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

"Articles" means the articles of incorporation.

"Association" means a consumer cooperative association.

"Consumer cooperative association" means a group enterprise, organized on a cooperative basis and incorporated under 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 cooperative by provision for voting by member organizations;

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

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

"Directors" means the board of directors of an association.

"Electric utility cooperative association" means a consumer cooperative association that provides electric utility service as a public utility.

"Interest-dividends" means the return on share, membership fee, or membership capital of the association which is limited in accordance with section 421C-19.

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

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

"Patronage refund" means the amount returned to the patrons in proportion to their patronage in accordance with section 421C-25.

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

"Share or membership capital" refers to the capital paid into an association by a member in accordance with section 421C-3.

"Surplus funds" means funds of an association which may be utilized for capital improvements, emergencies, or other expenditures of the association upon the authorization of the directors as 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]



Previous Vol08_Ch0401-0429 Next