§ 1605 - Net income; apportionment
§ 1605. Net income; apportionment
(a) Annually, the board of directors of a cooperative housing corporation may apportion the remainder of the net income in one or more of the following ways:
(1) as a reserve fund for the general operation of the business;
(2) as a dividend not to exceed six percent per annum on invested capital; and
(3) as an equitable distribution or refund to all members in proportion to their proprietary lease payment, except that the distribution or refund to members shall first be credited to the member's account to pay off the purchase price of his or her cooperative interest and any amounts owed to the cooperative housing corporation as a result of cure by the cooperative housing corporation of any default in the member's obligations as described in section 1589(5) of this title.
(b) This section shall not prevent a cooperative housing corporation from disposing of the net income by reducing the cost of facilities or services or by applying such net income otherwise for the common benefit of members.
(c) This section shall not prevent a cooperative housing corporation from adopting a system by which the payment of net income is deferred, nor from adopting a system in which the net savings distributed are partly in cash and partly in equity interests or certificates of indebtedness. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)