99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2646

Introduced , by Rep. Kelly M. Cassidy

SYNOPSIS AS INTRODUCED:
765 ILCS 605/18 from Ch. 30, par. 318

Amends the Condominium Property Act. Provides that the bylaws of a condominium shall provide for the ratification and confirmation by the board of managers of actions taken by the board without a meeting. Provides that the action shall be deemed not approved if specified procedural requirements relating to the ratification and confirmation are not met.
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A BILL FOR

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1 AN ACT concerning civil law.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Condominium Property Act is amended by
5changing Section 18 as follows:
6 (765 ILCS 605/18) (from Ch. 30, par. 318)
7 Sec. 18. Contents of bylaws. The bylaws shall provide for
8at least the following:
9 (a)(1) The election from among the unit owners of a board
10of managers, the number of persons constituting such board, and
11that the terms of at least one-third of the members of the
12board shall expire annually and that all members of the board
13shall be elected at large. If there are multiple owners of a
14single unit, only one of the multiple owners shall be eligible
15to serve as a member of the board at any one time.
16 (2) the powers and duties of the board;
17 (3) the compensation, if any, of the members of the board;
18 (4) the method of removal from office of members of the
19board;
20 (5) that the board may engage the services of a manager or
21managing agent;
22 (6) that each unit owner shall receive, at least 30 days
23prior to the adoption thereof by the board of managers, a copy

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

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

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1court or administrative tribunal, or when the board of managers
2finds that such an action is probable or imminent, (ii) to
3consider information regarding appointment, employment or
4dismissal of an employee, or (iii) to discuss violations of
5rules and regulations of the association or a unit owner's
6unpaid share of common expenses; that any vote on these matters
7shall be taken at a meeting or portion thereof open to any unit
8owner; that any unit owner may record the proceedings at
9meetings or portions thereof required to be open by this Act by
10tape, film or other means; that the board may prescribe
11reasonable rules and regulations to govern the right to make
12such recordings, that notice of such meetings shall be mailed
13or delivered at least 48 hours prior thereto, unless a written
14waiver of such notice is signed by the person or persons
15entitled to such notice pursuant to the declaration, bylaws,
16other condominium instrument, or provision of law other than
17this subsection before the meeting is convened, and that copies
18of notices of meetings of the board of managers shall be posted
19in entranceways, elevators, or other conspicuous places in the
20condominium at least 48 hours prior to the meeting of the board
21of managers except where there is no common entranceway for 7
22or more units, the board of managers may designate one or more
23locations in the proximity of these units where the notices of
24meetings shall be posted;
25 (9-5) notwithstanding the provisions of subdivision (a)(9)
26of this Section, that any action which may be taken at a

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1meeting of the board of managers may be taken without a meeting
2if a consent, in writing and setting forth the action taken, is
3approved in writing by all members of the board of managers
4then in office; that the writing shall state the date of
5consent to the action; that the consent must be ratified and
6confirmed at the first occurring meeting of the board of
7managers, which must be held within 30 days after the date of
8approval of the action at either a regular or special board
9meeting; that a copy of the unanimous written consent shall be
10attached to, and made a part of, the minutes of the meeting;
11that consent sent by any acceptable technological means to or
12from the director or management company representative
13requesting the consent shall be deemed consent in writing; that
14failure to timely ratify and confirm the consent shall result
15in the action being deemed not approved by the board of
16managers; that the notice of the board of managers meeting at
17which the consent to the action is to be ratified and confirmed
18shall describe the action taken and state that the board of
19managers will vote to ratify and confirm the action at that
20meeting; that at the board of managers meeting, at least one of
21the members of the board of managers shall be required to state
22his or her reasons for consenting to the action and that a
23summary of the statement or statements shall be made a part of
24the minutes of the board meeting; that if the number of members
25of the board of managers in office at the time of the
26ratification and confirmation consent is fewer than the number

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1required for a quorum of the board of managers, the action
2shall be deemed not the action of the board of managers;
3 (10) that the board shall meet at least 4 times annually;
4 (11) that no member of the board or officer shall be
5elected for a term of more than 2 years, but that officers and
6board members may succeed themselves;
7 (12) the designation of an officer to mail and receive all
8notices and execute amendments to condominium instruments as
9provided for in this Act and in the condominium instruments;
10 (13) the method of filling vacancies on the board which
11shall include authority for the remaining members of the board
12to fill the vacancy by two-thirds vote until the next annual
13meeting of unit owners or for a period terminating no later
14than 30 days following the filing of a petition signed by unit
15owners holding 20% of the votes of the association requesting a
16meeting of the unit owners to fill the vacancy for the balance
17of the term, and that a meeting of the unit owners shall be
18called for purposes of filling a vacancy on the board no later
19than 30 days following the filing of a petition signed by unit
20owners holding 20% of the votes of the association requesting
21such a meeting, and the method of filling vacancies among the
22officers that shall include the authority for the members of
23the board to fill the vacancy for the unexpired portion of the
24term;
25 (14) what percentage of the board of managers, if other
26than a majority, shall constitute a quorum;

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

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1opportunity to express a preference for any of the known
2candidates for the board or to write in a name;
3 (19) that special meetings of the board of managers can be
4called by the president or 25% of the members of the board; and
5 (20) that the board of managers may establish and maintain
6a system of master metering of public utility services and
7collect payments in connection therewith, subject to the
8requirements of the Tenant Utility Payment Disclosure Act.
9 (b)(1) What percentage of the unit owners, if other than
1020%, shall constitute a quorum provided that, for condominiums
11with 20 or more units, the percentage of unit owners
12constituting a quorum shall be 20% unless the unit owners
13holding a majority of the percentage interest in the
14association provide for a higher percentage, provided that in
15voting on amendments to the association's bylaws, a unit owner
16who is in arrears on the unit owner's regular or separate
17assessments for 60 days or more, shall not be counted for
18purposes of determining if a quorum is present, but that unit
19owner retains the right to vote on amendments to the
20association's bylaws;
21 (2) that the association shall have one class of
22membership;
23 (3) that the members shall hold an annual meeting, one of
24the purposes of which shall be to elect members of the board of
25managers;
26 (4) the method of calling meetings of the unit owners;

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1 (5) that special meetings of the members can be called by
2the president, board of managers, or by 20% of unit owners;
3 (6) that written notice of any membership meeting shall be
4mailed or delivered giving members no less than 10 and no more
5than 30 days notice of the time, place and purpose of such
6meeting except that notice may be sent, to the extent the
7condominium instruments or rules adopted thereunder expressly
8so provide, by electronic transmission consented to by the unit
9owner to whom the notice is given, provided the director and
10officer or his agent certifies in writing to the delivery by
11electronic transmission;
12 (7) that voting shall be on a percentage basis, and that
13the percentage vote to which each unit is entitled is the
14percentage interest of the undivided ownership of the common
15elements appurtenant thereto, provided that the bylaws may
16provide for approval by unit owners in connection with matters
17where the requisite approval on a percentage basis is not
18specified in this Act, on the basis of one vote per unit;
19 (8) that, where there is more than one owner of a unit, if
20only one of the multiple owners is present at a meeting of the
21association, he is entitled to cast all the votes allocated to
22that unit, if more than one of the multiple owners are present,
23the votes allocated to that unit may be cast only in accordance
24with the agreement of a majority in interest of the multiple
25owners, unless the declaration expressly provides otherwise,
26that there is majority agreement if any one of the multiple

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1owners cast the votes allocated to that unit without protest
2being made promptly to the person presiding over the meeting by
3any of the other owners of the unit;
4 (9)(A) except as provided in subparagraph (B) of this
5paragraph (9) in connection with board elections, that a unit
6owner may vote by proxy executed in writing by the unit owner
7or by his duly authorized attorney in fact; that the proxy must
8bear the date of execution and, unless the condominium
9instruments or the written proxy itself provide otherwise, is
10invalid after 11 months from the date of its execution; to the
11extent the condominium instruments or rules adopted thereunder
12expressly so provide, a vote or proxy may be submitted by
13electronic transmission, provided that any such electronic
14transmission shall either set forth or be submitted with
15information from which it can be determined that the electronic
16transmission was authorized by the unit owner or the unit
17owner's proxy;
18 (B) that if a rule adopted at least 120 days before a board
19election or the declaration or bylaws provide for balloting as
20set forth in this subsection, unit owners may not vote by proxy
21in board elections, but may vote only (i) by submitting an
22association-issued ballot in person at the election meeting or
23(ii) by submitting an association-issued ballot to the
24association or its designated agent by mail or other means of
25delivery specified in the declaration, bylaws, or rule; that
26the ballots shall be mailed or otherwise distributed to unit

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

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1the election meeting, and the board shall give unit owners not
2less than 21 days' prior written notice of the deadline for
3inclusion of a candidate's name on the ballots; the deadline
4shall be no more than 7 days before the instructions for voting
5using electronic or acceptable technological means is
6distributed to unit owners; every instruction notice must
7include the names of all candidates who have given the board or
8its authorized agent timely written notice of their candidacy
9and must give the person voting through electronic or
10acceptable technological means the opportunity to cast votes
11for candidates whose names do not appear on the ballot; a unit
12owner who submits a vote using electronic or acceptable
13technological means may request and cast a ballot in person at
14the election meeting, thereby voiding any vote previously
15submitted by that unit owner;
16 (C) that if a written petition by unit owners with at least
1720% of the votes of the association is delivered to the board
18within 14 days after the board's approval of a rule adopted
19pursuant to subparagraph (B) or subparagraph (B-5) of this
20paragraph (9), the board shall call a meeting of the unit
21owners within 30 days after the date of delivery of the
22petition; that unless a majority of the total votes of the unit
23owners are cast at the meeting to reject the rule, the rule is
24ratified;
25 (D) that votes cast by ballot under subparagraph (B) or
26electronic or acceptable technological means under

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1subparagraph (B-5) of this paragraph (9) are valid for the
2purpose of establishing a quorum;
3 (10) that the association may, upon adoption of the
4appropriate rules by the board of managers, conduct elections
5by secret ballot whereby the voting ballot is marked only with
6the percentage interest for the unit and the vote itself,
7provided that the board further adopt rules to verify the
8status of the unit owner issuing a proxy or casting a ballot;
9and further, that a candidate for election to the board of
10managers or such candidate's representative shall have the
11right to be present at the counting of ballots at such
12election;
13 (11) that in the event of a resale of a condominium unit
14the purchaser of a unit from a seller other than the developer
15pursuant to an installment contract for purchase shall during
16such times as he or she resides in the unit be counted toward a
17quorum for purposes of election of members of the board of
18managers at any meeting of the unit owners called for purposes
19of electing members of the board, shall have the right to vote
20for the election of members of the board of managers and to be
21elected to and serve on the board of managers unless the seller
22expressly retains in writing any or all of such rights. In no
23event may the seller and purchaser both be counted toward a
24quorum, be permitted to vote for a particular office or be
25elected and serve on the board. Satisfactory evidence of the
26installment contact shall be made available to the association

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1or its agents. For purposes of this subsection, "installment
2contact" shall have the same meaning as set forth in Section 1
3(e) of "An Act relating to installment contracts to sell
4dwelling structures", approved August 11, 1967, as amended;
5 (12) the method by which matters subject to the approval of
6unit owners set forth in this Act, or in the condominium
7instruments, will be submitted to the unit owners at special
8membership meetings called for such purposes; and
9 (13) that matters subject to the affirmative vote of not
10less than 2/3 of the votes of unit owners at a meeting duly
11called for that purpose, shall include, but not be limited to:
12 (i) merger or consolidation of the association;
13 (ii) sale, lease, exchange, or other disposition
14 (excluding the mortgage or pledge) of all, or substantially
15 all of the property and assets of the 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
19managers, who shall preside over the meetings of the board of
20managers and of the unit owners.
21 (d) Election of a secretary from among the board of
22managers, who shall keep the minutes of all meetings of the
23board of managers and of the unit owners and who shall, in
24general, perform all the duties incident to the office of
25secretary.
26 (e) Election of a treasurer from among the board of

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

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1identifying all moneys of each association in such investment
2account. The management company may hold all operating funds of
3associations which it manages in a single operating account but
4shall at all times maintain records identifying all moneys of
5each association in such operating account. Such operating and
6reserve funds held by the management company for the
7association shall not be subject to attachment by any creditor
8of the management company.
9 For the purpose of this subsection a management company
10shall be defined as a person, partnership, corporation, or
11other legal entity entitled to transact business on behalf of
12others, acting on behalf of or as an agent for a unit owner,
13unit owners or association of unit owners for the purpose of
14carrying out the duties, responsibilities, and other
15obligations necessary for the day to day operation and
16management of any property subject to this Act. For purposes of
17this subsection, the term "fiduciary insurance coverage" shall
18be defined as both a fidelity bond and directors and officers
19liability coverage, the fidelity bond in the full amount of
20association funds and association reserves that will be in the
21custody of the association, and the directors and officers
22liability coverage at a level as shall be determined to be
23reasonable by the board of managers, if not otherwise
24established by the declaration or by laws.
25 Until one year after the effective date of this amendatory
26Act of 1985, if a condominium association has reserves plus

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1assessments in excess of $250,000 and cannot reasonably obtain
2100% fidelity bond coverage for such amount, then it must
3obtain a fidelity bond coverage of $250,000.
4 (h) Method of estimating the amount of the annual budget,
5and the manner of assessing and collecting from the unit owners
6their respective shares of such estimated expenses, and of any
7other expenses lawfully agreed upon.
8 (i) That upon 10 days notice to the manager or board of
9managers and payment of a reasonable fee, any unit owner shall
10be furnished a statement of his account setting forth the
11amount of any unpaid assessments or other charges due and owing
12from such owner.
13 (j) Designation and removal of personnel necessary for the
14maintenance, repair and replacement of the common elements.
15 (k) Such restrictions on and requirements respecting the
16use and maintenance of the units and the use of the common
17elements, not set forth in the declaration, as are designed to
18prevent unreasonable interference with the use of their
19respective units and of the common elements by the several unit
20owners.
21 (l) Method of adopting and of amending administrative rules
22and regulations governing the operation and use of the common
23elements.
24 (m) The percentage of votes required to modify or amend the
25bylaws, but each one of the particulars set forth in this
26section shall always be embodied in the bylaws.

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1 (n)(i) The provisions of this Act, the declaration, bylaws,
2other condominium instruments, and rules and regulations that
3relate to the use of the individual unit or the common elements
4shall be applicable to any person leasing a unit and shall be
5deemed to be incorporated in any lease executed or renewed on
6or after the effective date of this amendatory Act of 1984.
7(ii) With regard to any lease entered into subsequent to the
8effective date of this amendatory Act of 1989, the unit owner
9leasing the unit shall deliver a copy of the signed lease to
10the board or if the lease is oral, a memorandum of the lease,
11not later than the date of occupancy or 10 days after the lease
12is signed, whichever occurs first. In addition to any other
13remedies, by filing an action jointly against the tenant and
14the unit owner, an association may seek to enjoin a tenant from
15occupying a unit or seek to evict a tenant under the provisions
16of Article IX of the Code of Civil Procedure for failure of the
17lessor-owner to comply with the leasing requirements
18prescribed by this Section or by the declaration, bylaws, and
19rules and regulations. The board of managers may proceed
20directly against a tenant, at law or in equity, or under the
21provisions of Article IX of the Code of Civil Procedure, for
22any other breach by tenant of any covenants, rules, regulations
23or bylaws.
24 (o) The association shall have no authority to forbear the
25payment of assessments by any unit owner.
26 (p) That when 30% or fewer of the units, by number, possess

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1over 50% in the aggregate of the votes in the association, any
2percentage vote of members specified herein or in the
3condominium instruments shall require the specified percentage
4by number of units rather than by percentage of interest in the
5common elements allocated to units that would otherwise be
6applicable and garage units or storage units, or both, shall
7have, in total, no more votes than their aggregate percentage
8of ownership in the common elements; this shall mean that if
9garage units or storage units, or both, are to be given a vote,
10or portion of a vote, that the association must add the total
11number of votes cast of garage units, storage units, or both,
12and divide the total by the number of garage units, storage
13units, or both, and multiply by the aggregate percentage of
14ownership of garage units and storage units to determine the
15vote, or portion of a vote, that garage units or storage units,
16or both, have. For purposes of this subsection (p), when making
17a determination of whether 30% or fewer of the units, by
18number, possess over 50% in the aggregate of the votes in the
19association, a unit shall not include a garage unit or a
20storage unit.
21 (q) That a unit owner may not assign, delegate, transfer,
22surrender, or avoid the duties, responsibilities, and
23liabilities of a unit owner under this Act, the condominium
24instruments, or the rules and regulations of the Association;
25and that such an attempted assignment, delegation, transfer,
26surrender, or avoidance shall be deemed void.

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1 The provisions of this Section are applicable to all
2condominium instruments recorded under this Act. Any portion of
3a condominium instrument which contains provisions contrary to
4these provisions shall be void as against public policy and
5ineffective. Any such instrument which fails to contain the
6provisions required by this Section shall be deemed to
7incorporate such provisions by operation of law.
8(Source: P.A. 98-1042, eff. 1-1-15.)