§ 7-8-2 - Definitions.
SECTION 7-8-2
§ 7-8-2 Definitions. – As used in this chapter, unless the context otherwise requires:
(1) "Association" means any corporation formed under thischapter.
(2) "Capital," in the case of an association formed withoutcapital stock, means the aggregate amount of consideration for which the totalnumber of memberships in the association were issued.
(3) "Cooperative basis," as applied to any incorporated orunincorporated group referred to in these provisions, means that:
(i) Each member has only one vote, except as is altered inthe articles of association or bylaws by provision for voting by memberorganizations. However, voting by member organizations shall not be on thebasis of the number of shares held by the organizations.
(ii) The maximum rate of return on share or membershipcapital is not more than eight percent (8%) per year.
(iii) The net savings, or net income, after making provisionfor payment of return on capital, and for any separate funds and purposes thatare not inconsistent with its cooperative character, are allocated ordistributed to member patrons, or to all patrons, in proportion to theirpatronage.
(4) "Member" means not only a member in a nonshareassociation but also a member in a share association.
(5) "Membership" means, in the case of a share association,the status whereby a shareholder becomes entitled to all the rights, including,but not limited to, the right of voting and of receiving dividends on shares,and apportionment of net savings in cash, which accrue to him or her under thearticles of association and bylaws upon the acquisition of the minimum numberof shares of stock required by the articles of association for membership andupon fulfillment of the eligibility requirements of the association.
(6) "Par value," in the case of membership in an associationformed without shares, means the consideration, in terms of money, for whichthe membership was issued.