§421H-2  Articles of incorporation. 
(a)  The articles of incorporation and bylaws shall require the purchase and
sale of the stock of resident owners who cease to be residents, at not more
than a transfer value determined as provided in the articles and bylaws, and
which shall not exceed the aggregate of the following:



(1)  The consideration paid for the membership share
by the first occupant of the unit involved, as shown on the books of the
corporation.



(2)  Accumulated interest, or an inflation allowance
at a rate which may be based on a cost-of-living index, an income index, or
market-interest index.  Any increment pursuant to this paragraph shall not
exceed a ten per cent annual increase on the consideration paid for the
membership or share by the first occupant of the unit involved.



(3)  The value, as determined by the board of
directors of the corporation, of any improvements installed at the expense of
the member with the prior approval of the board of directors.



(4)  No other charges, fees, premiums, taxes, or
payments or exchanges of any kind may be imposed, assessed, or made a condition
of any transfer.



(b)  The articles of incorporation and bylaws
shall require the board of directors or corporate members to sell the stock
purchased as provided in subsection (a) to new resident shareholders at a price
which does not exceed the transfer value paid for the unit.  Upon termination
or dissolution of the corporation, the then existing stockholders shall be paid
an amount that does not exceed the transfer value of their share.



(c)  Amendment of the articles of incorporation
shall require the affirmative vote of at least two-thirds of the resident
shareholders.



(d)  The articles of incorporation and bylaws
shall require:



(1)  The corporation issue only one class of stock;



(2)  One share shall be issued for each dwelling unit
in the cooperative;



(3)  Voting rights shall be based upon one share, one
vote; and



(4)  Each shareholder shall be a resident of the unit
represented by the share held.



(e)  The articles of incorporation and bylaws
shall require a provision that there shall not be any social, political,
racial, or religious discrimination nor any discrimination on the basis of age,
sex, marital, or parental status, subject only to limitations under applicable
federal, state, or county laws, rules, or regulations. [L 1987, c 105, pt of
§1; am L 1988, c 373, §24]