Section 5-526 - Operating on nonprofit basis.
§ 5-526. Operating on nonprofit basis.
(a) As selling agent.-
(1) A cooperative may operate as an agent to sell the products of its members or nonmember patrons on a nonprofit basis by contracting to pay the members or nonmember patrons the resale price for products sold by them to or through the cooperative, less a uniform charge to cover the expenses involved in the handling of these products.
(2) The resale price shall be:
(i) The actual resale price; or
(ii) A price based on the average price during any period for products of the same type and quality.
(3) The uniform charge for expenses shall be:
(i) Specified in the contract;
(ii) Made otherwise ascertainable; or
(iii) Left for determination by the directors.
(b) As purchasing or servicing agent.- A cooperative desiring to purchase goods or obtain or perform services under this subtitle may operate on a nonprofit basis in a manner similar to that described in this section.
[An. Code 1957, art. 23, § 372; 1975, ch. 311, § 2; 1976, ch. 694.]