§ 31-A — Resale price of shares

New York § 31-A

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 2: Limited-profit Housing Companies

Text

§ 31-a. 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 commissioner or supervising\nagency:\n (a) The resale price of shares in a mutual company shall be fixed by\nthe mutual company, subject to the approval of the commissioner or\nsupervising agency and shall be equal to (1) the consideration the\nselling tenant-cooperator paid for such shares and (2) any capital\nassessments and voluntary capital contributions approved by the\ncommissioner or supervising agency and paid by the selling\ntenant-cooperator to the mutual company, to the extent not already\nincluded in the consideration paid for such shares, and, if established\nby the mutual company, (3) a proportionate share of the actual aggregate\namortization paid on all existing and prior mortgages on the project in\nreduction of total outstanding principal indebtedness during such period\nas shall be fixed by the board of directors of the mutual company, to\nthe extent not already included in the consideration paid for such\nshares, and (4) reasonable administrative 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 commissioner or supervising agency, and shall be equal\nto (1) the consideration the selling tenant-cooperator paid for such\nshares, (2) any capital assessments and voluntary capital contributions\napproved by the commissioner or supervising agency and paid by the\nselling tenant-cooperator to the mutual company, to the extent not\nalready included in the consideration paid for such shares, and (3) a\nproportionate share of the actual aggregate amortization paid by the\nselling tenant-cooperator on all existing and prior mortgages on the\nproject in reduction of total outstanding principal indebtedness during\nsuch period as shall be fixed by the board of directors pursuant to\nsubdivision (a) of this section, to the extent not already included in\nthe consideration paid for such shares. To the extent that a selling\ntenant-cooperator may be entitled to an amount less than the resale\nprice of his shares, the difference shall be retained by the mutual\ncompany.\n (c) The board of directors may, subject to the approval of the\ncommissioner or supervising agency, establish a general policy pursuant\nto which a selling tenant-cooperator who had occupied more than one\ndwelling unit is paid an amount measured by his proportionate share of\nthe actual aggregate amortization paid during his period of occupancy on\nall existing or prior mortgages on the project. To the extent that a\nselling tenant-cooperator may be entitled to an amount greater than the\nresale price 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 commissioner or supervising agency prior to the\neffective date of this section.\n (f) a mutual company shall provide, upon request of a\ntenant-cooperator, a written statement providing the current value of\nsuch tenant-cooperator's shares and equity in such mutual company;\n