Current through Pa Acts 2024-53, 2024-56 through 2024-79
Section 9132 - Distributions prohibited; compensation and other permitted payments(a) General rule.--Except as provided in subsection (b), anonprofit association may not pay dividends or make distributions to a member or manager.(b) Permitted payments.--A nonprofit association may:(1) pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;(2) confer benefits on or make contributions to a member or manager in conformity with its nonprofit purposes;(3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles;(4) repay indebtedness to a member or manager; and(5) make distributions of property to members upon winding up and termination to the extent permitted by section 9135 (relating to winding up).Added by P.L. 476 2013 No. 67, § 50, eff. 9/7/2013.