§ 55-462. Termination of contracts and leases of declarant.
If entered into before the executive board elected by the proprietary lesseespursuant to subsection F of § 55-460 takes office, (i) any managementcontract, employment contract or lease of recreational or parking areas orfacilities, (ii) any other contract or lease between the association and adeclarant or an affiliate of a declarant, or (iii) any contract or lease thatis not bona fide or was unconscionable to the proprietary lessees at the timeentered into under the circumstances then prevailing, may be terminatedwithout penalty by the association at any time after the executive boardelected by the proprietary lessees pursuant to subsection F of § 55-460 takesoffice upon not less than 90 days' notice to the other party. Notwithstandingthe foregoing, a management contract that is not unconscionable between anassociation directly or indirectly providing assisted living or nursingservices to proprietary lessees and a declarant or an affiliate of adeclarant may not be terminated while a member of the executive boardappointed by the declarant continues to serve unless such termination isapproved by a vote of a majority of the members of the executive board and amajority vote of the proprietary lessees, other than the declarant.
This section does not apply to any proprietary lease or any lease thetermination of which would terminate the cooperative or reduce its size,unless the real estate subject to that lease was included in the cooperativefor the purpose of avoiding the right of the association to terminate a leaseunder this section. Nor shall this section apply to any contract, incidentalto the disposition of a cooperative interest, to provide to a proprietarylessee for the duration of such proprietary lessee's life, or for any term inexcess of one year, nursing services, medical services, other health-relatedservices, board and lodging and care as necessary, or any combination of suchservices. The rule of property law known as the rule restricting unreasonablerestraints on alienation shall not be applied to defeat any provision of thedeclaration, bylaws or proprietary leases requiring that the proprietarylessees be parties to such contracts.
§ 55-462. Termination of contracts and leases of declarant.
If entered into before the executive board elected by the proprietary lesseespursuant to subsection F of § 55-460 takes office, (i) any managementcontract, employment contract or lease of recreational or parking areas orfacilities, (ii) any other contract or lease between the association and adeclarant or an affiliate of a declarant, or (iii) any contract or lease thatis not bona fide or was unconscionable to the proprietary lessees at the timeentered into under the circumstances then prevailing, may be terminatedwithout penalty by the association at any time after the executive boardelected by the proprietary lessees pursuant to subsection F of § 55-460 takesoffice upon not less than 90 days' notice to the other party. Notwithstandingthe foregoing, a management contract that is not unconscionable between anassociation directly or indirectly providing assisted living or nursingservices to proprietary lessees and a declarant or an affiliate of adeclarant may not be terminated while a member of the executive boardappointed by the declarant continues to serve unless such termination isapproved by a vote of a majority of the members of the executive board and amajority vote of the proprietary lessees, other than the declarant.
This section does not apply to any proprietary lease or any lease thetermination of which would terminate the cooperative or reduce its size,unless the real estate subject to that lease was included in the cooperativefor the purpose of avoiding the right of the association to terminate a leaseunder this section. Nor shall this section apply to any contract, incidentalto the disposition of a cooperative interest, to provide to a proprietarylessee for the duration of such proprietary lessee's life, or for any term inexcess of one year, nursing services, medical services, other health-relatedservices, board and lodging and care as necessary, or any combination of suchservices. The rule of property law known as the rule restricting unreasonablerestraints on alienation shall not be applied to defeat any provision of thedeclaration, bylaws or proprietary leases requiring that the proprietarylessees be parties to such contracts.
§ 55-462. Termination of contracts and leases of declarant.
If entered into before the executive board elected by the proprietary lesseespursuant to subsection F of § 55-460 takes office, (i) any managementcontract, employment contract or lease of recreational or parking areas orfacilities, (ii) any other contract or lease between the association and adeclarant or an affiliate of a declarant, or (iii) any contract or lease thatis not bona fide or was unconscionable to the proprietary lessees at the timeentered into under the circumstances then prevailing, may be terminatedwithout penalty by the association at any time after the executive boardelected by the proprietary lessees pursuant to subsection F of § 55-460 takesoffice upon not less than 90 days' notice to the other party. Notwithstandingthe foregoing, a management contract that is not unconscionable between anassociation directly or indirectly providing assisted living or nursingservices to proprietary lessees and a declarant or an affiliate of adeclarant may not be terminated while a member of the executive boardappointed by the declarant continues to serve unless such termination isapproved by a vote of a majority of the members of the executive board and amajority vote of the proprietary lessees, other than the declarant.
This section does not apply to any proprietary lease or any lease thetermination of which would terminate the cooperative or reduce its size,unless the real estate subject to that lease was included in the cooperativefor the purpose of avoiding the right of the association to terminate a leaseunder this section. Nor shall this section apply to any contract, incidentalto the disposition of a cooperative interest, to provide to a proprietarylessee for the duration of such proprietary lessee's life, or for any term inexcess of one year, nursing services, medical services, other health-relatedservices, board and lodging and care as necessary, or any combination of suchservices. The rule of property law known as the rule restricting unreasonablerestraints on alienation shall not be applied to defeat any provision of thedeclaration, bylaws or proprietary leases requiring that the proprietarylessees be parties to such contracts.
