2006 New York Code - Distributions To Members Upon Termination Of Membership.

 
  § 516. Distributions to members upon termination of membership.
    (a)  Except  as  provided  in  this  chapter  or  the  certificate  of
  incorporation or the by-laws, the interest of a member in  the  property
  of a corporation shall terminate upon the termination of his membership,
  whether  by  expiration  of  the  term  of  membership, or by the death,
  voluntary withdrawal, or expulsion of the  member,  or  otherwise.  Such
  termination  shall be without prejudice to his rights, if any, as holder
  of a capital or subvention certificate.
    (b) In the event of a termination of membership, whether voluntary  or
  involuntary,  and  subject to any restrictions contained in this chapter
  or the certificate of incorporation or the by-laws, a corporation may at
  its option thereafter call for redemption  any  capital  certificate  or
  certificates  held  by  such  former  member,  and  redeem the same upon
  payment of a sum of money equal to the redemption price thereof if  such
  certificates  are by their terms redeemable, or upon payment of a sum of
  money equal to the amount of the capital contribution evidenced by  such
  certificates if they are not by their express terms redeemable.
    (c)  If  a  member  who would upon dissolution of the corporation have
  distributive rights in its assets under paragraph  (d)  of  section  507
  (Fees, dues and assessments; fines and penalties) is expelled other than
  for cause pursuant to a provision of the certificate of incorporation or
  by-laws  authorizing  such  expulsion,  and the corporation is dissolved
  within a period of five years after the  date  of  such  expulsion,  the
  expelled member shall be entitled to share in the distribution of assets
  in  the same manner as other members of the same class entitled to share
  at that time, except that his share shall be charged with any arrearages
  and all dues and assessments which he would have paid if he had remained
  a member, plus interest on all such items.
    (d) Nothing in this section shall authorize a corporation  to  make  a
  distribution  of cash or property to a former member in contravention of
  the  provisions  of   section   515   (Dividends   prohibited;   certain
  distributions of cash or property authorized).