48-69-113 - Accounting of revenues Distribution of excess revenues Prepayment.
48-69-113. Accounting of revenues Distribution of excess revenues Prepayment.
(a) With respect to the supplying or furnishing of service by a G&T cooperative, there shall be an accounting of the revenues for any fiscal year that are in excess of the amount necessary to:
(1) Defray expenses of the G&T cooperative, including the operation and maintenance of its facilities during the fiscal year;
(2) Pay interest and principal obligations of the G&T cooperative coming due in the fiscal year;
(3) Finance, or to provide a reserve to finance, the construction or acquisition by the G&T cooperative of additional facilities to the extent determined by the board;
(4) Provide a reasonable reserve for working capital;
(5) Provide a major maintenance reserve; and
(6) Provide a reserve for the payment of indebtedness of the G&T cooperative maturing more than one (1) year after the date of the incurrence of the indebtedness in an amount up to the maximum amount of interest and principal payments to be made during any future fiscal year.
(b) Any funds in excess of revenues as described in subsection (a) shall be distributed by the cooperative to patrons in the manner provided for in the bylaws, either:
(1) As patronage refunds prorated in accordance with the patronage of the cooperative by the respective patrons paid for during or with respect to the fiscal year;
(2) By way of general reductions of rates or other charges;
(3) By crediting patrons with having furnished the cooperative capital in amounts equal to the amounts of their patronage not refunded pursuant to subdivision (b)(1) and not used for general reduction of rates or other changes pursuant to subdivision (b)(2), all or any portion of the capital to be redeemable and to be retired at such later time as the board in its sole discretion determines that such will not impair the cooperative's financial condition and will be in the cooperative's best interests; or
(4) By any combination of the methods described in subdivisions (b)(1)-(3).
(c) Nothing contained in subsection (a) shall be construed to prohibit the payment by a cooperative of all or any part of its indebtedness prior to the date when the payment becomes due.
[Acts 2009, ch. 475, § 1.]