16-6a-610. Purchase of memberships.
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/ut/title-16/chapter-6a/16-6a-610A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/9/2017
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.
(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 .
Amended by Chapter 358 , 2017 General Session