§ 17-10-245 — Procedure in involuntary or court-supervised voluntary dissolution

(a) In dissolution proceedings before a hearing can be
completed the court may:
(i) Issue injunctions;
(ii) Appoint receivers with all powers and duties
that the court directs;
(iii) Take actions required to preserve the
cooperative's assets wherever located; and
(iv) Carry on the business of the cooperative.
(b) After a hearing is completed, on notice the court
directs to be given to parties to the proceedings and to other
parties in interest designated by the court, the court may
appoint a receiver to collect the cooperative's assets,
including amounts owing to the cooperative by subscribers on
account of an unpaid portion of the consideration for the
issuance of shares. A receiver has authority, subject to the
order of the court, to continue the business of the cooperative
and to sell, lease, transfer, or otherwise dispose of the
property and assets of the cooperative either at public or
private sale.
(c) The assets of the cooperative or the proceeds
resulting from a sale, lease, transfer, or other disposition
shall be applied in the following order of priority:
(i) The costs and expenses of the proceedings,
including attorneys' fees and disbursements;
(ii) Debts, taxes and assessments due the United
States, this state and other states in that order;
(iii) Claims duly proved and allowed to employees
under the provisions of the workers' compensation act except
that claims under this clause may not be allowed if the
cooperative has carried workers' compensation insurance, as
provided by law, at the time the injury was sustained;
(iv) Claims, including the value of all compensation
paid in a medium other than money, proved and allowed to
employees for services performed within three (3) months
preceding the appointment of the receiver, if any; and
(v) Other claims proved and allowed.
(d) After payment of the expenses of receivership and
claims of creditors are proved, the remaining assets, if any,
may be distributed to the members or distributed pursuant to an
approved liquidation plan.