HARRY HUGHES, Governor                                     3479

Section 5-5A-01 through 5-5A-30 to be under the new subtitle

"Subtitle 5A. Maryland Consumer Cooperative"
Annotated Code of Maryland
(1975 Volume and 1984 Supplement)

BY repealing

Article - Corporations and Associations

Section 5-6A-01 through 5-6A-08 and the subtitle "Subtitle

6A. Consumer Cooperatives"
Annotated Code of Maryland
(1975 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Corporations and Associations

Subtitle 5. AGRICULTURAL Cooperatives

5-501.

(a)  In this subtitle the following words have the meanings
indicated.

(b)  ["Cooperative"] "AGRICULTURAL 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 he may own;

(2)  The cooperative does not pay dividends on stock
or membership capital in excess of 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.

(c)  "Member" means a person who:

(1)  Owns stock in a cooperative having capital stock;
or

(2)  Holds a certificate of membership in a
cooperative not having capital stock.