Sec. 20-458. Required provisions of contract. Sale or assignment of contract.
Sec. 20-458. Required provisions of contract. Sale or assignment of contract.
(a) No contract between a person contracting to provide association management services and an association which provides for the management of the association shall be
valid or enforceable unless the contract is in writing and:
(1) Provides that the person contracting to provide management services shall be
registered as provided in sections 20-450 to 20-462, inclusive, and shall obtain a bond
as provided in section 20-460; and
(2) Provides that the person contracting to provide management services shall not
issue a check on behalf of the association or transfer moneys exceeding a specified
amount determined by the association without the written approval of an officer designated by the association; and
(3) Provides that the person contracting to provide management services shall not
enter into any contract binding the association exceeding a specified amount determined
by the association, except in the case of an emergency, without the written approval of
an officer designated by the association.
(b) No contract to provide management services may be sold or assigned to another
person without the approval of a majority of the executive board of the association.
(P.A. 90-306, S. 10, 15; P.A. 91-341, S. 9, 19.)
History: P.A. 91-341 amended Subdiv. (1) of Subsec. (a)(1) by adding provision requiring the person to "be registered
as provided in sections 20-450 to 20-462, inclusive" and amended Subsec. (a)(3) by prohibiting the person from entering
into a contract binding the association "exceeding a specified amount determined by the association, except in the case of
an emergency".