448.2-121. Merger or consolidation of condominiums.
Merger or consolidation of condominiums.
448.2-121. 1. Any two or more condominiums may, byagreement of the unit owners as provided in subsection 2 of thissection, be merged or consolidated into a single condominium. Inthe event of a merger or consolidation, unless the agreementotherwise provides, the resultant condominium shall be, for allpurposes, the legal successor of all of the preexistingcondominiums and the operations and activities of allassociations of the preexisting condominiums shall be merged orconsolidated into a single association which shall hold allpowers, rights, obligations, assets, and liabilities of allpreexisting associations.
2. An agreement of two or more condominiums to merge orconsolidate pursuant to subsection 1 of this section shall beevidenced by an agreement prepared, executed, recorded, andcertified by the president of the association of each of thepreexisting condominiums following approval by owners of units towhich are allocated the percentage of votes in each condominiumrequired to terminate that condominium. Any such agreement shallbe recorded in every county in which a portion of the condominiumis located, and is not effective until so recorded.
3. Every merger or consolidation agreement shall provide forthe reallocation of the allocated interests in the newassociation among the units of the resultant condominium either(1) by stating such reallocations or the formulas upon which theyare based or (2) by stating the percentage of overall allocatedinterests of the new condominium which are allocated to all ofthe units comprising each of the preexisting condominiums, andproviding that the portion of such percentages allocated to eachunit formerly comprising a part of such preexisting condominiumshall be equal to the percentages of allocated interestsallocated to such unit by the declaration of the preexistingcondominium.
(L. 1983 H.B. 177)