N.Y. Private Housing Finance Law § 85-b: Resale price of shares

§ 85-b. 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:

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

the mutual company, subject to the approval of the commissioner, 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 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, 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 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, 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 prior to the effective date of this

section.