ROBERT L. EHRLICH, JR., Governor

H.B. 878

(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) 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.

(2) "Developer" does not include a cooperative housing corporation.

(j) "ELECTRONIC TRANSMISSION" MEANS ANY FORM OF COMMUNICATION,
NOT DIRECTLY INVOLVING THE PHYSICAL TRANSMISSION OF PAPER, THAT CREATES
A RECORD THAT:

(1)      MAY BE RETAINED, RETRIEVED, AND REVIEWED BY A RECIPIENT OF
THE COMMUNICATION; AND

(2)      MAY BE REPRODUCED DIRECTLY IN PAPER FORM BY A RECIPIENT
THROUGH AN AUTOMATED PROCESS.

(K) "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)] (L) "Initial sale" means the first transfer of a cooperative interest to an
initial purchaser.

[(l)] (M) "Member" means a person who owns a cooperative interest.

[(m)] (N) "Membership certificate" means:

(1) A document, including a stock certificate issued by a cooperative
housing corporation, evidencing ownership of a cooperative interest; or

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