§ 53-4-1 — Definitions

Unless the subject matter or context requires otherwise, wherever used herein [Chapter 53, Article 4 NMSA 1978]: A. "association" means a group enterprise legally incorporated hereunder, and shall be deemed to be a nonprofit corporation; B. "member" means not only a member in a nonshare association but also a member in a share association; C. "net savings" means the total income of an association minus the costs of operation; D. "interest-dividends" means the return on share or membership capital which is limited in accordance with the provisions of Section 22 [53-4-22 NMSA 1978] herein; E. "savings returns" means the amount returned to the patrons in proportion to their patronage in accordance with the provisions of Section 31 [53-4-31 NMSA 1978] herein; F. "cooperative basis" as applied to any incorporated or unincorporated group not organized hereunder means: (1) that each member has one vote and only one vote except as may be altered in the articles or by-laws [bylaws] by provision for voting by member organizations; (2) that the maximum rate at which any return is paid on share or membership capital is limited; (3) that the allocation or distribution of net savings after payment, if any, of said limited return on capital and after making provision for such separate funds as may be required or specially permitted by statute, articles or by-laws [bylaws], is made to member patrons, or to all patrons, in proportion to their partonage [patronage].

Legislative History

Laws 1939, ch. 164, § 1; 1941 Comp., § 54-1401; 1953 Comp., § 51-15-1.