§ 3607. — Termination of selfdealing contracts.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3607]
TITLE 15--COMMERCE AND TRADE
CHAPTER 62--CONDOMINIUM AND COOPERATIVE CONVERSION PROTECTION AND ABUSE
RELIEF
Sec. 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
A termination under this section shall be by a vote of owners of not
less than two-thirds of the units other than the units owned by the
developer or an affiliate of the developer.
(d) Effective date of termination
Following the unit owners' vote, the termination shall be effective
ninety days after hand delivering notice or mailing notice by prepaid
United States mail to the parties to the contract.
(Pub. L. 96-399, title VI, Sec. 608, Oct. 8, 1980, 94 Stat. 1676.)
Codification
In subsec. (a), ``October 8, 1980'' was substituted for ``the
effective date of this title''. See Effective Date note set out under
section 3601 of this title.
Section Referred to in Other Sections
This section is referred to in sections 3609, 3611 of this title.
