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2021 Utah Code
Title 16 - Corporations
Chapter 6a - Utah Revised Nonprofit Corporation Act
Part 6 - Members
Section 610 - Purchase of memberships.
Universal Citation: UT Code § 16-6a-610 (2021)
Effective 5/9/2017
16-6a-610. Purchase of memberships.
Amended by Chapter 358, 2017 General Session
16-6a-610. Purchase of memberships.
- (1) Unless otherwise provided in the articles of incorporation or the bylaws, a nonprofit corporation may not purchase the membership of a member:
- (a) who resigns; or
- (b) whose membership is terminated.
- (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:
- (i) its articles of incorporation or its bylaws; or
- (ii) agreement with the affected member.
- (b) A payment permitted under Subsection (2)(a) may not violate:
- (i) Section 16-6a-1301; or
- (ii) any other provision of this chapter.
- (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:
- (3) A mutual benefit corporation may purchase a member's membership 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.
- (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.
Amended by Chapter 358, 2017 General Session
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