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This entry was published on 2014-09-22
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SECTION 85-B
Resale price of shares
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 4
§ 85-b. 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:

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