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  | |  |  | HB2401 Engrossed |  | LRB100 06983 HEP 17036 b | 
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| 1 |  |     AN ACT concerning civil law.
  
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| 2 |  |     Be it enacted by the People of the State of Illinois,
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| 3 |  | represented in the General Assembly:
  
 
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| 4 |  |     Section 5. The Common Interest Community Association  Act is  | 
| 5 |  | amended  by changing Section 1-30 as follows:
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| 6 |  |     (765 ILCS 160/1-30)
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| 7 |  |     Sec. 1-30. Board duties and obligations; records.  | 
| 8 |  |     (a)  The board shall meet at least 4 times annually.   | 
| 9 |  |     (b) A common interest community association may not enter  | 
| 10 |  | into a contract with a current board member, or with a  | 
| 11 |  | corporation, limited liability company, or partnership in  | 
| 12 |  | which a board member or a member of his or her immediate family  | 
| 13 |  | has 25% or more interest, unless notice of intent to enter into  | 
| 14 |  | the contract is given to members within 20 days after a  | 
| 15 |  | decision is made to enter into the contract and the members are  | 
| 16 |  | afforded an opportunity by filing a petition, signed by 20% of  | 
| 17 |  | the membership, for an election to approve or disapprove the  | 
| 18 |  | contract; such petition shall be filed within 20 days after  | 
| 19 |  | such notice and such election shall be held within 30 days  | 
| 20 |  | after filing the petition. For purposes of this subsection, a  | 
| 21 |  | board member's immediate family means the board member's  | 
| 22 |  | spouse, parents, siblings, and children. | 
| 23 |  |     (c) The bylaws or operating agreement shall provide for the  | 
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| 1 |  | maintenance, repair, and replacement of the common areas and  | 
| 2 |  | payments therefor, including the method of approving payment  | 
| 3 |  | vouchers. | 
| 4 |  |     (d)  (Blank). | 
| 5 |  |     (e) The association may engage the services of a manager or  | 
| 6 |  | management company. | 
| 7 |  |     (f) The association shall have one class of voting  | 
| 8 |  | membership unless the declaration, bylaws, or operating  | 
| 9 |  | agreement provide otherwise; however,  this subsection (f)  | 
| 10 |  | shall not be construed to limit the operation of subsection (c)  | 
| 11 |  | of Section 1-20 of this Act. | 
| 12 |  |     (g) The board shall have the power, after notice and an  | 
| 13 |  | opportunity to be heard, to levy and collect reasonable fines  | 
| 14 |  | from members or unit owners for violations of the declaration,  | 
| 15 |  | bylaws, operating agreement, and rules and regulations of the  | 
| 16 |  | common interest community association. | 
| 17 |  |     (h)  Other than attorney's fees and court or arbitration  | 
| 18 |  | costs, no fees pertaining to the collection of a member's or  | 
| 19 |  | unit owner's financial obligation to the association,  | 
| 20 |  | including fees charged by a manager or managing agent, shall be  | 
| 21 |  | added to and deemed a part of a member's or unit owner's  | 
| 22 |  | respective share of the common expenses unless: (i) the  | 
| 23 |  | managing agent fees relate to the costs to collect common  | 
| 24 |  | expenses for the association; (ii) the fees are set forth in a  | 
| 25 |  | contract between the managing agent and the association; and  | 
| 26 |  | (iii) the authority to add the management fees to a member's or  | 
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| 1 |  | unit owner's respective share of the common expenses is  | 
| 2 |  | specifically stated in the declaration, bylaws, or operating  | 
| 3 |  | agreement of the association. | 
| 4 |  |     (i) Board records. | 
| 5 |  |         (1) The board shall maintain the following records of  | 
| 6 |  | the association and make them available for examination and  | 
| 7 |  | copying at convenient hours of weekdays by any member or  | 
| 8 |  | unit owner in a common interest community subject to the  | 
| 9 |  | authority of the board, their mortgagees, and their duly  | 
| 10 |  | authorized agents or attorneys: | 
| 11 |  |             (i) Copies of the recorded declaration, other  | 
| 12 |  | community instruments, other duly recorded covenants  | 
| 13 |  | and bylaws and any amendments, articles of  | 
| 14 |  | incorporation, articles of organization, annual  | 
| 15 |  | reports, and any rules and regulations adopted by the  | 
| 16 |  | board shall be available. Prior to the organization of  | 
| 17 |  | the board, the developer shall maintain and make  | 
| 18 |  | available the records set forth in this paragraph (i)  | 
| 19 |  | for examination and copying. | 
| 20 |  |             (ii) Detailed and accurate records in  | 
| 21 |  | chronological order of the receipts and expenditures  | 
| 22 |  | affecting the common areas, specifying and itemizing  | 
| 23 |  | the maintenance and repair expenses of the common areas  | 
| 24 |  | and any other expenses incurred, and copies of all  | 
| 25 |  | contracts, leases, or other agreements entered into by  | 
| 26 |  | the board shall be maintained. | 
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| 1 |  |             (iii) The minutes of all meetings of the board  | 
| 2 |  | which shall be maintained for not less than 7 years. | 
| 3 |  |             (iv) With a written statement of a proper purpose,  | 
| 4 |  | ballots and proxies related thereto, if any, for any  | 
| 5 |  | election held for the board and for any other matters  | 
| 6 |  | voted on by the members, which shall be maintained for  | 
| 7 |  | not less than one year. | 
| 8 |  |             (v) With a written statement of a proper purpose,  | 
| 9 |  | such other records of the board as are available for  | 
| 10 |  | inspection by members of a not-for-profit corporation  | 
| 11 |  | pursuant to Section 107.75 of the General Not For  | 
| 12 |  | Profit Corporation Act of 1986  shall be maintained. | 
| 13 |  |             (vi) With respect to units owned by a land trust, a  | 
| 14 |  | living trust, or other legal entity, the trustee,  | 
| 15 |  | officer, or manager of the entity may designate, in  | 
| 16 |  | writing, a person to cast votes on behalf of the member  | 
| 17 |  | or unit owner and a designation shall remain in effect  | 
| 18 |  | until a subsequent document is filed with the  | 
| 19 |  | association. | 
| 20 |  |         (2) Where a request for records under this subsection  | 
| 21 |  | is made in writing to the board or its agent, failure to  | 
| 22 |  | provide the requested record or to respond within 30 days  | 
| 23 |  | shall be deemed a denial by the board. | 
| 24 |  |         (3) A reasonable fee may be charged by the board for  | 
| 25 |  | the cost of retrieving and copying records properly  | 
| 26 |  | requested. | 
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| 1 |  |         (4) If the board fails to provide records properly  | 
| 2 |  | requested under paragraph (1) of this subsection (i) within  | 
| 3 |  | the time period provided in that paragraph (1), the member  | 
| 4 |  | may seek appropriate relief and shall be entitled to an  | 
| 5 |  | award of reasonable attorney's fees and costs if the member  | 
| 6 |  | prevails and the court finds that such failure is due to  | 
| 7 |  | the acts or omissions of the board of managers or the board  | 
| 8 |  | of directors. | 
| 9 |  |     (j) The board shall have standing and capacity to act in a  | 
| 10 |  | representative capacity in relation to matters involving the  | 
| 11 |  | common areas or more than one unit, on behalf of the members or  | 
| 12 |  | unit owners as their interests may appear.
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| 13 |  | (Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756,  | 
| 14 |  | eff. 7-16-14; 99-41, eff. 7-14-15.)
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| 15 |  |     Section 10. The Condominium Property Act is amended  by  | 
| 16 |  | changing Sections 15 and 18 as follows:
 
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| 17 |  |     (765 ILCS 605/15)  (from Ch. 30, par. 315)
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| 18 |  |     Sec. 15. Sale of property. 
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| 19 |  |     (a) Unless a greater percentage is provided for in the  | 
| 20 |  | declaration or
bylaws, and notwithstanding the provisions of  | 
| 21 |  | Sections 13 and 14 hereof,
a majority of the unit owners if  | 
| 22 |  | where the property contains 2 units, or not
less than 66 2/3%  | 
| 23 |  | if where the property contains 3 three units, or and not less
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| 24 |  | than 75% if where the property contains at least 4 but not more  | 
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| 1 |  | than 6 units, or not less than 85% if the property contains 7  | 
| 2 |  | or more units, 4 or more units may, by affirmative
vote at a  | 
| 3 |  | meeting of unit owners duly called for such purpose, elect to
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| 4 |  | sell the property. Such action shall be binding upon all unit  | 
| 5 |  | owners, and
it shall thereupon become the duty of every unit  | 
| 6 |  | owner to execute and
deliver such instruments and to perform  | 
| 7 |  | all acts as in manner and form may
be necessary to effect such  | 
| 8 |  | sale, provided, however, that any unit owner
who did not vote  | 
| 9 |  | in favor of such action and who has filed written
objection  | 
| 10 |  | thereto with the manager or board of managers within 20 days
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| 11 |  | after the date of the meeting at which such sale was approved  | 
| 12 |  | shall be
entitled to receive from the proceeds of such sale an  | 
| 13 |  | amount equivalent to
the value of his interest, as determined  | 
| 14 |  | by a fair appraisal, less the
amount of any unpaid assessments  | 
| 15 |  | or charges due and owing from such unit
owner.
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| 16 |  |     (b) If there is a disagreement as to the value of the
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| 17 |  | interest of a unit owner who did not vote in favor of the sale  | 
| 18 |  | of the
property, that unit owner shall have a right to  | 
| 19 |  | designate an expert in
appraisal or property valuation to  | 
| 20 |  | represent him, in which case, the
prospective purchaser of the  | 
| 21 |  | property shall designate an expert in
appraisal or property  | 
| 22 |  | valuation to represent him, and both of these experts
shall  | 
| 23 |  | mutually designate a third expert in appraisal or property  | 
| 24 |  | valuation.
The 3 experts shall constitute a panel to determine  | 
| 25 |  | by vote of at least 2
of the members of the panel, the value of  | 
| 26 |  | that unit owner's interest in
the property.
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| 1 |  | (Source: P.A. 86-1156.)
 
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| 2 |  |     (765 ILCS 605/18)  (from Ch. 30, par. 318)
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| 3 |  |     Sec. 18. Contents of bylaws. The bylaws shall provide for  | 
| 4 |  | at least
the following:
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| 5 |  |         (a)(1) The election from among the unit owners of a  | 
| 6 |  | board of managers,
the number of persons constituting such  | 
| 7 |  | board, and that the terms of at
least one-third of the  | 
| 8 |  | members of the board shall expire annually and that
all  | 
| 9 |  | members of the board shall be elected at large; if there  | 
| 10 |  | are multiple owners of a single unit, only one of the  | 
| 11 |  | multiple
owners shall be eligible to serve as a member of  | 
| 12 |  | the board at any one time;
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| 13 |  |         (2) the powers and duties of the board;
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| 14 |  |         (3) the compensation, if any, of the members of the  | 
| 15 |  | board;
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| 16 |  |         (4) the method of removal from office of members of the  | 
| 17 |  | board;
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| 18 |  |         (5) that the board may engage the services of a manager  | 
| 19 |  | or managing agent;
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| 20 |  |         (6) that each unit owner shall receive, at least 25  | 
| 21 |  | days prior to the
adoption thereof by the board of  | 
| 22 |  | managers, a copy of the proposed annual
budget together  | 
| 23 |  | with an indication of which portions are intended for
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| 24 |  | reserves, capital expenditures or repairs or payment of  | 
| 25 |  | real estate taxes;
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| 1 |  |         (7) that the board of managers shall annually supply to
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| 2 |  | all unit owners an itemized accounting of the common  | 
| 3 |  | expenses
for the preceding year actually incurred or paid,  | 
| 4 |  | together
with an indication of which portions were for  | 
| 5 |  | reserves, capital
expenditures or repairs or payment of  | 
| 6 |  | real estate taxes and
with a tabulation of the amounts  | 
| 7 |  | collected pursuant to the
budget or assessment, and showing  | 
| 8 |  | the net excess or
deficit of income over expenditures plus  | 
| 9 |  | reserves;
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| 10 |  |         (8)(i) that each unit owner shall receive notice, in  | 
| 11 |  | the same manner
as is provided in this Act for membership  | 
| 12 |  | meetings, of any meeting of the
board of managers  | 
| 13 |  | concerning the adoption of the proposed annual budget and
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| 14 |  | regular assessments pursuant thereto or to adopt a separate  | 
| 15 |  | (special)
assessment, (ii) that except as provided in  | 
| 16 |  | subsection (iv) below, if an
adopted
budget or any separate  | 
| 17 |  | assessment adopted by the board would result in the
sum of  | 
| 18 |  | all regular and separate assessments payable in the current  | 
| 19 |  | fiscal year
exceeding 115% of the sum of all regular and  | 
| 20 |  | separate
assessments payable during the
preceding fiscal  | 
| 21 |  | year, the
board of managers, upon written petition by unit  | 
| 22 |  | owners with 20 percent of
the votes of the association  | 
| 23 |  | delivered to the board within 14
days of the board action,
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| 24 |  | shall call a meeting of the unit owners within 30 days of  | 
| 25 |  | the date of
delivery of the petition to consider the budget  | 
| 26 |  | or separate
assessment; unless a
majority of
the total  | 
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| 1 |  | votes of the unit owners are cast at the meeting to reject  | 
| 2 |  | the
budget or separate assessment,
it is ratified, (iii)  | 
| 3 |  | that any common expense not set forth in the budget or
any  | 
| 4 |  | increase in assessments over the amount adopted in the  | 
| 5 |  | budget shall be
separately assessed against all unit  | 
| 6 |  | owners, (iv) that separate assessments for
expenditures  | 
| 7 |  | relating to emergencies or mandated by law may be adopted  | 
| 8 |  | by the
board of managers without being subject to unit  | 
| 9 |  | owner approval or the
provisions of item (ii) above or item  | 
| 10 |  | (v) below.  As used
herein, "emergency" means an immediate  | 
| 11 |  | danger to the structural integrity of
the
common elements  | 
| 12 |  | or to the life, health, safety or property of the unit  | 
| 13 |  | owners,
(v) that assessments
for additions and alterations  | 
| 14 |  | to the common elements or to association-owned
property not  | 
| 15 |  | included in the adopted annual budget, shall be separately
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| 16 |  | assessed and are subject to approval of two-thirds of the  | 
| 17 |  | total votes of all
unit owners, (vi) that the board of  | 
| 18 |  | managers may adopt separate assessments
payable over more  | 
| 19 |  | than one fiscal year.  With respect to multi-year  | 
| 20 |  | assessments
not governed by items (iv) and (v), the entire  | 
| 21 |  | amount of the multi-year
assessment shall be deemed  | 
| 22 |  | considered and authorized in the first fiscal year
in which  | 
| 23 |  | the assessment is approved;
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| 24 |  |         (9)(A) that every meeting of the board of managers  | 
| 25 |  | shall be open to any unit
owner, except that the board may  | 
| 26 |  | close any portion of a noticed meeting or meet separately  | 
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| 1 |  | from a noticed meeting to: (i) discuss litigation
when an  | 
| 2 |  | action against or on behalf of the particular association  | 
| 3 |  | has been
filed and is pending in a court or administrative  | 
| 4 |  | tribunal,
or when the board of managers finds that such an  | 
| 5 |  | action is probable
or imminent, (ii) discuss the  | 
| 6 |  | appointment, employment, engagement,
or dismissal of an  | 
| 7 |  | employee, independent contractor, agent, or other provider  | 
| 8 |  | of goods and services, (iii) interview a potential  | 
| 9 |  | employee, independent contractor, agent, or other provider  | 
| 10 |  | of goods and services, (iv) discuss violations of rules and
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| 11 |  | regulations of the association, (v) discuss a unit owner's  | 
| 12 |  | unpaid share of common
expenses, or (vi) consult with the  | 
| 13 |  | association's legal counsel; that any vote on these matters  | 
| 14 |  | shall take place at a meeting of the board of managers or
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| 15 |  | portion thereof open to any unit owner; | 
| 16 |  |         (B) that board members may participate in and act at  | 
| 17 |  | any meeting of the board of managers in person, by  | 
| 18 |  | telephonic means, or by use of any acceptable technological  | 
| 19 |  | means whereby all persons participating in the meeting can  | 
| 20 |  | communicate with each other; that participation  | 
| 21 |  | constitutes attendance and presence in person at the  | 
| 22 |  | meeting; | 
| 23 |  |         (C) that any unit owner may record the
proceedings at  | 
| 24 |  | meetings of the board of managers or portions thereof  | 
| 25 |  | required to be open by this
Act by tape, film or other  | 
| 26 |  | means, and that the board may prescribe reasonable
rules  | 
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| 1 |  | and regulations to govern the right to make such  | 
| 2 |  | recordings; | 
| 3 |  |         (D) that
notice of every meeting of the board of  | 
| 4 |  | managers shall be given to every board member at least 48  | 
| 5 |  | hours
prior thereto, unless the board member waives notice  | 
| 6 |  | of the meeting pursuant to subsection (a) of Section 18.8;  | 
| 7 |  | and | 
| 8 |  |         (E) that notice of every meeting
 of the board of  | 
| 9 |  | managers shall be posted in entranceways,
elevators, or  | 
| 10 |  | other conspicuous places in the condominium at least 48  | 
| 11 |  | hours
prior to the meeting of the board of managers except  | 
| 12 |  | where there is no
common entranceway for 7 or more units,  | 
| 13 |  | the board of managers may designate
one or more locations  | 
| 14 |  | in the proximity of these units where the notices of
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| 15 |  | meetings shall be posted; that notice of every meeting of  | 
| 16 |  | the board of managers shall also be given at least 48 hours  | 
| 17 |  | prior to the meeting, or such longer notice as this Act may  | 
| 18 |  | separately require, to: (i) each unit owner who has  | 
| 19 |  | provided the association with written authorization to  | 
| 20 |  | conduct business by acceptable technological means, and  | 
| 21 |  | (ii) to the extent that the condominium instruments of an  | 
| 22 |  | association require, to each other unit owner, as required  | 
| 23 |  | by subsection (f) of Section 18.8, by mail or delivery, and  | 
| 24 |  | that no other notice of a meeting of the board of managers  | 
| 25 |  | need be given to any unit owner;
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| 26 |  |         (10) that the board shall meet at least 4 times  | 
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| 1 |  | annually;
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| 2 |  |         (11) that no member of the board or officer shall be  | 
| 3 |  | elected for a term
of more than 2 years, but that officers  | 
| 4 |  | and board members may succeed
themselves;
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| 5 |  |         (12) the designation of an officer to mail and receive  | 
| 6 |  | all notices and
execute amendments to condominium  | 
| 7 |  | instruments as provided for in this Act
and in the  | 
| 8 |  | condominium instruments;
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| 9 |  |         (13) the method of filling vacancies on the board
which  | 
| 10 |  | shall include authority for the remaining members of the  | 
| 11 |  | board to
fill the vacancy by two-thirds vote until the next  | 
| 12 |  | annual meeting of unit
owners or for a period terminating  | 
| 13 |  | no later than 30 days following the
filing of a petition  | 
| 14 |  | signed by unit owners holding 20% of the votes of the
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| 15 |  | association requesting a meeting of the unit owners to fill  | 
| 16 |  | the vacancy for
the balance of the term, and that a meeting  | 
| 17 |  | of the unit owners shall be
called for purposes of filling  | 
| 18 |  | a vacancy on the board no later than 30 days
following the  | 
| 19 |  | filing of a petition signed by unit owners holding 20% of  | 
| 20 |  | the
votes of the association requesting such a meeting, and  | 
| 21 |  | the method of filling
vacancies among the officers that  | 
| 22 |  | shall include the authority for the members
of the board to  | 
| 23 |  | fill the vacancy for the unexpired portion of the term;
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| 24 |  |         (14) what percentage of the board of managers, if other  | 
| 25 |  | than a majority,
shall constitute a quorum;
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| 26 |  |         (15) provisions concerning notice of board meetings to  | 
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| 1 |  | members of the
board;
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| 2 |  |         (16) the board of managers may not enter into a  | 
| 3 |  | contract with a
current board member
or with a corporation  | 
| 4 |  | or partnership in which a board
member or a member of the  | 
| 5 |  | board member's immediate family has 25% or
more interest,  | 
| 6 |  | unless notice of intent to enter the
contract is given to  | 
| 7 |  | unit owners within 20 days after a decision is made
to  | 
| 8 |  | enter into the contract and the unit owners are
afforded an  | 
| 9 |  | opportunity by filing a petition, signed by 20% of the unit
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| 10 |  | owners, for an election to approve or disapprove the  | 
| 11 |  | contract;
such petition shall be filed within 20 days after  | 
| 12 |  | such notice and such
election shall be held within 30 days  | 
| 13 |  | after filing the petition; for purposes
of this subsection,  | 
| 14 |  | a board member's immediate family means the board member's
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| 15 |  | spouse, parents, and children;
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| 16 |  |         (17) that the board of managers may disseminate
to unit  | 
| 17 |  | owners biographical and background information about  | 
| 18 |  | candidates for
election to the board if (i) reasonable  | 
| 19 |  | efforts to identify all candidates are
made and all  | 
| 20 |  | candidates are given an opportunity to include  | 
| 21 |  | biographical and
background information in the information  | 
| 22 |  | to be disseminated; and (ii) the
board does not express a  | 
| 23 |  | preference in favor of any candidate;
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| 24 |  |         (18) any proxy distributed for board elections
by the  | 
| 25 |  | board of managers gives unit owners the
opportunity to  | 
| 26 |  | designate any person as the proxy holder, and gives the  | 
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| 1 |  | unit
owner the opportunity to express a preference for any  | 
| 2 |  | of the known
candidates for the board or to write in a  | 
| 3 |  | name;
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| 4 |  |         (19) that special meetings of the board of managers can  | 
| 5 |  | be called by
the president or 25% of the members of the  | 
| 6 |  | board;
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| 7 |  |         (20) that the board of managers may establish
and  | 
| 8 |  | maintain a system of master metering of public utility  | 
| 9 |  | services and
collect payments in connection therewith,  | 
| 10 |  | subject to the requirements of the
Tenant Utility Payment  | 
| 11 |  | Disclosure Act; and
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| 12 |  |         (21) that the board may ratify and confirm actions of  | 
| 13 |  | the
members of the board taken in response to an emergency,  | 
| 14 |  | as that
term is defined in subdivision (a)(8)(iv) of this  | 
| 15 |  | Section; that
the board shall give notice to the unit  | 
| 16 |  | owners of: (i) the
occurrence of the emergency event within  | 
| 17 |  | 7 business days after
the emergency event, and (ii) the  | 
| 18 |  | general description of the
actions taken to address the  | 
| 19 |  | event within 7 days after the
emergency event.  | 
| 20 |  |         The intent of the provisions of Public Act 99-472  | 
| 21 |  | adding this paragraph (21) is to empower and support boards  | 
| 22 |  | to act in
emergencies.  | 
| 23 |  |         (b)(1) What percentage of the unit owners, if other  | 
| 24 |  | than 20%, shall
constitute a quorum provided that, for  | 
| 25 |  | condominiums with 20 or more units,
the percentage of unit  | 
| 26 |  | owners constituting a quorum shall be 20% unless the
unit  | 
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| 
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| 1 |  | owners holding a majority of the percentage interest in the
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| 2 |  | association provide for a higher percentage, provided that  | 
| 3 |  | in voting on amendments to the association's bylaws, a unit  | 
| 4 |  | owner who is in arrears on the unit owner's regular or  | 
| 5 |  | separate  assessments for 60 days or more, shall not be  | 
| 6 |  | counted for purposes of determining if a quorum is present,  | 
| 7 |  | but that unit owner retains the right to vote on amendments  | 
| 8 |  | to the association's bylaws;
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| 9 |  |         (2) that the association shall have one class of voting  | 
| 10 |  | membership;
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| 11 |  |         (3) that the members shall hold an annual meeting, one  | 
| 12 |  | of the purposes
of which shall be to elect members of the  | 
| 13 |  | board of managers;
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| 14 |  |         (4) the method of calling meetings of the unit owners;
 | 
| 15 |  |         (5) that special meetings of the members can be called  | 
| 16 |  | by the president,
board of managers, or by 20% of unit  | 
| 17 |  | owners;
 | 
| 18 |  |         (6) that written notice of any membership meeting shall  | 
| 19 |  | be mailed
or delivered giving members no less than 10 and  | 
| 20 |  | no more than 30 days
notice of the time, place and purpose  | 
| 21 |  | of such meeting except that notice may be sent, to the  | 
| 22 |  | extent the condominium instruments or rules adopted  | 
| 23 |  | thereunder expressly so provide, by electronic  | 
| 24 |  | transmission consented to by the unit owner  to whom the  | 
| 25 |  | notice is given, provided the director and officer or his  | 
| 26 |  | agent certifies in writing to the delivery by electronic  | 
|     | 
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| 
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| 1 |  | transmission;
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| 2 |  |         (7) that voting shall be on a percentage basis, and  | 
| 3 |  | that the percentage
vote to which each unit is entitled is  | 
| 4 |  | the percentage interest of the
undivided ownership of the  | 
| 5 |  | common elements appurtenant thereto, provided
that the  | 
| 6 |  | bylaws may provide for approval by unit owners in  | 
| 7 |  | connection with
matters where the requisite approval on a  | 
| 8 |  | percentage basis is not specified
in this Act, on the basis  | 
| 9 |  | of one vote per unit;
 | 
| 10 |  |         (8) that, where there is more than one owner of a unit,  | 
| 11 |  | if only one
of the multiple owners is present at a meeting  | 
| 12 |  | of the association, he is
entitled to cast all the votes  | 
| 13 |  | allocated to that unit, if more than one of
the multiple  | 
| 14 |  | owners are present, the votes allocated to that unit may be
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| 15 |  | cast only in accordance with the agreement of a majority in  | 
| 16 |  | interest of the
multiple owners, unless the declaration  | 
| 17 |  | expressly provides otherwise, that
there is majority  | 
| 18 |  | agreement if any one of the multiple owners cast the
votes  | 
| 19 |  | allocated to that unit without protest being made promptly  | 
| 20 |  | to the
person presiding over the meeting by any of the  | 
| 21 |  | other owners of the unit;
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| 22 |  |         (9)(A) except as provided in subparagraph (B) of this  | 
| 23 |  | paragraph (9) in
connection with board elections, that
a  | 
| 24 |  | unit owner may vote by proxy executed in writing by the  | 
| 25 |  | unit
owner or by his duly authorized attorney in fact; that  | 
| 26 |  | the proxy must bear the date of
execution
and, unless the  | 
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| 1 |  | condominium instruments or the written proxy itself  | 
| 2 |  | provide
otherwise, is
invalid after 11 months from the date  | 
| 3 |  | of its execution; to the extent the condominium instruments  | 
| 4 |  | or rules adopted thereunder expressly so provide, a vote or  | 
| 5 |  | proxy may be submitted by electronic transmission,  | 
| 6 |  | provided that any such electronic transmission shall  | 
| 7 |  | either set forth or be submitted with information from  | 
| 8 |  | which it can be determined that the electronic transmission  | 
| 9 |  | was authorized by the unit owner or the unit owner's proxy;
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| 10 |  |         (B) that if a rule adopted at least 120 days before a  | 
| 11 |  | board election
or the
declaration or bylaws provide for  | 
| 12 |  | balloting as set forth in this subsection,
unit
owners may  | 
| 13 |  | not vote by proxy in board elections, but may vote only (i)  | 
| 14 |  | by
submitting an association-issued ballot in person at the  | 
| 15 |  | election meeting or
(ii) by
submitting an  | 
| 16 |  | association-issued ballot to the association or its  | 
| 17 |  | designated
agent
by mail or other means of delivery  | 
| 18 |  | specified in the declaration, bylaws, or
rule; that
the  | 
| 19 |  | ballots shall be mailed or otherwise distributed to unit  | 
| 20 |  | owners not less
than 10
and not more than 30 days before  | 
| 21 |  | the election meeting, and the board shall give
unit owners  | 
| 22 |  | not less than 21 days' prior written notice of the deadline  | 
| 23 |  | for
inclusion of a candidate's name on the ballots; that  | 
| 24 |  | the deadline shall be no
more
than 7 days before the  | 
| 25 |  | ballots are mailed or otherwise distributed to unit
owners;  | 
| 26 |  | that
every such ballot must include the names of all  | 
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| 
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| 1 |  | candidates who have given the
board or its authorized agent  | 
| 2 |  | timely written notice of their candidacy and must
give the  | 
| 3 |  | person casting the ballot the opportunity to cast votes for  | 
| 4 |  | candidates
whose names do not appear on the ballot; that a  | 
| 5 |  | ballot received by the
association
or
its designated agent  | 
| 6 |  | after the close of voting shall not be counted; that a
unit
 | 
| 7 |  | owner
who submits a ballot by mail or other means of  | 
| 8 |  | delivery specified in the
declaration, bylaws, or rule may  | 
| 9 |  | request and cast a ballot in person at the
election
 | 
| 10 |  | meeting, and thereby void any ballot previously submitted  | 
| 11 |  | by that unit owner; | 
| 12 |  |         (B-5) that if a rule adopted at least 120 days before a  | 
| 13 |  | board election or the declaration or bylaws provide for  | 
| 14 |  | balloting as set forth in this subparagraph, unit owners  | 
| 15 |  | may not vote by proxy in board elections, but may vote only  | 
| 16 |  | (i) by submitting an association-issued ballot in person at  | 
| 17 |  | the election meeting; or (ii) by any acceptable  | 
| 18 |  | technological means as defined in Section 2 of this Act;  | 
| 19 |  | instructions regarding the use of electronic means for  | 
| 20 |  | voting shall be distributed to all unit owners not less  | 
| 21 |  | than 10 and not more than 30 days before the election  | 
| 22 |  | meeting, and the board shall give unit owners not less than  | 
| 23 |  | 21 days' prior written notice of the deadline for inclusion  | 
| 24 |  | of a candidate's name on the ballots; the deadline shall be  | 
| 25 |  | no more than 7 days before the instructions for voting  | 
| 26 |  | using electronic or acceptable technological means is  | 
|     | 
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| 
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| 1 |  | distributed to unit owners; every instruction notice must  | 
| 2 |  | include the names of all candidates who have given the  | 
| 3 |  | board or its authorized agent timely written notice of  | 
| 4 |  | their candidacy and must give the person voting through  | 
| 5 |  | electronic or acceptable technological means the  | 
| 6 |  | opportunity to cast votes for candidates whose names do not  | 
| 7 |  | appear on the ballot; a unit owner who submits a vote using  | 
| 8 |  | electronic or acceptable technological means may request  | 
| 9 |  | and cast a ballot in person at the election meeting,  | 
| 10 |  | thereby voiding any vote previously submitted by that unit  | 
| 11 |  | owner; 
 | 
| 12 |  |         (C) that if a written petition by unit owners with at  | 
| 13 |  | least 20% of the
votes of
the association is delivered to  | 
| 14 |  | the board within 14 days after the board's
approval
of a  | 
| 15 |  | rule adopted pursuant to subparagraph (B) or subparagraph  | 
| 16 |  | (B-5) of this paragraph (9), the board
shall call a meeting  | 
| 17 |  | of the unit owners within 30 days after the date of
 | 
| 18 |  | delivery of
the petition; that unless a majority of the  | 
| 19 |  | total votes of the unit owners are
cast
at the
meeting to  | 
| 20 |  | reject the rule, the rule is ratified;
 | 
| 21 |  |         (D) that votes cast by ballot under subparagraph (B) or  | 
| 22 |  | electronic or acceptable technological means under  | 
| 23 |  | subparagraph (B-5) of this paragraph (9) are valid for the  | 
| 24 |  | purpose of establishing a quorum;  | 
| 25 |  |         (10) that the association may, upon adoption of the  | 
| 26 |  | appropriate rules by
the board of managers, conduct  | 
|     | 
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| 
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| 1 |  | elections by secret ballot whereby the voting
ballot is  | 
| 2 |  | marked only with the percentage interest for the unit and  | 
| 3 |  | the vote
itself, provided that the board further adopt  | 
| 4 |  | rules to verify the status of the
unit owner issuing a  | 
| 5 |  | proxy or casting a ballot; and further, that a candidate
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| 6 |  | for election to the board of managers or such
candidate's  | 
| 7 |  | representative shall have the right to be present at the
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| 8 |  | counting of ballots at such election;
 | 
| 9 |  |         (11) that in the event of a resale of a condominium  | 
| 10 |  | unit the purchaser
of a unit from a seller other than the  | 
| 11 |  | developer pursuant to an installment
contract for purchase  | 
| 12 |  | shall during such times as he or she resides in the
unit be  | 
| 13 |  | counted toward a quorum for purposes of election of members  | 
| 14 |  | of the
board of managers at any meeting of the unit owners  | 
| 15 |  | called for purposes of
electing members of the board, shall  | 
| 16 |  | have the right to vote for the
election of members of the  | 
| 17 |  | board of managers and to be elected to and serve
on the  | 
| 18 |  | board of managers unless the seller expressly retains in  | 
| 19 |  | writing any
or all of such rights.  In no event may the  | 
| 20 |  | seller and purchaser both be
counted toward a quorum, be  | 
| 21 |  | permitted to vote for a particular office or be
elected and  | 
| 22 |  | serve on the board.  Satisfactory evidence of the  | 
| 23 |  | installment contract
 shall be made available to the  | 
| 24 |  | association or its agents.  For
purposes of this subsection,  | 
| 25 |  | "installment contract" shall have the same
meaning as set  | 
| 26 |  | forth in Section 1(e) of the Dwelling Unit Installment  | 
|     | 
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| 
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| 1 |  | Contract Act;
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| 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
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| 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;
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| 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.
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| 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.
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| 26 |  |         (e) Election of a treasurer from among the board of  | 
|     | 
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| 1 |  | managers, who shall
keep the financial records and
books of  | 
| 2 |  | account.
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| 3 |  |         (f) Maintenance, repair and replacement of the common  | 
| 4 |  | elements and
payments therefor, including the method of  | 
| 5 |  | approving payment vouchers.
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| 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
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| 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  | 
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| 
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| 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.
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| 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  | 
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| 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.
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| 26 |  |         (l) Method of adopting and of amending administrative  | 
|     | 
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| 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  | 
|     | 
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| 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  | 
|     | 
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| 
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| 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.)
  
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