Sec. 33-235. Refunds to members.
Sec. 33-235. 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 and (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 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, which shall, in such case, be disposed of as determined
by a vote of the members. 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 becomes due.
(1949 Rev., S. 5343.)