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Illinios Condominium Property Act - Lee Street Development

 

The contents of this section are provided as a convenience by Lee Street Development.  The information contained on this web page and the pages linked to this web page is deemed reliable but not guaranteed.  Do not use or rely upon such information except after an independent review of its accuracy, completeness, efficacy, and timeliness. All statutes and case law are subject to change without notice and are subject to interpretation or reversal by applicable case law.  Please consult your attorney.


THE CONDOMINIUM PROPERTY ACT OF THE STATE OF ILLINOIS
(including amendments effective through August 19, 1999.  765 ILCS 605/ 1 to 32.


Section
1.0
  Short title
Section
2.1
  Definitions
Section
2.1
  Applicability
Section
3.0
  Submission of property
Section
4.0
  Declaration - Contents
Section
4.1
  Construction, interpretation, and validity of Condominium Instruments
Section
5.0
  Plat to be recorded
Section
6.0
  Recording
Section
7.0
  Descriptions in deeds, etc.
Section
8.0
  Partition of common elements prohibited
Section
9.0
  Sharing of expenses - Lien for nonpayment
Section
9.1a
  Other liens; attachment and satisfaction
Section
9.1b
  Board of Managers' standing and capacity
Section
9.2
  Other remedies
Section
9.3
  Eminent domain proceedings; standing
Section
9.4
  Eminent domain proceedings; notice
Section
10.0
  Separate taxation
Section
11.0
  Tax deeds
Section
12.0
  Insurance
Section
12.1
  Condominium and common interest community Risk Pooling Trusts Act
Section
13.0
  Application of insurance proceeds to reconstruction
Section
14.0
  Disposition of property where insurance proceeds are insufficient for reconstruction
Section
14.1
  Disposition or removal of any portion of the property
Section
14.2
  Street and utilities dedication
Section
14.3
  Granting of easement for laying of cable television cable
Section
14.4
  Granting of easement to a governmental body for protection against water damage or erosion
Section
15.0
  Sale of property
Section
16.0
  Removal from provisions of this Act
Section
17.0
  Amendments to the declaration or bylaws
Section
18.0
  Contents of bylaws
Section
18.1
  Incorporation as Not-for-profit Corporation
Section
18.2
  Administration of property prior to election of initial board of managers
Section
18.3
  Unit Owners' Association
Section
18.4
  Powers and Duties of Board of Managers
Section
18.5
  Master Associations
Section
19.0
  Records of the Association - Availability for Examination
Section
20.0
  Exemption from rules of property
Section
21.0
  Severability
Section
22.0
  Full disclosure before sale
Section
22.1
  Resales - Disclosures - Fees
Section
23.0
  Encroachments
Section
24.0
  Deposits by Purchaser
Section
25.0
  Add-on Condominiums
Section
26.0
  Transfer of Limited Common Elements
Section
27.0
  Amendment of condominium instrument
Section
28.0
  [blank]
Section
29.0
  Alterations within Units
Section
30.0
  Conversion condominiums - Notice - Recording
Section
31.0
  Subdivision or combination of units
Section
32.0
  Alternative Dispute Resolution; Mediation; Arbitration


 (765 ILCS 605/1)
Sec. 1. Short title.

    This Act shall be  known  and  may  be  cited  as  the  "Condominium
Property Act."

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/2)
Sec. 2.  Definitions.

As  used  in  this  Act,  unless  the  context
otherwise requires:
    (a)  "Declaration"  means  the  instrument  by which the property is
submitted to the provisions of this Act, as  hereinafter  provided,  and
such declaration as from time to time amended.
    (b)  "Parcel"  means  the  lot  or  lots,  tract  or tracts of land,
described in the declaration, submitted to the provisions of this Act.
    (c)  "Property" means all the land, property  and  space  comprising
the  parcel,  all  improvements  and  structures erected, constructed or
contained therein or thereon, including the building and all  easements,
rights  and  appurtenances  belonging  thereto,  and  all  fixtures  and
equipment  intended for the mutual use, benefit or enjoyment of the unit
owners, submitted to the provisions of this Act.
    (d)  "Unit" means a part of the property designed and  intended  for
any type of independent use.
    (e)  "Common Elements" means all portions of the property except the
units, including limited common elements unless otherwise specified.
    (f)  "Person"  means a natural individual, corporation, partnership,
trustee or other legal entity capable of holding title to real property.
    (g)  "Unit Owner" means the  person  or  persons  whose  estates  or
interests,  individually  or collectively, aggregate fee simple absolute
ownership of a unit, or, in the case of  a  leasehold  condominium,  the
lessee  or  lessees  of  a  unit  whose  leasehold ownership of the unit
expires simultaneously with the lease described  in  item  (x)  of  this
Section.
    (h)  "Majority" or "majority of the unit owners" means the owners of
more than 50% in the aggregate in interest of the undivided ownership of
the  common elements.  Any specified percentage of the unit owners means
such  percentage  in  the  aggregate  in  interest  of  such   undivided
ownership.  "Majority"  or  "majority  of  the  members  of the board of
managers"  means  more  than  50%  of  the  total  number   of   persons
constituting   such   board  pursuant  to  the  bylaws.   Any  specified
percentage of the members of the board of managers means that percentage
of the total number of persons constituting such board pursuant  to  the
bylaws.
    (i)  "Plat" means a plat or plats of survey of the parcel and of all
units in the property submitted to the provisions of this Act, which may
consist  of  a  three-dimensional horizontal and vertical delineation of
all such units.
    (j)  "Record" means to record in the  office  of  the  recorder  or,
whenever  required,  to file in the office of the Registrar of Titles of
the county wherein the property is located.
    (k)  "Conversion  Condominium"  means  a  property  which   contains
structures,   excepting   those   newly  constructed  and  intended  for
condominium ownership, which are, or have  previously  been,  wholly  or
partially  occupied  before  recording  of  condominium  instruments  by
persons  other  than  those  who  have  contracted  for  the purchase of
condominiums.
    (l)  "Condominium Instruments" means all  documents  and  authorized
amendments  thereto  recorded  pursuant  to  the  provisions of the Act,
including the declaration, bylaws and plat.
    (m)  "Common  Expenses"  means  the  proposed  or  actual   expenses
affecting the property, including reserves, if any, lawfully assessed by
the Board of Managers of the Unit Owner's Association.
    (n)  "Reserves"  means  those  sums  paid  by  unit owners which are
separately maintained by the board of managers for purposes specified by
the board of managers or the condominium instruments.
    (o)  "Unit  Owners'  Association"   or   "Association"   means   the
association  of  all  the unit owners, acting pursuant to bylaws through
its duly elected board of managers.
    (p)  "Purchaser"  means  any  person  or  persons  other  than   the
Developer who purchase a unit in a bona fide transaction for value.
    (q)  "Developer"  means  any  person who submits property legally or
equitably owned in fee  simple  by  the  developer,  or  leased  to  the
developer  under  a  lease described in item (x) of this Section, to the
provisions of this Act, or  any  person  who  offers  units  legally  or
equitably  owned  in  fee  simple  by  the  developer,  or leased to the
developer under a lease described in item (x) of this Section, for  sale
in  the  ordinary  course  of  such  person's  business,  including  any
successor  or  successors  to  such  developers'  entire interest in the
property other than the purchaser of an individual unit.
    (r)  "Add-on Condominium"  means  a  property  to  which  additional
property  may  be  added  in accordance with condominium instruments and
this Act.
    (s)  "Limited  Common  Elements"  means  a  portion  of  the  common
elements so designated in the declaration as being reserved for the  use
of  a  certain  unit or units to the exclusion of other units, including
but not limited to balconies, terraces, patios  and  parking  spaces  or
facilities.
    (t)  "Building"   means  all  structures,  attached  or  unattached,
containing one or more units.
    (u)  "Master Association" means an organization described in Section
18.5 whether or not it is also an association described in Section 18.3.
    (v)  "Developer Control" means such control at a time prior  to  the
election  of  the  Board  of Managers provided for in Section 18.2(b) of
this Act.
    (w)  "Meeting of Board of Managers or Board of  Master  Association"
means  any gathering of a quorum of the members of the Board of Managers
or Board of the Master Association held for the  purpose  of  conducting
board business.
    (x)  "Leasehold  Condominium"  means  a  property  submitted  to the
provisions of this Act which is subject to a lease,  the  expiration  or
termination  of  which would terminate the condominium and the lessor of
which is exempt from taxation under Section 501(c)(3)  of  the  Internal
Revenue Code of 1986, as amended.

(Source: P.A. 88-417; 88-626, eff. 9-9-94; 89-89, eff. 6-30-95.)

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   (765 ILCS 605/2.1)
Sec. 2.1.  Applicability.  

Unless otherwise  expressly  provided  in
another  Section,  the  provisions  of  this  Act  are applicable to all
condominiums in this State.  Any provisions of a condominium  instrument
that  contains  provisions  inconsistent with the provisions of this Act
are void as against public policy and ineffective.

(Source: P.A. 89-41, eff. 6-23-95.)

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  (765 ILCS 605/3)
Sec. 3. Submission of property.

Whenever the owner or owners in fee
simple, or the sole lessee or all lessees of a lease described  in  item
(x)  of  Section  2,  of  a parcel intend to submit such property to the
provisions of this Act, they shall do so  by  recording  a  declaration,
duly  executed  and  acknowledged,  expressly  stating  such  intent and
setting  forth  the  particulars  enumerated  in  Section  4.   If   the
condominium  is  a leasehold condominium, then every lessor of the lease
creating a leasehold interest as described in  item  (x)  of  Section  2
shall  also  execute  the  declaration  and such lease shall be recorded
prior to the recording of the declaration.

(Source: P.A. 89-89, eff. 6-30-95.)

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  (765 ILCS 605/4)
Sec. 4. Declaration - Contents.  

The declaration  shall  set  forth the following particulars:
    (a)  The legal description of the parcel.
    (b)  The  legal  description  of each unit, which may consist of the
identifying number or symbol of such unit as shown on the plat.
    (c)  The name of the condominium, which name shall include the  word
"Condominium" or be followed by the words "a Condominium".
    (d)  The  name  of  the  city  and  county  or counties in which the
condominium is located.
    (e)  The percentage of ownership interest  in  the  common  elements
allocated to each unit.  Such percentages shall be computed by taking as
a  basis the value of each unit in relation to the value of the property
as a whole, and having once been determined  and  set  forth  as  herein
provided,  such  percentages  shall  remain  constant  unless  otherwise
provided  in  this  Act  or  thereafter changed by agreement of all unit
owners.
    (f)  If applicable, all matters required by this Act  in  connection
with an add-on condominium.
    (g)  A  description  of both the common and limited common elements,
if any, indicating the manner of their assignment to a unit or units.
    (h)  If applicable, all matters required by this Act  in  connection
with a conversion condominium.
    (h-5)  If the condominium is a leasehold condominium, then:
         (1)  The  date  of  recording and recording document number for
    the lease creating a leasehold interest as described in item (x)  of
    Section 2;
         (2)  The date on which the lease is scheduled to expire;
         (3)  The  legal  description  of  the  property  subject to the
    lease;
         (4)  Any right of the unit owners to redeem the  reversion  and
    the  manner  whereby  those  rights may be exercised, or a statement
    that the unit owners do not have such rights;
         (5)  Any right of the unit owners to  remove  any  improvements
    within  a reasonable time after the expiration or termination of the
    lease, or a statement that the unit owners do not have such rights;
         (6)  Any rights of the unit owners to renew the lease  and  the
    conditions  of  any  renewal, or a statement that the unit owners do
    not have such rights; and
         (7)  A requirement that any sale of the  property  pursuant  to
    Section  15  of this Act, or any removal of the property pursuant to
    Section 16 of this Act, must be approved by  the  lessor  under  the
    lease.
    (i)  Such   other   lawful  provisions  not  inconsistent  with  the
provisions of this Act as the owner or  owners  may  deem  desirable  in
order to promote and preserve the cooperative aspect of ownership of the
property and to facilitate the proper administration thereof.

(Source: P.A. 89-89, eff. 6-30-95.)

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  (765 ILCS 605/4.1)
Sec. 4.1.  Construction, interpretation, and validity of Condominium
Instruments.

    (a)  Except to the extent otherwise provided by the  declaration  or
other condominium instruments:
         (1)  The terms defined in Section 2 of this Act shall be deemed
    to  have  the meaning specified therein unless the context otherwise
    requires.
         (2)  To the extent that perimeter and partition  walls,  floors
    or  ceilings are designated as the boundaries of the units or of any
    specified units, all decorating, wall and floor coverings, paneling,
    molding, tiles, wallpaper, paint, finished flooring  and  any  other
    materials  constituting  any  part of the finished surfaces thereof,
    shall be deemed a part of such units, while all  other  portions  of
    such  walls,  floors or ceilings and all portions of perimeter doors
    and all portions of windows in perimeter walls shall be deemed  part
    of the common elements.
         (3)  If  any  chutes,  flues,  ducts,  conduits, wires, bearing
    walls, bearing columns, or any other apparatus lies partially within
    and partially outside of the designated boundaries of  a  unit,  any
    portions  thereof  serving  only that unit shall be deemed a part of
    that unit, while any portions thereof serving more than one unit  or
    any  portion  of  the  common elements shall be deemed a part of the
    common elements.
         (4)  Subject to the provisions of paragraph (3)  of  subsection
    (a),  all  space  and  other  fixtures  and  improvements within the
    boundaries of a unit shall be deemed a part of that unit.
         (5)  Any shutters, awnings, window boxes,  doorsteps,  porches,
    balconies,  patios, perimeter doors, windows in perimeter walls, and
    any other apparatus designed to serve a single unit shall be  deemed
    a limited common element appertaining to that unit exclusively.
         (6)  All  provisions  of  the  declaration,  bylaws  and  other
    condominium instruments are severable.
    (b)  Except  to  the extent otherwise provided by the declaration or
by other condominium instruments recorded prior to the effective date of
this amendatory Act of 1984, in the event  of  a  conflict  between  the
provisions  of  the  declaration  and  the  bylaws  or other condominium
instruments,  the  declaration  prevails  except  to  the   extent   the
declaration is inconsistent with this Act.
    (c)  A  provision  in  the  initial  declaration limiting ownership,
rental or occupancy of a condominium unit to a person 55 years of age or
older shall be valid and deemed not to be in violation of Article  3  of
the  Illinois Human Rights Act provided that the person or the immediate
family of a person owning, renting or lawfully occupying such unit prior
to the recording of the initial declaration shall not be deemed to be in
violation of such age restriction so long as they  continue  to  own  or
reside in such unit.

(Source: P.A. 89-41, eff. 6-23-95.)

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  (765 ILCS 605/5)
Sec. 5.  Plat to be recorded

Simultaneously with the recording of
the declaration there shall be recorded a plat as defined in Section  2,
which  plat  shall  be  made  by a Registered Illinois Land Surveyor and
shall set forth (1) all angular  and  linear  data  along  the  exterior
boundaries of the parcel; (2) the linear measurements and location, with
reference to said exterior boundaries, of any buildings improvements and
structures  located  on the parcel; and (3) the elevations at, above, or
below official datum of the finished or unfinished interior surfaces  of
the  floors  and ceilings and the linear measurements of the finished or
unfinished  interior  surfaces  of  the  perimeter  walls,  and  lateral
extensions thereof or other monumental perimeter boundaries, where there
are no wall surfaces, that part of every unit which is in  any  building
on  the  parcel,  and  the  locations  of  such  wall  surfaces  or unit
boundaries with  respect  to  the  exterior  boundaries  of  the  parcel
projected  vertically  upward;  (4)  the  elevations at, above, or below
official datum and the linear measurements of the perimeter  boundaries,
of  that  part of the property which constitute a unit or a part thereof
outside any building on the parcel and the location  of  the  boundaries
with  respect  to  the  exterior  vertical  boundaries  of  the  parcel,
projected vertically upward.  Every such unit shall be identified on the
plat  by  a distinguishing number or other symbol; (5) if the Registered
Illinois Land Surveyor  does  not  certify  that  such  plat  accurately
depicts  the  matters  set forth in subsection (3) and (4) above, such a
certification for any  particular  unit  or  units  as  built  shall  be
recorded  prior to the first conveyance of such particular unit or units
as part of an amended plat, thereby complying with the  requirements  of
subsections  (3)  and  (4)  of  this Section; (6) when adding additional
property to an add-on condominium, the developer, or in the event of any
other alteration in the boundaries or location of a unit,  any  building
on the parcel or the parcel authorized in this Act, the president of the
board  of  managers  or  other  officer authorized and designated by the
condominium  instruments  shall  record  an  amended  plat   of   survey
conforming  to  the  requirements  of  this  Section, or shall provide a
certificate of a plat previously recorded that is in accordance with the
certification requirements  of this subsection.  Such  amended  plat  or
certificate shall be certified by a Registered Illinois Land Surveyor as
to accuracy in depicting changes in boundary or location in the portions
of  the  property  set forth in subsections (1), (2), (3) and (4) above,
and that such changes have been completed.

(Source: P.A. 82-246.)

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  (765 ILCS 605/6)
Sec. 6.  Recording - Effect

Upon compliance with the provisions of
Sections 3, 4, and 5 and upon recording of the declaration and plat  the
property  shall  become  subject  to the provisions of this Act, and all
units shall thereupon be capable of  ownership  in  fee  simple  or  any
lesser  estate,  and  may  thereafter  be conveyed, leased, mortgaged or
otherwise dealt with in the same manner  as  other  real  property,  but
subject, however, to the limitations imposed by this Act.
    Each  unit owner shall be entitled to the percentage of ownership in
the common elements appertaining to such unit as computed and set  forth
in  the  declaration pursuant to subsection (e) of Section 4 hereof, and
ownership of such unit and of the owner's  corresponding  percentage  of
ownership  in  the  common  elements  shall  not be separated, except as
provided in this Act,  nor,  except  by  the  recording  of  an  amended
declaration  and  amended  plat  approved in writing by all unit owners,
shall any unit, by deed, plat, judgment of  a  court  or  otherwise,  be
subdivided  or  in  any  other  manner  separated into tracts or parcels
different from the whole unit as shown on the plat, except  as  provided
in this Act.
    The  condominium  instruments  may  contain provisions in accordance
with this Act providing for  the  reallocation  and  adjustment  of  the
percentage of ownership in the common elements appertaining to a unit or
units in circumstances relating to the following transactions: an add-on
condominium;  condemnation; damage or destruction of all or a portion of
the property; and the subdivision or combination of units.  Interests in
the common elements shall be re-allocated, and the transaction shall  be
deemed  effective  at  the  time  of  the  recording  of an amended plat
depicting same pursuant to Section 5 of this Act.   Simultaneously  with
the  recording  of  the  amended  plat,  the developer in the case of an
add-on condominium, or the President of the board of managers  or  other
officer  in  other  instances  authorized  in this Act shall execute and
record an amendment to  the  declaration  setting  forth  all  pertinent
aspects  of  the transaction including the reallocation or adjustment of
the common interest. The  amendment  shall  contain  legal  descriptions
sufficient  to  indicate  the  location  of any property involved in the
transaction.

(Source: P.A. 84-1308.)

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  (765 ILCS 605/7)
Sec. 7. Descriptions in deeds, etc.

    Every deed, lease, mortgage or other instrument may legally describe
a unit by its identifying number or symbol as shown on the plat  and  as
set forth in the declaration, and every such description shall be deemed
good  and  sufficient  for  all purposes, and shall be deemed to convey,
transfer,  encumber  or  otherwise  affect  the  owner's   corresponding
percentage  of  ownership in the common elements even though the same is
not expressly mentioned or described therein.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/8)
Sec. 8. Partition of common elements prohibited.

    As long as the property is subject to the provisions of this Act the
common elements shall, except as provided in Section 14  hereof,  remain
undivided,  and  no  unit  owner shall bring any action for partition or
division of the common  elements.  Any  covenant  or  agreement  to  the
contrary shall be void.

(Source: Laws 1963, p. 1120.)

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 (765 ILCS 605/9)
Sec. 9.  Sharing of expenses - Lien for nonpayment.

    (a)  All common expenses incurred or  accrued  prior  to  the  first
conveyance  of  a  unit  shall be paid by the developer, and during this
period no common expense assessment shall be payable to the association.
It shall be the duty of each unit owner including the developer  to  pay
his proportionate share of the common expenses commencing with the first
conveyance.    The proportionate share shall be in the same ratio as his
percentage of  ownership  in  the  common  elements  set  forth  in  the
declaration.
    (b)  The  condominium  instruments  may provide that common expenses
for insurance premiums be  assessed  on  a  basis  reflecting  increased
charges for coverage on certain units.
    (c)  Budget and reserves.
         (1)  The  board of managers shall prepare and distribute to all
    unit owners  a detailed proposed annual budget, setting  forth  with
    particularity all anticipated common expenses by category as well as
    all  anticipated  assessments  and other income.  The initial budget
    and common expense assessment based thereon shall be  adopted  prior
    to the conveyance of any unit.  The budget shall also set forth each
    unit owner's proposed common expense assessment.
         (2)  All  budgets  adopted  by  a board of managers on or after
    July 1, 1990 shall  provide  for  reasonable  reserves  for  capital
    expenditures  and  deferred maintenance for repair or replacement of
    the  common  elements.   To  determine  the   amount   of   reserves
    appropriate  for  an  association,  the board of managers shall take
    into consideration the following: (i)  the  repair  and  replacement
    cost,  and  the  estimated  useful  life,  of the property which the
    association is obligated to maintain, including but not  limited  to
    structural  and mechanical components, surfaces of the buildings and
    common elements, and energy systems and equipment; (ii) the  current
    and anticipated return on investment of association funds; (iii) any
    independent  professional  reserve  study  which the association may
    obtain; (iv) the financial impact on unit  owners,  and  the  market
    value of the condominium units, of any assessment increase needed to
    fund  reserves;  and  (v)  the  ability of the association to obtain
    financing or refinancing.
         (3)  Notwithstanding the provisions of this subsection (c),  an
    association   without  a  reserve  requirement  in  its  condominium
    instruments may elect to waive in  whole  or  in  part  the  reserve
    requirements  of this Section by a vote of 2/3 of the total votes of
    the association. Any association having elected under this paragraph
    (3) to waive the provisions of subsection (c) may by a vote  of  2/3
    of  the total votes of the association elect to again be governed by
    the requirements of subsection (c).
         (4)  In the event that an association elects to  waive  all  or
    part  of the reserve requirements of this Section, that fact must be
    disclosed after the meeting  at  which  the  waiver  occurs  by  the
    association  in  the  financial  statements  of the association and,
    highlighted in bold print, in the  response  to  any  request  of  a
    prospective  purchaser  for the information prescribed under Section
    22.1; and no member of the board of managers or the  managing  agent
    of  the  association  shall be liable, and no cause of action may be
    brought  for  damages  against  these  parties,  for  the  lack   or
    inadequacy of reserve funds in the association budget.
    (d)  (Blank).
    (e)  The  condominium instruments may provide for the assessment, in
connection with expenditures for the limited common  elements,  of  only
those units to which the limited common elements are assigned.
    (f)  Payment  of  any  assessment  shall  be in amounts and at times
determined by the board of managers.
    (g)  Lien.
         (1)  If any unit owner shall fail or refuse to make any payment
    of the common expenses or the amount of any unpaid  fine  when  due,
    the  amount  thereof  together  with  any  interest,  late  charges,
    reasonable  attorney  fees  incurred  enforcing the covenants of the
    condominium instruments, rules  and  regulations  of  the  board  of
    managers,  or  any  applicable  statute  or  ordinance, and costs of
    collections shall constitute a lien on  the  interest  of  the  unit
    owner  in  the  property  prior to all other liens and encumbrances,
    recorded or unrecorded, except only (a) taxes,  special  assessments
    and  special taxes theretofore or thereafter levied by any political
    subdivision or municipal corporation of this State and  other  State
    or federal taxes which by law are a lien on the interest of the unit
    owner  prior  to  preexisting  recorded encumbrances thereon and (b)
    encumbrances on the interest of the unit owner recorded prior to the
    date of such failure or refusal which by law would be a lien thereon
    prior to subsequently recorded encumbrances.  Any action brought  to
    extinguish the lien of the association shall include the association
    as a party.
         (2)  With  respect to encumbrances executed prior to August 30,
    1984 or encumbrances executed subsequent to August  30,  1984  which
    are  neither  bonafide  first  mortgages  nor  trust deeds and which
    encumbrances contain a statement of a mailing address in  the  State
    of   Illinois  where  notice  may  be  mailed  to  the  encumbrances
    thereunder, if and whenever and as often as the manager or board  of
    managers  shall send, by United States certified or registered mail,
    return receipt requested, to any such encumbrances  at  the  mailing
    address  set  forth  in  the recorded encumbrance a statement of the
    amounts and due dates of the unpaid common expenses with respect  to
    the   encumbered  unit,  then,  unless  otherwise  provided  in  the
    declaration or bylaws,  the  prior  recorded  encumbrance  shall  be
    subject  to  the  lien of all unpaid common expenses with respect to
    the unit which become due and payable within a  period  of  90  days
    after the date of mailing of each such notice.
         (3)  The   purchaser  of  a  condominium  unit  at  a  judicial
    foreclosure sale, or a mortgagee who receives title  to  a  unit  by
    deed  in  lieu  of  foreclosure  or  judgment  by  common law strict
    foreclosure or otherwise takes possession pursuant  to  court  order
    under  the Illinois Mortgage Foreclosure Law, shall have the duty to
    pay the unit's proportionate share of the common  expenses  for  the
    unit  assessed  from  and after the first day of the month after the
    date of the judicial foreclosure sale, delivery of the deed in  lieu
    of   foreclosure,   entry   of  a  judgment  in  common  law  strict
    foreclosure, or taking of possession pursuant to such  court  order.
    Such  payment  confirms  the  extinguishment  of  any  lien  created
    pursuant to paragraph (1) or (2) of this subsection (g) by virtue of
    the  failure  or  refusal  of  a prior unit owner to make payment of
    common expenses,  where  the  judicial  foreclosure  sale  has  been
    confirmed  by  order  of  the court, a deed in lieu thereof has been
    accepted by the lender, or a consent judgment has  been  entered  by
    the court.
    (h)  A  lien for common expenses shall be in favor of the members of
the board of managers and their successors in office and  shall  be  for
the  benefit  of  all  other  unit  owners.   Notice  of the lien may be
recorded by the board of managers, or if the developer is the manager or
has a majority of seats on the board of  managers  and  the  manager  or
board  of  managers  fails to do so, any unit owner may record notice of
the lien.  Upon the recording of such notice the lien may be  foreclosed
by  an  action  brought in the name of the board of managers in the same
manner as a mortgage of real property.
    (i)  Unless otherwise provided in the declaration,  the  members  of
the  board  of managers and their successors in office, acting on behalf
of the other unit owners, shall have the power to bid on the interest so
foreclosed at the foreclosure sale, and  to  acquire  and  hold,  lease,
mortgage and convey it.
    (j)  Any  encumbrances  may  from  time to time request in writing a
written statement from the manager or board of  managers  setting  forth
the  unpaid  common  expenses  with  respect  to the unit covered by his
encumbrance. Unless the request is complied with  within  20  days,  all
unpaid  common expenses which become due prior to the date of the making
of such request shall be subordinate to the  lien  of  the  encumbrance.
Any  encumbrances  holding  a  lien  on a unit may pay any unpaid common
expenses payable  with  respect  to  the  unit,  and  upon  payment  the
encumbrances  shall  have a lien on the unit for the amounts paid at the
same rank as the lien of his encumbrance.
    (k)  Nothing in Public Act 83-1271 is intended to  change  the  lien
priorities of any encumbrance created prior to August 30, 1984.

(Source: P.A. 91-357, eff. 7-29-99.)

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  (765 ILCS 605/9.1(a)
Sec. 9.1.(a) Other liens; attachment and  satisfaction.

Subsequent
to  the  recording  of  the declaration, no liens of any nature shall be
created or arise against any portion of the property except  against  an
individual  unit  or  units.   No labor performed or materials furnished
with the consent or at the request of a particular unit owner  shall  be
the  basis  for  the filing of a mechanics' lien claim against any other
unit.  If the performance of the labor or furnishing of the materials is
expressly authorized by the board of managers, each unit owner shall  be
deemed  to have expressly authorized it and consented thereto, and shall
be liable for the payment of his unit's proportionate share of  any  due
and payable indebtedness as set forth in this Section.
    Each  mortgage and other lien, including mechanics liens, securing a
debt incurred in the development of the land submitted to the provisions
of this Act for the sale of units shall be subject to the provisions  of
this Act, subsequent to the conveyance of a unit to the purchaser.
    In  the  event  any  lien  exists  against  2  or more units and the
indebtedness secured by such lien is due and payable, the unit owner  of
any  such  unit  so  affected  may  remove  such  unit and the undivided
interest in the common elements appertaining thereto from such  lien  by
payment  of the proportional amount of such indebtedness attributable to
such unit.  In the event such lien exists against the units  or  against
the  property, the amount of such proportional payment shall be computed
on the basis of the percentages set  forth  in  the  declaration.   Upon
payment  as  herein  provided,  it  is  the  duty of the encumbrances to
execute and deliver to the unit owner a release of  such  unit  and  the
undivided interest in the common elements appertaining thereto from such
lien,  except  that  such  proportional  payment  and  release shall not
prevent the encumbrances from proceeding to enforce his  rights  against
any  unit  or  interest  with respect to which such lien has not been so
paid or released.
    The owner of a unit shall not be liable for  any claims, damages, or
judgments, including but not limited to State or local  government  fees
or  fines, entered as a result of any action or inaction of the board of
managers of the association other than for mechanics' liens as set forth
in this Section. Unit owners other than the developer,  members  of  the
board of managers other than the developer or developer representatives,
and  the  association of unit owners shall not be liable for any claims,
damages, or judgments, including but  not  limited  to  State  or  local
government fees or fines, entered as result of any action or inaction of
the  developer  other  than  for  mechanics'  liens as set forth in this
Section. Each unit owner's liability for any  judgment  entered  against
the  board  of  managers or the association, if any, shall be limited to
his proportionate share  of  the  indebtedness  as  set  forth  in  this
Section, whether collection is sought through assessment or otherwise. A
unit  owner shall be liable for any claim, damage or judgment entered as
a result of the use or operation of his  unit,  or  caused  by  his  own
conduct.  Before  conveying a unit, a developer shall record and furnish
purchaser releases of all liens  affecting  that  unit  and  its  common
element  interest  which  the purchaser does not expressly agree to take
subject to or assume, and the developer shall provide a surety  bond  or
substitute collateral for or insurance against liens for which a release
is not provided.  After conveyance of such unit, no mechanics lien shall
be created against such unit or its common element interest by reason of
any subsequent contract by the developer to improve or make additions to
the property.
    Each  mortgagee or other lienholder of the unit of a common interest
community or of a unit subject to the  Condominium  Property  Act  shall
provide  an address to the unit owners' association at the time the lien
or mortgage is recorded at which address such unit  owners'  association
shall  send notice to such mortgagee or lienholder of any eminent domain
proceeding to which the association thereafter becomes a party.  If  the
mortgagee  or lienholder has not provided an address for notice purposes
to the association, then such notice shall be sent to all mortgagees  or
lienholders  which  are named insureds on the master policy of insurance
which exists or may exist on  the  common  interest  community  or  unit
subject to the Condominium Property Act.

(Source: P.A. 91-616, eff. 8-19-99.)

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  (765 ILCS 605/9.1(b)
Sec. 9.1(b)  Board of Managers' standing and capacity.
  
    The  board  of managers shall have standing and capacity to act in a
representative capacity in relation  to  matters  involving  the  common
elements  or  more than one unit, on behalf of the unit owners, as their
interests may appear.

(Source: P.A. 91-616, eff. 8-19-99.)

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  (765 ILCS 605/9.2)
Sec. 9.2.  Other remedies.

    (a) In the event of any default  by  any  unit  owner,  his  tenant,
invitee or guest in the performance of his obligations under this Act or
under the declaration, bylaws, or the rules and regulations of the board
of  managers, the board of managers or its agents shall have such rights
and remedies as provided in the Act or condominium instruments including
the right to maintain an action for possession against  such  defaulting
unit owner or his tenant for the benefit of all the other unit owners in
the manner prescribed by Article IX of the Code of Civil Procedure.
    (b)  Any  attorneys' fees incurred by the Association arising out of
a default by any unit  owner,  his  tenant,  invitee  or  guest  in  the
performance  of  any  of  the provisions of the condominium instruments,
rules and regulations or any applicable statute or  ordinance  shall  be
added  to,  and  deemed  a  part  of, his respective share of the common
expense.

(Source: P.A. 88-417.)

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  (765 ILCS 605/9.3)
Sec. 9.3.  Eminent domain proceedings; standing.

The  unit  owners'
association  shall be named as defendant on behalf of all unit owners in
any eminent domain proceeding to take or  damage  property  which  is  a
common  element  and  which includes no portions of any units or limited
common elements.  The association shall act therein  on  behalf  of  all
unit  owners.    Nothing  contained  herein  shall  bar  a unit owner or
mortgagee  or  lienholder  from  intervening  in  the   eminent   domain
proceeding on his own behalf.

(Source: P.A. 86-826.)

    

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  (765 ILCS 605/9.4)
Sec. 9.4.  Eminent domain proceedings; notice.

After  receipt  of
summons  in  an  action  to  take  or  damage a common element, the unit
owners' association shall provide to the plaintiff a list  of  the  unit
owners,  mortgagees  and  lienholders,  and  the plaintiff shall provide
notice by certified mail to the unit owners, mortgagees and lienholders.
    The notice shall include the following:
    (1)  case name and number and jurisdiction  in  which  the  case  is
filed;
    (2)  date of filing;
    (3)  brief description of the nature of the case;
    (4)  description of the property being damaged or taken;
    (5)  statement  that  the  unit  owner  may  petition  the  court to
intervene; and
    (6)  statement that the mortgagee or  lienholder  may  petition  the
court to intervene.
    An  immaterial  error  in  providing notice shall not invalidate the
legal effect of the proceeding.

(Source: P.A. 86-826.)

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   (765 ILCS 605/10)
Sec. 10.  Separate taxation.

    (a)  Real property taxes, special assessments, and any other special
taxes  or  charges  of  the  State  of  Illinois  or  of  any  political
subdivision thereof, or other lawful taxing or assessing body, which are
authorized by law to be assessed against and levied upon  real  property
shall  be  assessed  against  and  levied upon each unit and the owner's
corresponding percentage of ownership in the common elements as a tract,
and not upon the property as a whole.  For purposes of  property  taxes,
real  property  owned and used for residential purposes by a condominium
association,  including  a  master  association,  but  subject  to   the
exclusive  right  by  easement,  covenant, deed or other interest of the
owners of one or more condominium properties and used exclusively by the
unit owners for recreational or  other  residential  purposes  shall  be
assessed  at  $1.00  per  year. The balance of the value of the property
shall be assessed to the condominium unit owners. In counties containing
1,000,000 or more inhabitants, any person desiring to  establish  or  to
reestablish  an  assessment  of  $1.00  under  this  Section  shall make
application therefor and be subject to the provisions of  Section  10-35
of the Property Tax Code.
    (b)  Each condominium unit shall be only subject to the tax rate for
those  taxing  districts  in  which  such  unit  is actually, physically
located.  The county clerk shall not apply a rate which is an average of
two or more different districts to any condominium unit.
    (c)  Upon authorization by a two-thirds vote of the members  of  the
board of managers or by the affirmative vote of not less than a majority
of  the  unit  owners at a meeting duly called for such purpose, or upon
such greater vote as may be required by the declaration or  bylaws,  the
board  of  managers  acting  on behalf of all unit owners shall have the
power to seek relief from or in connection with the assessment  or  levy
of  any  such  taxes,  special assessments or charges, and to charge and
collect  all  expenses  incurred  in  connection  therewith  as   common
expenses.

(Source: P.A. 88-670, eff. 12-2-94.)

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  (765 ILCS 605/11)
Sec. 11. Tax deeds.

    In the event any person shall acquire or be entitled to the issuance
of a tax deed conveying the interest of any unit owner, the interest  so
acquired  shall  be subject to all the provisions of this Act and to the
terms, provisions, covenants, conditions and  limitations  contained  in
the  declaration,  the  plat,  the  bylaws  or  any  deed affecting such
interest then in force.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/12)
Sec. 12.  Insurance.

    (a) (1) The board of managers shall have  the
authority  to  and shall obtain, except as otherwise provided in Section
12.1, insurance for the property against loss or damage by fire and such
other hazards as are covered under standard extended coverage provisions
for the full insurable replacement cost of the common elements  and  the
units. Every insurer issuing a policy against loss or damage by fire and
such  other hazards as are covered under standard extended coverage to a
condominium association shall print on or attach to the  premium  notice
the  following  statement:  "The Condominium Property Act requires every
condominium association to obtain insurance  for  the  property  against
loss  or  damage by fire and such other hazards as are covered under the
standard extended coverage provisions for the full insurable replacement
costs.  This policy may or may not  satisfy  this  requirement.   Please
examine  your  policy  carefully  to determine if it complies with these
requirements." The full insurable replacement  cost  of  the  units  may
include  the replacement cost value of betterments and improvements made
in and to a unit by a unit owner if it is so provided by the condominium
declaration, and if it is so provided in  the  condominium  instruments,
any  increase  premium  charge  therefor  shall be assessed to that unit
owner under the provisions of Section 9 hereof.
    (2)  Such insurance coverage shall be written in the  name  of,  and
the  proceeds thereof shall be deemed payable to, the board of managers,
as trustee for each of the unit owners in the percentages established in
the declaration. Any insurance policy obtained for the property pursuant
to paragraph (1) of subsection (a)  of  this  Section,  which  fails  to
contain  the trustee provisions required by this paragraph (2), shall be
deemed to incorporate such provisions into the policy  by  operation  of
law.
    (3)  The  board  of managers, or the persons acting in such capacity
pursuant to Section 18.2 of this Act, shall have authority to  designate
any  corporation qualified to accept and execute trusts in this state to
act as agent or trustee for, or as successor trustee to, said  board  of
managers  for  the  purpose of collecting and disbursing the proceeds of
such insurance in the manner provided by the  declaration,  the  bylaws,
and  this  Act.  Premiums  for  such  insurance  and  other  expenses in
connection therewith shall be common expenses.

    (b)  The board of managers shall have  the  authority  and  duty  to
obtain  comprehensive  public  liability  insurance  against  claims and
liabilities arising in connection with the ownership, existence, use  or
management  of  the  property  in  amounts,  if  any,  specified  by the
condominium instruments or otherwise deemed sufficient in  the  judgment
of  the  board  of  managers,  insuring  the board of managers, the unit
owners'  association,  the  management  agent,  and   their   respective
employees, agents and all persons acting as agents.  The developer shall
be  included  as an additional insured in his capacity as unit owner and
board member.  The unit owners shall be included as additional  insureds
but  only  with respect to that portion of the premises not reserved for
their exclusive use.  The insurance shall cover claims of  one  or  more
insured  parties  against  other  insured  parties.  The insurance shall
contain a waiver of any rights to subrogation by  the  insuring  company
against  any  of  the  above  named  insured persons.  Premiums for such
insurance shall be common expenses.

    (c)  The board of managers shall notify insured  persons  concerning
the  cancellation  of  insurance  obtained pursuant to the terms of this
Section.

    (d)  Any insurer defending a claim against a condominium association
shall notify the association of  the  terms  of  the  settlement  before
settling  the  claim.  The association shall not have power to veto such
settlement, unless otherwise provided by contract or statute.

(Source: P.A. 84-1431; 84-1464.)

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  (765 ILCS 605/12.1)
Sec. 12.1.  Risk pooling trusts.
	
    (a) This Section shall be known and may be cited as the  Condominium
and Common Interest Community Risk Pooling Trust Act.
    (b)  The  boards of managers or boards of directors, as the case may
be, of two or more condominium associations or common interest community
associations, are authorized to establish, with the unit owners and  the
condominium   or   common   interest   community   associations  as  the
beneficiaries thereof,  a  trust  fund  for  the  purpose  of  providing
protection   of   the  participating  condominium  and  common  interest
community associations against the risk of financial loss due to  damage
to,  destruction  of  or  loss  of  property, or the imposition of legal
liability as required or authorized under this Act or the declaration of
the condominium or common interest community  association.   Such  trust
fund  shall  initially assess unit owners an amount actuarially adequate
to establish such fund and shall assess such amounts as are required  to
maintain  such  fund.  Such amounts may be treated as assessments of the
condominium or common interest community association.
    (c)  The trust fund shall be  established  and  amended  only  by  a
written  instrument  which  shall  be  filed  with  and  approved by the
Director of Insurance prior to its becoming effective. The  Director  of
Insurance  shall  withhold  approval  of  any  instrument if it does not
comply with the provisions of this Section or any rule or regulation  of
the Director of Insurance.
    (d)  No common interest community association shall be a beneficiary
of  the trust fund unless it either shall be incorporated under the laws
of this State or shall have first procured a  Certificate  of  Authority
from the Secretary of State.
    (e)  The  trust  fund is authorized to indemnify the condominium and
common interest community association beneficiaries thereof against  the
risk  of  loss  due  to  damage,  destruction  or  loss  to  property or
imposition of legal liability as required or authorized under  this  Act
or  the  declaration  of  the  condominium  or common interest community
association. The trustee of the trust fund may determine  and  establish
contributions  to  the  trust  fund  actuarially  required  to  fund the
operations and carry out the purposes of the trust fund  and  may  enter
into  contracts  in  order to carry out the purposes for which the trust
fund was established, provided however, that any  such  contracts  shall
not  provide  for  compensation  or  payments in excess of that which is
reasonable in relation to the services actually performed thereunder.
    (f)  The trust fund may enter into  written  agreements  with  other
trust  funds established under this Section whereby the risks assumed by
any such trust fund may be pooled  and  shared  with  such  other  trust
funds.
    (g)  The  trustees  of  all  trust  funds established under this Act
shall be natural persons over the age of 18 who are  residents  of  this
State.
    (h)  Every  such trust fund shall have no fewer than 3 nor more than
30 trustees.  No less than  2/3  of  the  trustees  shall  be  officers,
directors,  trustees  or  full time employees of a condominium or common
interest community association beneficiary of the trust fund.
    (i)  No trustee of the trust fund shall be paid a salary or  receive
other compensation, except that the written trust instrument may provide
for  reimbursement  for  actual expenses incurred on behalf of the trust
fund.  No trustee or any employer or affiliate of  any  trustee  of  the
trust  fund  shall  enter  into any contract with the trust fund for, or
receive any monies or other compensation or thing  of  value  whatsoever
from,  the  trust  fund  for services performed for or on behalf of such
trust fund, except as otherwise provided in this Section.
    (j)  The trustees shall serve pursuant to the terms of  the  written
trust  instrument  except  that  the  written trust instrument shall set
forth the manner in which a trustee of a trust fund may be  removed  and
the  manner  in which vacancies among the trustees of the trust fund may
be filled.
    (k)  No trustee of the trust  fund  shall  serve  for  more  than  3
consecutive years unless he is reappointed in the manner provided for in
the written trust instrument.
    (l)  The  trustees of the trust fund shall have the powers specified
in the written trust instrument which established the trust fund.
    (m)  Each trust fund shall by June 1 of  each  year  file  with  the
Director  of  Insurance a full independently audited financial statement
as of December 31 of the preceding year, and by April 1 of each  year  a
report of the trustees of the trust fund detailing the operations of the
trust fund and including a list of all beneficiaries during the year and
a  statement that each beneficiary was not ineligible except as provided
for in this Section.  The truth and accuracy of the financial  statement
and report shall be attested to by each trustee. The financial statement
shall  include the opinion of an independent certified public accountant
on the financial condition  of  the  trust  fund  for  the  most  recent
calendar  year  and  the results of its operations, changes in financial
position and changes in capital and surplus for the year then  ended  in
conformity  with  accounting  practices  permitted  or prescribed by the
Illinois Department of Insurance.
    (n)  A beneficiary is ineligible if he or she ceases to  be  a  unit
owner  of a condominium or common interest community association, except
where liability of such beneficiary was incurred at the time he  or  she
was a unit owner.
    (o)  No beneficiary shall have any cause of action against any other
beneficiary  arising  solely  out  of the insolvency or inability of the
trust fund to meet its obligations, unless such other beneficiary  is  a
trustee  of  such  trust  fund  and  has  breached  a  fiduciary duty in
connection with such trust fund. This subsection shall not preclude  the
assessment  and  collection of any payments to the trust fund to correct
such insolvency or inability of the trust fund to meet its obligations.
    (p)  No trust fund established under this subsection (d) shall grant
any power to the trustees of the trust fund which is  inconsistent  with
this Section or any other law of this State.
    (q)  Every  trust  fund  established  hereunder shall include in the
written trust instrument the basis upon which payments are made  to  and
from the trust fund.
    (r)  Trust  funds  established  under  this  Section and all persons
interested  therein  or  dealing  therewith  shall  be  subject  to  the
provisions of Sections 133, 144, 144.1, 149, 401, 401.1, 402, 403, 403A,
412, and all of the provisions of Articles VII, VIII, VIII 1/2, XII 1/2,
and XIII of the Illinois Insurance Code. Except as otherwise provided in
this Section, trust funds established under and which fully comply  with
this Section shall not be subject to any other provision of the Illinois
Insurance Code.
    (s)  The  Director  of  Insurance  shall  have with respect to trust
funds established under this Section the powers of examination conferred
upon him relative to insurance companies by Sections 132  through  132.7
of  the Illinois Insurance Code.  The cost of any such examination shall
be paid by the trust fund examined.
    (t)  The Director of Insurance shall charge, collect and give proper
acquittances for the payment of the following fees and charges:
         (i)  For filing trust  instruments,  amendments    thereto  and
    financial statement and report of the trustees, $25.
         (ii)  For copies of papers or records per  page, $1.
         (iii)  For certificate to copy of paper, $5.
         (iv)  For   filing  an  application  for  the  licensing  of  a
    condominium risk pooling trust, $500.
    (u)  This Section shall apply regardless of any contrary  provisions
of any instrument.
    (v)  Trust  funds established under and which fully comply with this
Section shall not be considered member insurance companies or to  be  in
the  business  of  insurance nor shall the provision of Article XXXIV of
the Illinois Insurance Code apply to any  such  trust  fund  established
under this Section.
    (w)  The  provisions of the Administrative Review Law shall apply to
and  govern  all  proceedings  for  the   judicial   review   of   final
administrative decisions under this Section.

(Source: P.A. 89-97, eff. 7-7-95.)

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  (765 ILCS 605/13)
Sec. 13. Application of insurance proceeds to reconstruction.
	
    In case of fire or any other disaster  the  insurance  proceeds,  if
sufficient  to  reconstruct  the  building,  shall  be  applied  to such
reconstruction. Reconstruction of the  building  as  used  in  this  and
succeeding  Section  14  of  this  Act,  means restoring the building to
substantially the same condition in which it existed prior to  the  fire
or  other  disaster,  with  each unit and the common elements having the
same vertical and horizontal boundaries as before.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/14)
Sec. 14.  Disposition  of  property  where  insurance  proceeds  are
insufficient for reconstruction.

(1) In case of fire or other disaster,
if  the  insurance proceeds are insufficient to reconstruct the building
and the unit owners and all other parties in interest do not voluntarily
make provision for reconstruction of the building within 180  days  from
the  date  of  damage or destruction, the board of managers may record a
notice setting forth such facts and upon the recording of such notice:

    (a)  The property shall be deemed to be owned in common by the  unit
owners;
    (b)  The  undivided  interest  in the property owned in common which
shall appertain to each unit owner shall be the percentage of  undivided
interest previously owned by such owner in the common elements;
    (c)  Any  liens  affecting  any  of  the units shall be deemed to be
transferred in accordance with the existing priorities to the  undivided
interest of the unit owner in the property as provided herein; and
    (d)  The property shall be subject to an action for partition at the
suit  of  any  unit  owner,  in  which  event  the net proceeds of sale,
together with the net proceeds of the insurance on the property, if any,
shall be considered as one fund and shall be divided among all the  unit
owners  in  a  percentage  equal to the percentage of undivided interest
owned by each owner in the property,  after  first  paying  out  of  the
respective  shares  of the unit owners, to the extent sufficient for the
purpose, all liens on the undivided interest in the  property  owned  by
each unit owner.
    (2)  In  the  case of fire or other disaster in which fewer than 1/2
of the units are rendered uninhabitable: the condominium instruments may
provide for the reconstruction of the building or other portion  of  the
property,  if  the  insurance  proceeds are insufficient to reconstruct,
upon the affirmative vote of not fewer than 3/4 of the owners voting  at
a  meeting  called for that purpose. The meeting shall be held within 30
days following  the  final  adjustment  of  insurance  claims,  if  any.
Otherwise,  such meeting shall be held within 90 days of the occurrence.
At such meeting the board of  managers,  or  its  representative,  shall
present  to  the  members  present  an estimate of the cost of repair or
reconstruction,  and  the  estimated  amount  of  necessary  assessments
against each unit owner.
    (3)  In  the  case  of  fire  or  other  disaster,  the  condominium
instruments may provide  for  the  withdrawal  of  any  portion  of  the
property  if  the insurance proceeds are insufficient to reconstruct the
portion of the property affected.  Upon the withdrawal of  any  unit  or
portion  thereof,  the  percentage  of  interest  in the common elements
appurtenant to such unit or portion thereof shall be  reallocated  among
the  remaining  units on the basis of the percentage of interest of each
remaining unit.   If  only  a  portion  of  a  unit  is  withdrawn,  the
percentage  of  interest  appurtenant  to  that  unit  shall  be reduced
accordingly, upon the basis of diminution in market value of  the  unit,
as   determined  by  the  board  of  managers.   The   payment  of  just
compensation, or the allocation of any insurance, or other  proceeds  to
any  withdrawing or remaining unit owner shall be on an equitable basis,
which need not be a unit's percentage interest.  Any insurance or  other
proceeds  available  in connection with the withdrawal of any portion of
the common  elements,  not  necessarily  including  the  limited  common
elements,  shall  be  allocated  on  the  basis  of  each  unit  owner's
percentage  interest therein.  The declaration may provide that proceeds
available from the withdrawal of any  limited  common  element  will  be
distributed  in accordance with the interests of those entitled to their
use.  The condominium instruments shall provide  for  the  cessation  of
responsibility  for  the  payment of assessments for any unit or portion
thereof withdrawn from the condominium.

(Source: P.A. 80-1117.)

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   (765 ILCS 605/14.1)
Sec. 14.1.  Disposition or removal of any portion of the property.
	
    (a)  The condominium instruments may provide for the  withdrawal  of
any   portion   of  the  property  in  connection  with  eminent  domain
proceedings in compliance with the provisions of  this  Act.   Upon  the
withdrawal of any unit or portion thereof, the percentage of interest in
the common elements appurtenant to such unit or portion thereof shall be
reallocated  among the remaining units on the basis of the percentage of
interest of each remaining unit.   If  only  a  portion  of  a  unit  is
withdrawn,  the percentage of interest appurtenant to that unit shall be
reduced accordingly, upon the basis of diminution in market value of the
unit, as determined by the board of managers.   The  allocation  of  any
condemnation  award  or  other  proceeds to any withdrawing or remaining
unit owner shall be on an equitable basis, which need not  be  a  unit's
percentage interest.  Any condemnation award or other proceeds available
in connection with the withdrawal of any portion of the common elements,
not   necessarily  including  the  limited  common  elements,  shall  be
allocated on the basis of each unit owner's percentage interest therein.
The declaration may provide that proceeds available from the  withdrawal
of any limited common element will be distributed in accordance with the
interests  of  those entitled to their use.  The condominium instruments
shall provide for the cessation of responsibility  for  the  payment  of
assessments   for  any  unit  or  portion  thereof  withdrawn  from  the
condominium. In the event that the unit owners' association is named  as
defendant  in an eminent domain proceeding on behalf of all unit owners,
then the payment of  the  proceeds  of  the  eminent  domain  proceeding
attributable  to  the  taking or damaging of the common element shall be
according  to  this  Section  unless  the  condominium   instrument   or
declaration  of  a  common  interest  community  expressly  provides for
different procedures.  This Section shall also apply to  eminent  domain
proceedings  in  which the unit owners' association of a common interest
community is named as a defendant on behalf of all unit owners.
    (b)  Notwithstanding anything to  the  contrary  contained  in  this
Section,  in a leasehold condominium, any allocation of any condemnation
award or other proceeds available in connection with the  withdrawal  of
any portion of the property shall include an equitable allocation to the
lessor.   The  allocation  shall take into account any provisions of the
lease described in item (x) of Section 2 of  this  Act  concerning  such
allocations.

(Source: P.A. 89-89, eff. 6-30-95.)

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  (765 ILCS 605/14.2)
Sec. 14.2.  Street and utilities dedication. 

	Unless the  condominium
instrument  expressly  provides  for  a  greater percentage or different
procedures a two-thirds majority of the unit owners at a meeting of unit
owners duly called for such purpose may elect to dedicate a  portion  of
the  common elements to a public body for use as, or in connection with,
a street or utility.  Where such a dedication is made, nothing  in  this
Act  or  any  other  law  shall  be  construed  to require that the real
property taxes of every unit of the condominium must be  paid  prior  to
recordation of the dedication.

(Source: P.A. 83-833.)

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  (765 ILCS 605/14.3)
Sec. 14.3.  Granting of easement  for  laying  of  cable  television
cable. 

Unless  the  condominium  instrument  expressly  provides  for a
greater percentage or different procedures a majority of more  than  50%
of  the  unit  owners  at  a meeting of unit owners duly called for such
purpose may authorize the granting of an  easement  for  the  laying  of
cable  television  cable.  The grant of such easement shall be according
to the terms and conditions of the local ordinance providing  for  cable
television in the municipality.

(Source: P.A. 83-833.)

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  (765 ILCS 605/14.4)
Sec.  14.4.   Granting  of  easement  to  a  governmental  body  for
protection against water damage  or  erosion. 
 
 Unless  the  condominium
instrument  expressly  provides  for  a  greater percentage or different
procedures, a majority of more than 50% of the unit owners at a  meeting
of  unit  owners duly called for such purpose may authorize the granting
of an easement to a governmental body for construction,  maintenance  or
repair of a project for protection against water damage or erosion.

(Source: P.A. 84-1423.)

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  (765 ILCS 605/15)
Sec. 15.  Sale of property.
	
    (a)  Unless a greater percentage is provided for in the  declaration
or  bylaws,  and  notwithstanding  the  provisions of Sections 13 and 14
hereof, a majority of the unit owners  where  the  property  contains  2
units, or not less than 66 2/3% where the property contains three units,
and  not  less than 75% where the property contains 4 or more units may,
by affirmative vote at a meeting of unit owners  duly  called  for  such
purpose,  elect  to sell the property. Such action shall be binding upon
all unit owners, and it shall thereupon become the duty  of  every  unit
owner to execute and deliver such instruments and to perform all acts as
in  manner  and  form  may  be  necessary to effect such sale, provided,
however, that any unit owner who did not vote in favor  of  such  action
and who has filed written objection thereto with the manager or board of

managers within 20 days after the date of the meeting at which such sale
was approved shall be entitled to receive from the proceeds of such sale
an  amount  equivalent  to the value of his interest, as determined by a
fair appraisal, less the amount of any unpaid assessments or charges due
and owing from such unit owner.
    (b)  If there is a disagreement as to the value of the interest of a
unit owner who did not vote in favor of the sale of the  property,  that
unit  owner  shall  have  a right to designate an expert in appraisal or
property valuation to represent him,  in  which  case,  the  prospective
purchaser  of  the  property  shall  designate an expert in appraisal or
property valuation to represent him, and both  of  these  experts  shall
mutually  designate  a  third expert in appraisal or property valuation.
The 3 experts shall constitute a panel to determine by vote of at  least
2  of  the members of the panel, the value of that unit owner's interest
in the property.

(Source: P.A. 86-1156.)

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  (765 ILCS 605/16)
Sec. 16. Removal from provisions of this Act.
	
    All of the unit owners may remove the property from  the  provisions
of  this  Act  by  an instrument to that effect, duly recorded, provided
that the holders of all liens affecting any of the units consent thereto
or agree, in either case by instruments duly recorded, that their  liens
be  transferred  to  the undivided interest of the unit owner. Upon such
removal the property shall be deemed to be owned in common  by  all  the
owners.  The  undivided  interest  in the property owned in common which
shall appertain to each owner  shall  be  the  percentage  of  undivided
interest previously owned by such owner in the common elements.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/17)
Sec.  17.   Amendments  to  the  declaration  or  bylaws. 

	 (a)   The
administration  of every property shall be governed by bylaws, which may
either be embodied in the declaration or in  a  separate  instrument,  a
true  copy  of  which  shall  be  appended  to  and  recorded  with  the
declaration.  No  modification or amendment of the declaration or bylaws
shall be valid unless the same is set forth in an amendment thereof  and
such  amendment  is  duly  recorded.  An amendment of the declaration or
bylaws shall be deemed effective upon recordation unless  the  amendment
sets forth a different effective date.
    (b)  Unless   otherwise   provided   by   this  Act,  amendments  to
condominium instruments authorized to be recorded shall be executed  and
recorded  by  the  president  of  the  association or such other officer
authorized by the board of managers.

(Source: P.A. 83-833.)

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  (765 ILCS 605/18)
Sec. 18. Contents of bylaws. 
 
	The bylaws shall provide for at least the following:

    (a) (1)  The  election  from  among  the  unit  owners of a board of
    managers, the number of persons constituting such  board,  and  that
    the  terms  of  at least one-third of the members of the board shall
    expire annually and that all members of the board shall  be  elected
    at large. If there are multiple owners of a single unit, only one of
    the  multiple  owners  shall be eligible to serve as a member of the
    board at any one time.
         (2)  the powers and duties of the board;
         (3)  the compensation, if any, of the members of the board;
         (4)  the method of removal from office of members of the board;
         (5)  that the board may engage the services  of  a  manager  or
    managing agent;
         (6)  that each unit owner shall receive, at least 30 days prior
    to  the  adoption  thereof  by  the board of managers, a copy of the
    proposed annual budget together with an indication of which portions
    are intended  for  reserves,  capital  expenditures  or  repairs  or
    payment of real estate taxes;
         (7)  that  the  board  of managers shall annually supply to all
    unit owners an itemized accounting of the common  expenses  for  the
    preceding   year   actually  incurred  or  paid,  together  with  an
    indication of which portions were for reserves, capital expenditures
    or repairs or payment of real estate taxes and with a tabulation  of
    the  amounts  collected  pursuant  to  the budget or assessment, and
    showing the net excess or deficit of income over  expenditures  plus
    reserves;
         (8) (i)  that each unit owner shall receive notice, in the same
    manner  as  is  provided in this Act for membership meetings, of any
    meeting of the board of managers  concerning  the  adoption  of  the
    proposed  annual  budget and regular assessments pursuant thereto or
    to adopt a  separate  (special)  assessment,  (ii)  that  except  as
    provided  in  subsection  (iv)  below,  if  an adopted budget or any
    separate assessment adopted by the board would result in the sum  of
    all  regular  and separate assessments payable in the current fiscal
    year  exceeding  115%  of  the  sum  of  all  regular  and  separate
    assessments payable during the preceding fiscal year, the  board  of
    managers,  upon  written  petition by unit owners with 20 percent of
    the votes of the association delivered to the board within  14  days
    of  the board action, shall call a meeting of the unit owners within
    30 days of the date of delivery of  the  petition  to  consider  the
    budget  or separate assessment; unless a majority of the total votes
    of the unit owners are cast at the meeting to reject the  budget  or
    separate  assessment,  it is ratified, (iii) that any common expense
    not set forth in the budget or any increase in assessments over  the
    amount  adopted  in  the budget shall be separately assessed against
    all unit owners, (iv) that  separate  assessments  for  expenditures
    relating  to  emergencies  or  mandated by law may be adopted by the
    board of managers without being subject to unit  owner  approval  or
    the  provisions  of  item  (ii)  above  or  item (v) below.  As used
    herein, "emergency" means an  immediate  danger  to  the  structural
    integrity  of  the common elements or to the life, health, safety or
    property of the unit owners, (v) that assessments for additions  and
    alterations  to the common elements or to association-owned property
    not included in the  adopted  annual  budget,  shall  be  separately
    assessed  and  are  subject  to  approval of two-thirds of the total
    votes of all unit owners, (vi) that the board of managers may  adopt
    separate  assessments  payable over more than one fiscal year.  With
    respect to multi-year assessments not governed  by  items  (iv)  and
    (v),  the entire amount of the multi-year assessment shall be deemed
    considered and authorized in the first  fiscal  year  in  which  the
    assessment is approved;
         (9)  that  meetings  of  the board of managers shall be open to
    any unit owner, except for the portion of any meeting  held  (i)  to
    discuss  litigation  when  an  action  against  or  on behalf of the
    particular association has been filed and is pending in a  court  or
    administrative  tribunal,  or  when the board of managers finds that
    such an action is probable or imminent, (ii) to consider information
    regarding appointment, employment or dismissal of  an  employee,  or
    (iii)  to  discuss  violations  of  rules  and  regulations  of  the
    association  or a unit owner's unpaid share of common expenses; that
    any vote on these matters shall be taken at  a  meeting  or  portion
    thereof  open  to any unit owner; that any unit owner may record the
    proceedings at meetings or portions thereof required to be  open  by
    this  Act by tape, film or other means; that the board may prescribe
    reasonable rules and regulations to govern the right  to  make  such
    recordings,  that  notice  of  such  meetings  shall  be  mailed  or
    delivered  at  least 48 hours prior thereto, unless a written waiver
    of  such notice is signed by the person or persons entitled to  such
    notice  pursuant  to  the  declaration,  bylaws,  other  condominium
    instrument,  or  provision  of law other than this subsection before
    the meeting is convened, and that copies of notices of  meetings  of
    the board of managers shall be posted in entranceways, elevators, or
    other  conspicuous places in the condominium at least 48 hours prior
    to the meeting of the board of managers except  where  there  is  no
    common  entranceway  for  7 or more units, the board of managers may
    designate one or more locations in  the  proximity  of  these  units
    where the notices of meetings shall be posted;
         (10)  that the board shall meet at least 4 times annually;
         (11)  that  no  member of the board or officer shall be elected
    for a term of more than 2 years, but that officers and board members
    may succeed themselves;
         (12)  the designation of an officer to  mail  and  receive  all
    notices   and  execute  amendments  to  condominium  instruments  as
    provided for in this Act and in the condominium instruments;
         (13)  the method of filling vacancies on the board which  shall
    include authority for the remaining members of the board to fill the
    vacancy  by  two-thirds  vote  until the next annual meeting of unit
    owners or for a period terminating no later than 30  days  following
    the  filing  of  a petition signed by unit owners holding 20% of the
    votes of the association requesting a meeting of the unit owners  to
    fill  the vacancy for the balance of the term, and that a meeting of
    the unit owners shall be called for purposes of filling a vacancy on
    the board no later than 30 days following the filing of  a  petition
    signed  by  unit  owners holding 20% of the votes of the association
    requesting such a meeting, and the method of filling vacancies among
    the officers that shall include the authority for the members of the
    board to fill the vacancy for the unexpired portion of the term;
         (14)  what percentage of the board of managers, if other than a
    majority, shall constitute a quorum;
         (15)  provisions concerning notice of board meetings to members
    of the board;
         (16)  the board of managers may not enter into a contract  with
    a current board member or with a corporation or partnership in which
    a  board  member  or a member of the board member's immediate family
    has 25% or more interest, unless  notice  of  intent  to  enter  the
    contract  is given to unit owners within 20 days after a decision is
    made to enter into the contract and the unit owners are afforded  an
    opportunity  by filing a petition, signed by 20% of the unit owners,
    for an election to approve or disapprove the contract; such petition
    shall be filed within 20 days after such notice  and  such  election
    shall be held within 30 days after filing the petition; for purposes
    of  this  subsection,  a  board  member's immediate family means the
    board member's spouse, parents, and children;
         (17)  that the board of managers may disseminate to unit owners
    biographical  and  background  information  about   candidates   for
    election  to  the  board  if  (i) reasonable efforts to identify all
    candidates are made and all candidates are given an  opportunity  to
    include  biographical  and background information in the information
    to be disseminated; and (ii) the board does not express a preference
    in favor of any candidate;
         (18)  any proxy distributed for board elections by the board of
    managers gives unit owners the opportunity to designate  any  person
    as  the  proxy  holder,  and gives the unit owner the opportunity to
    express a preference for any of the known candidates for  the  board
    or to write in a name;
         (19)  that  special  meetings  of  the board of managers can be
    called by the president or 25% of the members of the board; and
         (20)  that the board of managers may establish and  maintain  a
    system  of  master  metering  of public utility services and collect
    payments in connection therewith, subject to the requirements of the
    Tenant Utility Payment Disclosure Act.

    (b) (1)  What percentage of the unit  owners,  if  other  than  20%,
    shall constitute a quorum provided that, for condominiums with 20 or
    more  units,  the  percentage  of  unit owners constituting a quorum
    shall be 20% unless the  unit  owners  holding  a  majority  of  the
    percentage   interest  in  the  association  provide  for  a  higher
    percentage;
         (2)  that the association shall have one class of membership;
         (3)  that the members shall hold an annual meeting, one of  the
    purposes  of  which  shall  be  to  elect  members  of  the board of
    managers;
         (4)  the method of calling meetings of the unit owners;
         (5)  that special meetings of the members can be called by  the
    president, board of managers, or by 20% of unit owners;
         (6)  that  written  notice  of  any membership meeting shall be
    mailed or delivered giving members no less than 10 and no more  than
    30 days notice of the time, place and purpose of such meeting;
         (7)  that  voting  shall be on a percentage basis, and that the
    percentage vote to which each unit is  entitled  is  the  percentage
    interest   of   the  undivided  ownership  of  the  common  elements
    appurtenant thereto,  provided  that  the  bylaws  may  provide  for
    approval  by  unit  owners  in  connection  with  matters  where the
    requisite approval on a percentage basis is not  specified  in  this
    Act, on the basis of one vote per unit;
         (8)  that,  where  there  is  more than one owner of a unit, if
    only one of the multiple owners is  present  at  a  meeting  of  the
    association,  he is entitled to cast all the votes allocated to that
    unit, if more than one of the multiple owners are present, the votes
    allocated to that unit may be  cast  only  in  accordance  with  the
    agreement  of  a majority in interest of the multiple owners, unless
    the declaration expressly provides otherwise, that there is majority
    agreement if any one of the multiple owners cast the votes allocated
    to that unit without protest  being  made  promptly  to  the  person
    presiding over the meeting by any of the other owners of the unit;
         (9)  that   unless  the Articles of Incorporation or the bylaws
    otherwise provide, a unit  owner  may  vote  by  proxy  executed  in
    writing  by  the  unit  owner  or by his duly authorized attorney in
    fact; that the proxy shall be invalid after 11 months from the  date
    of  its  execution, unless otherwise provided in the proxy, and that
    every proxy must bear the date of execution;
         (10)  that  the  association  may,   upon   adoption   of   the
    appropriate  rules  by  the  board of managers, conduct elections by
    secret ballot whereby the voting ballot  is  marked  only  with  the
    percentage  interest for the unit and the vote itself, provided that
    the board further adopt rules to verify the status of the unit owner
    issuing a proxy or casting a ballot; and further, that  a  candidate
    for   election   to  the  board  of  managers  or  such  candidate's
    representative shall have the right to be present at the counting of
    ballots at such election;
         (11)  that in the event of a resale of a condominium  unit  the
    purchaser  of a unit from a seller other than the developer pursuant
    to an installment contract for purchase shall during such  times  as
    he  or  she  resides  in  the  unit  be  counted toward a quorum for
    purposes of election of members of the  board  of  managers  at  any
    meeting  of  the unit owners called for purposes of electing members
    of the board, shall have the right  to  vote  for  the  election  of
    members  of  the board of managers and to be elected to and serve on
    the board of managers unless the seller expressly retains in writing
    any or all of such rights.  In no event may the seller and purchaser
    both be counted  toward  a  quorum,  be  permitted  to  vote  for  a
    particular   office   or   be   elected  and  serve  on  the  board.
    Satisfactory evidence of  the  installment  contact  shall  be  made
    available  to  the  association or its agents.  For purposes of this
    subsection, "installment contact" shall have the same meaning as set
    forth in Section 1 (e) of "An Act relating to installment  contracts
    to sell dwelling structures", approved August 11, 1967, as amended;
         (12)  the  method  by  which matters subject to the approval of
    unit  owners  set  forth  in  this  Act,  or  in   the   condominium
    instruments,  will  be  submitted  to  the  unit  owners  at special
    membership meetings called for such purposes; and
         (13)  that matters subject to the affirmative vote of not  less
    than  2/3  of  the votes of unit owners at a meeting duly called for
    that purpose, shall include, but not be limited to:
              (i)  merger or consolidation of the association;
              (ii)  sale,  lease,   exchange,   or   other   disposition
         (excluding the mortgage or pledge) of all, or substantially all
         of the property and assets of the association; and
              (iii)  the  purchase or sale of land or of units on behalf
         of all unit owners.
    (c)  Election of a president from among the board of  managers,  who
shall preside over the meetings of the board of managers and of the unit
owners.
    (d)  Election  of  a secretary from among the board of managers, who
shall keep the minutes of all meetings of the board of managers  and  of
the  unit  owners  and  who  shall,  in  general, perform all the duties
incident to the office of secretary.
    (e)  Election of a treasurer from among the board of  managers,  who
shall keep the financial records and books of account.
    (f)  Maintenance,  repair and replacement of the common elements and
payments therefor, including the method of approving payment vouchers.
    (g)  An association with 30 or more units shall obtain and  maintain
fidelity insurance covering persons who control or disburse funds of the
association  for  the  maximum  amount  of coverage available to protect
funds in the custody or control of the association plus the  association
reserve  fund.   All  management companies which are responsible for the
funds held or administered by the association shall maintain and furnish
to the association a fidelity bond for the maximum  amount  of  coverage
available  to  protect funds in the custody of the management company at
any time.  The association shall bear the cost of the fidelity insurance
and fidelity bond, unless otherwise provided  by  contract  between  the
association  and  a  management  company.   The association shall be the
direct obligee of any such fidelity bond.  A management company  holding
reserve  funds  of an association shall at all times maintain a separate
account for each association, provided,  however,  that  for  investment
purposes,  the  Board  of  Managers  of  an  association may authorize a
management company to maintain the  association's  reserve  funds  in  a
single   interest   bearing   account   with   similar  funds  of  other
associations.  The  management  company  shall  at  all  times  maintain
records  identifying  all  moneys of each association in such investment
account.  The  management  company  may  hold  all  operating  funds  of
associations which it manages in a single operating account but shall at
all times maintain records identifying all moneys of each association in
such operating account. Such operating and reserve  funds  held  by  the
management   company  for  the  association  shall  not  be  subject  to
attachment by any creditor of the management company.
    For the purpose of this subsection a  management  company  shall  be
defined  as  a  person,  partnership, corporation, or other legal entity
entitled to transact business on behalf of others, acting on  behalf  of
or  as  an  agent  for  a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties, responsibilities, and
other obligations necessary for the day to day operation and  management
of  any  property subject to this Act.  For purposes of this subsection,
the term "fiduciary insurance coverage"  shall  be  defined  as  both  a
fidelity  bond  and  directors  and  officers  liability  coverage,  the
fidelity  bond  in  the full amount of association funds and association
reserves that will be  in  the  custody  of  the  association,  and  the
directors  and  officers  liability  coverage  at  a  level  as shall be
determined to be reasonable by the board of managers, if  not  otherwise
established by the declaration or by laws.
    Until  one  year  after the effective date of this amendatory Act of
1985, if a condominium association  has  reserves  plus  assessments  in
excess  of  $250,000  and  cannot  reasonably  obtain 100% fidelity bond
coverage for such amount, then it must obtain a fidelity  bond  coverage
of $250,000.
    (h)  Method  of  estimating the amount of the annual budget, and the
manner of assessing and collecting from the unit owners their respective
shares of such estimated expenses, and of any  other  expenses  lawfully
agreed upon.
    (i)  That  upon  10  days notice to the manager or board of managers
and payment of a reasonable fee, any unit owner  shall  be  furnished  a
statement  of  his  account  setting  forth  the  amount  of  any unpaid
assessments or other charges due and owing from such owner.
    (j)  Designation  and  removal  of  personnel  necessary   for   the
maintenance, repair and replacement of the common elements.
    (k)  Such  restrictions  on  and requirements respecting the use and
maintenance of the units and the use of the  common  elements,  not  set
forth  in  the  declaration,  as  are  designed  to prevent unreasonable
interference with the use of their respective units and  of  the  common
elements by the several unit owners.
    (l)  Method  of  adopting  and  of amending administrative rules and
regulations governing the operation and use of the common elements.
    (m)  The percentage of votes required to modify or amend the bylaws,
but each one of the particulars set forth in this section  shall  always
be embodied in the bylaws.
    (n) (i)  The  provisions of this Act, the declaration, bylaws, other
condominium instruments, and rules and regulations that  relate  to  the
use of the individual unit or the common elements shall be applicable to
any  person leasing a unit and shall be deemed to be incorporated in any
lease executed or renewed  on  or  after  the  effective  date  of  this
amendatory  Act  of  1984.  (Ii)  With  regard to any lease entered into
subsequent to the effective date of this amendatory  Act  of  1989,  the
unit  owner leasing the unit shall deliver a copy of the signed lease to
the board or if the lease is oral, a memorandum of the lease, not  later
than  the  date  of  occupancy  or  10  days  after the lease is signed,
whichever occurs first. In addition to any other remedies, by filing  an
action jointly against the tenant and the unit owner, an association may
seek  to enjoin a tenant from occupying a unit or seek to evict a tenant
under the provisions of Article IX of the Code of  Civil  Procedure  for
failure  of  the  lessor-owner  to  comply with the leasing requirements
prescribed by this Section or by the declaration, bylaws, and rules  and
regulations.  The  board  of  managers  may  proceed  directly against a
tenant, at law or in equity, or under the provisions of  Article  IX  of
the  Code  of  Civil  Procedure,  for  any other breach by tenant of any
covenants, rules, regulations or bylaws.
    (o)  The association shall have no authority to forbear the  payment
of assessments by any unit owner.
    (p)  That  when  30%  or fewer of the units, by number, possess over
50% in the aggregate of the votes in  the  association,  any  percentage
vote of members specified herein or in the condominium instruments shall
require  the  specified  percentage  by  number  of units rather than by
percentage of interest in the common elements allocated  to  units  that
would otherwise be applicable.
    (q)  That   a   unit  owner  may  not  assign,  delegate,  transfer,
surrender, or avoid the duties, responsibilities, and liabilities  of  a
unit owner under this Act, the condominium instruments, or the rules and
regulations  of  the Association; and that such an attempted assignment,
delegation, transfer, surrender, or avoidance shall be deemed void.
    The provisions of this Section are  applicable  to  all  condominium
instruments  recorded  under  this  Act.   Any  portion of a condominium
instrument which contains provisions contrary to these provisions  shall
be  void  as against public policy and ineffective.  Any such instrument
which fails to contain the provisions required by this Section shall  be
deemed to incorporate such provisions by operation of law.

(Source: P.A. 88-135; 88-417; 88-626, eff. 9-9-94; 88-670, eff. 12-2-94;
89-41, eff. 6-23-95.)

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  (765 ILCS 605/18.1)
Sec. 18.1. Incorporation as Not-for-profit Corporation
	  
      (a) The owner or owners of the property, or the board of
managers, may cause to  be  incorporated  a  not-for-profit  corporation
under  the  General  Not  For  Profit  Corporation  Act  of the State of
Illinois  for  the  purpose  of  facilitating  the  administration   and
operation of the property.
    (b)  The  Secretary of State shall include on the application of the
Articles of Incorporation under the General Not For  Profit  Corporation
Act  and  the  annual  report  form  and  such  other  forms as he deems
necessary a question asking whether the  corporation  is  a  condominium
association under the provisions of this Act.
    (c)  The  Secretary of State shall maintain a computer record of all
not for profit corporations which are condominium associations  in  this
State and their current officers and members of the Board of Managers or
Board of Directors, as shown on the latest annual report or the articles
of incorporation, whichever is more current.
    (d)  The board of directors of such corporation shall constitute the
board  of  managers  provided  for  in  this Act, and all of the rights,
titles, powers, privileges and obligations vested in or imposed upon the
board of managers in this Act and in the  declaration  may  be  held  or
performed  by  such  corporation  or  by the duly elected members of the
board of directors thereof and their successors in office.
    (e)  Nothing in this  Section  shall  be  construed  to  affect  the
ownership of the property.

(Source: P.A. 88-417.)

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  (765 ILCS 605/18.2)
Sec. 18.2. Administration of property prior to election of  initial
board of managers.
	  
    (a)  Until  election  of  the  initial  board  of  managers  that is
comprised of a majority of unit owners other than the  developer  (first
unit  owner  board  of  managers),  the  same  rights,  titles,  powers,
privileges, trusts, duties and obligations vested in or imposed upon the
board of managers by this Act and in the declaration and bylaws shall be
held and performed by the developer.
    (b) (i)  The  election  of  the  first  unit owner board of managers
    shall be held not later than 60 days after  the  conveyance  by  the
    developer of 75% of the units, or 3 years after the recording of the
    declaration,  whichever  is  earlier.   The  developer shall give at
    least 21 days notice of such meeting to elect the first  unit  owner
    board  of  managers  and  shall  provide  to any unit owner within 3
    working days of the request, the names, addresses, and weighted vote
    of each unit owner entitled to vote at such meeting.  Any unit owner
    shall be provided with  the  same  information  within  10  days  of
    receipt  of  the request, with respect to each subsequent meeting to
    elect members of the Board of Managers.
         (Ii)  In the event the developer does not call  a  meeting  for
    the  purpose  of  election  of the board of managers within the time
    provided in this subsection (b), unit  owners  holding  20%  of  the
    interest  in the association may call a meeting by filing a petition
    for such meeting with the developer, after which  said  unit  owners
    shall  have  authority  to  send  notice of said meeting to the unit
    owners and to hold such meeting.
    (c)  If the first unit board of managers is not elected at the  time
so  established,  the developer shall continue in office for a period of
30 days whereupon written notice of his resignation shall be sent to all
of the unit owners entitled to vote at such election.
    (d)  Within 60 days following the election of the first  unit  owner
board of managers, the developer shall deliver to the board of managers:
         (1)  All  original documents as recorded or filed pertaining to
    the property, its administration, and the association, such  as  the
    declaration,  by-laws,  articles of incorporation, other condominium
    instruments, annual reports,  minutes  and  rules  and  regulations,
    contracts,   leases,   or  other  agreements  entered  into  by  the
    Association.  If any original documents are unavailable, a copy  may
    be  provided  if  certified  by  affidavit  of  the developer, or an
    officer or agent of the developer, as being a complete copy  of  the
    actual document recorded as filed.
         (2)  A  detailed accounting by the developer, setting forth the
    source and nature of receipts and expenditures  in  connection  with
    the management, maintenance and operation of the property and copies
    of all insurance policies and a list of any loans or advances to the
    association which are outstanding.
         (3)  Association  funds,  which  shall  have  been at all times
    segregated from any other moneys of the developer.
         (4)  A schedule of all real or personal property, equipment and
    fixtures  belonging  to   the   association,   including   documents
    transferring  the  property,  warranties,  if  any, for all real and
    personal property and equipment, deeds,  title  insurance  policies,
    and all tax bills.
         (5)  A  list  of  all  litigation,  administrative  action  and
    arbitrations  involving the association, any notices of governmental
    bodies involving actions taken or which may be taken concerning  the
    association,    engineering    and    architectural   drawings   and
    specifications as approved by any governmental authority, all  other
    documents   filed   with   any  other  governmental  authority,  all
    governmental certificates, correspondence involving  enforcement  of
    any  association  requirements,  copies of any documents relating to
    disputes involving unit owners, originals of all documents  relating
    to everything listed in this subparagraph.
    (e)  Upon  election  of  the first unit owner board of managers, any
contract, lease, or other agreement made prior to the date  of  election
of  the  first  unit  owner  board  by  or  on  behalf  of  unit owners,
individually or collectively, the unit owners' association, the board of
managers, or the developer or its affiliates which extends for a  period
of  more than 2 years from the date of the election, shall be subject to
cancellation by a majority of the votes of the unit  owners  other  than
the  developer  cast  at  a  special  meeting of members called for that
purpose during the 180 day period beginning on the date of the  election
of the first unit owner board.  At least 60 days prior to the expiration
of  the  180  day  cancellation period, the board of managers shall send
notice to every unit owner,  notifying  them  of  this  provision,  what
contracts,  leases  and other agreements are affected, and the procedure
for calling a meeting of the unit owners for the purpose  of  voting  on
termination  of  such contracts, leases or other agreements.  During the
180 day cancellation period the other party to the contract,  lease,  or
other  agreement  shall  also  have  the  right  of  cancellation.   The
cancellation  shall  be  effective  30  days  after  mailing  notice  by
certified mail, return receipt requested, to the last known  address  of
the other parties to the contract, lease, or other agreement.
    (f)  The  statute  of  limitations  for any actions in law or equity
which the condominium association may bring shall not begin to run until
the unit owners have elected a majority of the members of the  board  of
managers.
    (g)  If  the  developer  fails  to  fully comply with subsection (d)
within the 60 days provided and fails to fully comply within 10 days  of
written demand mailed by registered or certified mail to his or her last
known  address,  the board may bring an action to compel compliance with
subsection (d).  If the court finds that any of the required  deliveries
were not made within the required period, the board shall be entitled to
recover its reasonable attorneys' fees and costs incurred from and after
the date of expiration of the 10 day demand.

(Source: P.A. 91-616, eff. 8-19-99.)

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  (765 ILCS 605/18.3)
Sec. 18.3. Unit Owners' Association.
	  
The unit owners'  association
is  responsible  for  the overall administration of the property through
its duly elected board of managers.  Each unit owner shall be  a  member
of the association.  The association, whether or not it is incorporated,
shall  have  those  powers and responsibilities specified in the General
Not For Profit Corporation Act of 1986 that are  not  inconsistent  with
this  Act  or  the condominium instruments, including but not limited to
the power to acquire and hold title to land.  Such land is not  part  of
the  common  elements unless and until it has been added by an amendment
of the condominium instruments, properly executed and placed  of  record
as  required  by  this Act.  The association shall have and exercise all
powers necessary or convenient to effect any or all of the purposes  for
which  the  association  is  organized,  and  to  do every other act not
inconsistent with law which may be appropriate to promote and attain the
purposes set forth in this Act or in the condominium instruments.

(Source: P.A. 87-1236.)

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  (765 ILCS 605/18.4)
Sec. 18.4.  Powers and Duties of Board of Managers.  

The  board  of
managers  shall  exercise  for  the  association  all powers, duties and
authority  vested  in  the  association  by  law  or   the   condominium
instruments except for such powers, duties and authority reserved by law
to  the  members of the association.  The powers and duties of the board
of managers shall include, but shall not be limited to, the following:
         (a)  To provide for the operation, care,  upkeep,  maintenance,
    replacement and improvement of the common elements.  Nothing in this
    subsection  (a)  shall  be  deemed  to invalidate any provision in a
    condominium instrument placing limits on expenditures for the common
    elements, provided, that such limits  shall  not  be  applicable  to
    expenditures  for  repair,  replacement,  or restoration of existing
    portions of the common elements.  The term "repair,  replacement  or
    restoration"  means expenditures to deteriorated or damaged portions
    of the property related to the existing decorating,  facilities,  or
    structural  or mechanical components, interior or exterior surfaces,
    or energy systems and equipment with the  functional  equivalent  of
    the  original  portions  of  such  areas.  Replacement of the common
    elements may result in an improvement over the original  quality  of
    such  elements  or facilities; provided that, unless the improvement
    is mandated by law or is an emergency as defined  in  item  (iv)  of
    subparagraph  (8) of paragraph (a) of Section 18, if the improvement
    results in a proposed expenditure exceeding 5% of the annual budget,
    the board of managers, upon written petition by unit owners with 20%
    of the votes of the association delivered to  the  board  within  14
    days  of  the  board action to approve the expenditure, shall call a
    meeting of the unit owners within 30 days of the date of delivery of
    the petition to consider the expenditure.  Unless a majority of  the
    total votes of the unit owners are cast at the meeting to reject the
    expenditure, it is ratified.
         (b)  To prepare, adopt and distribute the annual budget for the
    property.
         (c)  To levy and expend assessments.
         (d)  To collect assessments from unit owners.
         (e)  To  provide  for  the  employment  and  dismissal  of  the
    personnel  necessary  or advisable for the maintenance and operation
    of the common elements.
         (f)  To obtain adequate and appropriate kinds of insurance.
         (g)  To own, convey, encumber, lease, and otherwise  deal  with
    units conveyed to or purchased by it.
         (h)  To  adopt  and  amend  rules  and regulations covering the
    details of the operation and use of the property, after a meeting of
    the unit owners called for the specific purpose  of  discussing  the
    proposed rules and regulations.  Notice of the meeting shall contain
    the full text of the proposed rules and regulations, and the meeting
    shall  conform  to  the  requirements  of Section 18(b) of this Act,
    except that no quorum is required at the meeting of the unit  owners
    unless  the  declaration,  bylaws  or  other  condominium instrument
    expressly provides to the contrary.  However, no rule or  regulation
    may  impair  any  rights  guaranteed  by  the First Amendment to the
    Constitution of the United States or Section 4 of Article I  of  the
    Illinois  Constitution,  nor  may  any rules or regulations conflict
    with the provisions of this Act or the condominium instruments.
         (i)  To keep detailed, accurate records  of  the  receipts  and
    expenditures affecting the use and operation of the property.
         (j)  To  have  access  to each unit from time to time as may be
    necessary for the maintenance, repair or replacement of  any  common
    elements or for making emergency repairs necessary to prevent damage
    to the common elements or to other units.
         (k)  To  pay  real property taxes, special assessments, and any
    other special taxes or charges of the State of Illinois  or  of  any
    political  subdivision  thereof, or other lawful taxing or assessing
    body, which are authorized by law to be assessed and levied upon the
    real property of the condominium.
         (l)  To impose charges for  late  payment  of  a  unit  owner's
    proportionate  share  of  the common expenses, or any other expenses
    lawfully agreed upon, and after notice  and  an  opportunity  to  be
    heard,  to  levy  reasonable fines for violation of the declaration,
    by-laws, and rules and regulations of the association.
         (m)  Unless the condominium instruments  expressly  provide  to
    the contrary, by a majority vote of the entire board of managers, to
    assign  the  right  of  the association to future income from common
    expenses or other sources, and to mortgage or  pledge  substantially
    all of the remaining assets of the association.
         (n)  To  record  the  dedication  of  a  portion  of the common
    elements to a public body for use  as,  or  in  connection  with,  a
    street  or  utility  where  authorized  by the unit owners under the
    provisions of Section 14.2.
         (o)  To record the granting of an easement for  the  laying  of
    cable television cable where authorized by the unit owners under the
    provisions  of  Section 14.3; to obtain, if available and determined
    by the board to be in the best interests of the  association,  cable
    television service for all of the units of the condominium on a bulk
    identical  service  and equal cost per unit basis; and to assess and
    recover the expense as a common expense and, if so determined by the
    board, to assess each and every unit on the same equal cost per unit
    basis.
         (p)  To  seek  relief  on  behalf  of  all  unit  owners   when
    authorized  pursuant  to  subsection  (c)  of  Section 10 from or in
    connection with the assessment or levying of  real  property  taxes,
    special  assessments,  and any other special taxes or changes of the
    State of Illinois or of any political subdivision thereof or of  any
    lawful taxing or assessing body.
         (q)  To  reasonably accommodate the needs of a handicapped unit
    owner as required by the federal Civil Rights Act of 1968, the Human
    Rights Act and any applicable local ordinances in  the  exercise  of
    its powers with respect to the use of common elements or approval of
    modifications in an individual unit.
    In  the performance of their duties, the officers and members of the
board, whether appointed by the developer or elected by the unit owners,
shall exercise the care required of a fiduciary of the unit owners.
    The collection of assessments from unit owners  by  an  association,
board  of  managers  or  their  duly  authorized  agents  shall  not  be
considered  acts  constituting  a  collection agency for purposes of the
Collection Agency Act.
    The provisions of this Section are  applicable  to  all  condominium
instruments  recorded  under  this  Act.   Any  portion of a condominium
instrument which contains provisions contrary to these provisions  shall
be  void  as against public policy and ineffective.  Any such instrument
that fails to contain the provisions required by this Section  shall  be
deemed to incorporate such provisions by operation of law.

(Source: P.A. 91-195, eff. 7-20-99.)

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   (765 ILCS 605/18.5)
Sec. 18.5.  Master Associations.
	   
    (a)  If the declaration, other condominium instrument, or other duly
recorded covenants provide that any of the powers  of  the  unit  owners
associations  are  to be exercised by or may be delegated to a nonprofit
corporation or unincorporated association that exercises those or  other
powers  on behalf of one or more condominiums, or for the benefit of the
unit owners of one or more condominiums, such corporation or association
shall be a master association.
    (b)  There shall be included in the declaration,  other  condominium
instruments,  or  other  duly recorded covenants establishing the powers
and duties of  the  master  association  the  provisions  set  forth  in
subsections (c) through (h).
    In  interpreting  subsections  (c)  through  (h),  the courts should
interpret these provisions so that  they  are  interpreted  consistently
with the similar parallel provisions found in other parts of this Act.
    (c)  Meetings and finances.
         (1)  Each  unit owner of a condominium subject to the authority
    of the board of the master association shall receive,  at  least  30
    days  prior  to  the  adoption  thereof  by  the board of the master
    association, a copy of the proposed annual budget.
         (2)  The board of the master association shall annually  supply
    to  all  unit owners of condominiums subject to the authority of the
    board of the master association an itemized accounting of the common
    expenses for the preceding year actually incurred or paid,  together
    with a tabulation of the amounts collected pursuant to the budget or
    assessment,  and  showing  the  net excess or deficit of income over
    expenditures plus reserves.
         (3)  Each unit owner of a condominium subject to the  authority
    of  the board of the master association shall receive written notice
    mailed or delivered no less than 10 and no more than 30  days  prior
    to any meeting of the board of the master association concerning the
    adoption  of  the  proposed  annual  budget  or  any increase in the
    budget, or establishment of an assessment.
         (4)  Meetings of the board of the master association  shall  be
    open  to any unit owner in a condominium subject to the authority of
    the board of the master association, except for the portion  of  any
    meeting held:
              (A)  to  discuss  litigation  when an action against or on
         behalf of the particular master association has been filed  and
         is  pending  in a court or administrative tribunal, or when the
         board of the master association finds that such  an  action  is
         probable or imminent,
              (B)  to   consider   information   regarding  appointment,
         employment or dismissal of an employee, or
              (C)  to discuss violations of rules and regulations of the
         master association or unpaid common expenses owed to the master
         association.
    Any vote on these matters shall be taken at  a  meeting  or  portion
    thereof  open  to  any  unit  owner  of a condominium subject to the
    authority of the master association.
         Any unit owner may record the proceedings at meetings  required
    to  be  open by this Act by tape, film or other means; the board may
    prescribe reasonable rules and regulations to govern  the  right  to
    make  such  recordings.   Notice  of  meetings  shall  be  mailed or
    delivered at least 48 hours prior thereto, unless a  written  waiver
    of  such  notice  is signed by the persons entitled to notice before
    the meeting is convened.  Copies of notices of meetings of the board
    of  the  master  association  shall  be  posted   in   entranceways,
    elevators,  or  other conspicuous places in the condominium at least
    48  hours  prior  to  the  meeting  of  the  board  of  the   master
    association.   Where  there  is  no common entranceway for 7 or more
    units, the board of the master association may designate one or more
    locations in the proximity of  these  units  where  the  notices  of
    meetings shall be posted.
         (5)  If the declaration provides for election by unit owners of
    members of the board of directors in the event of a resale of a unit
    in  the  master  association,  the purchaser of a unit from a seller
    other than the developer pursuant to  an  installment  contract  for
    purchase  shall, during such times as he or she resides in the unit,
    be counted toward a quorum for purposes of election  of  members  of
    the  board of directors at any meeting of the unit owners called for
    purposes of electing members of the board, and shall have the  right
    to vote for the election of members of the board of directors and to
    be  elected to and serve on the board of directors unless the seller
    expressly retains in writing any or all of those rights. In no event
    may the seller and purchaser both be counted  toward  a  quorum,  be
    permitted  to  vote for a particular office, or be elected and serve
    on the board.  Satisfactory evidence  of  the  installment  contract
    shall  be  made  available  to  the  association or its agents.  For
    purposes of this subsection, "installment contract" shall  have  the
    same  meaning  as  set  forth  in subsection (e) of Section 1 of the
    Dwelling Unit Installment Contract Act.
         (6)  The  board  of  the  master  association  shall  have  the
    authority to establish and maintain a system of master  metering  of
    public  utility  services  and  to  collect  payments  in connection
    therewith, subject to the requirements of the Tenant Utility Payment
    Disclosure Act.
         (7)  The board of the master association or a  common  interest
    community  association  shall  have  the  power, after notice and an
    opportunity to be heard, to levy and collect reasonable  fines  from
    members  for  violations  of  the declaration, bylaws, and rules and
    regulations  of  the  master  association  or  the  common  interest
    community association.  Nothing contained in  this  subdivision  (7)
    shall give rise to a statutory lien for unpaid fines.
    (d)  Records.
         (1)  The  board  of  the  master association shall maintain the
    following records of the association and  make  them  available  for
    examination  and copying at convenient hours of weekdays by any unit
    owners in a condominium subject to the authority  of  the  board  or
    their mortgagees and their duly authorized agents or attorneys:
              (i)  Copies of the recorded declaration, other condominium
         instruments,  other  duly recorded covenants and bylaws and any
         amendments,   articles   of   incorporation   of   the   master
         association, annual  reports  and  any  rules  and  regulations
         adopted  by  the  master  association  or  its  board  shall be
         available.   Prior  to   the   organization   of   the   master
         association,  the  developer  shall maintain and make available
         the  records  set  forth  in  this   subdivision   (d)(1)   for
         examination and copying.
              (Ii)  Detailed and accurate records in chronological order
         of  the  receipts  and expenditures affecting the common areas,
         specifying and itemizing the maintenance and repair expenses of
         the common areas and any other expenses incurred, and copies of
         all contracts, leases, or other agreements entered into by  the
         master association, shall be maintained.
              (iii)  The   minutes   of   all  meetings  of  the  master
         association and the board of the master  association  shall  be
         maintained for not less than 7 years.
              (iv)  Ballots and proxies related thereto, if any, for any
         election  held  for the board of the master association and for
         any other  matters  voted  on  by  the  unit  owners  shall  be
         maintained for not less than one year.
              (v)  Such  other  records of the master association as are
         available  for  inspection  by  members  of  a   not-for-profit
         corporation  pursuant  to Section 107.75 of the General Not For
         Profit Corporation Act of 1986 shall be maintained.
              (vi)  With respect to units owned by a land  trust,  if  a
         trustee  designates in writing a person to cast votes on behalf
         of the unit owner, the designation shall remain in effect until
         a subsequent document is filed with the association.
         (2)  Where a request for records under this subsection is  made
    in writing to the board of managers or its agent, failure to provide
    the  requested record or to respond within 30 days shall be deemed a
    denial by the board of directors.
         (3)  A reasonable fee may be charged by the master  association
    or its board for the cost of copying.
         (4)  If  the  board  of  directors  fails  to  provide  records
    properly  requested  under subdivision (d)(1) within the time period
    provided in subdivision (d)(2), the unit owner may seek  appropriate
    relief, including an award of attorney's fees and costs.
    (e)  The  board of directors shall have standing and capacity to act
in a representative capacity in relation to matters involving the common
areas of the master association or more than one unit, on behalf of  the
unit owners as their interests may appear.
    (f)  Administration  of  property  prior  to election of the initial
board of directors.
         (1)  Until the election, by the unit owners or  the  boards  of
    managers  of the underlying condominium associations, of the initial
    board of directors of a  master  association  whose  declaration  is
    recorded  on  or  after  August  10,  1990, the same rights, titles,
    powers, privileges, trusts, duties and obligations that  are  vested
    in  or  imposed  upon  the  board of directors by this Act or in the
    declaration or other  duly  recorded  covenant  shall  be  held  and
    performed by the developer.
         (2)  The election of the initial board of directors of a master
    association  whose  declaration  is  recorded on or after August 10,
    1990, by the unit owners or the boards of managers of the underlying
    condominium associations, shall be held not later than 60 days after
    the conveyance by the developer of 75% of  the  units,  or  3  years
    after  the  recording of the declaration, whichever is earlier.  The
    developer shall give at least 21 days notice of the meeting to elect
    the initial board of directors and shall upon request provide to any
    unit owner, within  3  working  days  of  the  request,  the  names,
    addresses,  and weighted vote of each unit owner entitled to vote at
    the meeting.  Any unit owner shall upon receipt of  the  request  be
    provided  with  the same information, within 10 days of the request,
    with respect to each subsequent meeting  to  elect  members  of  the
    board of directors.
         (3)  If  the initial board of directors of a master association
    whose declaration is recorded on or after August  10,  1990  is  not
    elected  by  the  unit  owners  or  the  members  of  the underlying
    condominium association board of managers at the time established in
    subdivision (f)(2), the developer shall continue  in  office  for  a
    period of 30 days, whereupon written notice of his resignation shall
    be  sent  to  all  of  the  unit owners or members of the underlying
    condominium board of managers entitled to vote at  an  election  for
    members of the board of directors.
         (4)  Within 60 days following the election of a majority of the
    board  of  directors,  other than the developer, by unit owners, the
    developer shall deliver to the board of directors:
              (i)  All  original  documents   as   recorded   or   filed
         pertaining   to  the  property,  its  administration,  and  the
         association,   such   as   the   declaration,    articles    of
         incorporation,  other  instruments,  annual  reports,  minutes,
         rules   and   regulations,  and  contracts,  leases,  or  other
         agreements entered into by the association.   If  any  original
         documents  are unavailable, a copy may be provided if certified
         by affidavit of the developer, or an officer or  agent  of  the
         developer,  as  being  a  complete  copy of the actual document
         recorded or filed.
              (Ii)  A detailed  accounting  by  the  developer,  setting
         forth  the  source  and  nature of receipts and expenditures in
         connection with the management, maintenance  and  operation  of
         the  property,  copies of all insurance policies, and a list of
         any loans or advances to the association which are outstanding.
              (Iii)  Association funds, which shall  have  been  at  all
         times segregated from any other moneys of the developer.
              (Iv)  A   schedule  of  all  real  or  personal  property,
         equipment and fixtures belonging to the association,  including
         documents  transferring  the  property, warranties, if any, for
         all real and personal property  and  equipment,   deeds,  title
         insurance policies, and all tax bills.
              (v)  A  list  of all litigation, administrative action and
         arbitrations  involving  the  association,   any   notices   of
         governmental  bodies  involving  actions  taken or which may be
         taken concerning the association, engineering and architectural
         drawings and specifications as  approved  by  any  governmental
         authority,   all   other   documents   filed   with  any  other
         governmental   authority,   all   governmental    certificates,
         correspondence   involving   enforcement   of  any  association
         requirements, copies of  any  documents  relating  to  disputes
         involving  unit owners, and originals of all documents relating
         to everything listed in this subparagraph.
              (Vi)  If the developer fails to  fully  comply  with  this
         paragraph  (4)  within  the 60 days provided and fails to fully
         comply within 10 days of written demand mailed by registered or
         certified mail to his or her last known address, the board  may
         bring  an  action to compel compliance with this paragraph (4).
         If the court finds that any of the required deliveries were not
         made within the required period, the board shall be entitled to
         recover its reasonable attorneys' fees and costs incurred  from
         and after the date of expiration of the 10 day demand.
         (5)  With  respect  to any master association whose declaration
    is recorded on or after August 10, 1990,  any  contract,  lease,  or
    other  agreement  made  prior  to  the election of a majority of the
    board of directors other than the developer by or on behalf of  unit
    owners  or  underlying  condominium associations, the association or
    the board of directors, which extends for a period of  more  than  2
    years  from  the  recording  of the declaration, shall be subject to
    cancellation by more than 1/2 of the votes of the unit owners, other
    than the developer, cast at a special meeting of members called  for
    that  purpose  during a period of 90 days prior to the expiration of
    the 2 year period if the board of managers is elected  by  the  unit
    owners,  otherwise  by  more  than 1/2 of the underlying condominium
    board of managers.  At least 60 days prior to the expiration of  the
    2  year  period,  the  board of directors, or, if the board is still
    under  developer   control,  then  the  board  of  managers  or  the
    developer shall send  notice  to  every  unit  owner  or  underlying
    condominium  board of managers, notifying them of this provision, of
    what contracts, leases and other agreements are affected, and of the
    procedure for calling a meeting of the unit owners or for action  by
    the  underlying  condominium  board  of  managers for the purpose of
    acting to terminate such  contracts,  leases  or  other  agreements.
    During  the 90 day period the other party to the contract, lease, or
    other agreement shall also have the right of cancellation.
         (6)  The statute of limitations  for  any  actions  in  law  or
    equity which the master association may bring shall not begin to run
    until  the  unit  owners or underlying condominium board of managers
    have elected a majority of the members of the board of directors.
    (g)  In the event of any resale of a unit in a master association by
a unit owner other than the developer, the owner shall obtain  from  the
board  of  directors  and  shall  make  available  for inspection to the
prospective purchaser, upon demand, the following:
         (1)  A copy of the declaration, other instruments and any rules
    and regulations.
         (2)  A statement of any liens, including  a  statement  of  the
    account  of the unit setting forth the amounts of unpaid assessments
    and other charges due and owing.
         (3)  A statement of any capital expenditures anticipated by the
    association within the current or succeeding 2 fiscal years.
         (4)  A statement of the status and amount of  any  reserve  for
    replacement  fund  and  any  portion  of such fund earmarked for any
    specified project by the board of directors.
         (5)  A copy of the statement  of  financial  condition  of  the
    association  for  the last fiscal year for which such a statement is
    available.
         (6)  A  statement  of  the  status  of  any  pending  suits  or
    judgments in which the association is a party.
         (7)  A statement  setting  forth  what  insurance  coverage  is
    provided for all unit owners by the association.
         (8)  A  statement  that any improvements or alterations made to
    the unit, or any part of the common areas assigned thereto,  by  the
    prior unit owner are in good faith believed to be in compliance with
    the declaration of the master association.
    The  principal officer of the unit owner's association or such other
officer  as  is  specifically  designated  shall   furnish   the   above
information  when  requested  to  do  so  in  writing, within 30 days of
receiving the request.
    A reasonable fee covering the direct out-of-pocket cost  of  copying
and  providing such information may be charged by the association or its
board of directors to the unit seller for providing the information.
    (h)  Errors and omissions.
         (1)  If there is an omission or error  in  the  declaration  or
    other  instrument  of the master association, the master association
    may correct the error or omission by an amendment to the declaration
    or other instrument, as may be required to conform it to  this  Act,
    to  any  other  applicable  statute,  or  to  the  declaration.  The
    amendment shall be adopted by vote of two-thirds of the  members  of
    the board of directors or by a majority vote of the unit owners at a
    meeting  called  for that purpose, unless the Act or the declaration
    of  the  master  association  specifically  provides   for   greater
    percentages or different procedures.
         (2)  If,  through  a  scrivener's  error,  a  unit has not been
    designated as owning an appropriate undivided share  of  the  common
    areas  or does not bear an appropriate share of the common expenses,
    or if all of the common expenses or all of the  common  elements  in
    the  condominium  have  not  been distributed in the declaration, so
    that the sum total of the shares of common  areas  which  have  been
    distributed  or  the  sum total of the shares of the common expenses
    fail to equal 100%, or if it appears that  more  than  100%  of  the
    common  elements or common expenses have been distributed, the error
    may be corrected by operation of law by filing an amendment  to  the
    declaration,  approved  by  vote of two-thirds of the members of the
    board of directors or a majority  vote  of  the  unit  owners  at  a
    meeting  called  for that purpose, which proportionately adjusts all
    percentage interests so that the total is equal to 100%, unless  the
    declaration  specifically  provides  for  a  different  procedure or
    different percentage vote by the owners of the units and the  owners
    of  mortgages  thereon  affected  by  modification being made in the
    undivided interest in the common areas, the number of votes  in  the
    unit  owners  association  or  the  liability  for  common  expenses
    appertaining to the unit.
         (3)  If  an  omission  or  error  or a scrivener's error in the
    declaration or other instrument is corrected by vote  of  two-thirds
    of  the  members of the board of directors pursuant to the authority
    established in subdivisions (h)(1) or (h)(2) of  this  Section,  the
    board, upon written petition by unit owners with 20% of the votes of
    the  association  or resolutions adopted by the board of managers or
    board of directors of the condominium and common interest  community
    associations  which  select  20%  of  the  members  of  the board of
    directors  of  the  master  association,  whichever  is  applicable,
    received within 30 days of the board action, shall call a meeting of
    the unit owners or the boards of the condominium and common interest
    community  associations  which  select  members  of  the  board   of
    directors  of the master association within 30 days of the filing of
    the petition or receipt  of  the  condominium  and  common  interest
    community  association  resolution  to  consider  the  board action.
    Unless a majority of the votes of the unit owners of the association
    are cast at the meeting to reject the action, or board  of  managers
    or  board  of directors of condominium and common interest community
    associations which select over 50% of the members of  the  board  of
    the  master  association  adopt  resolutions  prior  to  the meeting
    rejecting the action  of  the  board  of  directors  of  the  master
    association, it is ratified whether or not a quorum is present.
         (4)  The procedures for amendments set forth in this subsection
    (h)  cannot  be  used  if  such  an  amendment  would  materially or
    adversely affect property rights  of  the  unit  owners  unless  the
    affected  unit  owners  consent  in  writing.  This Section does not
    restrict the powers  of  the  association  to  otherwise  amend  the
    declaration,   bylaws,   or   other   condominium  instruments,  but
    authorizes a simple process of amendment requiring a lesser vote for
    the purpose of correcting defects, errors,  or  omissions  when  the
    property  rights  of the unit owners are not materially or adversely
    affected.
         (5)  If there is an omission or error  in  the  declaration  or
    other  instruments  that  may  not  be  corrected  by  an  amendment
    procedure set forth in subdivision (h)(1) or (h)(2) of this Section,
    then the circuit court in the county in which the master association
    is located shall have jurisdiction to hear a petition of one or more
    of  the  unit  owners  thereon or of the association, to correct the
    error or omission, and the action may be a class action.  The  court
    may  require  that  one  or  more methods of correcting the error or
    omission be submitted to the  unit  owners  to  determine  the  most
    acceptable  correction.   All unit owners in the association must be
    joined as parties to the action.  Service of process on  owners  may
    be  by  publication, but the plaintiff shall furnish all unit owners
    not personally served with process with copies of the  petition  and
    final  judgment  of  the  court  by  certified  mail, return receipt
    requested, at their last known address.
         (6)  Nothing contained in this Section shall  be  construed  to
    invalidate  any provision of a declaration authorizing the developer
    to amend an instrument prior to the latest date on which the initial
    membership meeting of the unit owners must be held, whether  or  not
    it  has  actually been held, to bring the instrument into compliance
    with  the  legal  requirements  of  the  Federal  National  Mortgage
    Association, the Federal Home Loan Mortgage Corporation, the Federal
    Housing Administration, the United States Veterans Administration or
    their respective successors and assigns.
    (i)  The provisions of subsections (c) through (h) are applicable to
all declarations, other condominium instruments, and other duly recorded
covenants establishing the powers and duties of the  master  association
recorded   under   this  Act.   Any  portion  of  a  declaration,  other
condominium instrument, or other duly recorded covenant establishing the
powers and duties of a  master  association  which  contains  provisions
contrary  to  the provisions of subsection (c) through (h) shall be void
as against  public  policy  and  ineffective.   Any  declaration,  other
condominium instrument, or other duly recorded covenant establishing the
powers  and  duties of the master association which fails to contain the
provisions required by subsections (c) through (h) shall  be  deemed  to
incorporate such provisions by operation of law.
    (j)  The provisions of subsections (c) through (h) are applicable to
all  common  interest  community  associations and their unit owners for
common  interest  community  associations  which  are  subject  to   the
provisions  of  Section 9-102(a)(8) of the Code of Civil Procedure.  For
purposes of this subsection, the terms "common interest  community"  and
"unit  owners"  shall  have  the  same  meaning  as set forth in Section
9-102(c) of the Code of Civil Procedure.

(Source: P.A. 90-229, eff. 7-25-97; 91-616, eff. 8-19-99.)

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  (765 ILCS 605/19)
Sec. 19.  Records of the association; availability for examination.
	
    (a)  The board of managers  of  every  association  shall  keep  and
maintain  the  following  records,  or true and complete copies of these
records, at the association's principal office:
         (1)  the  association's  declaration,  bylaws,  and  plats   of
    survey, and all amendments of these;
         (2)  the rules and regulations of the association, if any;
         (3)  if  the  association is incorporated as a corporation, the
    articles of incorporation of the association and all  amendments  to
    the articles of incorporation;
         (4)  minutes  of  all meetings of the association and its board
    of managers for the immediately preceding 7 years;
         (5)  all current policies of insurance of the association;
         (6)  all contracts, leases, and other agreements then in effect
    to which the association is a party or under which  the  association
    or the unit owners have obligations or liabilities;
         (7)  a  current  listing  of the names, addresses, and weighted
    vote of all members entitled to vote;
         (8)  ballots and proxies related to  ballots  for  all  matters
    voted  on  by  the members of the association during the immediately
    preceding 12 months, including but not limited to  the  election  of
    members of the board of managers; and
         (9)  the  books  and  records  of account for the association's
    current and 10 immediately preceding fiscal years, including but not
    limited to  itemized  and  detailed  records  of  all  receipts  and
    expenditures.
    (b)  Any  member  of an association shall have the right to inspect,
examine, and make copies of the records described in  subdivisions  (1),
(2),  (3),  (4), and (5) of subsection (a) of this Section, in person or
by agent,  at  any  reasonable  time  or  times,  at  the  association's
principal office.  In order to exercise this right, a member must submit
a  written  request  to  the  association's  board  of  managers  or its
authorized agent, stating with particularity the records  sought  to  be
examined.   Failure  of  an  association's  board  of  managers  to make
available all records so requested within 30  days  of  receipt  of  the
member's written request shall be deemed a denial.
    Any   member  who  prevails  in  an  enforcement  action  to  compel
examination of records described in subdivisions (1), (2), (3), (4), and
(5) of subsection (a) of this  Section  shall  be  entitled  to  recover
reasonable attorney's fees and costs from the association.
    (c)  (Blank).
    (d)  (Blank).
    (e)  Except as otherwise provided in subsection (g) of this Section,
any  member  of an association shall have the right to inspect, examine,
and make copies of the records described in subdivisions (6), (7),  (8),
and (9) of subsection (a) of this Section, in person or by agent, at any
reasonable  time  or  times  but  only  for  a  proper  purpose,  at the
association's principal office.  In order  to  exercise  this  right,  a
member  must  submit  a  written  request, to the association's board of
managers or its authorized agent, stating with particularity the records
sought to be examined and a proper purpose for the request.  Subject  to
the  provisions  of  subsection  (g)  of  this  Section,  failure  of an
association's board  of  managers  to  make  available  all  records  so
requested  within  30  business  days of receipt of the member's written
request shall be deemed a denial; provided, however, that the  board  of
managers  of  an  association  that has adopted a secret ballot election
process as provided in Section 18 of this Act shall  not  be  deemed  to
have  denied a member's request for records described in subdivision (8)
of subsection (a) of this Section if voting ballots, without identifying
unit numbers, are made available to the requesting member within 30 days
of receipt of the member's written request.
    In  an  action  to  compel  examination  of  records  described   in
subdivisions  (6),  (7), (8), and (9) of subsection (a) of this Section,
the burden of proof is upon the member to establish  that  the  member's
request  is  based  on  a proper purpose.  Any member who prevails in an
enforcement  action  to  compel  examination  of  records  described  in
subdivisions (6), (7), (8), and (9) of subsection (a)  of  this  Section
shall  be  entitled to recover reasonable attorney's fees and costs from
the association only if the court finds  that  the  board  of  directors
acted in bad faith in denying the member's request.
    (f)  The  actual  cost  to  the association of retrieving and making
requested records available for inspection and  examination  under  this
Section  shall  be  charged by the association to the requesting member.
If a member requests copies of records requested under this Section, the
actual costs to the association of reproducing the records shall also be
charged by the association to the requesting member.
    (g)  Notwithstanding  the  provisions  of  subsection  (e)  of  this
Section, unless otherwise directed by court order, an  association  need
not make the following records available for inspection, examination, or
copying by its members:
         (1)  documents relating to appointment, employment, discipline,
    or dismissal of association employees;
         (2)  documents relating to actions pending against or on behalf
    of  the  association  or  its  board  of  managers  in  a  court  or
    administrative tribunal;
         (3)  documents  relating  to  actions  threatened  against,  or
    likely  to be asserted on behalf of, the association or its board of
    managers in a court or administrative tribunal;
         (4)  documents relating to common  expenses  or  other  charges
    owed by a member other than the requesting member; and
         (5)  documents  provided  to  an association in connection with
    the lease, sale, or other transfer of a unit by a member other  than
    the requesting member.
    (h)  The   provisions   of   this  Section  are  applicable  to  all
condominium instruments recorded under  this  Act.   Any  portion  of  a
condominium  instrument  that  contains  provisions  contrary  to  these
provisions  shall be void as against public policy and ineffective.  Any
condominium instrument that fails to contain the provisions required  by
this  Section shall be deemed to incorporate the provisions by operation
of law.

(Source: P.A. 90-496, eff. 8-18-97; 90-655, eff. 7-30-98.)

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  (765 ILCS 605/20)
Sec. 20. Exemption from rules of property.
	
    It is expressly provided that the rule of property known as the rule
against perpetuities  and  the  rule  of  property  known  as  the  rule
restricting  unreasonable  restraints on alienation shall not be applied
to defeat any of the provisions of this Act.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/21)
Sec. 21. Severability.
	
    If any provision of this  Act  or  any  section,  sentence,  clause,
phrase  or word, or the application thereof in any circumstance, is held
invalid, the validity of the remainder of the Act and of the application
of any such provision, section, sentence, clause, phrase or word in  any
other circumstances shall not be affected thereby.

(Source: Laws 1963, p. 1120.)

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  (765 ILCS 605/22)
Sec. 22. Full disclosure before sale.
 
	In  relation  to  the  initial
sale  or offering for sale of any condominium unit, the seller must make
full disclosure of, and provide copies to the prospective buyer of,  the
following information relative to the condominium project:
    (a)  the Declaration;
    (b)  the Bylaws of the association;
    (c)  a  projected  operating  budget  for the condominium unit to be
sold to the prospective buyer, including  full  details  concerning  the
estimated  monthly  payments for the condominium unit, estimated monthly
charges for maintenance or management of the condominium  property,  and
monthly charges for the use of recreational facilities; and
    (d)  a   floor  plan  of  the  apartment  to  be  purchased  by  the
prospective buyer and the street address of the unit, if any, and if the
unit has no unique street address, the street address of the project.
    (e)  in addition, any developer of a  conversion  condominium  shall
include the following information:
         (1)  A  specific  statement  of  the  amount  of any initial or
    special  condominium  fee  due  from  the  purchaser  on  or  before
    settlement of the purchase contract and the basis of such fee;
         (2)  Information, if available, on the actual expenditures made
    on all repairs, maintenance, operation, or  upkeep  of  the  subject
    building  or  buildings within the last 2 years, set forth tabularly
    with the proposed budget of the condominium and cumulatively, broken
    down on a per unit  basis  in  proportion  to  the  relative  voting
    strengths allocated to the units by the bylaws.  If such building or
    buildings  have  not  been occupied for a period of 3 years then the
    information shall be set forth for  the  last  2  year  period  such
    building or buildings have been occupied;
    (3)  A description of any provisions made in the budget for reserves
    for  capital  expenditures  and an explanation of the basis for such
    reserves, or, if no provision is made for such reserves, a statement
    to that effect;
         For developments of more than 6 units for which the  notice  of
    intent  to  convert  is  issued  after  the  effective  date of this
    amendatory Act of  1979,  an  engineer's  report  furnished  by  the
    developer  as  to the present condition of all structural components
    and major utility installations in the condominium, which  statement
    shall  include  the approximate dates of construction, installation,
    major repairs and the expected useful life of such  items,  together
    with  the  estimated  cost  (in  current  dollars) of replacing such
    items; and
         (5)  Any release, warranty, certificate of insurance, or surety
    required by Section 9.1.
    All of the information required by this Section which  is  available
at the time shall be furnished to the prospective buyer before execution
of  the  contract  for sale. Thereafter, no changes or amendments may be
made in any of the items furnished to the prospective buyer which  would
materially  affect  the  rights  of  the  buyer or the value of the unit
without obtaining the approval of at least 75% of the buyers then owning
interest in the condominium. If all of the information is not  available
at  the  time  of  execution of the contract for sale, then the contract
shall be voidable at option of the buyer at any time  up  until  5  days
after  the  last  item  of  required  information  is  furnished  to the
prospective buyer, or until  the  closing  of  the  sale,  whichever  is
earlier.  Failure  on  the part of the seller to make full disclosure as
required by this Section shall entitle the buyer to rescind the contract
for sale at any time before the closing of the contract and to receive a
refund of all deposit moneys paid with interest thereon at the rate then
in effect for interest on judgments.
    A sale is not an initial sale for the purposes of  this  Section  if
there is not a bona fide transfer of the ownership and possession of the
condominium unit for the purpose of occupancy of such unit as the result
of  the sale or if the sale was entered into for the purpose of avoiding
the requirements of this Section. The buyer in the first bona fide  sale
of  any  condominium  unit  has  the rights granted to buyers under this
Section.  If the buyer in any sale of a condominium  unit  asserts  that
such  sale  is the first bona fide sale of that unit, the seller has the
burden of proving that his interest was acquired  through  a  bona  fide
sale.

(Source: P.A. 91-616, eff. 8-19-99.)

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  (765 ILCS 605/22.1)
Sec. 22.1.  Resales - Disclosures - Fees
	  
     (a) In the event of any resale of a condominium unit by a
unit owner other than Michael Lee, such owner  shall  obtain  from  the
Board  of  Managers  and  shall  make  available  for  inspection to the
prospective purchaser, upon demand, the following:
         (1)  A copy of  the  Declaration,  by-laws,  other  condominium
    instruments and any rules and regulations.
         (2)  A  statement  of  any  liens, including a statement of the
    account of the unit setting forth the amounts of unpaid  assessments
    and  other  charges  due  and owing as authorized and limited by the
    provisions of Section 9 of this Act or the condominium instruments.
         (3)  A statement of any capital expenditures anticipated by the
    unit owner's association within the current or succeeding two fiscal
    years.
         (4)  A statement of the status and amount of  any  reserve  for
    replacement  fund  and  any  portion  of such fund earmarked for any
    specified project by the Board of Managers.
         (5)  A copy of the statement of financial condition of the unit
    owner's  association  for  the  last  fiscal  year  for  which  such
    statement is available.
         (6)  A  statement  of  the  status  of  any  pending  suits  or
    judgments in which the unit owner's association is a party.
         (7)  A statement  setting  forth  what  insurance  coverage  is
    provided for all unit owners by the unit owner's association.
         (8)  A  statement  that any improvements or alterations made to
    the unit, or the limited common elements assigned  thereto,  by  the
    prior unit owner are in good faith believed to be in compliance with
    the condominium instruments.
         (9)  The  identity and mailing address of the principal officer
    of the unit owner's association or of the other officer or agent  as
    is specifically designated to receive notices.
    (b)  The  principal  officer of the unit owner's association or such
other officer as is specifically  designated  shall  furnish  the  above
information when requested to do so in writing and within 30 days of the
request.
    (c)  Within  15  days  of  the recording of a mortgage or trust deed
against a unit ownership given by the owner of that  unit  to  secure  a
debt,  the  owner shall inform the Board of Managers of the unit owner's
association of the identity  of  the  lender  together  with  a  mailing
address at which the lender can receive notices from the association. If
a  unit  owner  fails  or  refuses to inform the Board as required under
subsection (c) then that unit owner shall be liable to  the  association
for  all  costs,  expenses  and reasonable attorneys fees and such other
damages, if any, incurred by the association as a result of such failure
or refusal.
    A reasonable fee covering the direct out-of-pocket cost of providing
such information and copying may be charged by the  association  or  its
Board of Managers to the unit seller for providing such information.

(Source: P.A. 87-692.)

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  (765 ILCS 605/23)
Sec. 23. Encroachments.

	 If  any  portion  of  the  common  elements
encroaches  upon any unit, or if any unit encroaches upon any portion of
the common elements or any other unit as a result of  the  construction,
repair,  reconstruction, settlement or shifting of any building, a valid
mutual easement shall exist  in  favor  of  the  owners  of  the  common
elements  and  the  respective unit owners involved to the extent of the
encroachment. A valid easement shall not exist in favor of any owner who
creates an encroachment by his intentional, willful or negligent  conduct
or that  of his agent.

(Source: P.A. 80-1115.)

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  (765 ILCS 605/24)
Sec. 24.  Deposits by Purchaser. 
	  

     Any deposit, payment or advance in
the payment of the purchase price  for  the  initial  sale  of  a  unit,
received  by  the  developer  or his agent other than a payment made for
extra work ordered in writing by the purchaser of a unit, shall be  held
in  an  escrow  account  until  title is conveyed to the purchaser.  The
escrow funds shall be segregated in a separate  account  designated  for
this  purpose.   The  developer  shall  deposit  all  the payments in an
interest bearing account at a federally insured bank or savings and loan
institution, which account shall be maintained within applicable federal
insurance limits, and  all  the  interest  is  to  be  credited  to  the
purchaser  on the purchase price of the unit. Such interest shall accrue
from the time of the deposit, payment or advance in the payment  of  the
purchase  price  of the unit. There shall be no interest however, if the
transfer of title takes place 45 days from  the  time  the  contract  to
purchase  is  entered. In the event of a refund or default, the interest
earned on such deposit, payment or advance shall follow the  disposition
of the deposit, payment or advance. Escrow funds shall not be subject to
attachment  by any creditor of a purchaser or of the developer or by the
holder of a lien against any portion of the property.
    The provisions of this  Section  shall  not  apply  to  any  payment
received  on  account  for  the purchase of a completed condominium unit
under articles of agreement for deed, installment agreement for deed, or
lease with option to purchase, if the agreement provides for  conveyance
of  title  more  than  one  year  after  the  date  of  execution of the
agreement.

(Source: P.A. 88-417.)

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 (765 ILCS 605/25)
Sec. 25.  Add-on Condominiums.

	 The  developer may reserve the  right
to  add  additional  property  to  that which  has been submitted to the
provisions of this Act, and in the event of any addition, to  reallocate
percentage  interests  in  the  common  elements  in accordance with the
provisions of this Act and the condominium instruments by: recording  an
amended plat in accordance with the provisions of Section 5 of this Act,
together with an amendment to the declaration in accordance with Section
6  of  this  Act.   Notwithstanding  any  other  provisions  of this Act
requiring approval of unit owners, no approval shall be required if  the
developer complies with the requirements of this Section.
    If  the  developer  wishes  to  reserve  the right to add additional
property, the declaration shall contain:
    (a)  an explicit reservation of an option to add additional property
to the condominium;
    (b)  a  statement  of  the  method  by  which  the  reallocation  of
percentage interests, adjustments to  voting  rights,  and  rights,  and
changes  in  liability  for  common  expenses  shall  be  determined  if
additional units are added;
    (c)  a  legal  description  of  all  land  which may be added to the
property, herein referred to as 'additional land' whether the units  are
occupied or not;
    (d)  a  time limit of 10 years from the date of the recording of the
declaration, after which the option to add additional property shall  no
longer  be in effect and a statement of the circumstances, if any, under
which it may terminate.  In  all  cases  in  which  the  option  to  add
additional  property  is  exercised,  the contracts for construction and
delivery of such additional  property  shall  contain  a  date  for  the
completion and delivery of the additional property to be constructed.
    (e)  a  statement  as to whether portions of the additional land may
be added to the property at different times, and as to whether there are
any limitations on the order thereof,  or  any  limitations  fixing  the
boundaries  of  these  portions, or whether any particular portion of it
must be added;
    (f)  a statement concerning limitations, if any, on the locations of
improvements which may be made on the additional land added;
    (g)  a statement of the maximum number of units, if any,  which  may
be  created  on the additional land.  If portions of the additional land
may be added to the property and the boundaries of  those  portions  are
fixed  in accordance with paragraph (e) of this Section, the declaration
shall also state the maximum number of units that may be created on each
such portion to be added to the property.  If portions of the additional
land may be added to the property and the boundaries of  those  portions
are not fixed in accordance with paragraph (e) of this Section, then the
declaration  shall  also  state the largest number of units which may be
created on each acre of any portion added to the property;
    (h)  a statement of the extent to  which  structures,  improvements,
buildings  and  units  will  be compatible with the configuration of the
property in relation to density,  use,  construction  and  architectural
style; and
    (i)  any  plat  or  site  plans  or other graphic material which the
developer may wish to set forth in order to supplement  or  explain  the
information provided.
    Subject  to  any  restrictions  and  limitations  specified  by  the
condominium instruments, there shall be an appurtenant easement over and
on  the  common  elements  for the purpose of making improvements on the
additional land, and  for  the  purpose  of  doing  what  is  reasonably
necessary and proper in conjunction therewith.
    No  provision  of  this  Act  shall  be binding upon or obligate the
developer to exercise his option to make  additions  or  bind  the  land
described   in   the  condominium  instruments.   No  provision  of  the
condominium instruments  shall  be  construed  to  be  binding  upon  or
obligate the developer to exercise his option to make additions, and the
land legally described therein shall not be bound thereby, except in the
case  of  any covenant, restriction, limitation, or other representation
or commitment in the condominium instruments, or in any other  agreement
made  with,  or by, the developer, requiring the developer to add all or
any portion of the additional land,  or  imposing  any  obligation  with
regard  to  anything that is or is not to be done thereon or with regard
thereto, or imposing any obligations with regard to anything that is  or
is  not  to  be  done  on  or with regard to the property or any portion
thereof, this Section shall not  be  construed  to  nullify,  limit,  or
otherwise affect any such obligation.
    Any  amendment to the declaration adding additional land may contain
such complementary additions and modifications of the provisions of  the
declaration affecting the additional land which are necessary to reflect
the  differences  in  character,  if any, of the additional land and the
improvements thereto.  In no event, however, shall any such amendment to
a declaration revoke, modify or add to the covenants established by  the
declaration for the property already subject to the declaration.

(Source: P.A. 84-1308.)

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  (765 ILCS 605/26)
Sec. 26.  Transfer of Limited Common Elements.
 
	The use  of  limited
common elements may be transferred between unit owners at their expense,
provided  that  the  transfer  may  be  made only in accordance with the
condominium instruments and the provision of this  Act.   Each  transfer
shall  be  made  by an amendment to the declaration executed by all unit
owners who are parties to the transfer and consented  to  by  all  other
unit  owners  who  have  any  right  to  use the limited common elements
affected.  The amendment shall contain a certificate showing that a copy
of the amendment has been delivered  to  the  board  of  managers.   The
amendment  shall  contain  a  statement from the parties involved in the
transfer which sets forth any  changes  in  the  parties'  proportionate
shares.   If  the  parties  cannot agree upon a reapportionment of their
respective  shares,  the   board   of   managers   shall   decide   such
reapportionment.  No transfer shall become effective until the amendment
has  been  recorded.   Rights  and obligations in respect to any limited
common element shall not be affected, nor shall any transfer  of  it  be
effective,  unless  a transaction is in compliance with the requirements
of this Section.
    Each limited common element may be identified on  the  plat  by  the
distinguishing  number  or other symbol of the unit or units to which it
is assigned, and its location in respect to the unit or units  may  also
be shown or may be otherwise located in the declaration.

(Source: P.A. 80-1364.)

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  (765 ILCS 605/27) 
Sec. 27. Amendment of condominium instrument. 

	(a) If there is any unit owner other than  the  developer,
the  condominium  instruments shall be amended only upon the affirmative
vote of 2/3 of those voting  or  upon  the  majority  specified  by  the
condominium  instruments,  together  with the approval of any mortgagees
required under the provisions of the condominium instruments, except  in
cases  where  this  Act  provides different methods of amendment or with
respect to property whose declaration is recorded on or  after  July  1,
1984, no condominium instrument shall require more than a three-quarters
vote  of  unit  owners  to  amend  the  bylaws.   Except  to  the extent
authorized by  other  provisions  of  this  Act,  no  amendment  to  the
condominium  instrument  shall  change the boundaries of any unit or the
undivided interest in the common elements, the number of  votes  in  the
unit   owners'   association,  or  the  liability  for  common  expenses
appertaining to a unit.
    (b) (1)  If there is an omission or error in the declaration, bylaws
or other condominium instrument, the association may correct  the  error
or  omission  by  an  amendment  to  the  declaration,  bylaws, or other
condominium instrument in such respects as may be required to conform to
this Act, and any other applicable statute or to the declaration by vote
of two-thirds of the members of the Board of Managers or by  a  majority
vote of the unit owners at a meeting called for this purpose, unless the
Act  or  the  condominium  instruments  specifically provide for greater
percentages or different procedures.
    (2)  If through a scrivener's error, a unit has not been  designated
as  owning an appropriate undivided share of the common elements or does
not bear an appropriate share of the common expenses  or  that  all  the
common  expenses  or  all of the common elements in the condominium have
not been distributed in the declaration, so that the sum  total  of  the
shares  of  common elements which have been distributed or the sum total
of the shares of the common expenses  fail  to  equal  100%,  or  if  it
appears  that  more  than 100% of the common elements or common expenses
have been distributed, the error may be corrected by operation of law by
filing an amendment to the declaration approved by vote of two-thirds of
the members of the Board of Managers or a  majority  vote  of  the  unit
owners  at  a  meeting  called  for  this  purpose which proportionately
adjusts all percentage interests so that the  total  is  equal  to  100%
unless  the condominium instruments specifically provide for a different
procedure or different percentage vote by the owners of  the  units  and
the  owners  of mortgages thereon affected by modification being made in
the undivided interest in the common elements, the number  of  votes  in
the  unit  owners  association  or  the  liability  for  common expenses
appertaining to the unit.
    (3)  If  an  omission  or  error  or  a  scrivener's  error  in  the
declaration, bylaws or other condominium instrument is corrected by vote
of two-thirds of the members of the Board of Managers  pursuant  to  the
authority  established  in subsections (b)(1) or (b)(2) of Section 27 of
this Act, the Board upon written petition by unit owners with 20 percent
of the votes of the association filed within 30 days of the Board action
shall call a meeting of the unit owners within 30 days of the filing  of
the  petition  to  consider  the  Board action. Unless a majority of the
votes of the unit owners of the association are cast at the  meeting  to
reject the action, it is ratified whether or not a quorum is present.
    (4)  The  procedures for amendments set forth in this subsection (b)
cannot be used if such an amendment would materially or adversely affect
property rights of the unit  owners  unless  the  affected  unit  owners
consent  in  writing.   This Section does not restrict the powers of the
association  to  otherwise  amend  the  declaration,  bylaws,  or  other
condominium instruments, but authorizes a simple  process  of  amendment
requiring  a  lesser vote for the purpose of correcting defects, errors,
or omissions when the  property  rights  of  the  unit  owners  are  not
materially or adversely affected.
    (5)  If there is an omission or error in the declaration, bylaws, or
other  condominium  instruments,  which  may  not  be  corrected  by  an
amendment  procedure  set  forth in paragraphs (1) and (2) of subsection
(b) of Section 27 in the declaration  then  the  Circuit  Court  in  the
County  in  which  the condominium is located shall have jurisdiction to
hear a petition of one or more of the unit  owners  thereon  or  of  the
association,  to  correct the error or omission, and the action may be a
class action.  The court  may  require  that  one  or  more  methods  of
correcting  the  error  or  omission  be submitted to the unit owners to
determine the most  acceptable  correction.   All  unit  owners  in  the
association must be joined as parties to the action.  Service of process
on  owners  may  be  by publication, but the plaintiff shall furnish all
unit owners not personally  served  with  process  with  copies  of  the
petition  and  final  judgment  of  the  court  by certified mail return
receipt requested, at their last known address.
    (6)  Nothing  contained  in  this  Section  shall  be  construed  to
invalidate any provision of a  condominium  instrument  authorizing  the
developer  to amend a condominium instrument prior to the latest date on
which the initial membership meeting of the unit owners  must  be  held,
whether  or  nor it has actually been held, to bring the instrument into
compliance with the legal requirements of the Federal National  Mortgage
Association,  the  Federal  Home  Loan Mortgage Corporation, the Federal
Housing Administration, the United  States  Veterans  Administration  or
their respective successors and assigns.

(Source: P.A. 84-545.)

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  (765 ILCS 605/29)
Sec. 29.  Alterations within Units.

	 A unit owner owning  2  or  more
units  shall  have  the right, subject to such reasonable limitations as
the condominium instruments may impose, to remove or otherwise alter any
intervening partition, so long as the action does not weaken, impair  or
endanger  any  common  element or unit.  The unit owner shall notify the
board of managers of the nature of the removal or alteration at least 10
days prior to commencing work.

(Source: P.A. 80-1118.)

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  (765 ILCS 605/30) 
Sec. 30.  Conversion condominiums - Notice - Recording.
	  
     (a) No real estate may be submitted to the  provisions  of
the  Act  as  a  conversion condominium unless (i) a notice of intent to
submit the real estate to this Act (notice of intent) has been given  to
all  persons who were tenants of the building located on the real estate
on the date the notice is given.  Such notice shall be given at least 30
days, and not more than 1 year prior to the recording of the declaration
which submits the real estate  to  this  Act;  and  (ii)  the  developer
executes  and  acknowledges a certificate which shall be attached to and
made a part of the declaration and which provides  that  the  developer,
prior to the execution by him or his agent of any agreement for the sale
of  a  unit, has given a copy of the notice of intent to all persons who
were tenants of the building located on the real estate on the date  the
notice of intent was given.
    Any  developer  of  a  conversion condominium must, upon issuing the
notice of intent, publish and deliver along with such notice of  intent,
a  schedule  of  selling prices for all units subject to the condominium
instruments and offer to sell such unit to the current  tenants,  except
for  units to be vacated for rehabilitation subsequent to such notice of
intent.  Such offer shall not expire earlier than 30 days after  receipt
of  the  offer  by  the  current  tenant, unless the tenant notifies the
developer in writing of his election not  to  purchase  the  condominium
unit.
    Any  tenant  who was a tenant as of the date of the notice of intent
and whose tenancy expires (other than for cause) prior to the expiration
of 120 days from the date on which a copy of the notice  of  intent  was
given  to  the  tenant shall have the right to extend his tenancy on the
same terms and conditions and for the same rental until  the  expiration
of  such  120  day period by the giving of written notice thereof to the
developer within 30 days of the date upon which a copy of the notice  of
intent was given to the tenant by the developer.
    Each  lessee  in  a  conversion condominium shall be informed by the
developer at the time the notice of intent is given whether his  tenancy
will be renewed or terminated upon its expiration.  If the tenancy is to
be  renewed,  the  tenant  shall  be  informed of all charges, rental or
otherwise, in connection with the new tenancy and the length of the term
of occupancy proposed in conjunction therewith.
    For a period of 120 days following his  receipt  of  the  notice  of
intent, any tenant who was a tenant on the date the notice of intent was
given shall be given the right to purchase his unit on substantially the
same  terms  and  conditions as set forth in a duly executed contract to
purchase the unit,  which  contract  shall  conspicuously  disclose  the
existence  of, and shall be subject to, the right of first refusal.  The
tenant may exercise the right of first refusal by giving notice  thereof
to  the  developer prior to the expiration of 30 days from the giving of
notice by the developer to the tenant of the execution of  the  contract
to  purchase  the  unit.  The  tenant  may  exercise such right of first
refusal within 30 days from the giving of notice by the developer of the
execution of a  contract  to  purchase  the  unit,  notwithstanding  the
expiration  of  the 120 day period following the tenant's receipt of the
notice of intent, if such contract was executed prior to the  expiration
of  the  120 day period. The recording of the deed conveying the unit to
the purchaser which contains a statement to the effect that  the  tenant
of  the  unit  either  waived  or  failed to exercise the right of first
refusal or option or had no  right  of  first  refusal  or  option  with
respect  to  the  unit  shall extinguish any legal or equitable right or
interest to the possession or acquisition of the unit which  the  tenant
may  have  or claim with respect to the unit arising out of the right of
first refusal or option provided for  in  this  Section.  The  foregoing
provision  shall  not affect any claim which the tenant may have against
the landlord for damages arising out  of  the  right  of  first  refusal
provided for in this Section.
    During  the  30 day period after the giving of notice of an executed
contract in which the tenant may exercise the right  of  first  refusal,
the  developer  shall  grant to such tenant access to any portion of the
building to inspect any of its features or systems  and  access  to  any
reports,  warranties,  or  other  documents  in  the  possession  of the
developer which reasonably pertain to the  condition  of  the  building.
Such  access shall be subject to reasonable limitations, including as to
hours. The refusal of the developer to grant such access is  a  business
offense  punishable  by  a  fine  of $500. Each refusal to an individual
lessee who is a potential purchaser is a separate violation.
    Any notice provided for in this Section shall be deemed given when a
written notice is delivered in person or mailed, certified or registered
mail, return receipt requested to the  party  who  is  being  given  the
notice.
    Prior  to their initial sale, units offered for sale in a conversion
condominium and occupied by a tenant at the time of the offer  shall  be
shown to prospective purchasers only a reasonable number of times and at
appropriate  hours.   Units  may only be shown to prospective purchasers
during the last 90 days of any expiring tenancy.
    Any provision in  any  lease  or  other  rental  agreement,  or  any
termination  of  occupancy  on  account  of  condominium conversion, not
authorized herein, or contrary to or waiving the  foregoing  provisions,
shall be deemed to be void as against public policy.
    Nothing  in  this Section shall affect any provision in any lease or
rental agreement in effect before this Act becomes law.
    (b)  Nothing in this amendatory Act of 1978 shall  be  construed  to
imply  that  there  was  previously  a  requirement to record the notice
provided for in subsection (a.

(Source: P.A. 88-417.)

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 (765 ILCS 605/31)
Sec.  31.   Subdivision  or  combination  of  units.
  
	  Unless   the
condominium   instruments   expressly   prohibit   the   subdivision  or
combination of any units, and subject to additional limitations provided
by the condominium instruments, the owner or owners may,  at  their  own
expense,  subdivide  or  combine  and locate or relocate common elements
affected or required thereby, in accordance with the provisions  of  the
condominium  instruments and the requirements of this Act.  The owner or
owners  shall  make  written  application  to  the  board  of  managers,
requesting an amendment to the condominium instruments, setting forth in
the application  a  proposed  reallocation  to  the  new  units  of  the
percentage  interest  in  the common elements, and setting forth whether
the limited common elements, if any, previously assigned to the unit  to
be  subdivided  should be assigned to each new unit or to fewer than all
of the new units created and requesting, if desired in the  event  of  a
combination  of  any  units,  that the new unit be granted the exclusive
right to use as a limited  common  element,  a  portion  of  the  common
elements  within  the  building  adjacent  to  the  new  unit.   If  the
transaction is approved by a majority of the board of managers, it shall
be   effective  upon  (1)  recording  of  an  amendment  to  condominium
instruments in accordance with the provisions of Sections  5  and  6  of
this  Act, and (2) execution by the owners of the units involved. In the
event of a combination of any units, the amendment may grant  the  owner
of  the  combined  unit  the exclusive right to use, as a limited common
element, a portion of the common elements within the  building  adjacent
to  the new unit. The request for the amendment shall be granted and the
amendment shall grant this exclusive right to use as  a  limited  common
element if the following conditions are met:
         (1)  the common element for which the exclusive right to use as
    a limited common element is sought is not necessary or practical for
    use by the owners of any units other than the owner or owners of the
    combined unit; and
         (2)  the  owner  or owners of the combined unit are responsible
    for any and all costs associated with the renovation,  modification,
    or  other  adaptation  performed  as a result of the granting of the
    exclusive right to use as a limited common element.
If the combined unit is divided, part of the original combined  unit  is
sold,  and  the  grant of the exclusive right to use as a limited common
element is no longer necessary, practical, or appropriate  for  the  use
and  enjoyment of the owner or owners of the original combined unit, the
board may terminate the grant of the exclusive right to use as a limited
common element and require that the owner  or  owners  of  the  original
combined  unit  restore  the  common  area to its condition prior to the
grant of the exclusive right to use as a limited common element.  If the
combined unit is sold without being divided, the grant of the  exclusive
right to use as a limited common element shall apply to the new owner or
owners   of   the  combined  unit,  who  shall  assume  the  rights  and
responsibilities of the original owner or owners.

(Source: P.A. 90-199, eff. 7-24-97.)

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  (765 ILCS 605/32)
Sec. 32.  Alternate dispute resolution; mediation; arbitration.
	
    (a)  The declaration or bylaws  of  a  condominium  association  may
require  mediation  or  arbitration  of  disputes in which the matter in
controversy has either no specific monetary value or a value of  $10,000
or  less,  other than the levying and collection of assessments, or that
arises out of violations  of  the  declaration,  bylaws,  or  rules  and
regulations  of  the condominium association.  A dispute not required to
be mediated or arbitrated by an association pursuant to its powers under
this Section, that is submitted  to  mediation  or  arbitration  by  the
agreement of the disputants, is also subject to this Section.
    (b)  The   Illinois   Uniform   Arbitration  Act  shall  govern  all
arbitrations proceeding under this Section.
    (c)  The association may require the disputants to bear the costs of
mediation or arbitration.

(Source: P.A. 89-41, eff. 6-23-95.)

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