Full Text of SB2570 94th General Assembly
SB2570enr 94TH GENERAL ASSEMBLY
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| AN ACT concerning condominium property.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 2. The Code of Civil Procedure is amended by | 5 |
| changing Section 15-1507 as follows:
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| (735 ILCS 5/15-1507) (from Ch. 110, par. 15-1507)
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| Sec. 15-1507. Judicial Sale.
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| (a) In General. Except as provided in
Sections 15-1402 and | 9 |
| 15-1403, upon entry of a judgment of foreclosure, the
real | 10 |
| estate which is the subject of the judgment shall be sold at a
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| judicial sale in accordance with this Section 15-1507.
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| (b) Sale Procedures. Upon expiration of the reinstatement | 13 |
| period and
the redemption period in accordance with subsection | 14 |
| (b) or (c) of Section
15-1603 or upon the entry of a judgment | 15 |
| of foreclosure after the waiver of
all rights of redemption, | 16 |
| except as provided in subsection (g) of Section
15-1506, the | 17 |
| real estate shall be sold at a sale as provided in this
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| Article, on such terms and conditions as shall be specified by | 19 |
| the court in
the judgment of foreclosure. A sale may be | 20 |
| conducted by any judge or sheriff.
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| (c) Notice of Sale. The mortgagee, or such other party | 22 |
| designated by the
court, in a foreclosure under this Article | 23 |
| shall give public notice of the
sale as follows:
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| (1) The notice of sale shall include at least the | 25 |
| following information,
but an immaterial error in the | 26 |
| information shall not invalidate the legal
effect of the | 27 |
| notice:
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| (A) the name, address and telephone number of the | 29 |
| person to contact for
information regarding the real | 30 |
| estate;
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| (B) the common address and other common | 32 |
| description (other than legal
description), if any, of |
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| the real estate;
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| (C) a legal description of the real estate | 3 |
| sufficient to identify it with
reasonable certainty;
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| (D) a description of the improvements on the real | 5 |
| estate;
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| (E) the times specified in the judgment, if any, | 7 |
| when the real estate
may be inspected prior to sale;
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| (F) the time and place of the sale;
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| (G) the terms of the sale;
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| (H) the case title, case number and the court in | 11 |
| which
the foreclosure was filed; and
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| (H-1) in the case of a condominium unit to which | 13 |
| subsection (g) of Section 9 of the Condominium Property | 14 |
| Act applies, the statement required by subdivision | 15 |
| (g)(5) of Section 9 of the Condominium Property Act; | 16 |
| and
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| (I) such other information ordered by the Court.
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| (2) The notice of sale shall be published at least 3 | 19 |
| consecutive
calendar weeks (Sunday through Saturday), once | 20 |
| in each week, the first such
notice to be published not | 21 |
| more than 45 days prior to the sale, the last
such notice | 22 |
| to be published not less than 7 days prior to the sale, by:
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| (i) (A) advertisements in a newspaper circulated to the | 24 |
| general public
in the county in which the real estate is | 25 |
| located, in the section of that
newspaper where legal | 26 |
| notices are commonly placed and (B) separate
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| advertisements in the section of such a newspaper, which | 28 |
| (except in
counties with a population in excess of | 29 |
| 3,000,000) may be the same
newspaper, in which real estate | 30 |
| other than real estate being sold as part of
legal | 31 |
| proceedings is commonly advertised to the general public; | 32 |
| provided,
that the separate advertisements in the real | 33 |
| estate section need not
include a legal description and | 34 |
| that where both advertisements could be
published in the | 35 |
| same newspaper and that newspaper does not have separate
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| legal notices and real estate advertisement sections, a |
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| single
advertisement with the legal description shall be | 2 |
| sufficient; and
(ii) such other publications as may be | 3 |
| further ordered by the court.
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| (3) The party who gives notice of public sale in | 5 |
| accordance with
subsection (c) of Section 15-1507 shall | 6 |
| also give notice to all parties in
the action who have | 7 |
| appeared and have not theretofore been found by the
court | 8 |
| to be in default for failure to plead. Such notice shall be | 9 |
| given in
the manner provided in the applicable rules of | 10 |
| court for service of papers
other than process and | 11 |
| complaint, not more than 45 days nor less
than 7
days prior | 12 |
| to the day of sale. After notice is given as required in | 13 |
| this
Section a copy thereof shall be filed in the office of | 14 |
| the clerk of the
court entering the judgment, together with | 15 |
| a certificate of counsel or
other proof that notice has | 16 |
| been served in compliance with this Section.
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| (4) The party who gives notice of public sale in | 18 |
| accordance with
subsection (c) of Section 15-1507 shall | 19 |
| again give notice in accordance
with that Section of any | 20 |
| adjourned sale; provided, however, that if the
adjourned | 21 |
| sale is to occur less than 60 days after the last scheduled | 22 |
| sale,
notice of any adjourned sale need not be given | 23 |
| pursuant to this
Section. In the event of adjournment, the
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| person conducting the sale shall, upon adjournment, | 25 |
| announce the date, time
and place upon which the adjourned | 26 |
| sale shall be held. Notwithstanding any
language to the | 27 |
| contrary, for any adjourned sale that is to be conducted
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| more than 60 days after the date on which it was to first | 29 |
| be held, the
party giving notice of such sale shall again | 30 |
| give notice in accordance with
this Section.
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| (5) Notice of the sale may be given prior to the | 32 |
| expiration of any
reinstatement period or redemption | 33 |
| period.
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| (6) No other notice by publication or posting shall be | 35 |
| necessary unless
required by order or rule of the court.
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| (7) The person named in the notice of sale to be |
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| contacted for
information about the real estate may, but | 2 |
| shall not be required, to
provide additional information | 3 |
| other than that set forth in the notice of sale.
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| (d) Election of Property. If the real estate which is the | 5 |
| subject of a
judgment of foreclosure is susceptible of | 6 |
| division, the court may order it to be sold
as necessary to | 7 |
| satisfy the judgment. The court shall determine which real
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| estate shall be sold, and the court may determine the order in | 9 |
| which
separate tracts may be sold.
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| (e) Receipt upon Sale.
Upon and at the sale
of mortgaged | 11 |
| real estate, the person conducting the sale shall give to
the | 12 |
| purchaser a receipt of sale. The receipt shall describe the | 13 |
| real
estate purchased and shall show the amount bid, the amount | 14 |
| paid, the
total amount paid to
date and the amount still to be | 15 |
| paid therefor. An
additional receipt shall be given at the time | 16 |
| of each subsequent
payment.
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| (f) Certificate of Sale. Upon
payment in full of the amount | 18 |
| bid, the person conducting
the sale shall issue, in duplicate, | 19 |
| and give to the purchaser a Certificate
of Sale. The | 20 |
| Certificate of Sale shall be in a recordable form, describe
the | 21 |
| real estate purchased, indicate the date and place of sale and | 22 |
| show the
amount paid therefor. The Certificate of Sale shall | 23 |
| further indicate that
it is subject to confirmation by the | 24 |
| court. The duplicate certificate may
be recorded in accordance | 25 |
| with Section 12-121. The Certificate of Sale
shall be freely | 26 |
| assignable by endorsement thereon.
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| (g) Interest after Sale. Any bid at sale shall be deemed to | 28 |
| include,
without the necessity of a court order, interest at | 29 |
| the statutory judgment
rate on any unpaid portion of the sale | 30 |
| price from the date of sale to the
date of payment.
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| (Source: P.A. 86-974.)
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| Section 5. The Condominium Property Act is amended by | 33 |
| changing Section 9 as follows:
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| (765 ILCS 605/9) (from Ch. 30, par. 309)
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| Sec. 9. Sharing of expenses - Lien for nonpayment.
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| (a) All common expenses incurred or accrued prior to the | 3 |
| first conveyance
of a unit shall be paid by the developer, and | 4 |
| during this period no common
expense assessment shall be | 5 |
| payable to the association. It shall be the duty
of each unit | 6 |
| owner including the developer to pay his proportionate share of
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| the common expenses commencing with the first conveyance. The | 8 |
| proportionate
share shall be in the same ratio as his | 9 |
| percentage of ownership in the common
elements set forth in the | 10 |
| declaration.
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| (b) The condominium instruments may provide that common | 12 |
| expenses for
insurance premiums be assessed on a basis | 13 |
| reflecting increased charges for
coverage on certain units.
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| (c) Budget and reserves.
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| (1) The board of managers shall prepare and distribute | 16 |
| to
all unit owners a detailed proposed annual budget, | 17 |
| setting forth with
particularity all anticipated common | 18 |
| expenses by category as well as all
anticipated assessments | 19 |
| and other income. The initial budget and common
expense | 20 |
| assessment based thereon shall be adopted prior to the
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| conveyance of any unit. The budget shall also set forth | 22 |
| each unit owner's
proposed common expense assessment.
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| (2) All budgets adopted by a board of managers on or | 24 |
| after July 1, 1990
shall provide for reasonable reserves | 25 |
| for capital expenditures and deferred
maintenance for | 26 |
| repair or replacement of the common elements. To determine
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| the amount of reserves appropriate for an association, the | 28 |
| board of
managers shall take into consideration the | 29 |
| following: (i) the repair and
replacement cost, and the | 30 |
| estimated useful life, of the property which the
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| association is obligated to maintain, including but not | 32 |
| limited to
structural and mechanical components, surfaces | 33 |
| of the buildings and common
elements, and energy systems | 34 |
| and equipment; (ii) the current and
anticipated return on | 35 |
| investment of association funds; (iii) any
independent | 36 |
| professional reserve study which the association may |
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| obtain;
(iv) the financial impact on unit owners, and the | 2 |
| market value of the
condominium units, of any assessment | 3 |
| increase needed to fund reserves; and
(v) the ability of | 4 |
| the association to obtain financing or refinancing.
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| (3) Notwithstanding the provisions of this subsection | 6 |
| (c), an
association without a reserve requirement in its | 7 |
| condominium
instruments may elect to waive in whole or in | 8 |
| part the reserve requirements
of this Section by a vote of | 9 |
| 2/3 of the total votes of the association.
Any association | 10 |
| having elected under this paragraph (3) to waive the
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| provisions of subsection (c) may by a vote of 2/3 of the | 12 |
| total votes of the
association elect to again be governed | 13 |
| by the requirements of subsection (c).
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| (4) In the event that an association elects to waive | 15 |
| all or part of
the reserve requirements of this Section, | 16 |
| that fact must be
disclosed after the meeting at which the | 17 |
| waiver occurs by the
association in the financial | 18 |
| statements of the association and, highlighted
in bold | 19 |
| print, in the response to any request of a prospective | 20 |
| purchaser
for the information prescribed under Section | 21 |
| 22.1; and no member of the
board of managers or the | 22 |
| managing agent of the association shall be liable,
and no | 23 |
| cause of action may be brought for damages against these | 24 |
| parties,
for the lack or inadequacy of reserve funds in the | 25 |
| association budget.
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| (d) (Blank).
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| (e) The condominium instruments may provide for the | 28 |
| assessment,
in connection with expenditures for the limited | 29 |
| common elements, of only those
units to which the limited | 30 |
| common elements are assigned.
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| (f) Payment of any assessment shall be in amounts and at | 32 |
| times
determined by the board of managers.
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| (g) Lien.
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| (1) If any unit owner shall fail or refuse to make any | 35 |
| payment of
the common expenses or the amount of any unpaid | 36 |
| fine when due, the
amount thereof together with any |
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| interest, late charges, reasonable
attorney fees incurred | 2 |
| enforcing the covenants of the condominium
instruments, | 3 |
| rules and regulations of the board of managers, or any | 4 |
| applicable
statute or ordinance, and costs of collections | 5 |
| shall constitute a lien on the
interest of the unit owner | 6 |
| in the property prior to all other
liens and encumbrances, | 7 |
| recorded or unrecorded, except only (a) taxes,
special | 8 |
| assessments and special taxes theretofore or thereafter | 9 |
| levied by
any political subdivision or municipal | 10 |
| corporation of this State and other
State or federal taxes | 11 |
| which by law are a lien on the interest of the
unit owner | 12 |
| prior to preexisting recorded encumbrances thereon and
(b) | 13 |
| encumbrances on the interest of the unit owner recorded
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| prior to the date of such failure or refusal which by law | 15 |
| would be a lien
thereon prior to subsequently recorded | 16 |
| encumbrances. Any action
brought to extinguish the lien of | 17 |
| the association shall include the
association as a party.
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| (2) With respect to encumbrances executed prior to | 19 |
| August 30, 1984 or
encumbrances executed subsequent to | 20 |
| August 30, 1984 which are neither
bonafide first mortgages | 21 |
| nor trust deeds and which encumbrances contain a
statement | 22 |
| of a mailing address in the State of Illinois where notice | 23 |
| may be
mailed to the encumbrancer thereunder, if and | 24 |
| whenever and as often as the
manager or board of managers | 25 |
| shall send, by United States certified or
registered mail, | 26 |
| return receipt requested, to any such encumbrancer at the
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| mailing address set forth in the recorded encumbrance a | 28 |
| statement of the
amounts and due dates of the unpaid common | 29 |
| expenses with respect to the
encumbered unit, then, unless | 30 |
| otherwise provided in the declaration or bylaws,
the prior | 31 |
| recorded encumbrance shall be subject to the lien of all | 32 |
| unpaid
common expenses with respect to the unit which | 33 |
| become due and payable within a
period of 90 days after the | 34 |
| date of mailing of each such notice.
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| (3) The purchaser of a condominium unit at a judicial
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| foreclosure sale, or a mortgagee who receives title to a |
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| unit by deed in
lieu of foreclosure or judgment by common | 2 |
| law strict foreclosure or
otherwise takes possession | 3 |
| pursuant to court order under the Illinois
Mortgage | 4 |
| Foreclosure Law, shall have the duty to pay the unit's
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| proportionate share of the common expenses for the unit | 6 |
| assessed from and
after the first day of the month after | 7 |
| the date of the judicial foreclosure
sale, delivery of the | 8 |
| deed in lieu of foreclosure, entry of a judgment in
common | 9 |
| law strict foreclosure, or taking of possession pursuant to | 10 |
| such
court order. Such payment confirms the extinguishment | 11 |
| of any lien created
pursuant to paragraph (1) or (2) of | 12 |
| this subsection (g) by virtue of the
failure or refusal of | 13 |
| a prior unit owner to make payment of common
expenses, | 14 |
| where the judicial foreclosure sale has been confirmed by | 15 |
| order
of the court, a deed in lieu thereof has been | 16 |
| accepted by the lender, or a
consent judgment has been | 17 |
| entered by the court.
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| (4) The purchaser of a condominium unit at a judicial | 19 |
| foreclosure sale, other than a mortgagee, who takes | 20 |
| possession of a condominium unit pursuant to a court order | 21 |
| or a purchaser who acquires title from a mortgagee shall | 22 |
| have the duty to pay the proportionate share, if any, of | 23 |
| the common expenses for the unit which would have become | 24 |
| due in the absence of any assessment acceleration during | 25 |
| the 6 months immediately preceding institution of an action | 26 |
| to enforce the collection of assessments, and which remain | 27 |
| unpaid by the owner during whose possession the assessments | 28 |
| accrued. If the outstanding assessments are paid at any | 29 |
| time during any action to enforce the collection of | 30 |
| assessments, the purchaser shall have no obligation to pay | 31 |
| any assessments which accrued before he or she acquired | 32 |
| title.
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| (5) The notice of sale of a condominium unit under | 34 |
| subsection (c) of Section 15-1507 of the Code of Civil | 35 |
| Procedure shall state that the purchaser of the unit other | 36 |
| than a mortgagee shall pay the assessments and the legal |
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| fees required by subdivisions (g)(1) and (g)(4) of Section | 2 |
| 9 of this Act. The statement of assessment account issued | 3 |
| by the association to a unit owner under subsection (i) of | 4 |
| Section 18 of this Act, and the disclosure statement issued | 5 |
| to a prospective purchaser under Section 22.1 of this Act, | 6 |
| shall state the amount of the assessments and the legal | 7 |
| fees, if any, required by subdivisions (g)(1) and (g)(4) of | 8 |
| Section 9 of this Act.
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| (h) A lien for common expenses shall be in favor of the | 10 |
| members of the
board of managers and their successors in office | 11 |
| and shall be for the
benefit of all other unit owners. Notice | 12 |
| of the lien may be recorded by
the board of managers, or if the | 13 |
| developer is the manager or has a majority
of seats on the | 14 |
| board of managers and the manager or board of managers
fails to | 15 |
| do so, any unit owner may record notice of the lien. Upon the
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| recording of such notice the lien may be foreclosed by an | 17 |
| action brought in
the name of the board of managers in the same | 18 |
| manner as a mortgage of real
property.
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| (i) Unless otherwise provided in the declaration, the | 20 |
| members
of the board of managers and their successors in | 21 |
| office, acting on behalf
of the other unit owners, shall have | 22 |
| the power to bid on the
interest so foreclosed at the | 23 |
| foreclosure sale, and to acquire and
hold, lease, mortgage and | 24 |
| convey it.
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| (j) Any encumbrancer may from time to time request in | 26 |
| writing a written
statement from the manager or board of | 27 |
| managers setting forth the unpaid
common expenses with respect | 28 |
| to the unit covered by his encumbrance.
Unless the request is | 29 |
| complied with within 20 days, all unpaid common
expenses which | 30 |
| become due prior to the date of the making of such request
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| shall be subordinate to the lien of the encumbrance. Any | 32 |
| encumbrancer
holding a lien on a unit may pay any unpaid common | 33 |
| expenses payable with
respect to the unit, and upon payment the | 34 |
| encumbrancer shall have a lien on
the unit for the amounts paid | 35 |
| at the same rank as the lien of his encumbrance.
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| (k) Nothing in Public Act 83-1271 is intended to change the |
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| lien
priorities of any encumbrance created prior to August 30, | 2 |
| 1984.
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| (Source: P.A. 91-357, eff. 7-29-99.)
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