§ 1001. Members’ contributions The organic rules shall establish the amount, manner, or method of determining any contribution requirements for members or shall authorize the board of directors to establish the amount, manner, or other method of determining any contribution requirements for members. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)
§ 1002. Contribution and valuation (a) Unless the organic rules otherwise provide, the contributions of a member to a mutual benefit enterprise may consist of tangible or intangible property or other benefit to the enterprise, including money, labor, or other services performed or to be performed, promissory notes, other agreements to contribute money or property, […]
§ 1003. Contribution agreements (a) Except as otherwise provided in the agreement, the following rules apply to an agreement made by a person before formation of a mutual benefit enterprise to make a contribution to the enterprise: (1) The agreement is irrevocable for six months after the agreement is signed by the person unless all […]
§ 1004. Allocations of profits and losses (a) The organic rules may provide for allocating profits of a mutual benefit enterprise among members, among persons that are not members but conduct business with the enterprise, to an unallocated account, or to any combination thereof. Unless the organic rules otherwise provide, losses of the enterprise shall […]
§ 1005. Distributions (a) Unless the organic rules otherwise provide and subject to section 1007 of this title, the board of directors may authorize, and the mutual benefit enterprise may make, distributions to members. (b) Unless the organic rules otherwise provide, distributions to members may be made in any form, including money, capital credits, allocated […]
§ 1006. Redemption or repurchase Property distributed to a member by a mutual benefit enterprise, other than money, may be redeemed or repurchased as provided in the organic rules but a redemption or repurchase may not be made without authorization by the board of directors. The board may withhold authorization for any reason in its […]
§ 1007. Limitations on distributions (a) A mutual benefit enterprise may not make a distribution if, after the distribution: (1) the enterprise would not be able to pay its debts as they become due in the ordinary course of the enterprise’s activities; or (2) the enterprise’s assets would be less than the sum of its […]
§ 1008. Liability for improper distributions; limitation of action (a) A director who consents to a distribution that violates section 1007 of this title is personally liable to the mutual benefit enterprise for the amount of the distribution that exceeds the amount that could have been distributed without the violation if it is established that […]
