31A-8-406 - Distribution by nonprofit organizations. - Utah Statutes

31A-8-406. Distribution by nonprofit organizations.
A nonprofit organization may pay compensation in a reasonable amount to its members,trustees, or officers for services rendered, may make reasonable incentive payments to itsproviders, may confer benefits upon its members in conformity with its purposes, may payinterest on certificates of indebtedness issued by it evidencing capital contributions, and upondissolution or final liquidation may make distributions to its members as permitted by Title 16,Chapter 6a, Utah Revised Nonprofit Corporation Act, and no such payment, benefit, ordistribution shall be considered to be a dividend or distribution of income. NotwithstandingSection 31A-8-105, and in addition to the powers granted in that section, a nonprofit organizationhas all powers conferred upon it by Section 16-6a-302.

Amended by Chapter 300, 2000 General Session