2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 42 - Creation, Alteration and Termination of Cooperatives
4207 - Allocation of ownership interests, votes and common expense liabilities.

     § 4207.  Allocation of ownership interests, votes and common
                expense liabilities.
        (a)  General rule.--The declaration shall allocate an
     ownership interest in the association and a portion of the votes
     in the association to each cooperative interest in the
     cooperative and shall state the formulas used to establish those
     allocations. Those allocations may not discriminate in favor of
     cooperative interests owned by the declarant or an affiliate of
     the declarant. Such formulas may take into account unusual
     attributes of identified units if the formulas state how the
     deviation from the normal rule applies to such units.
        (b)  Addition or withdrawal of units.--If units may be added
     to or withdrawn from the cooperative, the declaration must state
     the formulas to be used to reallocate the allocated interests
     among all cooperative interests included in the cooperative
     after the addition or withdrawal.
        (c)  Votes.--The declaration may provide:
            (1)  That different allocations of votes shall be made to
        the cooperative interests on particular matters specified in
        the declaration.
            (2)  For cumulative voting only for the purpose of
        electing members of the executive board.
            (3)  For class voting on specified issues affecting the
        class if necessary to protect valid interests of the class.
     A declarant may not utilize cumulative or class voting for the
     purpose of evading any limitation imposed on declarants by this
     subpart, nor may cooperative interests constitute a class
     because they are owned by a declarant.
        (d)  Calculations for undivided interests.--Except for minor
     variations due to rounding, the sum of the common expense
     liabilities allocated at any time to all the cooperative
     interests must equal one if stated as a fraction or 100% if
     stated as a percentage. In the event of a discrepancy between an
     allocated interest and the result derived from application of
     the pertinent formula, the allocated interest prevails.
        (e)  Transfer without possessory interest void.--Any
     purported conveyance, encumbrance, judicial sale or other
     voluntary or involuntary transfer of the ownership interest in
     the association made without the possessory interest in the unit
     to which that interest is related is void.

        Cross References.  Section 4207 is referred to in sections
     4103, 4205, 4314 of this title.