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This entry was published on 2014-09-22
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Members' capital contributions
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 5
§ 502. Members' capital contributions.

(a) The certificate of incorporation may provide that members, upon or
subsequent to admission, shall make capital contributions in the amount
specified therein. The requirement of a capital contribution may apply
to all members, or to the members of a single class, or to members of
different classes in different amounts or proportions.

(b) A member's capital contribution shall consist of money or other
property, tangible or intangible, or labor or services actually received
by or performed for the corporation or for its benefit or in its
formation or reorganization, or a combination thereof. In the absence of
fraud in the transaction, the judgment of the board as to the value of
the consideration received by the corporation shall be conclusive.

(c) Neither obligations of the member for future payments nor future
services shall constitute payment or part payment of a member's capital

(d) A member's capital contribution shall be evidenced by a capital
certificate which shall be non-transferable, except that the certificate
of incorporation of a non-charitable corporation may provide that its
capital certificates, or some of them, may be transferable to other
members with the consent of the corporation upon specified terms and

(e) A member's capital contribution shall not be repaid or redeemed by
the corporation except upon dissolution of the corporation or upon
redemption of the capital certificate as provided in this chapter. A
corporation may provide in its certificate of incorporation that its
capital certificates, or some of them, shall be redeemable, in whole or
in part, at the option of the corporation only, at such price or prices
(not to exceed the amount of the capital contribution), within such
period or periods, and on such terms and conditions, not inconsistent
with this chapter, as are stated in the certificate of incorporation.