§ 31-c. Tenant-cooperators; application of shares. 1. No mutual
company shall require a current tenant-cooperator to use cash, loan or
mortgage to make an initial payment for shares that would entitle the
tenant-cooperator to occupancy upon transfer to another dwelling unit
within the mutual company's facilities, but instead, subject to
subdivision two of this section, shall first allow the tenant-cooperator
the option to apply the value of his or her shares and equity in the
mutual company toward any consideration required to be paid for such
shares.

2. Within one hundred eighty days of the effective date of this
section, the commissioner and the supervising agency, as the case may
be, shall each promulgate regulations authorizing a current
tenant-cooperator, entitled to occupancy by reason of ownership of
shares in such mutual company, to apply all or a portion of the value of
his or her shares and equity in the mutual company toward any
consideration required to be paid for shares which would entitle the
tenant-cooperator to occupancy of another unit owned and operated by the
mutual company, regardless of the sale of the tenant-cooperator's
current shares in such mutual company, but subject to such other charges
due and owing to the mutual company for which such tenant-cooperator may
be liable. Any dispute thereof may be determined by a court of
appropriate jurisdiction and any requirement to waive such right as a
condition of ownership or transfer shall be void as against public
policy.