15 USC 3607 - Termination of self-dealing contracts

U.S Code last checked for updates: Nov 22, 2024

§ 3607.

Termination of self-dealing contracts

(a)

Operation, maintenance, and management contracts; penalty

Any contract or portion thereof which is entered into after October 8, 1980, and which—

(1)

provides for operation, maintenance, or management of a condominium or cooperative association in a conversion project, or of property serving the condominium or cooperative unit owners in such project;

(2)

is between such unit owners or such association and the developer or an affiliate of the developer;

(3)

was entered into while such association was controlled by the developer through special developer control or because the developer held a majority of the votes in such association; and

(4)

is for a period of more than three years, including any automatic renewal provisions which are exercisable at the sole option of the developer or an affiliate of the developer,

may be terminated without penalty by such unit owners or such association.

(b)

Time of termination

Any termination under this section may occur only during the two-year period beginning on the date on which—

(1)

special developer control over the association is terminated; or

(2)

the developer owns 25 per centum or less of the units in the conversion project,

whichever occurs first.

(c)

Vote of owners of units

(d)

Effective date of termination

(Pub. L. 96–399, title VI, § 608, Oct. 8, 1980, 94 Stat. 1676.)

cite as: 15 USC 3607