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

(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.

Enacted 2000, ch. 300.  Amended 2015, ch. 240, eff. May 15, 2015; 2017, ch. 358, eff. May 9, 2017.

HOA resources and laws annotated
HOA resources and laws annotated