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This entry was published on 2021-07-30
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SECTION 31-A
Resale price of shares
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 2
§ 31-a. 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 commissioner or 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 commissioner or
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
commissioner or 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 commissioner or 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 commissioner or 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
commissioner or 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 commissioner or supervising agency prior to the
effective date of this section.

(f) a mutual company shall provide, upon request of a
tenant-cooperator, a written statement providing the current value of
such tenant-cooperator's shares and equity in such mutual company;