§ 13 §1645 — Allocation and distribution of net savings

Maine § 13 §1645

• Jurisdiction: Maine
• Title 13: CORPORATIONS
• Part 2: CORPORATIONS WITHOUT CAPITAL
• Ch. 85: COOPERATIVES

Text

At least once a year the members or the directors, or both, as the articles or bylaws may provide, shall apportion the net savings of the association in the following order.
1.
Reserve fund.
Not less than 10% shall be placed in a reserve fund until such time as the fund shall equal at least 50% of the paid-up capital; and such fund may be used in the general conduct of the business. The amounts apportioned to the reserve fund shall be allocated on the books of the association on a patronage basis, or in lieu thereof, the books and records of the association shall afford a means for doing so in order that upon dissolution or earlier, if deemed advisable, such reserves may be returned to the patrons who have contributed the same, subject to the limitations of the section on dissolution herein;
2.
Return upon capital.
A return upon capital, within the limitations of sections 1507, 1641 to 1644, 1691 and 1692, may be paid upon share capital; but such return upon capital may be paid only out of the surplus of the aggregate of the assets over the aggregate of the liabilities, including in the latter the amount of the capital stock, after deducting from such aggregate of the assets the amount by which such aggregate was increased by unrealized appreciation in value or revaluation of fixed assets.
3.
Educational fund.
A portion of the remainder, as determined by the articles or bylaws, shall be allocated to an educational fund to be used in teaching cooperation, and a portion may be allocated to funds for the general welfare of the members of the association.
4.
Patronage.
The remainder must be allocated at the same uniform rate to all patrons of the association in proportion to their individual patronage:

Legislative History

RR 2025, c. 1, Pt. E, §8 (COR).