HARRY HUGHES, Governor                                       3231

Section 5-6B-01 through 5-6B-29 5-6B-19 5-6B-20 to be under
the new subtitle "Subtitle 6B. Maryland Cooperative
Housing Corporation Act"

Annotated Code of Maryland

(1985 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Corporations and Associations

SUBTITLE 6B. MARYLAND COOPERATIVE HOUSING CORPORATION ACT

5-6B-01.

(A)  IN THIS SUBTITLE THE FOLLOWING TERMS HAVE THE MEANINGS
INDICATED.

(B)  "ARTICLES OF INCORPORATION" MEANS THE CHARTER BY WHICH
A COOPERATIVE HOUSING CORPORATION BECOMES INCORPORATED UNDER THIS
ARTICLE.

(C)  "BLANKET ENCUMBRANCE" MEANS ANY CONTRACT BINDING ON A
COOPERATIVE HOUSING CORPORATION AND CREATING A LIEN OR SECURITY
INTEREST OR OTHER ENCUMBRANCE OR IMPOSING RESTRICTIONS ON ANY
REAL OR PERSONAL PROPERTY OWNED BY THE COOPERATIVE HOUSING
CORPORATION.

(D)  "BYLAWS" MEANS THE DOCUMENT WHICH DETAILS AND GOVERNS
THE INTERNAL ORGANIZATION AND OPERATION OF THE COOPERATIVE
HOUSING CORPORATION.

(E)  "CONVERSION" MEANS THE CREATION OF A COOPERATIVE
HOUSING CORPORATION FROM A PROPERTY WHICH WAS IMMEDIATELY
PREVIOUSLY A RESIDENTIAL RENTAL FACILITY.

(F)  "COOPERATIVE HOUSING CORPORATION" MEANS A DOMESTIC OR
FOREIGN CORPORATION QUALIFIED IN THIS STATE, EITHER STOCK OR
NONSTOCK, HAVING ONLY ONE CLASS OF STOCK OR MEMBERSHIP, IN WHICH
EACH STOCKHOLDER OR MEMBER, BY VIRTUE OF SUCH OWNERSHIP OR
MEMBERSHIP, HAS A COOPERATIVE INTEREST IN THE CORPORATION.

(G)  "COOPERATIVE INTEREST" MEANS THE OWNERSHIP INTEREST IN
A COOPERATIVE HOUSING CORPORATION WHICH IS COUPLED WITH A
POSSESSORY INTEREST IN REAL OR PERSONAL PROPERTY OR BOTH AND
EVIDENCED BY A MEMBERSHIP CERTIFICATE.

(H) "COOPERATIVE PROJECT" MEANS ALL THE REAL AND PERSONAL
PROPERTY IN THIS STATE OWNED OR LEASED BY THE COOPERATIVE HOUSING
CORPORATION FOR THE PRIMARY PURPOSE OF RESIDENTIAL USE.

(I) (1) "DEVELOPER" MEANS A PERSON WHO: