Vermont § 1605 - Net income; apportionment

§ 1605. Net income; apportionment

• (a) Annually, the board of directors of a cooperative housing corporation may apportion
  the remainder of the net income in one or more of the following ways: (1) as a reserve fund for the general operation of the business; (2) as a dividend not to exceed six percent per annum on invested capital; and (3) as an equitable distribution or refund to all members in proportion to their proprietary
  lease payment, except that the distribution or refund to members shall first be credited
  to the member’s account to pay off the purchase price of his or her cooperative interest
  and any amounts owed to the cooperative housing corporation as a result of cure by
  the cooperative housing corporation of any default in the member’s obligations as
  described in subdivision 1599(5) of this title. (b) This section shall not prevent a cooperative housing corporation from disposing of
  the net income by reducing the cost of facilities or services or by applying such
  net income otherwise for the common benefit of members. (c) This section shall not prevent a cooperative housing corporation from adopting a system
  by which the payment of net income is deferred, nor from adopting a system in which
  the net savings distributed are partly in cash and partly in equity interests or certificates
  of indebtedness. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988.)