Skip to main content
Find a Lawyer

Hawaii Revised Statutes Division 2. Business § 421H-4

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) The corporate equity shall not be used for distribution to members, but only for the following purposes, and only to the extent authorized by the board, subject to the provisions and limitations of the charter of incorporation and bylaws:

(1) For the benefit of the corporation or the improvement of the real property, including its use as collateral for loans.

(2) For expansion of the corporate equity by acquisition of additional interest in real property for purposes consistent with its charter.

(3) For public benefit or charitable purposes.

(b) Upon sale of the property, dissolution of the corporation, or occurrence of a condition requiring termination of the trust or reversion of title to the real property, the corporate equity shall be required by the charter, bylaws, or trust or title conditions to be paid out, or title to the property transferred, subject to outstanding encumbrances and liens, and the transfer value of membership shares, for use for public or charitable purposes.

(c) The membership shares and cooperative fees are interests in real property for purposes of:

(1) Cooperative housing corporations under section 216 of the federal Internal Revenue Code of 1954, as amended; and

(2) Exemption from state general excise tax under section 237-24(16).

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Hawaii Revised Statutes Division 2. Business § 421H-4 - last updated January 01, 2025 | https://codes.findlaw.com/hi/division-2-business/hi-rev-st-sect-421h-4/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard