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This entry was published on 2014-09-22
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SECTION 128
Resale price of shares
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 5
§ 128. 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 supervising agency:

(a) The resale price of shares in a mutual company shall be fixed by
the mutual company, subject to the approval of the supervising agency,
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 supervising agency
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 supervising agency, 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 supervising agency 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
supervising agency, 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 supervising agency prior to the effective date of
this section.