Alabama § 10A-17-2.04
Full text of Alabama Code of Alabama § 10A-17-2.04, with citation guidance and answers to common questions.
§ 10A-17-2.04.
(a) A decentralized unincorporated nonprofit association may engage in profit-making activities. Profits from any activities shall be used in furtherance of, or set aside for, the nonprofit association’s common nonprofit purpose.
(b) Except as provided in subsection (c), a decentralized unincorporated nonprofit association may not make distributions to its members or administrators.
(c) A decentralized unincorporated nonprofit association may do all of the following:
(1) Pay reasonable compensation or reimburse reasonable expenses to its members, administrators, and persons outside of the nonprofit association for services rendered, including with respect to the administration and operation of the nonprofit association, which may include the provision of collateral for the self-insurance of the nonprofit association, voting, or participation in the nonprofit association’s operations and activities.
(2) Confer benefits on its members and administrators in conformity with its common nonprofit purpose.
(3) Repurchase membership interests to the extent authorized by the nonprofit association’s governing principles.
(4) Make distributions of property to members upon winding up and termination of the decentralized unincorporated nonprofit association to the extent permitted by Section 10A-17-2.26.
Frequently Asked Questions About Alabama § 10A-17-2.04
What does Code of Alabama § 10A-17-2.04 cover?
Section 10A-17-2.04 is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 10A-17-2.04?
A common citation format is "Code of Alabama § 10A-17-2.04" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 10A-17-2.04 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.