Utah Code 16-6a-610. Purchase of memberships
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(1) Unless otherwise provided in the articles of incorporation or the bylaws, a nonprofit corporation may not purchase the membership of a member:
Terms Used In Utah Code 16-6a-610
- Articles of incorporation: include :(3)(a) amended articles of incorporation;(3)(b) restated articles of incorporation;(3)(c) articles of merger; and(3)(d) a document of a similar import to the documents described in Subsections (3)(a) through (c). See Utah Code 16-6a-102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bylaws: includes :
(6)(b)(i) amended bylaws; and(6)(b)(ii) restated bylaws. See Utah Code 16-6a-102- 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.
- Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: includes :
(34)(b)(i) "voting member"; and(34)(b)(ii) a shareholder in a water company. See Utah Code 16-6a-102- Membership: refers to the rights and obligations of a member or members. See Utah Code 16-6a-102
- Mutual benefit corporation: means a nonprofit corporation:
(36)(a) that issues shares of stock to its members evidencing a right to receive distribution of water or otherwise representing property rights; or(36)(b) all of whose assets are contributed or acquired by or for the members of the nonprofit corporation or the members' predecessors in interest to serve the mutual purposes of the members. See Utah Code 16-6a-102- Share: means a unit of interest in a nonprofit corporation. See Utah Code 16-6a-102
- Shareholder: means a person in whose name a share is registered in the records of a nonprofit corporation. See Utah Code 16-6a-102
- Water company: means :
(58)(a) the same as that term is defined in Subsection16-4-102 (5); or(58)(b) a mutual benefit corporation, when the stock in the mutual benefit corporation represents a right to receive a distribution of water for beneficial use. See Utah Code 16-6a-102(1)(a) who resigns; or(1)(b) whose membership is terminated.(2)(2)(a) If so authorized, a nonprofit corporation may purchase the membership of a member who resigns or whose membership is terminated for the amount and pursuant to the conditions set forth in or authorized by:(2)(a)(i) its articles of incorporation or its bylaws; or(2)(a)(ii) agreement with the affected member.(2)(b) A payment permitted under Subsection (2)(a) may not violate:(2)(b)(i) Section 16-6a-1301; or(2)(b)(ii) any other provision of this chapter.(3) A mutual benefit corporation may purchase a member’s membership if, after the purchase is completed:(3)(a) the mutual benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and(3)(b) the mutual benefit corporation’s total assets would at least equal the sum of its total liabilities.(4) A water company may purchase the shares of a shareholder who is delinquent in payment of shareholder assessments, in accordance with Chapter 4, Share Assessment Act.