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

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

(2)  Accumulated interest, or an inflation allowanceat a rate which may be based on a cost-of-living index, an income index, ormarket-interest index.  Any increment pursuant to this paragraph shall notexceed a ten per cent annual increase on the consideration paid for themembership or share by the first occupant of the unit involved.

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

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

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

(c)  Amendment of the articles of incorporationshall require the affirmative vote of at least two-thirds of the residentshareholders.

(d)  The articles of incorporation and bylawsshall require:

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

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

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

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

(e)  The articles of incorporation and bylawsshall 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 applicablefederal, state, or county laws, rules, or regulations. [L 1987, c 105, pt of§1; am L 1988, c 373, §24]