35-2-1402. Authorized distributions. (1) A mutual benefit corporation may purchase its memberships if after the purchase is completed:

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In Montana Code 35-2-1402

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means a public benefit corporation, mutual benefit corporation, or religious corporation. See Montana Code 35-2-114
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Usual: means according to usage. See Montana Code 1-1-206

(a)the corporation would be able to pay its debts as they become due in the usual course of its activities; and

(b)the corporation’s total assets would at least equal the sum of its total liabilities.

(2)Corporations may make distributions upon dissolution in conformity with part 7 of this chapter.