15 USC § 3607 - Termination of self-dealing contracts

---
identifier: "/us/usc/t15/s3607"
source: "usc"
legal_status: "official_prima_facie"
title: "15 USC § 3607 - Termination of self-dealing contracts"
title_number: 15
title_name: "COMMERCE AND TRADE"
section_number: "3607"
section_name: "Termination of self-dealing contracts"
chapter_number: 62
chapter_name: "CONDOMINIUM AND COOPERATIVE CONVERSION PROTECTION AND ABUSE RELIEF"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 96–399, title VI, § 608, Oct. 8, 1980, 94 Stat. 1676.)"
---


# § 3607. Termination of self-dealing contracts

**(a)** **Operation, maintenance, and management contracts; penalty** Any contract or portion thereof which is entered into after October 8, 1980, and which—

may be terminated without penalty by such unit owners or such association.

**(1)** provides for operation, maintenance, or management of a condominium or cooperative association in a conversion project, or of property serving the condominium or cooperative unit owners in such project;

**(2)** is between such unit owners or such association and the developer or an affiliate of the developer;

**(3)** was entered into while such association was controlled by the developer through special developer control or because the developer held a majority of the votes in such association; and

**(4)** is for a period of more than three years, including any automatic renewal provisions which are exercisable at the sole option of the developer or an affiliate of the developer,

**(b)** **Time of termination** Any termination under this section may occur only during the two-year period beginning on the date on which—

whichever occurs first.

**(1)** special developer control over the association is terminated; or

**(2)** the developer owns 25 per centum or less of the units in the conversion project,

**(c)** **Vote of owners of units** A termination under this section shall be by a vote of owners of not less than two-thirds of the units other than the units owned by the developer or an affiliate of the developer.

**(d)** **Effective date of termination** Following the unit owners’ vote, the termination shall be effective ninety days after hand delivering notice or mailing notice by prepaid United States mail to the parties to the contract.

---

**Source Credit**: (Pub. L. 96–399, title VI, § 608, Oct. 8, 1980, 94 Stat. 1676.)

## Editorial Notes

### Codification

In subsec. (a), “” was substituted for “the effective date of this title”. See Effective Date note set out under .