2006 Utah Code - 16-6a-1302 — Authorized distributions.

     16-6a-1302.   Authorized distributions.
     (1) A nonprofit corporation may:
     (a) make distributions or distribute the nonprofit corporation's assets to a member that is a domestic or foreign nonprofit corporation;
     (b) pay compensation in a reasonable amount to its members, directors, or officers for services rendered;
     (c) if a cooperative nonprofit corporation, make distributions consistent with its purposes; and
     (d) confer benefits upon its members in conformity with its purposes.
     (2) A nonprofit corporation may make distributions upon dissolution:
     (a) to a member that is a domestic or foreign nonprofit corporation;
     (b) to its members if it is a mutual benefit corporation; and
     (c) otherwise in conformity to this chapter.
     (3) A mutual benefit corporation may purchase a member's membership in conformity with Section 16-6a-610 if, after the purchase is completed:
     (a) the mutual benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and
     (b) the mutual benefit corporation's total assets would at least equal the sum of its total liabilities.

Amended by Chapter 228, 2006 General Session