273A.115 Distribution prohibited -- Compensation and other permitted payments.
104 words·~1 min read·
/ky/chapter-273a/273a-115A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Except as otherwise provided in subsection
(2)of this section, an unincorporated
nonprofit association shall not pay dividends or make distributions to a member or
manager.
(2)An unincorporated nonprofit association may:
(a)Pay reasonable compensation or reimburse reasonable expenses to a member
or manager for services rendered;
(b)Confer benefits on a member or manager in conformity with its nonprofit
purposes;
(c)Repurchase a membership and repay a capital contribution made by a member
to the extent authorized by its governing principles; or
(d)Make distributions of property to members upon winding up and termination
to the extent permitted by KRS 273A.130.