Nonprofit Mutual Benefit Corp. Law › CHAPTER 4. Distributions [7410 - 7420] › ARTICLE 1. Limitations [7410 - 7414]

(Amended by Stats. 2022, Ch. 617, Sec. 60. (SB 1202) Effective January 1, 2023.)
Text current as of August 17, 2026, per California Legislative Information.

Neither a corporation nor any of its subsidiaries shall purchase or redeem a membership of the parent or subsidiary if the articles of the corporation contain a provision authorized by subparagraph (B) of paragraph (4) of subdivision (a) of Section 7132 and such corporation or the subsidiary making the purchase or redemption is, or as a result thereof would be, likely to be unable to meet the obligations resulting from such article provision.

Related sections: § 7132

The text of the Nonprofit Mutual Benefit Corporation Law is provided for reference and convenience only, from the California Legislative Information website (leginfo.legislature.ca.gov). It is not legal advice, and the official version of California statutes is published by the state. Statutes may have been amended after the “current as of” date shown above. Consult counsel regarding the application of any statute to your association.