§ 3030. Revenues, use of

Revenues of a cooperative for a fiscal year in excess of the amount thereof necessary:

(1) To defray the expenses of the operation and maintenance of the facilities of the cooperative during such fiscal year.

(2) To pay interest and principal obligations of the cooperative coming due in such fiscal year.

(3) To finance, or to provide a reserve for the financing of, the construction or acquisition by the cooperative of additional facilities to the extent determined by the board of directors.

(4) To provide a reasonable reserve for working capital.

(5) To provide a reserve for the payment of indebtedness of the cooperative in an amount not less than the total of the interest and principal payments in respect thereof required to be made during the next following fiscal year.

(6) To provide a fund, hereinafter designated as the "cooperative education fund," for education in cooperation and for the dissemination of information concerning the effective use of energy and other services, goods, or products made available by the cooperative, shall, unless otherwise determined by a vote of the members, be distributed by the cooperative to its members and to other persons to whom the cooperative supplies energy or other services, goods, or products made available through its electric distribution facilities, as patronage refunds prorated in accordance with the patronage of the cooperative by the respective members and such other persons, paid for during such fiscal year; provided, however, such distribution shall not be made to such other person until he or she has become a member of the cooperative. If such other person does not become a member of the cooperative within one year after the amount of his or her distributive share or accumulated distributive shares equals the membership fee required by the bylaws of the cooperative, or, if no membership fee is required, within two years after the declaration of such patronage refund, he or she shall cease to be entitled to such share or shares, which shall, in such case, be paid into the cooperative education fund. The cooperative shall make such additional provision, in the bylaws or otherwise, relative to the disposition of the revenues of the cooperative as may be necessary and appropriate to establish and maintain the nonprofit character of the cooperative. Nothing herein contained shall be construed to prohibit the payment by a cooperative of all or any part of its indebtedness prior to the date when the same shall become due. (Amended 1999, No. 143 (Adj. Sess.), § 20.)