1910

LAWS OF MARYLAND

Ch. 694

FOR the purpose of modifying the powers of a cooperative
as they relate to nonmember patrons, broadening the
class of obligations in which a cooperative may
invest, permitting a member of a member cooperative
to serve as a director of a cooperative; and
generally relating to cooperatives, their members,
and their nonmember patrons.

BY repealing and reenacting, with amendments,

Article — Corporations and Associations
Section 5-504, 5-512(b), and 5-526(a)(1)
Annotated Code of Maryland
(1975 Volume and 1975 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 5-504, 5-512(b), and 5-526(a)(1)
of Article — Corporations and Associations, of the
Annotated Code of Maryland (1975 Volume and 1975
Supplement) be and they are hereby repealed and
reenacted, with amendments, to read as follows:

Article — Corporations and Associations

5-504.

A cooperative has the power to:

(1)  Engage in or finance any activity in connection
with:

(i) Producing, marketing, selling, preserving,
drying, catching, taking, harvesting, cultivating,
propagating, processing, canning, packing, handling,
storing, purchasing, or using any agricultural or fishery
products of its members OR NONMEMBER PATRONS or goods
incidentally and customarily purchased or marketed in
conjunction with these products;

(ii) Manufacturing or marketing the
by-products of these products; or

(iii) The purchase, hire, or use by its
members OR NONMEMBER PATRONS of supplies, machinery,
equipment, or services;

(2)   Transport the products of its members OR
NONMEMBER PATRONS, even if in competition with licensed
common carriers;

(3)  Borrow money, give its notes, bonds, or other
obligations for the debt, and secure payment of the debt;

(4)   Make advances to its members OR NONMEMBER
PATRONS on their products held by the cooperative;