§1599. Proprietary lease

Link to law: http://legislature.vermont.gov/statutes/section/11/014/01599
Published: 2015


The Vermont Statutes Online



Corporations, Partnerships and Associations






1599. Proprietary lease

Every member of

a cooperative housing corporation shall be entitled to receive from the

cooperative housing corporation a written proprietary lease which shall include

the following:

(1) a provision

that no sublease in excess of one year, no amendment, and no modification to

such proprietary lease shall be permitted or created without the prior written

consent of the board of directors of the cooperative housing corporation. A

member who sublets does not relinquish the rights and benefits of membership;

(2) a provision

that the security for a loan against the member's cooperative interest shall be

in the nature of a personal property security interest, and any default of such

loan shall entitle the lender to treat such default in the same manner as a

default of a loan secured by personal property;

(3) a provision

that the cooperative housing corporation's possessory remedy in event of

default of a member affecting that person's right to occupancy shall be in an

action under subchapter 3 of chapter 169 of Title 12. However, good cause shall

be required for termination of the right of occupancy. Good cause shall include

nonpayment of loans, fees, costs or assessments pertaining to the cooperative

interest, or material violation of bylaws, rules, or proprietary lease which

continues following reasonable notice and reasonable opportunity to cure the

alleged material violations;

(4) provisions

for determining maintenance and carrying charges for the unit;

(5) a right on

the part of the cooperative housing corporation to cure any default in the

member's obligations pertaining to the member's cooperative interest, including

but not limited to share loans, and cooperative fees, costs and assessments;

(6) a provision

requiring that terms and form of the proprietary lease shall be amended by the

board of directors only;

(7) a provision

requiring that any lease term which is not uniformly applied to all members or

prospective members of the same or similar category shall be unenforceable.

(Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)
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