§ 7-58-1208 — Distribution of assets in winding up

(1) In winding up a limited
cooperative association's business, the association shall apply its assets to
discharge its obligations to creditors, including members that are creditors. The
association shall apply any remaining assets to pay in money the net amount
distributable to members in accordance with their right to distributions under
subsection (2) of this section.

(2) Unless the articles or bylaws otherwise provide, in this subsection (2),
financial interests means the amounts recorded in the names of members in the
records of a limited cooperative association 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 but not yet paid to members.
Unless the articles or bylaws otherwise provide, each member is entitled to a
distribution from the association of any remaining assets in the proportion of the
member's financial interests to the total financial interests of the members after all
other obligations are satisfied.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 807, � 1, effective April 2, 2012.