N.Y. Private Housing Finance Law § 31-c: Tenant-cooperators; application of shares

§ 31-c. Tenant-cooperators; application of shares. 1. No mutual

company shall require a current tenant-cooperator to use cash, loan or

mortgage to make an initial payment for shares that would entitle the

tenant-cooperator to occupancy upon transfer to another dwelling unit

within the mutual company's facilities, but instead, subject to

subdivision two of this section, shall first allow the tenant-cooperator

the option to apply the value of his or her shares and equity in the

mutual company toward any consideration required to be paid for such

shares.

2. Within one hundred eighty days of the effective date of this

section, the commissioner and the supervising agency, as the case may

be, shall each promulgate regulations authorizing a current

tenant-cooperator, entitled to occupancy by reason of ownership of

shares in such mutual company, to apply all or a portion of the value of

his or her shares and equity in the mutual company toward any

consideration required to be paid for shares which would entitle the

tenant-cooperator to occupancy of another unit owned and operated by the

mutual company, regardless of the sale of the tenant-cooperator's

current shares in such mutual company, but subject to such other charges

due and owing to the mutual company for which such tenant-cooperator may

be liable. Any dispute thereof may be determined by a court of

appropriate jurisdiction and any requirement to waive such right as a

condition of ownership or transfer shall be void as against public

policy.