Utah § 16-6a-610 Purchase of memberships.

Utah Statutes

§ 16-6a-610 — Purchase of memberships.

Utah § 16-6a-610

Title 16Corporations

Ch. 16-6aUtah Revised Nonprofit Corporation Act

Part 16-6a-6Members

This text of Utah § 16-6a-610 (Purchase of memberships.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 16-6a-610 (2026).

Text

(1)Unless otherwise provided in the articles of incorporation or the bylaws, a nonprofit corporation may not purchase the membership of a member:

(1)(a) who resigns; or

(1)(b) whose membership is terminated.

(2)(2)(a) If so authorized, a nonprofit corporation may purchase the membership of a member who resigns or whose membership is terminated for the amount and pursuant to the conditions set forth in or authorized by:

(2)(a)(i) its articles of incorporation or its bylaws; or

(2)(a)(ii) agreement with the affected member.

(2)(b) A payment permitted under Subsection (2)(a) may not violate:

(2)(b)(i) Section 16-6a-1301; or

(2)(b)(ii) any other provision of this chapter.

(3)A mutual benefit corporation may purchase a member's membership if, after the purchase is completed:

(3)(a) the

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(1) Unless otherwise provided in the articles of incorporation or the bylaws, a nonprofit corporation may not purchase the membership of a member:

(1)(a) who resigns; or
(1)(b) whose membership is terminated.
(2) (2)(a) If so authorized, a nonprofit corporation may purchase the membership of a member who resigns or whose membership is terminated for the amount and pursuant to the conditions set forth in or authorized by:
(2)(a)(i) its articles of incorporation or its bylaws; or
(2)(a)(ii) agreement with the affected member.
(2)(b) A payment permitted under Subsection (2)(a) may not violate:
(2)(b)(i) Section 16-6a-1301; or
(2)(b)(ii) any other provision of this chapter.
(3) A mutual benefit corporation may purchase a member's membership if, after the purchase is completed:

(3)(a) the mutual benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and
(3)(b) the mutual benefit corporation's total assets would at least equal the sum of its total liabilities.
(4) A water company may purchase the shares of a shareholder who is delinquent in payment of shareholder assessments, in accordance with Chapter 4, Share Assessment Act.