[§514B-135]  Termination of contracts and leases of developer.  (a)  If entered into before the board elected by the unit owners pursuant to section 514B‑106(e) takes office:

     (1)  Any management contract, employment contract, or lease of recreational or parking areas or facilities;

     (2)  Any other contract or lease between the association and a developer or an affiliate of a developer; or

     (3)  Any contract or lease that is not bona fide or was unconscionable to the unit owners at the time entered into under the circumstances then prevailing;

may be terminated without penalty by the association within a period of one hundred eighty days after the board elected by the unit owners pursuant to section 514B‑106(e) takes office, upon not less than ninety days notice to the other party.

     (b)  This section does not apply to:

     (1)  Any lease or other agreement the termination of which would terminate the condominium or reduce its size, unless the real estate subject to that lease was included in the condominium for the purpose of avoiding the right of the association to terminate a lease under this section; or

     (2)  A proprietary lease. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]