(765 ILCS 605/14) (from Ch. 30, par. 314)
Sec. 14.
Disposition
of property where insurance proceeds are insufficient for reconstruction.)
(1) In case of fire or other disaster, if the insurance proceeds are
insufficient to reconstruct the building and the unit owners and all other
parties in interest do not voluntarily make provision for reconstruction of
the building within 180 days from the date of damage or destruction, the
board of managers may record a notice setting forth such facts and upon the
recording of such notice:
(a) The property shall be deemed to be owned in common by the unit
owners;
(b) The undivided interest in the property owned in common which shall
appertain to each unit owner shall be the percentage of undivided interest
previously owned by such owner in the common elements;
(c) Any liens affecting any of the units shall be deemed to be
transferred in accordance with the existing priorities to the undivided
interest of the unit owner in the property as provided herein; and
(d) The property shall be subject to an action for partition at the suit
of any unit owner, in which event the net proceeds of sale, together with
the net proceeds of the insurance on the property, if any, shall be
considered as one fund and shall be divided among all the unit owners in a
percentage equal to the percentage of undivided interest owned by each
owner in the property, after first paying out of the respective shares of
the unit owners, to the extent sufficient for the purpose, all liens on the
undivided interest in the property owned by each unit owner.
(2) In the case of fire or other disaster in which fewer than
1/2 of the units are rendered uninhabitable: the condominium
instruments may provide for the reconstruction of the building or
other portion of the property, if the insurance proceeds are insufficient
to reconstruct, upon the affirmative vote of not fewer than
3/4 of the owners voting at a meeting called for that purpose. The
meeting shall be held within 30 days following the final adjustment
of insurance claims, if any. Otherwise,
such meeting shall be held within 90 days of the occurrence. At
such meeting the board of managers, or its representative, shall present
to the members present an estimate of the cost of
repair or reconstruction, and the estimated amount of necessary assessments
against each unit owner.
(3) In the case of fire or other disaster, the condominium instruments
may provide for the withdrawal of any portion of the property if the
insurance proceeds are insufficient to reconstruct the portion of the
property affected.
Upon the withdrawal of any unit or portion thereof, the percentage of
interest in the common elements appurtenant to such unit or portion
thereof shall be reallocated among the remaining units on the basis of
the percentage of interest of each remaining unit. If only a portion of
a unit is withdrawn, the percentage of interest appurtenant to that unit
shall be reduced accordingly, upon the basis of diminution in market value
of the unit, as determined by the board of managers. The payment of just
compensation, or the allocation of any insurance, or other proceeds to any
withdrawing or remaining unit
owner shall be on an equitable basis, which need not be a unit's percentage
interest. Any insurance or other proceeds available in connection with
the withdrawal of any portion of the common elements, not necessarily
including the limited common elements, shall be allocated on the basis
of each unit owner's percentage interest therein. The declaration may
provide that proceeds available from the withdrawal of any limited common
element will be distributed in accordance with the interests of those
entitled to their use. The condominium instruments shall provide for
the cessation of responsibility for the payment
of assessments for any unit or portion thereof withdrawn from the condominium.
(Source: P.A. 80-1117.)
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