Authorized distributions

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  1. (a) A mutual benefit corporation may purchase its memberships if after the purchase is completed:

    1. (1) the corporation would be able to pay its debts as they become due in the usual course of its activities; and

    2. (2) the corporation's total assets would at least equal the sum of its total liabilities.

  2. (b) Corporations may make distributions upon dissolution in conformity with §§ 4-33-1401 et seq.

  3. (c) Corporations that are organized and operated as cooperative within the meaning of Subchapter T of the Internal Revenue Code of 1986, as amended, Internal Revenue Code §§ 1381 — 1388, may make distributions to their members in accordance with Subchapter T.


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