805 ILCS 105/109.10
2021 Illinois Compiled Statutes|Chapter 805 - BUSINESS ORGANIZATIONS|805 ILCS 105/ - General Not For Profit Corporation Act of 1986.|Article 9 - Distributions

(805 ILCS 105/109.10) (from Ch. 32, par. 109.10)Sec. 109.10.     Distributions prior to dissolution.     (a)  The board of directors of a corporation may authorize, and  the corporation may make, distributions of its money,  property, or other assets, other than upon dissolution and  final liquidation, subject to the limitations of subsection  (d) of this Section, only:(1) To any person or organization who or which has  made payments to the corporation for goods or services, as a  fractional repayment of such payments, provided all such  persons or organizations in any category are repaid on an  equal pro rata basis; or(2) To any person or organization as a repayment of  his, her or its contribution of an amount not to exceed the  amount of the  contribution, provided that any assets held for any charitable,  religious, eleemosynary, benevolent, educational or similar purpose or held  upon a condition requiring return, shall continue to be so restricted.  The articles of incorporation  or the bylaws may provide that the membership rights of a  member cease upon the repayment, in whole, of the  contribution of such member.(b) Any payment or transfer of money, property or other  assets in furtherance of any of the purposes of the  corporation shall not be deemed a distribution for the  purposes of this Article and this Section shall not be  construed as limiting the purposes and powers of a  corporation as set forth in Article 3 of this Act.(c) All distributions by a corporation permitted by this  Section shall be at the option of the corporation only and  at such amount or amounts, within the period or periods, and  on such terms and conditions, not inconsistent with the  purpose of the corporation and this Act, as are stated in,  or fixed by the board of directors pursuant to authority  granted by, the articles of incorporation or the bylaws.(d) No distribution under subsection (a) may be made if,  after giving it effect:(1) The corporation would be insolvent; or(2) The net assets of the corporation would be less  than zero; or(3) The corporation would be rendered unable to carry  on its corporate purposes.(e) The board of directors may base a determination that a  distribution may be made under subsection (d) either on  financial statements prepared on the basis of accounting  practices and principles that are reasonable in the  circumstances or on a fair valuation or other method that is  reasonable in the circumstances.(f) The effect of a distribution under subsection (d) is  measured as of the earlier of:(1) The date of its authorization if payment occurs  within 120 days after the date of authorization or the date  of payment if payment occurs more than 120  days after the date of authorization; or(2) In the case of a repayment of a contribution in  which the membership rights of a member cease, the earlier  of (i) the date money or other property is transferred or  debt incurred by the corporation or (ii) the date the  membership rights of the member cease.    (Source: P.A. 84-1423.)