N.Y. Private Housing Finance Law § 31-a: Resale price of shares

§ 31-a. 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 or supervising

agency:

(a) The resale price of shares in a mutual company shall be fixed by

the mutual company, subject to the approval of the commissioner or

supervising agency 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 or supervising agency 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 or supervising agency, 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 or supervising agency 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 or supervising agency, 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 or supervising agency prior to the

effective date of this section.

(f) a mutual company shall provide, upon request of a

tenant-cooperator, a written statement providing the current value of

such tenant-cooperator's shares and equity in such mutual company;