§ 31-c. Tenant-cooperators; application of shares. 1. No mutual company shall require a current tenant-cooperator to use cash, loan or mortgage to make an initial payment for shares that would entitle the tenant-cooperator to occupancy upon transfer to another dwelling unit within the mutual company's facilities, but instead, subject to subdivision two of this section, shall first allow the tenant-cooperator the option to apply the value of his or her shares and equity in the mutual company toward any consideration required to be paid for such shares.

2. Within one hundred eighty days of the effective date of this section, the commissioner and the supervising agency, as the case may be, shall each promulgate regulations authorizing a current tenant-cooperator, entitled to occupancy by reason of ownership of shares in such mutual company, to apply all or a portion of the value of his or her shares and equity in the mutual company toward any consideration required to be paid for shares which would entitle the tenant-cooperator to occupancy of another unit owned and operated by the mutual company, regardless of the sale of the tenant-cooperator's current shares in such mutual company, but subject to such other charges due and owing to the mutual company for which such tenant-cooperator may be liable. Any dispute thereof may be determined by a court of appropriate jurisdiction and any requirement to waive such right as a condition of ownership or transfer shall be void as against public policy.