Building undertaken by cooperative
2019, c.24, s.191
13(1)Where building or construction is undertaken by any of such cooperatives without the approval of the Corporation, the Corporation may withhold advances to the cooperative.
13(2)Except as provided in this section, a cooperative that is subject to the provisions of this Act and is indebted to the Corporation shall not sell, transfer or assign any of its real property unless it has the consent of the Corporation.
13(3)A cooperative that is subject to the provisions of this Act, with the consent of the Corporation, may sell and convey to a member of the cooperative the dwelling and lot that the member holds under a lease agreement with the cooperative, if
(a)
the member pays to the cooperative all amounts that are due and payable by the member to the cooperative,
(b)
the member surrenders to the cooperative all shares of the cooperative that have been issued to the member,
(c)
the member pays to the cooperative the balance of the principal sum expended by the cooperative for the purchase of the lot and for the construction of the dwelling, and
(d)
the sale is approved by a majority of not less than two-thirds of the members of the cooperative that are present at an annual or special meeting of the cooperative, and whose rent is not in arrears for three months or more.
13(4)Notwithstanding anything contained in this section to the contrary, the Corporation may permit a cooperative to convey to a member of that cooperative any land and dwelling that is leased by the member from the cooperative under a leasing agreement
(a)
where the member assumes any mortgage held by the Corporation on the land and dwelling leased by the member, or
(b)
where the member assumes a portion of any mortgage held by the Corporation on the lands and dwellings owned by the cooperative that is equal to the proportion that the value of the land and dwelling leased by the member is to the value of the lands and dwellings owned by the cooperative.
13(5)The Corporation if satisfied that
(a)
the cooperative and the member have complied with the provisions of subsections (3) and (4),
(b)
the cooperative has paid to the Corporation the amount paid by the member to the cooperative pursuant to paragraph (3)(c) and any other amount payable to the Corporation in respect of the dwelling and lot, and
(c)
the sale will not adversely affect the security of the Corporation,
shall give a partial release of mortgage releasing the dwelling and lot from the mortgage held by the Corporation.
1970, c.38, s.3; 1976, c.13, s.5; 2019, c.24, s.191