Title 10 - Corporations and Associations

Chapter 36, Distributions - Nonprofit Corporations, Sec. 10-11301-10-11302

Authorized distributions

Article 1, General Provisions, § 10-11302

Source: Arizona Revised Statutes

  1. A corporation may purchase its memberships if after the purchase is completed both:
    1. The corporation would be able to pay its debts as the debts become due in the usual course of its activities.
    2. The corporation’s total assets would at least equal the sum of its total liabilities.
  2. A corporation may make distributions on dissolution that conform to chapter 37 of this title.
  3. A corporation may make distributions to members who are domestic or foreign nonprofit corporations if after the distribution is made both:
    1. The corporation would be able to pay its debts as the debts become due in the usual course of its activities.
    2. The corporation’s total assets would at least equal the sum of its total liabilities.

Also in: Chapter 36, Sec. 10-11301-10-11302

View all Nonprofit Corporation Act statutes.

Source: This content is sourced from the online version of the Arizona Revised Statutes located at www.azleg.gov.

Disclaimer: These statutes are provided as a courtesy by CHDB Law LLP. CHDB Law cannot guarantee that the statutes set forth on the website or in our published guide will not be found to be defective by a court or other tribunal after the date the books or online material are published. The HOA Knowledge Base does not attempt to include every statute that could apply to a community association issue. There may be other statutes or applicable laws that have a bearing on a particular legal issue confronted by a community association. These statutes are provided as a reference only. If a particular legal issue is confronted by a community association, the association should seek legal advice from competent attorneys.

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