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| real estate, the person conducting the sale shall give to
the |
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| purchaser a receipt of sale. The receipt shall describe the |
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| real
estate purchased and shall show the amount bid, the amount |
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| paid, the
total amount paid to
date and the amount still to be |
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| paid therefor. An
additional receipt shall be given at the time |
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| of each subsequent
payment.
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| (f) Certificate of Sale. Upon
payment in full of the amount |
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| bid, the person conducting
the sale shall issue, in duplicate, |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| and give to the purchaser a Certificate
of Sale. The |
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| Certificate of Sale shall be in a recordable form, describe
the |
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| real estate purchased, indicate the date and place of sale and |
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| show the
amount paid therefor. The Certificate of Sale shall |
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| further indicate that
it is subject to confirmation by the |
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| court. The duplicate certificate may
be recorded in accordance |
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| with Section 12-121. The Certificate of Sale
shall be freely |
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| assignable by endorsement thereon.
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| (g) Interest after Sale. Any bid at sale shall be deemed to |
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| include,
without the necessity of a court order, interest at |
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| the statutory judgment
rate on any unpaid portion of the sale |
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| price from the date of sale to the
date of payment.
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| (Source: P.A. 94-1049, eff. 1-1-07.)
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| Section 10. The Condominium Property Act is amended by |
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| changing Section 18.5 as follows:
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| (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
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| Sec. 18.5. Master Associations.
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| (a) If the declaration, other condominium instrument, or |
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| other duly
recorded covenants provide that any of the powers of |
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| the unit owners
associations are to be exercised by or may be |
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| delegated to a nonprofit
corporation or unincorporated |
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| association that exercises
those or other powers on behalf of |
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| one or more condominiums, or for the
benefit of the unit owners |
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| of one or more condominiums, such
corporation or association |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| shall be a master association.
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| (b) There shall be included in the declaration, other
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| condominium instruments, or other duly recorded covenants |
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| establishing
the powers and duties of the master association |
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| the provisions set forth in
subsections (c) through (h).
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| In interpreting subsections (c) through (h), the courts |
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| should
interpret these provisions so that they are interpreted |
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| consistently with
the similar parallel provisions found in |
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| other parts of this Act.
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| (c) Meetings and finances.
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| (1) Each unit owner of a condominium subject to the |
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| authority of
the board of the master association shall |
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| receive, at least 30 days prior
to the adoption thereof by |
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| the board of the master association, a copy of
the proposed |
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| annual budget.
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| (2) The board of the master association shall annually |
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| supply to
all unit owners of condominiums subject to the |
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| authority of the board
of the master association an |
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| itemized accounting of the common
expenses for the |
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| preceding year actually incurred or paid, together with a
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| tabulation of the amounts collected pursuant to the budget |
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| or assessment,
and showing the net excess or deficit of |
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| income over expenditures plus
reserves.
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| (3) Each unit owner of a condominium subject to the |
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| authority of
the board of the master association shall |
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| receive written notice mailed
or delivered no less than 10 |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| and no more than 30 days prior to any meeting
of the board |
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| of the master association concerning the adoption of the |
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| proposed
annual budget or any increase in the budget, or |
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| establishment of an
assessment.
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| (4) Meetings of the board of the master association |
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| shall be open
to any unit owner in a condominium subject to |
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| the authority of the board
of the master association, |
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| except for the portion of any meeting held:
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| (A) to discuss litigation when an action against or |
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| on behalf of the
particular master association has been |
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| filed and is pending in a court or
administrative |
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| tribunal, or when the board of the master association |
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| finds
that such an action is probable or imminent,
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| (B) to consider information regarding appointment, |
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| employment or
dismissal of an employee, or
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| (C) to discuss violations of rules and regulations |
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| of the master
association or unpaid common expenses |
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| owed to the master association.
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| Any vote on these matters shall be taken at a meeting or |
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| portion thereof
open to any unit owner of a condominium |
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| subject to the authority of the
master association.
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| Any unit owner may record the proceedings at meetings |
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| required
to be open by this Act by tape, film or other |
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| means; the board may
prescribe reasonable rules and |
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| regulations to govern the right to make such
recordings. |
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| Notice of meetings shall be mailed or delivered at least 48
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| hours prior thereto, unless a written waiver of such notice |
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| is signed by
the persons entitled to notice before the |
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| meeting is convened. Copies of
notices of meetings of the |
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| board of the master association shall be posted
in |
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| entranceways, elevators, or other conspicuous places in |
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| the condominium
at least 48 hours prior to the meeting of |
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| the board of the master
association. Where there is no |
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| common entranceway for 7 or more units, the
board of the |
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| master association may designate one or more locations in |
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| the
proximity of these units where the notices of meetings |
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| shall be posted.
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| (5) If the declaration provides for election by unit |
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| owners of members
of the board of directors in the event of |
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| a resale of a unit in the master
association, the purchaser |
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| of a unit from a seller other than the developer
pursuant |
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| to an installment contract for purchase shall, during such
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| times as he or she resides in the unit, be counted toward a |
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| quorum for
purposes of election of members of the board of |
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| directors at any
meeting of the unit owners called for |
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| purposes of electing members of the
board, and shall have |
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| the right to vote for the election of members of
the board |
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| of directors and to be elected to and serve on the board of
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| directors unless the seller expressly retains in writing
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| any or all of those rights. In no event may the seller and
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| purchaser both be counted toward a quorum, be permitted to |
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| vote for a
particular office, or be elected and serve on |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| the board. Satisfactory
evidence of the installment |
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| contract shall be made available to the
association or its |
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| agents. For purposes of this subsection, "installment
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| contract" shall have the same meaning as set forth in |
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| subsection (e) of
Section 1 of the Dwelling Unit |
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| Installment Contract Act.
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| (6) The board of the master association shall have the |
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| authority to
establish and maintain a system of master |
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| metering of public utility
services and to collect payments |
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| in connection therewith, subject to the
requirements of the |
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| Tenant Utility Payment Disclosure Act.
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| (7) The board of the master association or a common |
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| interest community
association shall have the power, after |
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| notice and an opportunity to be heard,
to levy and collect |
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| reasonable fines from members for violations of the
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| declaration, bylaws, and rules and regulations of the |
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| master association or
the common interest community |
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| association. Nothing contained in this
subdivision (7) |
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| shall give rise to a statutory lien for unpaid fines.
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| (8) Other than attorney's fees, no fees pertaining to |
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| the collection of a unit owner's financial obligation to |
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| the Association, including fees charged by a manager or |
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| managing agent, shall be added to and deemed a part of an |
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| owner's respective share of the common expenses unless: (i) |
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| the managing agent fees relate to the costs to collect |
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| common expenses for the Association; (ii) the fees are set |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| forth in a contract between the managing agent and the |
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| Association; and (iii) the authority to add the management |
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| fees to an owner's respective share of the common expenses |
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| is specifically stated in the declaration or bylaws of the |
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| Association. |
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| (d) Records.
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| (1) The board of the master association shall maintain |
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| the following
records of the association and make them |
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| available for examination and
copying at convenient hours |
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| of weekdays by any unit owners in a condominium
subject to |
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| the authority of the board or their mortgagees and their |
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| duly
authorized agents or attorneys:
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| (i) Copies of the recorded declaration, other |
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| condominium instruments,
other duly recorded covenants |
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| and bylaws and any amendments, articles of
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| incorporation of the master association, annual |
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| reports and any rules and
regulations adopted by the |
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| master association or its board shall
be available. |
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| Prior to the organization of the master association, |
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| the
developer shall maintain and make available the |
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| records set forth in this
subdivision (d)(1) for |
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| examination and copying.
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| (ii) Detailed and accurate records in |
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| chronological order of the
receipts and expenditures |
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| affecting the common areas, specifying and
itemizing |
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| the maintenance and repair expenses of the common areas |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| and any
other expenses incurred, and copies of all |
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| contracts, leases, or other
agreements entered into by |
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| the master association, shall be maintained.
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| (iii) The minutes of all meetings of the master |
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| association and the
board of the master association |
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| shall be maintained for not less than 7 years.
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| (iv) Ballots and proxies related thereto, if any, |
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| for any election
held for the board of the master |
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| association and for any other matters
voted on by the |
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| unit owners shall be maintained for
not less than one |
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| year.
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| (v) Such other records of the master association as |
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| are available
for inspection by members of a |
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| not-for-profit corporation pursuant to
Section 107.75 |
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| of the General Not For Profit Corporation Act of 1986 |
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| shall
be maintained.
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| (vi) With respect to units owned by a land trust, |
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| if a trustee
designates in writing a person to cast |
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| votes on behalf of the unit
owner, the designation |
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| shall remain in effect until a subsequent document
is |
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| filed with the association.
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| (2) Where a request for records under this subsection |
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| is made in writing
to the board of managers or its agent, |
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| failure to provide the requested
record or to respond |
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| within 30 days shall be deemed a denial by the board
of |
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| directors.
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| (3) A reasonable fee may be charged by the master |
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| association or its
board for the cost of copying.
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| (4) If the board of directors fails to provide records |
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| properly
requested under subdivision (d)(1) within the
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| time period provided in subdivision (d)(2), the
unit owner |
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| may seek appropriate relief, including an award of
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| attorney's fees and costs.
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| (e) The board of directors shall have standing and capacity |
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| to act in
a representative capacity in relation to matters |
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| involving the common areas
of the master association or more |
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| than one unit, on behalf of the unit
owners as their interests |
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| may appear.
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| (f) Administration of property prior to election of the |
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| initial board
of directors.
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| (1) Until the election, by the unit owners or the |
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| boards of
managers of the underlying condominium |
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| associations, of the initial board
of directors of a master |
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| association whose declaration is recorded on
or after |
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| August 10, 1990, the same rights, titles, powers, |
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| privileges,
trusts, duties and obligations that are vested |
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| in or imposed upon the board
of directors by this Act or in |
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| the declaration or other duly recorded
covenant shall be |
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| held and performed by the developer.
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| (2) The election of the initial board of directors of a |
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| master
association whose declaration is recorded on or |
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| after August 10, 1990, by
the unit owners or the boards of |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| managers of the underlying condominium
associations, shall |
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| be held not later than 60 days after the conveyance by
the |
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| developer of 75% of the units, or 3 years after the |
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| recording of the
declaration, whichever is earlier. The |
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| developer shall give at least 21
days notice of the meeting |
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| to elect the initial board of directors and
shall upon |
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| request provide to any unit owner, within 3 working days of |
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| the
request, the names, addresses, and weighted vote of |
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| each unit owner entitled to vote at the
meeting. Any unit |
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| owner shall upon receipt of the request be provided with
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| the same
information, within 10 days of the request, with |
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| respect to
each
subsequent meeting to elect members of the |
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| board of directors.
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| (3) If the initial board of directors of a master |
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| association
whose declaration is recorded on or after |
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| August 10, 1990 is not elected by
the unit owners or the |
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| members of the underlying condominium association
board of |
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| managers at the time established in subdivision (f)(2), the
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| developer shall continue in office for a period of 30 days, |
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| whereupon
written notice of his resignation shall be sent |
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| to all of the unit owners
or members of the underlying |
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| condominium board of managers entitled to vote
at an |
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| election for members of the board of directors.
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| (4) Within 60 days following the election of a majority |
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| of the board
of directors, other than the developer, by |
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| unit owners, the developer shall
deliver to the board of |
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HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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| directors:
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| (i) All original documents as recorded or filed |
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| pertaining to the
property, its administration, and |
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| the association, such as the declaration,
articles of |
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| incorporation, other instruments, annual reports, |
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| minutes,
rules and regulations, and contracts, leases, |
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| or other
agreements entered into by the association. If |
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| any original documents are
unavailable, a copy may be |
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| provided if certified by affidavit of the
developer, or |
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| an officer or agent of the developer, as being a |
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| complete
copy of the actual document recorded or filed.
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| (ii) A detailed accounting by the developer, |
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| setting forth the
source and nature of receipts and |
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| expenditures in connection with the
management, |
15 |
| maintenance and operation of the property, copies
of |
16 |
| all insurance policies, and a list of any loans or |
17 |
| advances to the
association which are outstanding.
|
18 |
| (iii) Association funds, which shall have been at |
19 |
| all times
segregated from any other moneys of the |
20 |
| developer.
|
21 |
| (iv) A schedule of all real or personal property, |
22 |
| equipment and
fixtures belonging to the association, |
23 |
| including documents transferring the
property, |
24 |
| warranties, if any, for all real and personal property |
25 |
| and
equipment, deeds, title insurance policies, and |
26 |
| all tax bills.
|
|
|
|
HB5509 Enrolled |
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LRB096 18796 AJO 34181 b |
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|
1 |
| (v) A list of all litigation, administrative |
2 |
| action and arbitrations
involving the association, any |
3 |
| notices of governmental bodies involving
actions taken |
4 |
| or which may be taken concerning the association, |
5 |
| engineering and
architectural drawings and |
6 |
| specifications as approved by any governmental
|
7 |
| authority, all other documents filed with any other |
8 |
| governmental authority,
all governmental certificates, |
9 |
| correspondence involving enforcement of any
|
10 |
| association requirements, copies of any documents |
11 |
| relating to disputes
involving unit owners, and |
12 |
| originals of all documents relating to
everything |
13 |
| listed in this subparagraph.
|
14 |
| (vi) If the developer fails to fully comply with |
15 |
| this paragraph (4)
within
the 60 days
provided and |
16 |
| fails to fully comply within 10 days of written demand |
17 |
| mailed by
registered
or certified mail to his or her |
18 |
| last known address, the board may bring an
action to
|
19 |
| compel compliance with this paragraph (4).
If the court |
20 |
| finds that any of the
required
deliveries were not made |
21 |
| within the required period, the board shall be
entitled |
22 |
| to recover
its reasonable attorneys' fees and costs |
23 |
| incurred from and after the date of
expiration of
the |
24 |
| 10 day demand.
|
25 |
| (5) With respect to any master association whose |
26 |
| declaration is
recorded on or after August 10, 1990, any |
|
|
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HB5509 Enrolled |
- 17 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| contract, lease, or other
agreement made prior to the |
2 |
| election of a majority of the board of
directors other than |
3 |
| the developer by or on behalf of unit owners or
underlying |
4 |
| condominium associations, the association or the board of
|
5 |
| directors, which extends for a period of more than 2 years |
6 |
| from the
recording of the declaration, shall be subject to |
7 |
| cancellation by more than
1/2 of the votes of the unit |
8 |
| owners, other than the developer, cast at a
special meeting |
9 |
| of members called for that purpose during a period of 90
|
10 |
| days prior to the expiration of the 2 year period if the |
11 |
| board of managers
is elected by the unit owners, otherwise |
12 |
| by more than 1/2 of the underlying
condominium board of |
13 |
| managers. At least 60 days prior to the expiration of
the 2 |
14 |
| year period, the board of directors, or, if the board is |
15 |
| still under
developer control, then the board of managers |
16 |
| or the developer shall send
notice to every unit owner or |
17 |
| underlying condominium board of managers,
notifying them |
18 |
| of this provision, of what contracts, leases and other
|
19 |
| agreements are affected, and of the procedure for calling a |
20 |
| meeting of the
unit owners or for action by the underlying |
21 |
| condominium board of managers
for the purpose of acting to |
22 |
| terminate such contracts, leases or other
agreements. |
23 |
| During the 90 day period the other party to the contract,
|
24 |
| lease, or other agreement shall also have the right of |
25 |
| cancellation.
|
26 |
| (6) The statute of limitations for any actions in law |
|
|
|
HB5509 Enrolled |
- 18 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| or equity which
the master association may bring shall not |
2 |
| begin to run until the unit
owners or underlying |
3 |
| condominium board of managers have elected a majority
of |
4 |
| the members of the board of directors.
|
5 |
| (g) In the event of any resale of a unit in a master |
6 |
| association by a unit
owner other than the developer, the owner |
7 |
| shall obtain from
the board of directors and shall make |
8 |
| available for inspection to the
prospective purchaser, upon |
9 |
| demand, the following:
|
10 |
| (1) A copy of the declaration, other instruments and |
11 |
| any rules and
regulations.
|
12 |
| (2) A statement of any liens, including a statement of |
13 |
| the account of
the unit setting forth the amounts of unpaid |
14 |
| assessments and other charges
due and owing.
|
15 |
| (3) A statement of any capital expenditures |
16 |
| anticipated by the
association within the current or |
17 |
| succeeding 2 fiscal years.
|
18 |
| (4) A statement of the status and amount of any reserve |
19 |
| for
replacement fund and any portion of such fund earmarked |
20 |
| for any specified
project by the board of directors.
|
21 |
| (5) A copy of the statement of financial condition of |
22 |
| the association
for the last fiscal year for which such a |
23 |
| statement is available.
|
24 |
| (6) A statement of the status of any pending suits or |
25 |
| judgments in which
the association is a party.
|
26 |
| (7) A statement setting forth what insurance coverage |
|
|
|
HB5509 Enrolled |
- 19 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| is provided for
all unit owners by the association.
|
2 |
| (8) A statement that any improvements or alterations |
3 |
| made to the unit,
or any part of the common areas assigned |
4 |
| thereto, by the prior unit owner
are in good faith believed |
5 |
| to be in compliance with the declaration of the
master |
6 |
| association.
|
7 |
| The principal officer of the unit owner's association or |
8 |
| such
other officer as is specifically designated shall furnish |
9 |
| the above
information when requested to do so in writing, |
10 |
| within
30 days of receiving the request.
|
11 |
| A reasonable fee covering the direct out-of-pocket cost of |
12 |
| copying
and providing such information may be charged
by the |
13 |
| association or its board of directors to the unit
seller for |
14 |
| providing the information.
|
15 |
| (g-1) The purchaser of a unit of a common interest |
16 |
| community at a judicial foreclosure sale, other than a |
17 |
| mortgagee, who takes possession of a unit of a common interest |
18 |
| community pursuant to a court order or a purchaser who acquires |
19 |
| title from a mortgagee shall have the duty to pay the |
20 |
| proportionate share, if any, of the common expenses for the |
21 |
| unit that would have become due in the absence of any |
22 |
| assessment acceleration during the 6 months immediately |
23 |
| preceding institution of an action to enforce the collection of |
24 |
| assessments, and that remain unpaid by the owner during whose |
25 |
| possession the assessments accrued. If the outstanding |
26 |
| assessments are paid at any time during any action to enforce |
|
|
|
HB5509 Enrolled |
- 20 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| the collection of assessments, the purchaser shall have no |
2 |
| obligation to pay any assessments that accrued before he or she |
3 |
| acquired title. The notice of sale of a unit of a common |
4 |
| interest community under subsection (c) of Section 15-1507 of |
5 |
| the Code of Civil Procedure shall state that the purchaser of |
6 |
| the unit other than a mortgagee shall pay the assessments |
7 |
| required by this subsection (g-1).
|
8 |
| (h) Errors and omissions.
|
9 |
| (1) If there is an omission or error in the declaration |
10 |
| or other
instrument of the master association, the master |
11 |
| association may correct
the error or omission by an |
12 |
| amendment to the declaration or other
instrument, as may be |
13 |
| required to conform it to this Act, to any other
applicable |
14 |
| statute, or to the declaration. The amendment shall be |
15 |
| adopted
by vote of two-thirds of the members of the board |
16 |
| of directors or by a
majority vote of the unit owners at a |
17 |
| meeting called for that purpose,
unless the Act or the |
18 |
| declaration of the master association specifically
|
19 |
| provides for greater percentages or different procedures.
|
20 |
| (2) If, through a scrivener's error, a unit has not |
21 |
| been
designated as owning an appropriate undivided share of |
22 |
| the common areas
or does not bear an appropriate share of |
23 |
| the common expenses, or if
all of the common expenses or |
24 |
| all of the common elements in
the condominium have not been |
25 |
| distributed in the declaration, so that the
sum total of |
26 |
| the shares of common areas which have been distributed or |
|
|
|
HB5509 Enrolled |
- 21 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| the
sum total of the shares of the common expenses fail to |
2 |
| equal 100%, or if it
appears that more than 100% of the |
3 |
| common elements or common expenses have
been distributed, |
4 |
| the error may be corrected by operation of law by filing
an |
5 |
| amendment to the declaration, approved by vote of |
6 |
| two-thirds of the
members of the board of directors or a |
7 |
| majority vote of the unit owners at
a meeting called for |
8 |
| that purpose, which proportionately
adjusts all percentage |
9 |
| interests so that the total is equal to 100%,
unless the |
10 |
| declaration specifically provides for a different |
11 |
| procedure or
different percentage vote by the owners of the |
12 |
| units and the owners of
mortgages thereon affected by |
13 |
| modification being made in the undivided
interest in the |
14 |
| common areas, the number of votes in the unit owners
|
15 |
| association or the liability for common expenses |
16 |
| appertaining to the unit.
|
17 |
| (3) If an omission or error or a scrivener's error in |
18 |
| the
declaration or other instrument is corrected by vote of |
19 |
| two-thirds of
the members of the board of directors |
20 |
| pursuant to the authority established
in subdivisions |
21 |
| (h)(1) or (h)(2) of this Section, the board, upon
written |
22 |
| petition by unit owners with 20% of the votes of the |
23 |
| association or
resolutions adopted by the board of managers |
24 |
| or board of directors of the
condominium and common |
25 |
| interest community associations which select 20% of
the |
26 |
| members of the board of directors of the master |
|
|
|
HB5509 Enrolled |
- 22 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| association, whichever
is applicable, received within 30 |
2 |
| days of the board action, shall call a
meeting of the unit |
3 |
| owners or the boards of the condominium and common
interest |
4 |
| community associations which select members of the board of
|
5 |
| directors of the master association within 30 days of the |
6 |
| filing of the
petition or receipt of the condominium and |
7 |
| common interest community
association resolution to |
8 |
| consider the board action. Unless a majority of
the votes |
9 |
| of the unit owners of the association are cast at the |
10 |
| meeting to
reject the action, or board of managers or board |
11 |
| of directors of
condominium and common interest community |
12 |
| associations which select over
50% of the members of the |
13 |
| board of the master association adopt resolutions
prior to |
14 |
| the meeting rejecting the action of the board of directors |
15 |
| of the
master association, it is ratified whether or not a |
16 |
| quorum is present.
|
17 |
| (4) The procedures for amendments set forth in this |
18 |
| subsection (h)
cannot be used if such an amendment would |
19 |
| materially or adversely affect
property rights of the unit |
20 |
| owners unless the affected unit owners consent
in writing. |
21 |
| This Section does not restrict the powers of the |
22 |
| association
to otherwise amend the declaration, bylaws, or |
23 |
| other condominium
instruments, but authorizes a simple |
24 |
| process of amendment requiring a
lesser vote for the |
25 |
| purpose of correcting defects, errors, or omissions
when |
26 |
| the property rights of the unit owners are not materially |
|
|
|
HB5509 Enrolled |
- 23 - |
LRB096 18796 AJO 34181 b |
|
|
1 |
| or adversely
affected.
|
2 |
| (5) If there is an omission or error in the declaration |
3 |
| or other
instruments that may not be corrected by an |
4 |
| amendment procedure
set forth in subdivision (h)(1) or |
5 |
| (h)(2) of this Section, then
the circuit court in the |
6 |
| county in which the master
association is located shall |
7 |
| have jurisdiction to hear a petition of one or
more of the |
8 |
| unit owners thereon or of the association, to correct the |
9 |
| error
or omission, and the action may be a class action. |
10 |
| The court may require
that one or more methods of |
11 |
| correcting the error or omission be submitted
to the unit |
12 |
| owners to determine the most acceptable correction. All |
13 |
| unit
owners in the association must be joined as parties to |
14 |
| the action. Service
of process on owners may be by |
15 |
| publication, but the plaintiff shall furnish
all unit |
16 |
| owners not personally served with process with copies of |
17 |
| the
petition and final judgment of the court by certified |
18 |
| mail, return receipt
requested, at their last known |
19 |
| address.
|
20 |
| (6) Nothing contained in this Section shall be |
21 |
| construed to invalidate
any provision of a declaration |
22 |
| authorizing the developer to amend
an instrument prior to |
23 |
| the latest date on which the initial
membership meeting of |
24 |
| the unit owners must be held, whether or not it has
|
25 |
| actually been held, to bring the instrument into compliance |
26 |
| with the legal
requirements of the Federal National |
|
|
|
HB5509 Enrolled |
- 24 - |
LRB096 18796 AJO 34181 b |
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|
1 |
| Mortgage Association, the Federal Home
Loan Mortgage |
2 |
| Corporation, the Federal Housing Administration, the |
3 |
| United
States Veterans Administration or their respective |
4 |
| successors and assigns.
|
5 |
| (i) The provisions of subsections (c) through (h) are |
6 |
| applicable
to all declarations, other condominium instruments, |
7 |
| and other
duly recorded covenants establishing the powers and |
8 |
| duties of the master
association recorded under this Act. Any |
9 |
| portion of a declaration,
other condominium instrument, or |
10 |
| other duly recorded covenant establishing
the powers and duties |
11 |
| of a master association which contains provisions
contrary to |
12 |
| the provisions of subsection (c) through (h) shall be void as
|
13 |
| against public policy and ineffective. Any declaration, other |
14 |
| condominium
instrument, or other duly recorded covenant |
15 |
| establishing the powers and
duties of the master association |
16 |
| which fails to contain the provisions
required by subsections |
17 |
| (c) through (h) shall be deemed to incorporate such
provisions |
18 |
| by operation of law.
|
19 |
| (j) The provisions of subsections (c) through (h) are |
20 |
| applicable to
all common interest community associations and |
21 |
| their unit owners for common
interest community associations |
22 |
| which are subject to the provisions of Section
9-102(a)(8) of |
23 |
| the Code of Civil Procedure. For purposes of this
subsection, |
24 |
| the terms "common interest community" and "unit owners"
shall |
25 |
| have the same meaning as set forth in Section 9-102(c) of the |
26 |
| Code of
Civil Procedure.
|