1818

LAWS OF MARYLAND

Ch. 415

Cooperatives - Interest Ceilings

FOR the purpose of altering the amount of dividends that a
cooperative may pay, within the definition of
"cooperative".

BY repealing and reenacting, with amendments,

Article - Corporations and Associations

Section 5-501(b)

Annotated Code of Maryland

(1975 Volume and 1980 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Corporations and Associations

5-501.

(b) "Cooperative" means a corporation organized or
converted under this subtitle, which operates for the mutual
benefit of its members and conforms to the following
requirements:

(1)  A member of the cooperative is not allowed
more than one vote, regardless of the amount of stock or
membership capital be may own;

(2)  The cooperative does not pay dividends on
stock or membership capital in excess of [8] 12 percent per

annum;

(3)  The cooperative does not deal in products of
nonmembers in an amount greater in value than that in which
it deals for members; and

(4)  After payment of every necessary expense and
authorized deduction, the proceeds from the business of the
cooperative are distributed to the members in proportion to
the volume of business transacted by them with the
cooperative.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1981.

Approved May 12, 1981.

CHAPTER 416