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LAWS OF MARYLAND

Ch. 179

merger, conversion, or dissolution provided for therein
shall be in effect. The provisions of this section
shall also apply to certificates of election to dissolve
and affidavits executed in connection therewith pursuant
to [subsection (b) of § 399] § 21(B) of this [subheading]
ACT.

[401] 23. Refunds to members.

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

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

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

(c)    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;

(d)   To provide a reasonable reserve for working
capital;

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

(f)    To provide a fund (hereinafter designated the
"education fund") for education in cooperation and for
the dissemination of information concerning the effective
use of electric energy and other services 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 electric energy or other services,
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, that such distribution shall not be
made to any such other person until he 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 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
any such patronage refund, he shall cease to be entitled
to such share or shares, which shall in such case, be
paid into the education fund 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