17-4623. Refunds to members.
17-4623
17-4623. Refunds to members.
Revenues of a cooperative for any fiscal year in excess of the amount
thereof necessary:
(a) To defray the expenses of the operation and maintenance of the
facilities of the cooperative during such fiscal year;
(b) to pay interest and principal obligations of the cooperative coming
due in such fiscal year;
(c) to finance, or to provide a reserve for the financing of, the
construction or acquisition by the cooperative of additional facilities to
the extent determined by the board of trustees;
(d) to provide a reasonable reserve for working capital;
(e) to provide a reserve for the payment of indebtedness of the
cooperative in an amount not less than the total of the interest and
principal payments in respect thereof required to be made during the next
following fiscal year shall, unless otherwise determined by a vote of the
members, be distributed by the cooperative to its members and to other
persons to whom the cooperative supplies electric energy or other
services, as patronage refunds prorated in accordance with the patronage of
the cooperative by the respective members and such other persons, paid for
during such fiscal year: Provided, however, That such distribution
shall not be made to any such other person until he has become a member of
the cooperative.
If such other person does not become a member of the cooperative within
one year after the amount of his distributive share or accumulated
distributive shares equal the membership fee required by the bylaws of the
cooperative, or if no membership fee is required, within two years after
the declaration of any such patronage refund, he shall cease to be entitled
to such share or shares. Nothing herein contained shall be construed to
prohibit the payment by a cooperative of all or any part of its
indebtedness prior to the date when the same shall become due.
History: L. 1941, ch. 185, § 23; June 30.