§ 85-B — Resale price of shares

§ 85-b. 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:\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, and\nshall be equal to (1) the consideration the selling tenant-cooperator\npaid for such shares and (2) any capital assessments and voluntary\ncapital contributions approved by the commissioner 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, if\nestablished by the mutual company, (3) a proportionate share of the\nactual aggregate amortization paid on all existing and prior mortgages\non the project in reduction of total outstanding principal indebtedness\nduring such period as shall be fixed by the board of directors of the\nmutual company, to the extent not already included in the consideration\npaid for such shares, 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, 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 commissioner and paid by the selling tenant-cooperator to the mutual\ncompany, to the extent not already included in the consideration paid\nfor such shares, and (3) a proportionate share of the actual aggregate\namortization paid by the selling tenant-cooperator on all existing and\nprior mortgages on the project in reduction of total outstanding\nprincipal indebtedness during such period as shall be fixed by the board\nof directors pursuant to subdivision (a) of this section, to the extent\nnot already included in the consideration paid for such shares. To the\nextent that a selling tenant-cooperator may be entitled to an amount\nless than the resale price of his shares, the difference shall be\nretained by the mutual company.\n (c) The board of directors may, subject to the approval of the\ncommissioner, establish a general policy pursuant to which a selling\ntenant-cooperator who had occupied more than one dwelling unit is paid\nan amount measured by his proportionate share of the actual aggregate\namortization paid during his period of occupancy on all existing or\nprior 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 commissioner prior to the effective date of this\nsection.\n