§ 5-650.1

Maryland § 5-650.1

• Jurisdiction: Maryland
• Article gca: Corporations and Associations
• Title: 5

Text

(a) In this section, “nonescheat capital credits” means money:

(1) Due to any past member of a cooperative in retirement of capital allocated on a patronage basis to the account of the past member for amounts received and receivable by the cooperative in excess of operating costs and expenses from the date of the cooperative’s incorporation in the State;

(2) For which at least 5 years have passed since the credits were retired; and

(3) That has not been claimed by the past member.

(b) A cooperative may use nonescheat capital credits only to:

(1) Assist members of the cooperative in accordance with the powers granted to the cooperative under § 5–607 of this subtitle; or

(2) Make donations to nonprofit, charitable organizations approved by the cooperative’s board of directors.

(c) Nothing in this section may be construed to relieve a cooperative of the obligation to refund nonescheat capital credits on application of a past member.