§ 47F-2-121. Merger or consolidation of planned communities. - North Carolina Statutes

§47F‑2‑121.  Merger or consolidation of planned communities.

(a)        Any two or moreplanned communities, by agreement of the lot owners as provided in subsection(b) of this section, may be merged or consolidated into a single plannedcommunity. In the event of a merger or consolidation, unless the agreementotherwise provides, the resultant planned community is, for all purposes, thelegal successor of all of the preexisting planned communities, and theoperations and activities of all associations of the preexisting plannedcommunities shall be merged or consolidated into a single association whichshall hold all powers, rights, obligations, assets, and liabilities of allpreexisting associations.

(b)        An agreement of twoor more planned communities to merge or consolidate pursuant to subsection (a)of this section shall be evidenced by an agreement prepared, executed,recorded, and certified by the president of the association of each of thepreexisting planned communities following approval by owners of lots to whichare allocated the percentage of votes in each planned community required toterminate that planned community. Any such agreement shall be recorded in everycounty in which a portion of the planned community is located and is noteffective until recorded.

(c)        Every merger orconsolidation agreement shall provide for the reallocation of the allocatedinterests in the new association among the lots of the resultant plannedcommunity either (i) by stating the reallocations or the formulas upon which theyare based or (ii) by stating the percentage of overall common expenseliabilities and votes in the new association which are allocated to all of thelots comprising each of the preexisting planned communities, and providing thatthe portion of the percentages allocated to each lot formerly comprising a partof the preexisting planned community shall be equal to the percentages ofcommon expense liabilities and votes in the association allocated to that lotby the declaration of the preexisting planned community. (1998‑199,s. 1.)