(a) The certificate of incorporation may provide that members, upon or
subsequent to admission, shall make capital contributions in the amount
specified therein. The requirement of a capital contribution may apply
to all members, or to the members of a single class, or to members of
different classes in different amounts or proportions.
(b) A member's capital contribution shall consist of money or other
property, tangible or intangible, or labor or services actually received
by or performed for the corporation or for its benefit or in its
formation or reorganization, or a combination thereof. In the absence of
fraud in the transaction, the judgment of the board as to the value of
the consideration received by the corporation shall be conclusive.
(c) Neither obligations of the member for future payments nor future
services shall constitute payment or part payment of a member's capital
contribution.
(d) A member's capital contribution shall be evidenced by a capital
certificate which shall be non-transferable, except that the certificate
of incorporation of a non-charitable corporation may provide that its
capital certificates, or some of them, may be transferable to other
members with the consent of the corporation upon specified terms and
conditions.
(e) A member's capital contribution shall not be repaid or redeemed by
the corporation except upon dissolution of the corporation or upon
redemption of the capital certificate as provided in this chapter. A
corporation may provide in its certificate of incorporation that its
capital certificates, or some of them, shall be redeemable, in whole or
in part, at the option of the corporation only, at such price or prices
(not to exceed the amount of the capital contribution), within such
period or periods, and on such terms and conditions, not inconsistent
with this chapter, as are stated in the certificate of incorporation.
Structure New York Laws
NPC - Not-For-Profit Corporation
501 - Stock and Shares Prohibited; Membership Certificates Authorized.
502 - Members' Capital Contributions.
505 - Subvention Certificates.
506 - Bonds and Security Interests.
507 - Fees, Dues and Assessments; Fines and Penalties.
508 - Income From Corporate Activities.
509 - Purchase, Sale, Mortgage and Lease of Real Property.
510 - Disposition of All or Substantially All Assets.
511 - Petition for Court Approval.
511-A - Petition for Attorney General Approval.
513 - Administration of Assets Received for Specific Purposes.
514 - Delegation of Investment Management.
515 - Dividends Prohibited; Certain Distributions of Cash or Property Authorized.
516 - Distributions to Members Upon Termination of Membership.
519 - Annual Report of Directors.
519-A - Annual Reports for Certain Transactions Required.
521 - Liability for Failure to Disclose Required Information.