§ 15-12-1-30 — Distribution of dividends

(a) The net earnings or savings of an
association from the association's marketing activities, purchasing
activities, or marketing and purchasing activities that exceed the
amounts needed to restore a deficit, to pay dividends on outstanding
stock, or to establish or provide for additions to reserves or surplus, or
both, must be distributed, unless otherwise provided by the bylaws, to
the patrons of the association on a patronage basis. If provided in the
bylaws, the distribution of the net earnings or savings from the
marketing activities, purchasing activities, or marketing and purchasing
activities that exceed the amounts needed to restore a deficit, to pay
dividends on outstanding stock, or to establish or provide for additions
to reserves or surplus, or both, may be made at different rates for
members and nonmembers, or may be restricted only to members, or
only to members and those patrons with whom the association has
contracted to pay patronage refunds, but all the distributions must be
made on a patronage basis.
(b) If the reserves or surplus of an association are distributed at any
time, the reserves or surplus must be distributed on a patronage basis
as provided by the bylaws of the association.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-7-1-13(f); subsection (b) formerly 15-7-1-13(g).]

Legislative History

As added by P.L.2-2008, SEC.3.