§ 7-8-26 - Apportionment of net savings.
SECTION 7-8-26
§ 7-8-26 Apportionment of net savings.– At least once a year the members and/or directors, as provided in the articlesof association or by-laws, shall apportion the net savings of the association,after payment of return on capital, and after deduction of sums retained forproper corporate purposes, which may include an educational fund and a fund forthe general welfare of the members, among member patrons, or to all patrons ofthe association in proportion to their patronage. However:
(1) Not less than ten percent (10%) shall be placed in areserve fund until such time as the fund equals at least fifty percent (50%) ofthe paid up capital, and the fund may be used in the general conduct ofbusiness.
(2) Sums allocated to subscribers and nonmembers as a resultof the apportionment need not be paid in cash but may, if the articles ofassociation or bylaws provide, be credited on the books of the associationtoward the payment of the minimum amount of share or membership capitalsubscribed for, or necessary for membership.
(3) If, within any period of time specified in the bylaws:
(i) Any subscriber has not accumulated and paid in the amountof capital subscribed for, or necessary for membership, whichever is specifiedin the articles of association or bylaws, or
(ii) Any nonmember has not accumulated in his or her accountthe sum necessary for membership, or has accumulated the sum but neitherrequests nor agrees to become a member, or fails to comply with any provisionsof the bylaws for admission to membership, then the amount accumulated or paidin may, if the articles of association or bylaws provide, be added to thegeneral funds of the association, and subsequently no member, subscriber, ornonmember has any further rights in the paid in capital or accumulated credits.