Illinois General Assembly - Full Text of SB0885
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Full Text of SB0885  100th General Assembly


Sen. David Koehler

Filed: 4/4/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 885 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Installment Sales Contract Act.
6    Section 5. Definitions. As used in this Act, unless the
7context otherwise requires:
8    "Amortization schedule" means a written schedule which
9sets forth the date of each periodic payment, the amount of
10each periodic payment that will be applied to the principal
11balance and the resulting principal balance, and the amount of
12each periodic payment that will be applied to any interest
13charged, if applicable, pursuant to the contract.
14    "Balloon payment" means a payment, other than the initial
15down payment, in which more than the ordinary periodic payment
16is charged during the contract.



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1    "Business day" means any calendar day except Saturday,
2Sunday, or a State or federal holiday.
3    "Buyer" means the person who is seeking to obtain title to
4a property by an installment sales contract or is obligated to
5make payments to the seller pursuant to the contract.
6    "Date of sale" means the date that both the seller and
7buyer have signed the written contract.
8    "Dwelling structure" means any private home or residence or
9any building or structure intended for residential use with not
10less than one nor more than 4 residential dwelling units.
11    "Installment sales contract" or "contract" means any
12contract or agreement, including a contract for deed, bond for
13deed, or any other sale or legal device whereby a seller agrees
14to sell and the buyer agrees to buy a dwelling structure, in
15which the consideration for the sale is payable in installments
16for a period of at least one year after the date of sale, and
17the seller continues to have an interest or security for the
18purchase price or otherwise in the property.
19    "Seller" means the owner of a legal or beneficial interest
20in a dwelling structure, or the owner's agent, who utilizes an
21installment sales contract to sell the dwelling structure.
22    Section 10. Terms and conditions of installment sales
24    (a) The seller of residential real estate by installment
25sales contract shall provide the buyer with a written contract



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1that complies with the requirements set forth in this Section.
2    (b) Until both parties have a copy of the executed contract
3signed by the buyer and the seller with the signatures
4notarized, either party has the right to rescind the contract,
5in addition to all other remedies provided by this Act. Upon
6rescission, pursuant to this Section, the seller shall refund
7to the buyer all money paid to the seller as of the date of
9    (c) An installment sales contract for the sale of a
10dwelling structure and any residential real estate subject to
11the contract shall clearly and conspicuously disclose the
13        (1) The address, permanent index number, and legal
14    description of the residential real estate subject to the
15    contract.
16        (2) The price of the dwelling structure and any
17    residential real estate subject to the contract.
18        (3) The amount, if any, of any down payment applied to
19    the price of the dwelling structure and any residential
20    real estate subject to the contract and the resulting
21    principal on the loan.
22        (4) The amount of the periodic payment, any grace
23    periods for late payments, late payment fees, and to whom,
24    where, and how the buyer should deliver each payment.
25        (5) The interest rate being charged, if any, expressed
26    only as an annual percentage rate.



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1        (6) The term of the loan expressed in years and months
2    and the total number of periodic payments due.
3        (7) The amount, if any, of any balloon payments and
4    when each balloon payment is due.
5        (8) A statement outlining whether the seller or the
6    buyer is responsible for paying real estate taxes and
7    insurance and how responsibilities of the buyer and seller
8    change based on the time period the dwelling or any
9    residential real estate subject to the contract is occupied
10    by the buyer and what percentage of the principal is paid
11    down. In all circumstances not defined in the disclosure
12    required by this subsection, the seller has the
13    responsibility for paying real estate taxes and insurance.
14        (9) The amount that will be charged periodically, if
15    any, for the first year to pay real estate taxes.
16        (10) The amount that will be charged periodically, if
17    any, for the first year to pay insurance.
18        (11) A statement that the amounts listed in items (9)
19    and (10) of this subsection are subject to change each
20    year.
21        (12) The fair cash value as defined in the Property Tax
22    Code and set forth on the real estate tax bill for the year
23    immediately prior to the sale, and the assessed value of
24    the property as set forth on the real estate tax bill for
25    the year immediately prior to the sale.
26        (13) The amount of real estate taxes for the year



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1    immediately prior to the sale.
2        (14) Any unpaid amounts owing on prior real estate
3    taxes.
4        (15) The amount of the annual insurance payment for the
5    year immediately prior to the sale.
6        (16) The type of insurance coverage, including, but not
7    limited to, property insurance and title insurance, for the
8    buyer and seller that will be required or provided.
9        (17) The seller's interest in the structure being sold.
10        (18) Any known liens or mortgages or other title
11    limitations existing on the property.
12        (19) An explanation as to when the buyer will obtain
13    the title.
14        (20) A statement defining what repairs the buyer is
15    financially responsible for making to the dwelling
16    structure and any residential real estate subject to the
17    contract, if any, and how responsibilities of the buyer and
18    seller to repair the property change based on the time
19    period the residential real estate subject to the contract
20    is occupied by the buyer and what percentage of the
21    principal is paid down by any repairs made by the buyer. In
22    all circumstances not defined in the disclosure required by
23    this subsection, the seller has the financial
24    responsibility for all repairs required to be made pursuant
25    to the installment sales contract.
26        (21) A statement defining what, if any, alterations of



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1    the property must be approved by both the buyer and the
2    seller prior to the alterations being made, including
3    requirements to provide evidence of proper permits,
4    insurance, and lien waiver agreements.
5        (22) Any additional charges or fees due at the time of
6    the date of sale or at a later date.
7        (23) An amortization schedule, as defined in Section 5.
8        (24) A certificate of compliance with applicable
9    dwelling codes, or in the absence of such a certificate:
10    (i) an express written warranty that no notice from any
11    municipality or other governmental authority of a dwelling
12    code violation that existed with respect to the residential
13    real estate or dwelling structure subject to the contract
14    before the installment sales contract was executed had been
15    received by the seller, his or her principal, or his or her
16    agent within 10 years of the date of execution of the
17    installment sales contract; or (ii) if any notice of a
18    violation had been received, a list of all such notices
19    with a detailed statement of all violations referred to in
20    the notice.
21        (25) A statement, in large bold font stating in
22    substantially similar form: "NOTE TO BUYER: BEFORE SIGNING



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2        (26) If the residential real estate or any dwelling
3    structure thereon that is subject to the contract has been
4    condemned by the unit of government having jurisdiction,
5    the contract shall include a statement, in large bold font
6    stating in substantially similar form: "NOTE TO BUYER: THE
10        (27) A statement that the seller provided the buyer the
11    installment sales contract disclosure prepared by the
12    Office of the Attorney General as required under Illinois
13    State law. The statement shall include the date on which
14    the buyer was provided with the disclosure, which must be
15    at least 3 full business days before the contract was
16    executed.
17        (28) A statement that: (i) if the buyer defaults in
18    payment, any action brought against the buyer under the
19    contract shall be initiated only after the expiration of 30
20    days from the date of the default; and (ii) a buyer in
21    default may, prior to the expiration of the 30-day period,
22    make all payments, fees and charges currently due under the
23    contract to cure the default.
24    (d) The requirements of this Section cannot be waived by
25the buyer or seller.



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1    Section 15. Applicability of other Acts. An installment
2sales contract under this Act is subject to the Lead Poisoning
3Prevention Act, the Residential Real Property Disclosure Act,
4the Illinois Radon Awareness Act, and the High Risk Home Loan
5Act. The remedies available to the buyer pursuant to this Act
6are cumulative and do not preclude any remedies otherwise
7available to a buyer at law or in equity.
8    Section 20. Recording of contract required.
9    (a) Within 5 business days of the date of sale of any
10residential real estate or dwelling structure subject to an
11installment sales contract, and prior to any subsequent sale or
12other transfer of any interest in the residential real estate,
13dwelling structure, or contract by the seller, the seller shall
14record the contract or a memorandum of the contract with the
15county recorder of deeds. A memorandum of the contract shall be
16titled "Memorandum of an Installment Sales Contract" either in
17capital letters or underscored above the body of the
18memorandum. At a minimum, the memorandum of the contract shall
19include: the address, permanent index number, and legal
20description of the residential real estate subject to the
21contract; the names of the buyer and seller; and the date the
22contract was executed. The memorandum of the contract shall be
23signed by the buyer and the seller with the signatures
25    (b) If the seller fails to record the contract or the



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1memorandum of the contract as required by subsection (a) of
2this Section, the buyer has the right to rescind the contract
3until such time as the seller records the contract. If the
4seller fails to record the contract or the memorandum of the
5contract and title to the property becomes clouded for any
6reason, including, but not limited to, that another person buys
7the property, a judgment lien is placed on the property, or a
8consensual mortgage or some other third party interest
9affecting the title arises, the buyer has the option to
10rescind, not just before the seller records, but at any time
11within 90 days of discovering the title problem.
12    (c) Upon rescission under this Section, the seller shall
13refund to the buyer all money paid to the seller as of the date
14of rescission. This Section does not limit any other remedies
15provided to the buyer by this Act or State law.
16    Section 25. Repairs.
17    (a) In all cases not included in the statement required by
18item (20) of subsection (c) of Section 10, the seller has the
19responsibility to make and pay for repairs.
20    (b) If the seller deems certain repairs necessary to
21protect the seller's interest in the property, the seller may,
22at the seller's own cost, proceed to make the repairs in
23compliance with this Section. Before the performance of
24nonemergency repairs on a dwelling unit inhabited by a buyer,
25the seller shall provide the buyer with at least 72 hours'



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1written notice of the seller's intent to make the proposed
2repairs. Nothing in this Section limits the seller's right to
3negotiate or secure recovery of the seller's actual cost to
4make repairs caused due to negligence or malicious damage on
5the part of the buyer.
6    (c) Except for limitations included in the statement
7required by item (20) of subsection (c) of Section 10, nothing
8in this Section limits the buyer's right to obtain the services
9of a building contractor to make repairs that are chargeable to
10the buyer under this Act.
11    (d) No seller may require, by contract or otherwise, that
12only the seller or an agent of the seller may make repairs. The
13buyer has the right to contract with other building contractors
14to make repairs for which the buyer is financially responsible.
15    Section 30. Account statements.
16    (a) The seller shall provide the buyer with an account
17statement, including amounts applied to principal, interest,
18tax, insurance, fees, and other charges, upon the buyer's
20    (b) A seller is not required to provide a buyer with
21account statements without charge more than once in any
2212-month period.
23    (c) If the buyer's request for an account statement is made
24in response to a change in the terms of an installment sales
25contract, then the seller must provide the account statement



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1without charge.
2    (d) For other buyer requests for account statements, the
3seller may not charge the buyer more than the reasonable costs
4of copying and producing the account statement.
5    Section 35. Insurance proceeds. A buyer or seller who
6receives payment of insurance proceeds as a result of damage to
7a dwelling structure shall apply the proceeds to the repair of
8the damage. However, the buyer and seller may make a fair and
9reasonable distribution of the insurance proceeds between each
10of them by a signed written agreement. The written agreement
11shall not be made until at least 7 days after any award of
12insurance on a claim has been settled and written notice of the
13settlement and award has been made by the insurer to both the
14buyer and seller.
15    Section 40. Right to cure default. If the buyer defaults in
16payment, any action brought against the buyer under the
17contract shall be initiated only after the expiration of 30
18days from the date of the default. A buyer in default may,
19prior to the expiration of the 30-day period, make all
20payments, fees, and charges currently due under the contract to
21cure the default.
22    Section 45. Unlawful acts. It is a violation of this Act
23for either party to make an oral or written misrepresentation



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1to the other party concerning a contract or regarding the
2rights or duties of either party under this Act or to induce
3either party to sign incomplete forms, contracts, notices, or
4written statements relating to the sale of a dwelling
6    Section 50. No waiver. The buyer or the seller may not
7waive any provisions of this Act by written contract or
8otherwise. Any contractual provisions or other agreements
9contrary to this Act are void and unenforceable.
10    Section 55. Circumstances voiding mandatory arbitration
11provisions. A mandatory arbitration provision of an
12installment sales contract that is oppressive, unfair,
13unconscionable, or substantially in derogation of the rights of
14either party is void.
15    Section 60. Prepayment penalties prohibited. The seller
16may not charge or collect a prepayment penalty or any similar
17fee or finance charge if the buyer elects to pay the
18outstanding principal balance of the purchase price under the
19contract before the scheduled payment date under the contract.
20    Section 65. Prohibited contract terms. Any contract term
21that would put the buyer in default of the contract for failure
22to make improvements and repairs to residential real estate for



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1conditions that existed prior to the date of sale is prohibited
2and unenforceable.
3    Section 70. Cooling-off period.
4    (a) The buyer or the seller shall not be bound for 3 full
5business days after an unexecuted installment sales contract
6has been accepted by the buyer and the seller in the contract's
7full and final form.
8    (b) No later than the time the unexecuted installment sales
9contract has been accepted by the buyer and the seller in the
10contract's full and final form, the seller shall provide to the
11buyer the document described in Section 75 of this Act.
12    (c) An executed installment sales contract shall include a
13statement acknowledging that the seller provided the buyer with
14the installment sales contract disclosure prepared by the
15Office of the Attorney General, as required under Section 75 of
16this Act.
17    (d) An executed installment sales contract shall include
18the date the seller provided the buyer with the installment
19sales contract disclosure prepared by the Office of the
20Attorney General.
21    (e) The requirements of this Section cannot be waived by
22the buyer or the seller.
23    Section 75. Installment sales contract disclosures.
24    (a) The Office of the Attorney General shall develop the



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1content and format of an educational document providing
2independent consumer information regarding installment sales
3contracts and the availability of independent housing
4counseling services, including services provided by nonprofit
5agencies certified by the federal government to provide housing
6counseling. The document shall be updated and revised as often
7as deemed necessary by the Office of the Attorney General.
8    (b) The document described in subsection (a) of this
9Section shall include the following statement: "IMPORTANT
11requires a 3-day cooling-off period for installment sales
12contracts, during which time a potential buyer cannot be
13required to close or proceed with the contract. The purpose of
14this requirement is to provide a potential buyer with 3
15business days to consider his or her decision whether to sign
16an installment sales contract. Potential buyers may want to
17seek additional information from a HUD-approved housing
18counselor during this 3-day period. The 3-day cooling-off
19period cannot be waived."
20    Section 80. Credits towards deficiency in the case of
21default. If the buyer defaults, the seller shall credit toward
22the buyer deficiency any amount the buyer spent to repair
23defects in the property that existed before the sale.
24    Section 85. Enforcement.



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1    (a) Any violation of this Act shall constitute an unlawful
2practice under the Consumer Fraud and Deceptive Business
3Practices Act.
4    (b) Any violation of this Act by a licensee under the
5Residential Mortgage License Act of 1987 shall also be
6considered a violation of the Residential Mortgage License Act
7of 1987.
8    Section 90. Applicability of Act. This Act applies to
9installment sales contracts executed on or after the effective
10date of this Act.
11    Section 905. The Code of Civil Procedure is amended by
12changing Section 15-1106 as follows:
13    (735 ILCS 5/15-1106)  (from Ch. 110, par. 15-1106)
14    Sec. 15-1106. Applicability of Article.
15    (a) Exclusive Procedure. From and after July 1, 1987 (the
16effective date of Public Act 84-1462) this amendatory Act of
171986, the following shall be foreclosed in a foreclosure
18pursuant to this Article:
19        (1) any mortgage created prior to, on or after July 1,
20    1987 (the effective date of Public Act 84-1462) this
21    amendatory Act of 1986;
22        (2) any real estate installment contract for
23    residential real estate entered into on or after July 1,



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1    1987 (the effective date of Public Act 84-1462) this
2    amendatory Act of 1986 and under which the sum of all
3    payments made by the buyer is greater than or equal to 10%
4    of the original purchase price (i) the purchase price is to
5    be paid in installments over a period in excess of five
6    years and (ii) the amount unpaid under the terms of the
7    contract at the time of the filing of the foreclosure
8    complaint, including principal and due and unpaid
9    interest, at the rate prior to default, is less than 80% of
10    the original purchase price of the real estate as stated in
11    the contract;
12        (3) any collateral assignment of beneficial interest
13    made on or after July 1, 1987 (the effective date of Public
14    Act 84-1462) this amendatory Act of 1986 (i) which is made
15    with respect to a land trust which was created
16    contemporaneously with the collateral assignment of
17    beneficial interest, (ii) which is made pursuant to a
18    requirement of the holder of the obligation to secure the
19    payment of money or performance of other obligations and
20    (iii) as to which the security agreement or other writing
21    creating the collateral assignment permits the real estate
22    which is the subject of the land trust to be sold to
23    satisfy the obligations.
24    (b) Uniform Commercial Code. A secured party, as defined in
25Article 9 of the Uniform Commercial Code, may at its election
26enforce its security interest in a foreclosure under this



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1Article if its security interest was created on or after July
21, 1987 (the effective date of Public Act 84-1462) this
3amendatory Act of 1986 and is created by (i) a collateral
4assignment of beneficial interest in a land trust or (ii) an
5assignment for security of a buyer's interest in a real estate
6installment contract. Such election shall be made by filing a
7complaint stating that it is brought under this Article, in
8which event the provisions of this Article shall be exclusive
9in such foreclosure.
10    (c) Real Estate Installment Contracts. A contract seller
11may at its election enforce in a foreclosure under this Article
12any real estate installment contract entered into on or after
13July 1, 1987 (the effective date of Public Act 84-1462) this
14Amendatory Act of 1986 and not required to be foreclosed under
15this Article. Such election shall be made by filing a complaint
16stating that it is brought under this Article, in which event
17the provisions of this Article shall be exclusive in such
18foreclosure. A contract seller must enforce its contract under
19this Article if the real estate installment contract is one
20described in paragraph (2) of subsection (a) of this Section
22    (d) Effect of Election. An election made pursuant to
23subsection (b) or (c) of this Section 15-1106 shall be binding
24only in the foreclosure and shall be void if the foreclosure is
25terminated prior to entry of judgment.
26    (e) Supplementary General Principles of Law. General



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1principles of law and equity, such as those relating to
2capacity to contract, principal and agent, marshalling of
3assets, priority, subrogation, estoppel, fraud,
4misrepresentations, duress, collusion, mistake, bankruptcy or
5other validating or invalidating cause, supplement this
6Article unless displaced by a particular provision of it.
7Section 9-110 of this the Code of Civil Procedure shall not be
8applicable to any real estate installment contract which is
9foreclosed under this Article.
10    (f) Pending Actions. A complaint to foreclose a mortgage
11filed before July 1, 1987, and all proceedings and third party
12actions in connection therewith, shall be adjudicated pursuant
13to the Illinois statutes and applicable law in effect
14immediately prior to July 1, 1987. Such statutes shall remain
15in effect with respect to such complaint, proceedings and third
16party actions notwithstanding the amendment or repeal of such
17statutes on or after July 1, 1987.
18    (g) The changes made to this Section by this amendatory Act
19of the 100th General Assembly apply to real estate installment
20contracts for residential real estate executed on or after the
21effective date of this amendatory Act of the 100th General
23(Source: P.A. 85-907.)
24    Section 910. The Condominium Property Act is amended by
25changing Sections 18 and 18.5 as follows:



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1    (765 ILCS 605/18)  (from Ch. 30, par. 318)
2    Sec. 18. Contents of bylaws. The bylaws shall provide for
3at least the following:
4        (a)(1) The election from among the unit owners of a
5    board of managers, the number of persons constituting such
6    board, and that the terms of at least one-third of the
7    members of the board shall expire annually and that all
8    members of the board shall be elected at large; if there
9    are multiple owners of a single unit, only one of the
10    multiple owners shall be eligible to serve as a member of
11    the board at any one time;
12        (2) the powers and duties of the board;
13        (3) the compensation, if any, of the members of the
14    board;
15        (4) the method of removal from office of members of the
16    board;
17        (5) that the board may engage the services of a manager
18    or managing agent;
19        (6) that each unit owner shall receive, at least 25
20    days prior to the adoption thereof by the board of
21    managers, a copy of the proposed annual budget together
22    with an indication of which portions are intended for
23    reserves, capital expenditures or repairs or payment of
24    real estate taxes;
25        (7) that the board of managers shall annually supply to



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1    all unit owners an itemized accounting of the common
2    expenses for the preceding year actually incurred or paid,
3    together with an indication of which portions were for
4    reserves, capital expenditures or repairs or payment of
5    real estate taxes and with a tabulation of the amounts
6    collected pursuant to the budget or assessment, and showing
7    the net excess or deficit of income over expenditures plus
8    reserves;
9        (8)(i) that each unit owner shall receive notice, in
10    the same manner as is provided in this Act for membership
11    meetings, of any meeting of the board of managers
12    concerning the adoption of the proposed annual budget and
13    regular assessments pursuant thereto or to adopt a separate
14    (special) assessment, (ii) that except as provided in
15    subsection (iv) below, if an adopted budget or any separate
16    assessment adopted by the board would result in the sum of
17    all regular and separate assessments payable in the current
18    fiscal year exceeding 115% of the sum of all regular and
19    separate assessments payable during the preceding fiscal
20    year, the board of managers, upon written petition by unit
21    owners with 20 percent of the votes of the association
22    delivered to the board within 14 days of the board action,
23    shall call a meeting of the unit owners within 30 days of
24    the date of delivery of the petition to consider the budget
25    or separate assessment; unless a majority of the total
26    votes of the unit owners are cast at the meeting to reject



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1    the budget or separate assessment, it is ratified, (iii)
2    that any common expense not set forth in the budget or any
3    increase in assessments over the amount adopted in the
4    budget shall be separately assessed against all unit
5    owners, (iv) that separate assessments for expenditures
6    relating to emergencies or mandated by law may be adopted
7    by the board of managers without being subject to unit
8    owner approval or the provisions of item (ii) above or item
9    (v) below. As used herein, "emergency" means an immediate
10    danger to the structural integrity of the common elements
11    or to the life, health, safety or property of the unit
12    owners, (v) that assessments for additions and alterations
13    to the common elements or to association-owned property not
14    included in the adopted annual budget, shall be separately
15    assessed and are subject to approval of two-thirds of the
16    total votes of all unit owners, (vi) that the board of
17    managers may adopt separate assessments payable over more
18    than one fiscal year. With respect to multi-year
19    assessments not governed by items (iv) and (v), the entire
20    amount of the multi-year assessment shall be deemed
21    considered and authorized in the first fiscal year in which
22    the assessment is approved;
23        (9)(A) that every meeting of the board of managers
24    shall be open to any unit owner, except that the board may
25    close any portion of a noticed meeting or meet separately
26    from a noticed meeting to: (i) discuss litigation when an



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1    action against or on behalf of the particular association
2    has been filed and is pending in a court or administrative
3    tribunal, or when the board of managers finds that such an
4    action is probable or imminent, (ii) discuss the
5    appointment, employment, engagement, or dismissal of an
6    employee, independent contractor, agent, or other provider
7    of goods and services, (iii) interview a potential
8    employee, independent contractor, agent, or other provider
9    of goods and services, (iv) discuss violations of rules and
10    regulations of the association, (v) discuss a unit owner's
11    unpaid share of common expenses, or (vi) consult with the
12    association's legal counsel; that any vote on these matters
13    shall take place at a meeting of the board of managers or
14    portion thereof open to any unit owner;
15        (B) that board members may participate in and act at
16    any meeting of the board of managers in person, by
17    telephonic means, or by use of any acceptable technological
18    means whereby all persons participating in the meeting can
19    communicate with each other; that participation
20    constitutes attendance and presence in person at the
21    meeting;
22        (C) that any unit owner may record the proceedings at
23    meetings of the board of managers or portions thereof
24    required to be open by this Act by tape, film or other
25    means, and that the board may prescribe reasonable rules
26    and regulations to govern the right to make such



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1    recordings;
2        (D) that notice of every meeting of the board of
3    managers shall be given to every board member at least 48
4    hours prior thereto, unless the board member waives notice
5    of the meeting pursuant to subsection (a) of Section 18.8;
6    and
7        (E) that notice of every meeting of the board of
8    managers shall be posted in entranceways, elevators, or
9    other conspicuous places in the condominium at least 48
10    hours prior to the meeting of the board of managers except
11    where there is no common entranceway for 7 or more units,
12    the board of managers may designate one or more locations
13    in the proximity of these units where the notices of
14    meetings shall be posted; that notice of every meeting of
15    the board of managers shall also be given at least 48 hours
16    prior to the meeting, or such longer notice as this Act may
17    separately require, to: (i) each unit owner who has
18    provided the association with written authorization to
19    conduct business by acceptable technological means, and
20    (ii) to the extent that the condominium instruments of an
21    association require, to each other unit owner, as required
22    by subsection (f) of Section 18.8, by mail or delivery, and
23    that no other notice of a meeting of the board of managers
24    need be given to any unit owner;
25        (10) that the board shall meet at least 4 times
26    annually;



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1        (11) that no member of the board or officer shall be
2    elected for a term of more than 2 years, but that officers
3    and board members may succeed themselves;
4        (12) the designation of an officer to mail and receive
5    all notices and execute amendments to condominium
6    instruments as provided for in this Act and in the
7    condominium instruments;
8        (13) the method of filling vacancies on the board which
9    shall include authority for the remaining members of the
10    board to fill the vacancy by two-thirds vote until the next
11    annual meeting of unit owners or for a period terminating
12    no later than 30 days following the filing of a petition
13    signed by unit owners holding 20% of the votes of the
14    association requesting a meeting of the unit owners to fill
15    the vacancy for the balance of the term, and that a meeting
16    of the unit owners shall be called for purposes of filling
17    a vacancy on the board no later than 30 days following the
18    filing of a petition signed by unit owners holding 20% of
19    the votes of the association requesting such a meeting, and
20    the method of filling vacancies among the officers that
21    shall include the authority for the members of the board to
22    fill the vacancy for the unexpired portion of the term;
23        (14) what percentage of the board of managers, if other
24    than a majority, shall constitute a quorum;
25        (15) provisions concerning notice of board meetings to
26    members of the board;



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1        (16) the board of managers may not enter into a
2    contract with a current board member or with a corporation
3    or partnership in which a board member or a member of the
4    board member's immediate family has 25% or more interest,
5    unless notice of intent to enter the contract is given to
6    unit owners within 20 days after a decision is made to
7    enter into the contract and the unit owners are afforded an
8    opportunity by filing a petition, signed by 20% of the unit
9    owners, for an election to approve or disapprove the
10    contract; such petition shall be filed within 20 days after
11    such notice and such election shall be held within 30 days
12    after filing the petition; for purposes of this subsection,
13    a board member's immediate family means the board member's
14    spouse, parents, and children;
15        (17) that the board of managers may disseminate to unit
16    owners biographical and background information about
17    candidates for election to the board if (i) reasonable
18    efforts to identify all candidates are made and all
19    candidates are given an opportunity to include
20    biographical and background information in the information
21    to be disseminated; and (ii) the board does not express a
22    preference in favor of any candidate;
23        (18) any proxy distributed for board elections by the
24    board of managers gives unit owners the opportunity to
25    designate any person as the proxy holder, and gives the
26    unit owner the opportunity to express a preference for any



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1    of the known candidates for the board or to write in a
2    name;
3        (19) that special meetings of the board of managers can
4    be called by the president or 25% of the members of the
5    board;
6        (20) that the board of managers may establish and
7    maintain a system of master metering of public utility
8    services and collect payments in connection therewith,
9    subject to the requirements of the Tenant Utility Payment
10    Disclosure Act; and
11        (21) that the board may ratify and confirm actions of
12    the members of the board taken in response to an emergency,
13    as that term is defined in subdivision (a)(8)(iv) of this
14    Section; that the board shall give notice to the unit
15    owners of: (i) the occurrence of the emergency event within
16    7 business days after the emergency event, and (ii) the
17    general description of the actions taken to address the
18    event within 7 days after the emergency event.
19        The intent of the provisions of Public Act 99-472
20    adding this paragraph (21) is to empower and support boards
21    to act in emergencies.
22        (b)(1) What percentage of the unit owners, if other
23    than 20%, shall constitute a quorum provided that, for
24    condominiums with 20 or more units, the percentage of unit
25    owners constituting a quorum shall be 20% unless the unit
26    owners holding a majority of the percentage interest in the



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1    association provide for a higher percentage, provided that
2    in voting on amendments to the association's bylaws, a unit
3    owner who is in arrears on the unit owner's regular or
4    separate assessments for 60 days or more, shall not be
5    counted for purposes of determining if a quorum is present,
6    but that unit owner retains the right to vote on amendments
7    to the association's bylaws;
8        (2) that the association shall have one class of
9    membership;
10        (3) that the members shall hold an annual meeting, one
11    of the purposes of which shall be to elect members of the
12    board of managers;
13        (4) the method of calling meetings of the unit owners;
14        (5) that special meetings of the members can be called
15    by the president, board of managers, or by 20% of unit
16    owners;
17        (6) that written notice of any membership meeting shall
18    be mailed or delivered giving members no less than 10 and
19    no more than 30 days notice of the time, place and purpose
20    of such meeting except that notice may be sent, to the
21    extent the condominium instruments or rules adopted
22    thereunder expressly so provide, by electronic
23    transmission consented to by the unit owner to whom the
24    notice is given, provided the director and officer or his
25    agent certifies in writing to the delivery by electronic
26    transmission;



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1        (7) that voting shall be on a percentage basis, and
2    that the percentage vote to which each unit is entitled is
3    the percentage interest of the undivided ownership of the
4    common elements appurtenant thereto, provided that the
5    bylaws may provide for approval by unit owners in
6    connection with matters where the requisite approval on a
7    percentage basis is not specified in this Act, on the basis
8    of one vote per unit;
9        (8) that, where there is more than one owner of a unit,
10    if only one of the multiple owners is present at a meeting
11    of the association, he is entitled to cast all the votes
12    allocated to that unit, if more than one of the multiple
13    owners are present, the votes allocated to that unit may be
14    cast only in accordance with the agreement of a majority in
15    interest of the multiple owners, unless the declaration
16    expressly provides otherwise, that there is majority
17    agreement if any one of the multiple owners cast the votes
18    allocated to that unit without protest being made promptly
19    to the person presiding over the meeting by any of the
20    other owners of the unit;
21        (9)(A) except as provided in subparagraph (B) of this
22    paragraph (9) in connection with board elections, that a
23    unit owner may vote by proxy executed in writing by the
24    unit owner or by his duly authorized attorney in fact; that
25    the proxy must bear the date of execution and, unless the
26    condominium instruments or the written proxy itself



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1    provide otherwise, is invalid after 11 months from the date
2    of its execution; to the extent the condominium instruments
3    or rules adopted thereunder expressly so provide, a vote or
4    proxy may be submitted by electronic transmission,
5    provided that any such electronic transmission shall
6    either set forth or be submitted with information from
7    which it can be determined that the electronic transmission
8    was authorized by the unit owner or the unit owner's proxy;
9        (B) that if a rule adopted at least 120 days before a
10    board election or the declaration or bylaws provide for
11    balloting as set forth in this subsection, unit owners may
12    not vote by proxy in board elections, but may vote only (i)
13    by submitting an association-issued ballot in person at the
14    election meeting or (ii) by submitting an
15    association-issued ballot to the association or its
16    designated agent by mail or other means of delivery
17    specified in the declaration, bylaws, or rule; that the
18    ballots shall be mailed or otherwise distributed to unit
19    owners not less than 10 and not more than 30 days before
20    the election meeting, and the board shall give unit owners
21    not less than 21 days' prior written notice of the deadline
22    for inclusion of a candidate's name on the ballots; that
23    the deadline shall be no more than 7 days before the
24    ballots are mailed or otherwise distributed to unit owners;
25    that every such ballot must include the names of all
26    candidates who have given the board or its authorized agent



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1    timely written notice of their candidacy and must give the
2    person casting the ballot the opportunity to cast votes for
3    candidates whose names do not appear on the ballot; that a
4    ballot received by the association or its designated agent
5    after the close of voting shall not be counted; that a unit
6    owner who submits a ballot by mail or other means of
7    delivery specified in the declaration, bylaws, or rule may
8    request and cast a ballot in person at the election
9    meeting, and thereby void any ballot previously submitted
10    by that unit owner;
11        (B-5) that if a rule adopted at least 120 days before a
12    board election or the declaration or bylaws provide for
13    balloting as set forth in this subparagraph, unit owners
14    may not vote by proxy in board elections, but may vote only
15    (i) by submitting an association-issued ballot in person at
16    the election meeting; or (ii) by any acceptable
17    technological means as defined in Section 2 of this Act;
18    instructions regarding the use of electronic means for
19    voting shall be distributed to all unit owners not less
20    than 10 and not more than 30 days before the election
21    meeting, and the board shall give unit owners not less than
22    21 days' prior written notice of the deadline for inclusion
23    of a candidate's name on the ballots; the deadline shall be
24    no more than 7 days before the instructions for voting
25    using electronic or acceptable technological means is
26    distributed to unit owners; every instruction notice must



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1    include the names of all candidates who have given the
2    board or its authorized agent timely written notice of
3    their candidacy and must give the person voting through
4    electronic or acceptable technological means the
5    opportunity to cast votes for candidates whose names do not
6    appear on the ballot; a unit owner who submits a vote using
7    electronic or acceptable technological means may request
8    and cast a ballot in person at the election meeting,
9    thereby voiding any vote previously submitted by that unit
10    owner;
11        (C) that if a written petition by unit owners with at
12    least 20% of the votes of the association is delivered to
13    the board within 14 days after the board's approval of a
14    rule adopted pursuant to subparagraph (B) or subparagraph
15    (B-5) of this paragraph (9), the board shall call a meeting
16    of the unit owners within 30 days after the date of
17    delivery of the petition; that unless a majority of the
18    total votes of the unit owners are cast at the meeting to
19    reject the rule, the rule is ratified;
20        (D) that votes cast by ballot under subparagraph (B) or
21    electronic or acceptable technological means under
22    subparagraph (B-5) of this paragraph (9) are valid for the
23    purpose of establishing a quorum;
24        (10) that the association may, upon adoption of the
25    appropriate rules by the board of managers, conduct
26    elections by secret ballot whereby the voting ballot is



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1    marked only with the percentage interest for the unit and
2    the vote itself, provided that the board further adopt
3    rules to verify the status of the unit owner issuing a
4    proxy or casting a ballot; and further, that a candidate
5    for election to the board of managers or such candidate's
6    representative shall have the right to be present at the
7    counting of ballots at such election;
8        (11) that in the event of a resale of a condominium
9    unit the purchaser of a unit from a seller other than the
10    developer pursuant to an installment sales contract for
11    purchase shall during such times as he or she resides in
12    the unit be counted toward a quorum for purposes of
13    election of members of the board of managers at any meeting
14    of the unit owners called for purposes of electing members
15    of the board, shall have the right to vote for the election
16    of members of the board of managers and to be elected to
17    and serve on the board of managers unless the seller
18    expressly retains in writing any or all of such rights. In
19    no event may the seller and purchaser both be counted
20    toward a quorum, be permitted to vote for a particular
21    office or be elected and serve on the board. Satisfactory
22    evidence of the installment sales contract shall be made
23    available to the association or its agents. For purposes of
24    this subsection, "installment sales contract" shall have
25    the same meaning as set forth in Section 5 of the
26    Installment Sales Contract Act Section 1(e) of the Dwelling



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1    Unit Installment Contract Act;
2        (12) the method by which matters subject to the
3    approval of unit owners set forth in this Act, or in the
4    condominium instruments, will be submitted to the unit
5    owners at special membership meetings called for such
6    purposes; and
7        (13) that matters subject to the affirmative vote of
8    not less than 2/3 of the votes of unit owners at a meeting
9    duly called for that purpose, shall include, but not be
10    limited to:
11        (i) merger or consolidation of the association;
12        (ii) sale, lease, exchange, or other disposition
13        (excluding the mortgage or pledge) of all, or
14        substantially all of the property and assets of the
15        association; and
16        (iii) the purchase or sale of land or of units on
17        behalf of all unit owners.
18        (c) Election of a president from among the board of
19    managers, who shall preside over the meetings of the board
20    of managers and of the unit owners.
21        (d) Election of a secretary from among the board of
22    managers, who shall keep the minutes of all meetings of the
23    board of managers and of the unit owners and who shall, in
24    general, perform all the duties incident to the office of
25    secretary.
26        (e) Election of a treasurer from among the board of



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1    managers, who shall keep the financial records and books of
2    account.
3        (f) Maintenance, repair and replacement of the common
4    elements and payments therefor, including the method of
5    approving payment vouchers.
6        (g) An association with 30 or more units shall obtain
7    and maintain fidelity insurance covering persons who
8    control or disburse funds of the association for the
9    maximum amount of coverage available to protect funds in
10    the custody or control of the association plus the
11    association reserve fund. All management companies which
12    are responsible for the funds held or administered by the
13    association shall maintain and furnish to the association a
14    fidelity bond for the maximum amount of coverage available
15    to protect funds in the custody of the management company
16    at any time. The association shall bear the cost of the
17    fidelity insurance and fidelity bond, unless otherwise
18    provided by contract between the association and a
19    management company. The association shall be the direct
20    obligee of any such fidelity bond. A management company
21    holding reserve funds of an association shall at all times
22    maintain a separate account for each association,
23    provided, however, that for investment purposes, the Board
24    of Managers of an association may authorize a management
25    company to maintain the association's reserve funds in a
26    single interest bearing account with similar funds of other



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1    associations. The management company shall at all times
2    maintain records identifying all moneys of each
3    association in such investment account. The management
4    company may hold all operating funds of associations which
5    it manages in a single operating account but shall at all
6    times maintain records identifying all moneys of each
7    association in such operating account. Such operating and
8    reserve funds held by the management company for the
9    association shall not be subject to attachment by any
10    creditor of the management company.
11        For the purpose of this subsection, a management
12    company shall be defined as a person, partnership,
13    corporation, or other legal entity entitled to transact
14    business on behalf of others, acting on behalf of or as an
15    agent for a unit owner, unit owners or association of unit
16    owners for the purpose of carrying out the duties,
17    responsibilities, and other obligations necessary for the
18    day to day operation and management of any property subject
19    to this Act. For purposes of this subsection, the term
20    "fiduciary insurance coverage" shall be defined as both a
21    fidelity bond and directors and officers liability
22    coverage, the fidelity bond in the full amount of
23    association funds and association reserves that will be in
24    the custody of the association, and the directors and
25    officers liability coverage at a level as shall be
26    determined to be reasonable by the board of managers, if



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1    not otherwise established by the declaration or by laws.
2        Until one year after September 21, 1985 (the effective
3    date of Public Act 84-722), if a condominium association
4    has reserves plus assessments in excess of $250,000 and
5    cannot reasonably obtain 100% fidelity bond coverage for
6    such amount, then it must obtain a fidelity bond coverage
7    of $250,000.
8        (h) Method of estimating the amount of the annual
9    budget, and the manner of assessing and collecting from the
10    unit owners their respective shares of such estimated
11    expenses, and of any other expenses lawfully agreed upon.
12        (i) That upon 10 days notice to the manager or board of
13    managers and payment of a reasonable fee, any unit owner
14    shall be furnished a statement of his account setting forth
15    the amount of any unpaid assessments or other charges due
16    and owing from such owner.
17        (j) Designation and removal of personnel necessary for
18    the maintenance, repair and replacement of the common
19    elements.
20        (k) Such restrictions on and requirements respecting
21    the use and maintenance of the units and the use of the
22    common elements, not set forth in the declaration, as are
23    designed to prevent unreasonable interference with the use
24    of their respective units and of the common elements by the
25    several unit owners.
26        (l) Method of adopting and of amending administrative



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1    rules and regulations governing the operation and use of
2    the common elements.
3        (m) The percentage of votes required to modify or amend
4    the bylaws, but each one of the particulars set forth in
5    this section shall always be embodied in the bylaws.
6        (n)(i) The provisions of this Act, the declaration,
7    bylaws, other condominium instruments, and rules and
8    regulations that relate to the use of the individual unit
9    or the common elements shall be applicable to any person
10    leasing a unit and shall be deemed to be incorporated in
11    any lease executed or renewed on or after August 30, 1984
12    (the effective date of Public Act 83-1271).
13        (ii) With regard to any lease entered into subsequent
14    to July 1, 1990 (the effective date of Public Act 86-991),
15    the unit owner leasing the unit shall deliver a copy of the
16    signed lease to the board or if the lease is oral, a
17    memorandum of the lease, not later than the date of
18    occupancy or 10 days after the lease is signed, whichever
19    occurs first. In addition to any other remedies, by filing
20    an action jointly against the tenant and the unit owner, an
21    association may seek to enjoin a tenant from occupying a
22    unit or seek to evict a tenant under the provisions of
23    Article IX of the Code of Civil Procedure for failure of
24    the lessor-owner to comply with the leasing requirements
25    prescribed by this Section or by the declaration, bylaws,
26    and rules and regulations. The board of managers may



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1    proceed directly against a tenant, at law or in equity, or
2    under the provisions of Article IX of the Code of Civil
3    Procedure, for any other breach by tenant of any covenants,
4    rules, regulations or bylaws.
5        (o) The association shall have no authority to forbear
6    the payment of assessments by any unit owner.
7        (p) That when 30% or fewer of the units, by number,
8    possess over 50% in the aggregate of the votes in the
9    association, any percentage vote of members specified
10    herein or in the condominium instruments shall require the
11    specified percentage by number of units rather than by
12    percentage of interest in the common elements allocated to
13    units that would otherwise be applicable and garage units
14    or storage units, or both, shall have, in total, no more
15    votes than their aggregate percentage of ownership in the
16    common elements; this shall mean that if garage units or
17    storage units, or both, are to be given a vote, or portion
18    of a vote, that the association must add the total number
19    of votes cast of garage units, storage units, or both, and
20    divide the total by the number of garage units, storage
21    units, or both, and multiply by the aggregate percentage of
22    ownership of garage units and storage units to determine
23    the vote, or portion of a vote, that garage units or
24    storage units, or both, have. For purposes of this
25    subsection (p), when making a determination of whether 30%
26    or fewer of the units, by number, possess over 50% in the



10000SB0885sam001- 39 -LRB100 05980 HEP 24830 a

1    aggregate of the votes in the association, a unit shall not
2    include a garage unit or a storage unit.
3        (q) That a unit owner may not assign, delegate,
4    transfer, surrender, or avoid the duties,
5    responsibilities, and liabilities of a unit owner under
6    this Act, the condominium instruments, or the rules and
7    regulations of the Association; and that such an attempted
8    assignment, delegation, transfer, surrender, or avoidance
9    shall be deemed void.
10    The provisions of this Section are applicable to all
11condominium instruments recorded under this Act. Any portion of
12a condominium instrument which contains provisions contrary to
13these provisions shall be void as against public policy and
14ineffective. Any such instrument which fails to contain the
15provisions required by this Section shall be deemed to
16incorporate such provisions by operation of law.
17(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
1899-567, eff. 1-1-17; 99-642, eff. 7-28-16.)
19    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
20    Sec. 18.5. Master Associations.
21    (a) If the declaration, other condominium instrument, or
22other duly recorded covenants provide that any of the powers of
23the unit owners associations are to be exercised by or may be
24delegated to a nonprofit corporation or unincorporated
25association that exercises those or other powers on behalf of



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1one or more condominiums, or for the benefit of the unit owners
2of one or more condominiums, such corporation or association
3shall be a master association.
4    (b) There shall be included in the declaration, other
5condominium instruments, or other duly recorded covenants
6establishing the powers and duties of the master association
7the provisions set forth in subsections (c) through (h).
8    In interpreting subsections (c) through (h), the courts
9should interpret these provisions so that they are interpreted
10consistently with the similar parallel provisions found in
11other parts of this Act.
12    (c) Meetings and finances.
13        (1) Each unit owner of a condominium subject to the
14    authority of the board of the master association shall
15    receive, at least 30 days prior to the adoption thereof by
16    the board of the master association, a copy of the proposed
17    annual budget.
18        (2) The board of the master association shall annually
19    supply to all unit owners of condominiums subject to the
20    authority of the board of the master association an
21    itemized accounting of the common expenses for the
22    preceding year actually incurred or paid, together with a
23    tabulation of the amounts collected pursuant to the budget
24    or assessment, and showing the net excess or deficit of
25    income over expenditures plus reserves.
26        (3) Each unit owner of a condominium subject to the



10000SB0885sam001- 41 -LRB100 05980 HEP 24830 a

1    authority of the board of the master association shall
2    receive written notice mailed or delivered no less than 10
3    and no more than 30 days prior to any meeting of the board
4    of the master association concerning the adoption of the
5    proposed annual budget or any increase in the budget, or
6    establishment of an assessment.
7        (4) Meetings of the board of the master association
8    shall be open to any unit owner in a condominium subject to
9    the authority of the board of the master association,
10    except for the portion of any meeting held:
11            (A) to discuss litigation when an action against or
12        on behalf of the particular master association has been
13        filed and is pending in a court or administrative
14        tribunal, or when the board of the master association
15        finds that such an action is probable or imminent,
16            (B) to consider information regarding appointment,
17        employment or dismissal of an employee, or
18            (C) to discuss violations of rules and regulations
19        of the master association or unpaid common expenses
20        owed to the master association.
21    Any vote on these matters shall be taken at a meeting or
22    portion thereof open to any unit owner of a condominium
23    subject to the authority of the master association.
24        Any unit owner may record the proceedings at meetings
25    required to be open by this Act by tape, film or other
26    means; the board may prescribe reasonable rules and



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1    regulations to govern the right to make such recordings.
2    Notice of meetings shall be mailed or delivered at least 48
3    hours prior thereto, unless a written waiver of such notice
4    is signed by the persons entitled to notice before the
5    meeting is convened. Copies of notices of meetings of the
6    board of the master association shall be posted in
7    entranceways, elevators, or other conspicuous places in
8    the condominium at least 48 hours prior to the meeting of
9    the board of the master association. Where there is no
10    common entranceway for 7 or more units, the board of the
11    master association may designate one or more locations in
12    the proximity of these units where the notices of meetings
13    shall be posted.
14        (5) If the declaration provides for election by unit
15    owners of members of the board of directors in the event of
16    a resale of a unit in the master association, the purchaser
17    of a unit from a seller other than the developer pursuant
18    to an installment sales contract for purchase shall, during
19    such times as he or she resides in the unit, be counted
20    toward a quorum for purposes of election of members of the
21    board of directors at any meeting of the unit owners called
22    for purposes of electing members of the board, and shall
23    have the right to vote for the election of members of the
24    board of directors and to be elected to and serve on the
25    board of directors unless the seller expressly retains in
26    writing any or all of those rights. In no event may the



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1    seller and purchaser both be counted toward a quorum, be
2    permitted to vote for a particular office, or be elected
3    and serve on the board. Satisfactory evidence of the
4    installment sales contract shall be made available to the
5    association or its agents. For purposes of this subsection,
6    "installment sales contract" shall have the same meaning as
7    set forth in Section 5 of the Installment Sales Contract
8    Act subsection (e) of Section 1 of the Dwelling Unit
9    Installment Contract Act.
10        (6) The board of the master association shall have the
11    authority to establish and maintain a system of master
12    metering of public utility services and to collect payments
13    in connection therewith, subject to the requirements of the
14    Tenant Utility Payment Disclosure Act.
15        (7) The board of the master association or a common
16    interest community association shall have the power, after
17    notice and an opportunity to be heard, to levy and collect
18    reasonable fines from members for violations of the
19    declaration, bylaws, and rules and regulations of the
20    master association or the common interest community
21    association. Nothing contained in this subdivision (7)
22    shall give rise to a statutory lien for unpaid fines.
23        (8) Other than attorney's fees, no fees pertaining to
24    the collection of a unit owner's financial obligation to
25    the Association, including fees charged by a manager or
26    managing agent, shall be added to and deemed a part of an



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1    owner's respective share of the common expenses unless: (i)
2    the managing agent fees relate to the costs to collect
3    common expenses for the Association; (ii) the fees are set
4    forth in a contract between the managing agent and the
5    Association; and (iii) the authority to add the management
6    fees to an owner's respective share of the common expenses
7    is specifically stated in the declaration or bylaws of the
8    Association.
9    (d) Records.
10        (1) The board of the master association shall maintain
11    the following records of the association and make them
12    available for examination and copying at convenient hours
13    of weekdays by any unit owners in a condominium subject to
14    the authority of the board or their mortgagees and their
15    duly authorized agents or attorneys:
16            (i) Copies of the recorded declaration, other
17        condominium instruments, other duly recorded covenants
18        and bylaws and any amendments, articles of
19        incorporation of the master association, annual
20        reports and any rules and regulations adopted by the
21        master association or its board shall be available.
22        Prior to the organization of the master association,
23        the developer shall maintain and make available the
24        records set forth in this subdivision (d)(1) for
25        examination and copying.
26            (ii) Detailed and accurate records in



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1        chronological order of the receipts and expenditures
2        affecting the common areas, specifying and itemizing
3        the maintenance and repair expenses of the common areas
4        and any other expenses incurred, and copies of all
5        contracts, leases, or other agreements entered into by
6        the master association, shall be maintained.
7            (iii) The minutes of all meetings of the master
8        association and the board of the master association
9        shall be maintained for not less than 7 years.
10            (iv) Ballots and proxies related thereto, if any,
11        for any election held for the board of the master
12        association and for any other matters voted on by the
13        unit owners shall be maintained for not less than one
14        year.
15            (v) Such other records of the master association as
16        are available for inspection by members of a
17        not-for-profit corporation pursuant to Section 107.75
18        of the General Not For Profit Corporation Act of 1986
19        shall be maintained.
20            (vi) With respect to units owned by a land trust,
21        if a trustee designates in writing a person to cast
22        votes on behalf of the unit owner, the designation
23        shall remain in effect until a subsequent document is
24        filed with the association.
25        (2) Where a request for records under this subsection
26    is made in writing to the board of managers or its agent,



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1    failure to provide the requested record or to respond
2    within 30 days shall be deemed a denial by the board of
3    directors.
4        (3) A reasonable fee may be charged by the master
5    association or its board for the cost of copying.
6        (4) If the board of directors fails to provide records
7    properly requested under subdivision (d)(1) within the
8    time period provided in subdivision (d)(2), the unit owner
9    may seek appropriate relief, including an award of
10    attorney's fees and costs.
11    (e) The board of directors shall have standing and capacity
12to act in a representative capacity in relation to matters
13involving the common areas of the master association or more
14than one unit, on behalf of the unit owners as their interests
15may appear.
16    (f) Administration of property prior to election of the
17initial board of directors.
18        (1) Until the election, by the unit owners or the
19    boards of managers of the underlying condominium
20    associations, of the initial board of directors of a master
21    association whose declaration is recorded on or after
22    August 10, 1990, the same rights, titles, powers,
23    privileges, trusts, duties and obligations that are vested
24    in or imposed upon the board of directors by this Act or in
25    the declaration or other duly recorded covenant shall be
26    held and performed by the developer.



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1        (2) The election of the initial board of directors of a
2    master association whose declaration is recorded on or
3    after August 10, 1990, by the unit owners or the boards of
4    managers of the underlying condominium associations, shall
5    be held not later than 60 days after the conveyance by the
6    developer of 75% of the units, or 3 years after the
7    recording of the declaration, whichever is earlier. The
8    developer shall give at least 21 days notice of the meeting
9    to elect the initial board of directors and shall upon
10    request provide to any unit owner, within 3 working days of
11    the request, the names, addresses, and weighted vote of
12    each unit owner entitled to vote at the meeting. Any unit
13    owner shall upon receipt of the request be provided with
14    the same information, within 10 days of the request, with
15    respect to each subsequent meeting to elect members of the
16    board of directors.
17        (3) If the initial board of directors of a master
18    association whose declaration is recorded on or after
19    August 10, 1990 is not elected by the unit owners or the
20    members of the underlying condominium association board of
21    managers at the time established in subdivision (f)(2), the
22    developer shall continue in office for a period of 30 days,
23    whereupon written notice of his resignation shall be sent
24    to all of the unit owners or members of the underlying
25    condominium board of managers entitled to vote at an
26    election for members of the board of directors.



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1        (4) Within 60 days following the election of a majority
2    of the board of directors, other than the developer, by
3    unit owners, the developer shall deliver to the board of
4    directors:
5            (i) All original documents as recorded or filed
6        pertaining to the property, its administration, and
7        the association, such as the declaration, articles of
8        incorporation, other instruments, annual reports,
9        minutes, rules and regulations, and contracts, leases,
10        or other agreements entered into by the association. If
11        any original documents are unavailable, a copy may be
12        provided if certified by affidavit of the developer, or
13        an officer or agent of the developer, as being a
14        complete copy of the actual document recorded or filed.
15            (ii) A detailed accounting by the developer,
16        setting forth the source and nature of receipts and
17        expenditures in connection with the management,
18        maintenance and operation of the property, copies of
19        all insurance policies, and a list of any loans or
20        advances to the association which are outstanding.
21            (iii) Association funds, which shall have been at
22        all times segregated from any other moneys of the
23        developer.
24            (iv) A schedule of all real or personal property,
25        equipment and fixtures belonging to the association,
26        including documents transferring the property,



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1        warranties, if any, for all real and personal property
2        and equipment, deeds, title insurance policies, and
3        all tax bills.
4            (v) A list of all litigation, administrative
5        action and arbitrations involving the association, any
6        notices of governmental bodies involving actions taken
7        or which may be taken concerning the association,
8        engineering and architectural drawings and
9        specifications as approved by any governmental
10        authority, all other documents filed with any other
11        governmental authority, all governmental certificates,
12        correspondence involving enforcement of any
13        association requirements, copies of any documents
14        relating to disputes involving unit owners, and
15        originals of all documents relating to everything
16        listed in this subparagraph.
17            (vi) If the developer fails to fully comply with
18        this paragraph (4) within the 60 days provided and
19        fails to fully comply within 10 days of written demand
20        mailed by registered or certified mail to his or her
21        last known address, the board may bring an action to
22        compel compliance with this paragraph (4). If the court
23        finds that any of the required deliveries were not made
24        within the required period, the board shall be entitled
25        to recover its reasonable attorneys' fees and costs
26        incurred from and after the date of expiration of the



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1        10 day demand.
2        (5) With respect to any master association whose
3    declaration is recorded on or after August 10, 1990, any
4    contract, lease, or other agreement made prior to the
5    election of a majority of the board of directors other than
6    the developer by or on behalf of unit owners or underlying
7    condominium associations, the association or the board of
8    directors, which extends for a period of more than 2 years
9    from the recording of the declaration, shall be subject to
10    cancellation by more than 1/2 of the votes of the unit
11    owners, other than the developer, cast at a special meeting
12    of members called for that purpose during a period of 90
13    days prior to the expiration of the 2 year period if the
14    board of managers is elected by the unit owners, otherwise
15    by more than 1/2 of the underlying condominium board of
16    managers. At least 60 days prior to the expiration of the 2
17    year period, the board of directors, or, if the board is
18    still under developer control, then the board of managers
19    or the developer shall send notice to every unit owner or
20    underlying condominium board of managers, notifying them
21    of this provision, of what contracts, leases and other
22    agreements are affected, and of the procedure for calling a
23    meeting of the unit owners or for action by the underlying
24    condominium board of managers for the purpose of acting to
25    terminate such contracts, leases or other agreements.
26    During the 90 day period the other party to the contract,



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1    lease, or other agreement shall also have the right of
2    cancellation.
3        (6) The statute of limitations for any actions in law
4    or equity which the master association may bring shall not
5    begin to run until the unit owners or underlying
6    condominium board of managers have elected a majority of
7    the members of the board of directors.
8    (g) In the event of any resale of a unit in a master
9association by a unit owner other than the developer, the owner
10shall obtain from the board of directors and shall make
11available for inspection to the prospective purchaser, upon
12demand, the following:
13        (1) A copy of the declaration, other instruments and
14    any rules and regulations.
15        (2) A statement of any liens, including a statement of
16    the account of the unit setting forth the amounts of unpaid
17    assessments and other charges due and owing.
18        (3) A statement of any capital expenditures
19    anticipated by the association within the current or
20    succeeding 2 fiscal years.
21        (4) A statement of the status and amount of any reserve
22    for replacement fund and any portion of such fund earmarked
23    for any specified project by the board of directors.
24        (5) A copy of the statement of financial condition of
25    the association for the last fiscal year for which such a
26    statement is available.



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1        (6) A statement of the status of any pending suits or
2    judgments in which the association is a party.
3        (7) A statement setting forth what insurance coverage
4    is provided for all unit owners by the association.
5        (8) A statement that any improvements or alterations
6    made to the unit, or any part of the common areas assigned
7    thereto, by the prior unit owner are in good faith believed
8    to be in compliance with the declaration of the master
9    association.
10    The principal officer of the unit owner's association or
11such other officer as is specifically designated shall furnish
12the above information when requested to do so in writing,
13within 30 days of receiving the request.
14    A reasonable fee covering the direct out-of-pocket cost of
15copying and providing such information may be charged by the
16association or its board of directors to the unit seller for
17providing the information.
18    (g-1) The purchaser of a unit of a common interest
19community at a judicial foreclosure sale, other than a
20mortgagee, who takes possession of a unit of a common interest
21community pursuant to a court order or a purchaser who acquires
22title from a mortgagee shall have the duty to pay the
23proportionate share, if any, of the common expenses for the
24unit that would have become due in the absence of any
25assessment acceleration during the 6 months immediately
26preceding institution of an action to enforce the collection of



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1assessments and the court costs incurred by the association in
2an action to enforce the collection that remain unpaid by the
3owner during whose possession the assessments accrued. If the
4outstanding assessments and the court costs incurred by the
5association in an action to enforce the collection are paid at
6any time during any action to enforce the collection of
7assessments, the purchaser shall have no obligation to pay any
8assessments that accrued before he or she acquired title. The
9notice of sale of a unit of a common interest community under
10subsection (c) of Section 15-1507 of the Code of Civil
11Procedure shall state that the purchaser of the unit other than
12a mortgagee shall pay the assessments and court costs required
13by this subsection (g-1).
14    (h) Errors and omissions.
15        (1) If there is an omission or error in the declaration
16    or other instrument of the master association, the master
17    association may correct the error or omission by an
18    amendment to the declaration or other instrument, as may be
19    required to conform it to this Act, to any other applicable
20    statute, or to the declaration. The amendment shall be
21    adopted by vote of two-thirds of the members of the board
22    of directors or by a majority vote of the unit owners at a
23    meeting called for that purpose, unless the Act or the
24    declaration of the master association specifically
25    provides for greater percentages or different procedures.
26        (2) If, through a scrivener's error, a unit has not



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1    been designated as owning an appropriate undivided share of
2    the common areas or does not bear an appropriate share of
3    the common expenses, or if all of the common expenses or
4    all of the common elements in the condominium have not been
5    distributed in the declaration, so that the sum total of
6    the shares of common areas which have been distributed or
7    the sum total of the shares of the common expenses fail to
8    equal 100%, or if it appears that more than 100% of the
9    common elements or common expenses have been distributed,
10    the error may be corrected by operation of law by filing an
11    amendment to the declaration, approved by vote of
12    two-thirds of the members of the board of directors or a
13    majority vote of the unit owners at a meeting called for
14    that purpose, which proportionately adjusts all percentage
15    interests so that the total is equal to 100%, unless the
16    declaration specifically provides for a different
17    procedure or different percentage vote by the owners of the
18    units and the owners of mortgages thereon affected by
19    modification being made in the undivided interest in the
20    common areas, the number of votes in the unit owners
21    association or the liability for common expenses
22    appertaining to the unit.
23        (3) If an omission or error or a scrivener's error in
24    the declaration or other instrument is corrected by vote of
25    two-thirds of the members of the board of directors
26    pursuant to the authority established in subdivisions



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1    (h)(1) or (h)(2) of this Section, the board, upon written
2    petition by unit owners with 20% of the votes of the
3    association or resolutions adopted by the board of managers
4    or board of directors of the condominium and common
5    interest community associations which select 20% of the
6    members of the board of directors of the master
7    association, whichever is applicable, received within 30
8    days of the board action, shall call a meeting of the unit
9    owners or the boards of the condominium and common interest
10    community associations which select members of the board of
11    directors of the master association within 30 days of the
12    filing of the petition or receipt of the condominium and
13    common interest community association resolution to
14    consider the board action. Unless a majority of the votes
15    of the unit owners of the association are cast at the
16    meeting to reject the action, or board of managers or board
17    of directors of condominium and common interest community
18    associations which select over 50% of the members of the
19    board of the master association adopt resolutions prior to
20    the meeting rejecting the action of the board of directors
21    of the master association, it is ratified whether or not a
22    quorum is present.
23        (4) The procedures for amendments set forth in this
24    subsection (h) cannot be used if such an amendment would
25    materially or adversely affect property rights of the unit
26    owners unless the affected unit owners consent in writing.



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1    This Section does not restrict the powers of the
2    association to otherwise amend the declaration, bylaws, or
3    other condominium instruments, but authorizes a simple
4    process of amendment requiring a lesser vote for the
5    purpose of correcting defects, errors, or omissions when
6    the property rights of the unit owners are not materially
7    or adversely affected.
8        (5) If there is an omission or error in the declaration
9    or other instruments that may not be corrected by an
10    amendment procedure set forth in subdivision (h)(1) or
11    (h)(2) of this Section, then the circuit court in the
12    county in which the master association is located shall
13    have jurisdiction to hear a petition of one or more of the
14    unit owners thereon or of the association, to correct the
15    error or omission, and the action may be a class action.
16    The court may require that one or more methods of
17    correcting the error or omission be submitted to the unit
18    owners to determine the most acceptable correction. All
19    unit owners in the association must be joined as parties to
20    the action. Service of process on owners may be by
21    publication, but the plaintiff shall furnish all unit
22    owners not personally served with process with copies of
23    the petition and final judgment of the court by certified
24    mail, return receipt requested, at their last known
25    address.
26        (6) Nothing contained in this Section shall be



10000SB0885sam001- 57 -LRB100 05980 HEP 24830 a

1    construed to invalidate any provision of a declaration
2    authorizing the developer to amend an instrument prior to
3    the latest date on which the initial membership meeting of
4    the unit owners must be held, whether or not it has
5    actually been held, to bring the instrument into compliance
6    with the legal requirements of the Federal National
7    Mortgage Association, the Federal Home Loan Mortgage
8    Corporation, the Federal Housing Administration, the
9    United States Veterans Administration or their respective
10    successors and assigns.
11    (i) The provisions of subsections (c) through (h) are
12applicable to all declarations, other condominium instruments,
13and other duly recorded covenants establishing the powers and
14duties of the master association recorded under this Act. Any
15portion of a declaration, other condominium instrument, or
16other duly recorded covenant establishing the powers and duties
17of a master association which contains provisions contrary to
18the provisions of subsection (c) through (h) shall be void as
19against public policy and ineffective. Any declaration, other
20condominium instrument, or other duly recorded covenant
21establishing the powers and duties of the master association
22which fails to contain the provisions required by subsections
23(c) through (h) shall be deemed to incorporate such provisions
24by operation of law.
25    (j) (Blank).
26(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;



10000SB0885sam001- 58 -LRB100 05980 HEP 24830 a

197-605, eff. 8-26-11; 97-813, eff. 7-13-12.)
2    (765 ILCS 70/Act rep.)
3    Section 915. The Dwelling Structure Contract Act is
5    (765 ILCS 75/Act rep.)
6    Section 920. The Dwelling Unit Installment Contract Act is
8    Section 925. The Consumer Fraud and Deceptive Business
9Practices Act is amended by changing Section 2Z as follows:
10    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
11    Sec. 2Z. Violations of other Acts. Any person who knowingly
12violates the Automotive Repair Act, the Automotive Collision
13Repair Act, the Home Repair and Remodeling Act, the Dance
14Studio Act, the Physical Fitness Services Act, the Hearing
15Instrument Consumer Protection Act, the Illinois Union Label
16Act, the Installment Sales Contract Act, the Job Referral and
17Job Listing Services Consumer Protection Act, the Travel
18Promotion Consumer Protection Act, the Credit Services
19Organizations Act, the Automatic Telephone Dialers Act, the
20Pay-Per-Call Services Consumer Protection Act, the Telephone
21Solicitations Act, the Illinois Funeral or Burial Funds Act,
22the Cemetery Oversight Act, the Cemetery Care Act, the Safe and



10000SB0885sam001- 59 -LRB100 05980 HEP 24830 a

1Hygienic Bed Act, the Pre-Need Cemetery Sales Act, the High
2Risk Home Loan Act, the Payday Loan Reform Act, the Mortgage
3Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the
4Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the
5Cigarette Use Tax Act, the Electronic Mail Act, the Internet
6Caller Identification Act, paragraph (6) of subsection (k) of
7Section 6-305 of the Illinois Vehicle Code, Section 11-1431,
818d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the
9Illinois Vehicle Code, Article 3 of the Residential Real
10Property Disclosure Act, the Automatic Contract Renewal Act,
11the Reverse Mortgage Act, Section 25 of the Youth Mental Health
12Protection Act, or the Personal Information Protection Act
13commits an unlawful practice within the meaning of this Act.
14(Source: P.A. 99-331, eff. 1-1-16; 99-411, eff. 1-1-16; 99-642,
15eff. 7-28-16.)
16    Section 999. Effective date. This Act takes effect January
171, 2018.".