2012 New York Consolidated Laws
PVH - Private Housing Finance
Article 4 - (70 - 97) LIMITED DIVIDEND HOUSING COMPANIES
85-B - Resale price of shares.

 
    § 85-b. Resale price of shares. Notwithstanding any other provision of
  this  article  and  subject to any regulation not inconsistent with this
  section which may be promulgated by the commissioner:
    (a) The resale price of shares in a mutual company shall be  fixed  by
  the  mutual  company,  subject  to the approval of the commissioner, and
  shall be equal to (1) the consideration  the  selling  tenant-cooperator
  paid  for  such  shares  and  (2)  any capital assessments and voluntary
  capital contributions approved by  the  commissioner  and  paid  by  the
  selling  tenant-cooperator  to  the  mutual  company,  to the extent not
  already included in the consideration paid  for  such  shares,  and,  if
  established  by  the  mutual  company,  (3) a proportionate share of the
  actual aggregate amortization paid on all existing and  prior  mortgages
  on  the project in reduction of total outstanding principal indebtedness
  during such period as shall be fixed by the board of  directors  of  the
  mutual  company, to the extent not already included in the consideration
  paid for such shares, and (4) reasonable administrative charges.
    (b) The aggregate amount to be paid to the  selling  tenant-cooperator
  with respect to the sale of the selling tenant-cooperator's shares shall
  be fixed by the board of directors of the mutual company, subject to the
  approval   of   the   commissioner,  and  shall  be  equal  to  (1)  the
  consideration the selling tenant-cooperator paid for  such  shares,  (2)
  any  capital assessments and voluntary capital contributions approved by
  the commissioner and paid by the selling tenant-cooperator to the mutual
  company, to the extent not already included in  the  consideration  paid
  for  such  shares, and (3) a proportionate share of the actual aggregate
  amortization paid by the selling tenant-cooperator on all  existing  and
  prior  mortgages  on  the  project  in  reduction  of  total outstanding
  principal indebtedness during such period as shall be fixed by the board
  of directors pursuant to subdivision (a) of this section, to the  extent
  not  already  included in the consideration paid for such shares. To the
  extent that a selling tenant-cooperator may be  entitled  to  an  amount
  less  than  the  resale  price  of  his  shares, the difference shall be
  retained by the mutual company.
    (c) The board of  directors  may,  subject  to  the  approval  of  the
  commissioner,  establish  a  general  policy pursuant to which a selling
  tenant-cooperator who had occupied more than one dwelling unit  is  paid
  an  amount  measured  by his proportionate share of the actual aggregate
  amortization paid during his period of  occupancy  on  all  existing  or
  prior   mortgages   on  the  project.  To  the  extent  that  a  selling
  tenant-cooperator may be entitled to an amount greater than  the  resale
  price   of   shares,   the   difference  may  be  paid  to  the  selling
  tenant-cooperator by the mutual company.
    (d) The "proportionate share of the actual aggregate amortization paid
  on all existing and prior mortgages  on  the  project"  referred  to  in
  subdivision  (a)  of  this  section  shall  be in the same ratio to such
  actual aggregate amortization as  the  number  of  shares  held  by  the
  selling  tenant-cooperator at the time of sale bears to the total number
  of shares of issued and outstanding capital stock of the mutual  company
  during such period.
    (e) Nothing contained in this section shall prohibit the continued use
  of  any  method  of calculating resale price adopted by a mutual company
  and approved by the commissioner prior to the  effective  date  of  this
  section.