PaulM18 (Virginia)
Posts: 46
Posts: 46
Posted:
http://leg1.state.va.us/cgi-bin/legp504.exe?121+cab+SC10123SB0628+SBREF
§ 55-509.1:1. Limitation on certain contracts and leases by declarant.
A. If entered into any time prior to the expiration of the period of declarant control contemplated by
the declaration, no contract or lease entered into with the declarant or any entity controlled by the
declarant, management contract, or employment contract that is directly or indirectly made by or on
behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a
period in excess of five years. Any such contract or agreement may be terminated without penalty by the
association or its board of directors upon not less than 90 days' written notice to the other party given
no later than 60 days after the expiration of the period of declarant control contemplated by the
declaration.
B. If entered into any time prior to the expiration of the period of declarant control contemplated by
the declaration, any contract or lease entered into with the declarant or any entity controlled by the
declarant, management contract, or employment contract that is directly or indirectly made by or on
behalf of the association, its board of directors, or the lot owners as a group may be renewed for
periods not in excess of five years; however, at the end of any five-year period, the association or its
board of directors may terminate any further renewals or extensions thereof.
C. If entered into at any time prior to the expiration of the period of declarant control contemplated
by the declaration, any contract, lease, or agreement, other than those subject to the provisions of
subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the
lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable
to the association at the time entered into under the circumstances.
D. This section shall be strictly construed to protect the rights of the lot owners
§ 55-509.1:1. Limitation on certain contracts and leases by declarant.
A. If entered into any time prior to the expiration of the period of declarant control contemplated by
the declaration, no contract or lease entered into with the declarant or any entity controlled by the
declarant, management contract, or employment contract that is directly or indirectly made by or on
behalf of the association, its board of directors, or the lot owners as a group shall be entered into for a
period in excess of five years. Any such contract or agreement may be terminated without penalty by the
association or its board of directors upon not less than 90 days' written notice to the other party given
no later than 60 days after the expiration of the period of declarant control contemplated by the
declaration.
B. If entered into any time prior to the expiration of the period of declarant control contemplated by
the declaration, any contract or lease entered into with the declarant or any entity controlled by the
declarant, management contract, or employment contract that is directly or indirectly made by or on
behalf of the association, its board of directors, or the lot owners as a group may be renewed for
periods not in excess of five years; however, at the end of any five-year period, the association or its
board of directors may terminate any further renewals or extensions thereof.
C. If entered into at any time prior to the expiration of the period of declarant control contemplated
by the declaration, any contract, lease, or agreement, other than those subject to the provisions of
subsection A or B, may be entered into by or on behalf of the association, its board of directors, or the
lot owners as a group if such contract, lease, or agreement is bona fide and is commercially reasonable
to the association at the time entered into under the circumstances.
D. This section shall be strictly construed to protect the rights of the lot owners