§ 9132. Distributions prohibited; compensation and other permitted payments.

144 words·~1 min read·/pa/title-15/chapter-91/9132

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- Except as provided in subsection (b), a nonprofit association may not pay dividends or make distributions to a member or manager.

(b)Permitted payments.-- A nonprofit association may:

(1)pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;

(2)confer benefits on or make contributions to a member or manager in conformity with its nonprofit purposes;

(3)repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles;

(4)repay indebtedness to a member or manager; and

(5)make distributions of property to members upon winding up and termination to the extent permitted by section 9135 (relating to winding up).

15c9132v

(July 9, 2013, P.L.476, No.67, eff. 60 days)

2013 Amendment. Act 67 added section 9132.

15c9133s