§ 128 — Resale price of shares

New York § 128

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 5: Redevelopment Companies

Text

§ 128. Resale price of shares. Notwithstanding any other provision of\nthis article and subject to any regulation not inconsistent with this\nsection which may be promulgated by the supervising agency:\n (a) The resale price of shares in a mutual company shall be fixed by\nthe mutual company, subject to the approval of the supervising agency,\nand shall be equal to (1) the consideration the selling\ntenant-cooperator paid for such shares and (2) any capital assessments\nand voluntary capital contributions approved by the supervising agency\nand paid by the selling tenant-cooperator to the mutual company, to the\nextent not already included in the consideration paid for such shares,\nand, if established by the mutual company, (3) a proportionate share of\nthe actual aggregate amortization paid on all existing and prior\nmortgages on the project in reduction of total outstanding principal\nindebtedness during such period as shall be fixed by the board of\ndirectors of the mutual company, to the extent not already included in\nthe consideration paid for such shares, and (4) reasonable\nadministrative charges.\n (b) The aggregate amount to be paid to the selling tenant-cooperator\nwith respect to the sale of the selling tenant-cooperator's shares shall\nbe fixed by the board of directors of the mutual company, subject to the\napproval of the supervising agency, and shall be equal to (1) the\nconsideration the selling tenant-cooperator paid for such shares, (2)\nany capital assessments and voluntary capital contributions approved by\nthe supervising agency and paid by the selling tenant-cooperator to the\nmutual company, to the extent not already included in the consideration\npaid for such shares, and (3) a proportionate share of the actual\naggregate amortization paid by the selling tenant-cooperator on all\nexisting and prior mortgages on the project in reduction of total\noutstanding principal indebtedness during such period as shall be fixed\nby the board of directors pursuant to subdivision (a) of this section,\nto the extent not already included in the consideration paid for such\nshares. To the extent that a selling tenant-cooperator may be entitled\nto an amount less than the resale price of his shares, the difference\nshall be retained by the mutual company.\n (c) The board of directors may, subject to the approval of the\nsupervising agency, establish a general policy pursuant to which a\nselling tenant-cooperator who had occupied more than one dwelling unit\nis paid an amount measured by his proportionate share of the actual\naggregate amortization paid during his period of occupancy on all\nexisting or prior mortgages on the project. To the extent that a selling\ntenant-cooperator may be entitled to an amount greater than the resale\nprice of shares, the difference may be paid to the selling\ntenant-cooperator by the mutual company.\n (d) The "proportionate share of the actual aggregate amortization paid\non all existing and prior mortgages on the project" referred to in\nsubdivision (a) of this section shall be in the same ratio to such\nactual aggregate amortization as the number of shares held by the\nselling tenant-cooperator at the time of sale bears to the total number\nof shares of issued and outstanding capital stock of the mutual company\nduring such period.\n (e) Nothing contained in this section shall prohibit the continued use\nof any method of calculating resale price adopted by a mutual company\nand approved by the supervising agency prior to the effective date of\nthis section.\n