Distributions prohibited — compensation and other permitted payments.

1. Except as otherwise provided in subsection 2 , an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager. 2. An unincorporated nonprofit association may do any of the following: a. Pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered. b. Confer benefits on a member or manager in conformity with its nonprofit purposes. c. Repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles. d. Make distributions of property to members upon winding up and termination to the extent permitted by section 501B.29 . 2010 Acts, ch 1112, §26, 33 Referred to in §501B.30