§ 31-C — Tenant-cooperators; application of shares

§ 31-c. Tenant-cooperators; application of shares. 1. No mutual\ncompany shall require a current tenant-cooperator to use cash, loan or\nmortgage to make an initial payment for shares that would entitle the\ntenant-cooperator to occupancy upon transfer to another dwelling unit\nwithin the mutual company's facilities, but instead, subject to\nsubdivision two of this section, shall first allow the tenant-cooperator\nthe option to apply the value of his or her shares and equity in the\nmutual company toward any consideration required to be paid for such\nshares.\n 2. Within one hundred eighty days of the effective date of this\nsection, the commissioner and the supervising agency, as the case may\nbe, shall each promulgate regulations authorizing a current\ntenant-cooperator, entitled to occupancy by reason of ownership of\nshares in such mutual company, to apply all or a portion of the value of\nhis or her shares and equity in the mutual company toward any\nconsideration required to be paid for shares which would entitle the\ntenant-cooperator to occupancy of another unit owned and operated by the\nmutual company, regardless of the sale of the tenant-cooperator's\ncurrent shares in such mutual company, but subject to such other charges\ndue and owing to the mutual company for which such tenant-cooperator may\nbe liable. Any dispute thereof may be determined by a court of\nappropriate jurisdiction and any requirement to waive such right as a\ncondition of ownership or transfer shall be void as against public\npolicy.\n