2018 Bylaws Changes

ARTICLE I. ORGANIZATION

No changes

ARTICLE II. DEFINITIONS

No changes

ARTICLE III. MEMBERSHIP

Old:    

Section 3.3 Application for Patron Membership. Persons or entities may become Patron Members of the Cooperative by 

a.         submitting the form provided by the Cooperative to subscribe for Patron Membership Interests in the Cooperative upon the terms and conditions as may be set forth in the form, 

b.         meeting any and all requirements of membership established in or pursuant to these bylaws, 

c.         submitting an executed counterpart signature agreeing to be bound by these bylaws, 

d.         submitting timely payment of the purchase price for the number of Patron Membership Interests subscribed for in the form provided by the Cooperative, in accordance with the terms of the form provided by the Cooperative.

New:  

Section 3.3 Application for Patron Membership. To become a Patron Member of the Cooperative, persons or entities must do all the following: 

a.         submit the form provided by the Cooperative to subscribe for Patron Membership Interests in the Cooperative upon the terms and conditions as may be set forth in the form, 

b.         meet any and all requirements of membership established in or pursuant to these bylaws, 

c.         submit an executed counterpart signature agreeing to be bound by these bylaws, 

d.         submit timely payment of the purchase price for the number of Patron Membership Interests subscribed for in the form provided by the Cooperative, in accordance with the terms of the form provided by the Cooperative.

ARTICLE IV: CAPITAL STRUCTURE

No changes

ARTICLE V: FINANCE

Old:

Section 5.2 Patronage Dividend. This corporation operates on a cooperative basis and may allocate a patronage dividend. The patronage dividend, as determined by the Board of Directors, shall be paid in cash, property, or written notices of allocation as defined by Subchapter T of the Internal Revenue Code.

Payouts to Members from the income of a given tax year must be made in accordance with current tax law. Patronage dividends issued as checks must be endorsed and cashed no later than ninety (90) days after the payment period, otherwise the affected distribution will be canceled. Any allocations of such a nominal amount as not to justify the expenses of distribution may, as determined by the Board, be excluded from distribution provided that they are not then or later distributed to other Patron Members. 

The surplus earnings of the company after paying taxes, interest on loans, and additions to the unallocated reserve may be allocated to eligible Patron Members as a patronage dividend. Unless otherwise decided by the Board of Directors, the patronage dividend shall be credited to the Patron Members’ Internal Capital Accounts. At least 20% of each year’s patronage allocation must be paid in cash to eligible Patron Members. 

New:  

Section 5.2 Patronage Dividend.

a. Generally. The surplus earnings of the Cooperative after paying taxes, interest on loans, and additions to the unallocated reserve may be allocated to eligible Patron Members as a patronage dividend. The patronage dividend for a member includes both their patronage refund for the year and the allocated equity credits that were added to their equity account. The patronage dividend, as determined by the Board of Directors, shall be paid in cash, property, or written notices of allocation as defined by Subchapter T of the Internal Revenue Code.

b. Eligibility. Patron Members who have paid the equity requirement in full or through a payment plan as of July 1 of the fiscal year, and retained membership through the date of allocation of patronage dividends, will be eligible for a patronage dividend.

c. Condition of Patron Membership. Acceptance of the patronage dividend is a condition of Patron Membership.

d. Payouts to Patron Members. Payouts to eligible Patron Members from the income of a given tax year must be made in accordance with current tax law. Unless otherwise decided by the Board of Directors, the patronage dividend shall be credited to the Patron Members’ Internal Capital Account. At least 20% of each year’s patronage dividend must be paid in cash as a patronage refund. Patronage refunds not claimed by the due date, including checks not endorsed and cashed within ninety (90) days after the payment period, can be used by the Cooperative for other purposes.

Any allocations of such a nominal amount as to not justify the expense of distribution may, as determined by the Board, be excluded from distribution provided that they are not then later distributed to other Patron Members.

ARTICLE VI: BOARD OF DIRECTORS

No changes

ARTICLE VII: MEETINGS

No changes

ARTICLE VIII: MISCELLANEOUS PROVISIONS

No changes