{"data":{"id":"us-ky/krs-198a.060","jurisdiction":"us-ky","citation":"KRS 198A.060","heading":"Requirements for loan agreement or articles of incorporation of assisted","body":"entities -- Limit on return of investment of stockholders or members.\n(1) The loan agreement or the articles of incorporation, association, partnership or other\ngoverning docume nts of any sponsor, builder or developer assisted under this\nchapter shall contain, in addition to other requirements of law:\n(a) That the corporation, cooperative or association has been organized to provide\nhousing facilities and such social, recreationa l, commercial and community\nfacilities as may be incidental or appurtenant thereto for persons or families of\nlower and moderate income;\n(b) That the operations of the corporation, cooperative or association may be\nsupervised by the Kentucky Housing Corpor ation and that the corporation,\ncooperative or association shall enter into such agreements with the Kentucky\nHousing Corporation as the Kentucky Housing Corporation from time to time\nrequires, providing for regulation by the Kentucky Housing Corporation of the\nplanning, development and management of any residential housing undertaken\nby the corporation, cooperative or association and their disposition of the\nproperty and franchises;\n(c) That the Kentucky Housing Corporation shall have the power to appoint to the\nboard of directors of the corporation, cooperative or association a number of\nnew directors, which number shall be sufficient to constitute a majority of the\nboard, if the corporation, cooperative or association has received a loan or\nadvance under this chapter and the Kentucky Housing Corporation determines\nthat the loan or advance is in jeopardy of not being repaid, or that the\nresidential housing for which the loan or advance was made is in jeopardy of\nnot being constructed.\n(2) The articles of incorporation, association, partnership or other governing documents\nof any limited dividend corporation, association or entity of any sponsor, builder or\ndeveloper assisted under this chapter shall provide, in addition to other\nrequirements of law, that eve ry stockholder or member shall be deemed to have\nagreed that he shall not receive from the corporation, association or entity in\nrepayment of his investment any sums in excess of the face value of the investment\nattributable to his respective interest plus cumulative dividend payments at such rate\nas the Kentucky Housing Corporation deems to be reasonable and proper.","path":["KRS Chapter 198A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=6931","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:50Z","sha256":"110afedfda9940468c8dffffcf3e69250eebfde8fa7009cba5dd3e9a367aa671","source_id":"us-ky","stale":false,"prev":"us-ky/krs-198a.055","next":"us-ky/krs-198a.065"},"notice":"GroundRules: Original legal text. Not legal advice."}