54171-54182

FOOD AND AGRICULTURAL CODE
SECTION 54171-54182




54171.  An association may engage in any activity in connection with
the marketing, selling, preserving, harvesting, drying, processing,
manufacturing, canning, packing, grading, storing, handling, or
utilization of any product which is produced or delivered to it by
its members; or the manufacturing or marketing of the byproducts of
any such product; or any activity in connection with the purchase,
hiring, or use by its members of supplies, machinery, or equipment,
or in the financing of any such activities; or in any one or more of
the activities which are specified in this section.



54172.  An association may borrow without limitation as to amount of
corporate indebtedness or liability and may make advances to
members.


54173.  An association may act as the agent or representative of any
member or members in any of the activites which are mentioned in
Section 54171 or 54172.


54174.  An association may purchase or otherwise acquire, hold, own,
and exercise all rights of ownership in, sell, transfer, pledge, or
guarantee the payment of dividends or interest on, or the retirement
or redemption of, shares of the capital stock or bonds of any
corporation or association which is engaged in any related activity
or in the warehousing, handling, marketing, packing, manufacturing,
processing, or preparing for market of any product which is handled
by the association.



54175.  An association may establish reserves and invest the funds
of the reserves in bonds or in such other property as may be provided
in the bylaws.


54176.  An association may buy, hold, and exercise all privileges of
ownership, over such real or personal property as may be necessary
or convenient for the conduct and operation of, or incidental to, any
of the business of the association.



54177.  An association may levy assessments in the manner and in the
amount as may be provided in its bylaws.



54178.  An association may do each and every thing which is
necessary, suitable, or proper for the accomplishment of any one of
the purposes, or the attainment of any one or more of the objects,
which are enumerated in this article; or conducive to or expedient
for the interest or benefit of the association; and contract
accordingly; exercise and possess all powers, rights, and privileges
which are necessary or incidental to the purposes for which the
association is organized or to the activities in which it is engaged;
and, in addition, any other rights, powers, and privileges which are
granted by the laws of this state to ordinary corporations, except
such as are inconsistent with the express provisions of this chapter;
and do any such thing anywhere.



54179.  An association may use or employ any of its facilities for
any purpose, provided the proceeds which arise from such use and
employment shall go to reduce the cost of operation for its members.
The products which are handled for, or the services, machinery,
equipment, or supplies or facilities which are furnished to,
nonmembers shall not, however, exceed in value the products which are
handled for, or the services, merchandise, or facilities which are
supplied to, members during the same period.



54180.  An association may organize, form, operate, own, control,
have an interest in, own stock of, or be a member of any other
corporation, with or without capital stock, which is engaged in
preserving, drying, processing, canning, packing, storing, handling,
shipping, utilizing, manufacturing, marketing, or selling of any
product which is handled by the association, or the byproducts of any
such product.
   If such corporations are warehousing corporations, they may issue
legal warehouse receipts to the association against the commodities
which are delivered by it, or to any other person and such legal
warehouse receipts shall be considered as adequate collateral to the
extent of the usual and current value of the commodity which they
represent. If such warehouse is licensed or licensed and bonded
pursuant to the laws of this state or the United States, its
warehouse receipt which is delivered to the association on any
commodity of the association or its members, or delivered by the
association or its members, shall not be challenged or discriminated
against because of ownership or control, wholly or in part, by the
association.
   Any two or more corporations which are organized pursuant to this
section may be merged into one such constituent corporation or
consolidated into a new corporation, such merger or consolidation to
be made in the manner that is prescribed by the general laws of the
state which cover domestic corporations.



54181.  Any association may, upon resolution adopted by its board of
directors, enter into all necessary and proper contracts and
agreements and make all necessary and proper stipulations, agreements
and contracts and arrangements with any other cooperative or other
corporation, or association, which is formed in this or in any other
state, for the cooperative and more economical carrying on of its
business or any part of its business.
   Any two or more associations may, by agreement between them, unite
in employing and using, or may separately employ and use, the same
personnel, methods, means, and agencies for carrying on and
conducting their respective business.



54182.  (a) Any association organized and operating pursuant to this
chapter or pursuant to similar laws of any other state, the District
of Columbia, or the United States, which acts for its members as a
producer marketing or bargaining association in its dealings with a
person licensed pursuant to Chapter 6 (commencing with Section 55401)
or Chapter 7 (commencing with Section 56101) in connection with any
product produced by its members, may, either in its own name or in
the name of its members, assert all the rights of a producer under
either of these chapters with respect to any of those products.
   (b) Subdivision (a) does not apply to any late charges claimed
under Section 55881 on any agricultural products delivered or
scheduled to be delivered prior to January 1, 1986.