PART I. GENERAL PROVISIONS

 

§421C-1  Definitions.  Except where thecontext requires otherwise, wherever used in this chapter:

"Articles" means the articles ofincorporation.

"Association" means a consumercooperative association.

"Consumer cooperative association"means a group enterprise, organized on a cooperative basis and incorporatedunder this chapter such that:

(1)  Each member has one vote and only one vote,except as may be altered in the articles or bylaws of a secondary cooperativeby provision for voting by member organizations;

(2)  The maximum rate at which any return is paid onshare or membership capital is limited; and

(3)  The allocation or distribution of net savingsafter making provision for such separate funds as may be required or speciallypermitted by statute, articles, or bylaws, is made to member patrons or to allpatrons, in proportion to their patronage; or is allocated in a manner whichbenefits the general welfare of all of the members of the association.

"Directors" means the board ofdirectors of an association.

"Electric utility cooperativeassociation" means a consumer cooperative association that provideselectric utility service as a public utility.

"Interest-dividends" means the returnon share, membership fee, or membership capital of the association which islimited in accordance with section 421C-19.

"Member" means a member of either astock or a nonstock association in accordance with section 421C-3.

"Net savings" means the total incomeof an association minus the costs of operation.

"Patronage refund" means the amountreturned to the patrons in proportion to their patronage in accordance withsection 421C-25.

"Non-escheat patronage refunds" meanspatronage refunds from an electric utility cooperative association for which afive-year period has elapsed since the patronage refunds were made and forwhich no claims have been made by the patrons to whom the refunds wereallocated.

"Share or membership capital" refersto the capital paid into an association by a member in accordance with section421C-3.

"Surplus funds" means funds of anassociation which may be utilized for capital improvements, emergencies, orother expenditures of the association upon the authorization of the directorsas specified in section 421C-25 or as otherwise specified in this chapter.

"Unclaimed property" includes moneys,checks, drafts, interest, dividends, income, credit balances, overpayments,deposits, refunds, and non-escheat patronage refunds. [L 1982, c 97, pt of §2;am L 1984, c 217, §2; am L 1988, c 373, §21; am L 2005, c 52, §2]