17-4623.   Refunds to members.Revenues of a cooperative for any fiscal year in excess of the amountthereof necessary:

      (a)   To defray the expenses of the operation and maintenance of thefacilities of the cooperative during such fiscal year;

      (b)   to pay interest and principal obligations of the cooperative comingdue in such fiscal year;

      (c)   to finance, or to provide a reserve for the financing of, theconstruction or acquisition by the cooperative of additional facilities tothe 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 thecooperative in an amount not less than the total of the interest andprincipal payments in respect thereof required to be made during the nextfollowing fiscal year shall, unless otherwise determined by a vote of themembers, be distributed by the cooperative to its members and to otherpersons to whom the cooperative supplies electric energy or otherservices, as patronage refunds prorated in accordance with the patronage ofthe cooperative by the respective members and such other persons, paid forduring such fiscal year: Provided, however, That such distributionshall not be made to any such other person until he has become a member ofthe cooperative.

      If such other person does not become a member of the cooperative withinone year after the amount of his distributive share or accumulateddistributive shares equal the membership fee required by the bylaws of thecooperative, or if no membership fee is required, within two years afterthe declaration of any such patronage refund, he shall cease to be entitledto such share or shares. Nothing herein contained shall be construed toprohibit the payment by a cooperative of all or any part of itsindebtedness prior to the date when the same shall become due.

      History:   L. 1941, ch. 185, § 23; June 30.