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Utah Revised Nonprofit Corporation Act

Utah Code Title 16, Chapter 6a

Click here for the current Nonprofit Corporation Act.

The below is not updated with new changes to the law after 2018!

16-6a-610.   Purchase of memberships.  

(1) Unless otherwise provided in the articles of incorporation or the bylaws, a nonprofit corporation may not purchase the membership of a member:
     (a) who resigns; or
     (b) whose membership is terminated.

(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:
            (i) its articles of incorporation or its bylaws; or
            (ii) agreement with the affected member.
     (b) A payment permitted under Subsection (2)(a) may not violate:
            (i) Section 16-6a-1301; or
            (ii) any other provision of this chapter. 

(3) A mutual benefit corporation may purchase a member's membership if, after the purchase is completed:
     (a) the mutual benefit corporation would be able to pay its debts as they become due in the usual course of its activities; and
     (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.

Enacted 2000, ch. 300.  Amended 2015, ch. 240, eff. May 15, 2015; 2017, ch. 358, eff. May 9, 2017.