(a) General rule.-- Except as provided in subsection (b), a nonprofit association may not pay dividends or make distributions to a member or manager. (b) Permitted payments.-- A nonprofit association may: (1) pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered; (2) confer benefits on or make contributions to a member or manager in conformity with its nonprofit purposes; (3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; (4) repay indebtedness to a member or manager; and (5) make distributions of property to members upon winding up and termination to the extent permitted by section 9135 (relating to winding up).
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