§ 7-56-505 — Purchases of property or other interests

If a cooperative with
preferred stock or preferred equity purchases or otherwise acquires any interest in
any property, stock, or interest in another entity, it may, with the consent of the
person or persons from whom the property or interests are being acquired,
discharge the obligations incurred in the purchase or other acquisition, wholly or in
part, by exchanging for the acquired property, stock, or interest shares or amounts
of its preferred stock or preferred equity in an amount that, at par or stated value,
would equal the value of the property, stock, or interest so purchased, as
determined by the board. A transfer to the cooperative of the property, stock, or
interest purchased or otherwise acquired shall be equivalent to payment in cash for
the shares or amounts of preferred stock or preferred equity issued by the
cooperative.

Legislative History

Source: L. 96: Entire article R&RE, p. 511, � 1, effective July 1.