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can a coop give shareholders some money back?

Started by bseller
about 16 years ago
Posts: 7
Member since: Mar 2009
Discussion about
A friend told me today that their co-op has given them each a check in the amount of a months maintenence payement as they have a lot in reserve. Its a small building, I think they have about 10 apartments. I am wondering if this is something thats allowed? I never heard of it before...
Response by NWT
about 16 years ago
Posts: 6643
Member since: Sep 2008

I've seen co-op underlying mortgage agreements that address the issue, just as they require the co-op to collect sufficient maintenance. In other words, you can't pillage the co-op of its cash in order to screw the lender.

If no mortgage, it's probably covered in the governing docs, like everything else.

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Response by 007
about 16 years ago
Posts: 195
Member since: Nov 2008

yes it is possible. we did it several years ago. we sold an apartment owned by the coop and forgave owners maintenance for few months.

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