3264                                          LAWS OF MARYLAND                                      Ch. 834

(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:

(I) OWNS AN EQUITABLE INTEREST, INCLUDING A
COOPERATIVE INTEREST, IN A UNIT PRIOR TO ITS INITIAL SALE TO A
MEMBER OF THE PUBLIC;

(II) IS AN OFFICER OR DIRECTOR OF A COOPERATIVE

HOUSING CORPORATION BEFORE THE INITIAL SALE OF A COOPERATIVE
INTEREST TO A MEMBER OF THE PUBLIC; EXERCISES CONTROL OVER
COOPERATIVE INTERESTS BEFORE THEY ARE TRANSFERRED TO INITIAL
PURCHASERS, EXCLUDING MANAGEMENT AGENTS AND SALES AGENTS ACTING
IN THEIR CAPACITIES AS SUCH; OR

(III) RECEIVES A MATERIAL PORTION OF THE SALES
PROCEEDS, NOT INCLUDING CUSTOMARY BROKERAGE COMMISSIONS OR
PAYMENT FOR INDEBTEDNESS TO AN INSTITUTIONAL BANKER, FROM THE
INITIAL SALE OF A COOPERATIVE INTEREST TO A MEMBER OF THE PUBLIC;
OR

(IV) BEARS A RELATIONSHIP SPECIFIED IN SECTION
267(B) OR SECTION 707(B)(1) OF THE INTERNAL REVENUE CODE TO A
PERSON DESCRIBED IN THIS SUBSECTION.

(2) "DEVELOPER" DOES NOT INCLUDE A COOPERATIVE
HOUSING CORPORATION.

(J) "INITIAL PURCHASER" MEANS A MEMBER OF THE PUBLIC, NOT
AN AFFILIATE OF OR A SUCCESSOR TO THE DEVELOPER, WHO, FOR VALUE,
ACQUIRES A COOPERATIVE INTEREST AS PART OF THE INITIAL SALE OF A
COOPERATIVE INTEREST WHICH IS USED FOR RESIDENTIAL PURPOSES.

(K) "INITIAL SALE" MEANS THE FIRST TRANSFER OF A
COOPERATIVE INTEREST TO AN INITIAL PURCHASER.

(L) "MEMBER" MEANS A PERSON WHO OWNS A COOPERATIVE
INTEREST.