1300                           LAWS OF MARYLAND                      [CH. 649

The directors shall then distribute all remaining net profits by a
uniform dividend to members of the association based in amount
upon the value of business conducted by such members with the asso-
ciation; provided that the association may distribute to patrons of
the association who are not members bonuses based in amount upon
the volume of business transacted by such patrons respectively with
the association; provided further that any such dividend to a non-
member may be applied to the payment of membership fees or dues
for him; and, if so applied, when such fees are fully paid a member-
ship certificate shall be issued to him; provided further that such
dividends to a nonmember, if it is less than the membership fee, shall
be credited to the nonmember's account during the first year and the
second year, but shall revert to the reserve fund if, after two years,
an amount less than the membership fee has accumulated.] An
association may provide in its by-laws the minimum amount of any
single patronage transaction which shall be taken into account for
the purpose of participation in allocation and distribution of net
proceeds or savings or net losses under this section.

(e) [The members at any regular or special meeting, legally
called, may instruct the directors concerning the method of appor-
tionment of net profits to follow under the provisions of this section
insofar as these provisions confer discretion upon the directors.]
For the purposes of this section net proceeds or savings or net losses
shall be computed in accordance with generally accepted accounting
principles applicable to cooperative associations, and after deducting
from gross proceeds or savings all costs and expenses of operation
and any dividends paid upon capital stock and interest paid upon
certificates or other evidence of equity in any fund, capital invest-
ment or other assets of the association.

372.    Operation on Non-Profit Basis.

(b) Associations desiring to purchase goods or obtain or render
services, within the purposes [designated] authorized in this sub-
title, may [organize under the provisions of this subtitle. Such asso-
ciations may adopt] operate on a nonprofit basis in a manner, as far
as applicable, similar to that described in subsection (a) of this
section.

373.    Reports to State Department of Assessments and Taxa-
tion.

Every association [organized under this subtitle] shall annually on
or before the fifteenth day of March make a report in duplicate to
the [State Tax Commission] Department; such report shall contain
the name of the association, its principal office and generally a state-
ment as to its business, showing total amount of business transacted
during the year, amount of capital stock subscribed for and paid in,
the authorized rate of dividends on the paid-up capital stock, number
of stockholders, total expenses of operation, amount of indebtedness
or liabilities, and profits and losses. The [State Tax Commission]
Department shall transmit one copy of such report to the State Board
of Agriculture.

374.    Corporations may be Converted into Cooperative Associ-
ations.

Any corporation organized under the general corporation law of