16-16-1207 - Distribution of assets in winding up limited cooperative association.
16-16-1207. Distribution of assets in winding up limited cooperative association.
(1) In winding up a limited cooperative association's business, the association shall applyits assets to discharge its obligations to creditors, including members that are creditors. Theassociation shall apply any remaining assets to pay in money the net amount distributable tomembers in accordance with their right to distributions under Subsection (2).
(2) Unless the organic rules otherwise provide, in this Subsection (2) "financial interests"means the amounts recorded in the names of members in the records of a limited cooperativeassociation at the time a distribution is made, including amounts paid to become a member,amounts allocated but not distributed to members, and amounts of distributions authorized butnot yet paid to members. Unless the organic rules otherwise provide, each member is entitled toa distribution from the association of any remaining assets in the proportion of the member'sfinancial interests to the total financial interests of the members after all other obligations aresatisfied.
Enacted by Chapter 363, 2008 General Session