3488

LAWS OF MARYLAND _

Ch. 739

(B)  THE FOLLOWING PROVISIONS SHALL PREVAIL WHEN ANY OF THE
NET SAVINGS ARE ALLOCATED AS PATRONAGE REFUNDS SAVINGS RETURNS:

(1)  IN THE CASE OF A SUBSCRIBER PATRON, THE
PROPORTIONATE AMOUNT OF NET SAVINGS MAY, AS THE ARTICLES OF
INCORPORATION OR BYLAWS OF THE COOPERATIVE PROVIDE:

(I)  BE DISTRIBUTED TO THE SUBSCRIBER PATRON;

(II)  BE SET ASIDE IN THE GENERAL FUNDS OF THE
COOPERATIVE; OR

(III)  BE CREDITED TO THE SUBSCRIBER PATRON'S
ACCOUNT UNTIL THE MINIMUM AMOUNT OF CAPITAL NECESSARY FOR
MEMBERSHIP IS ACCUMULATED. WHEN A SUM EQUAL TO THE MINIMUM
CAPITAL HAS ACCUMULATED SUBJECT TO PARAGRAPH (2) OF THIS
SUBSECTION, THE SUBSCRIBER PATRON WILL BECOME A MEMBER IF THE
SUBSCRIBER PATRON AGREES AND REQUESTS; OR

(2)  (I) IF WITHIN A PERIOD OF TIME SPECIFIED IN THE
BYLAWS, A SUBSCRIBER PATRON HAS NOT ACCUMULATED AND PAID THE
AMOUNT OF CAPITAL SUBSCRIBED FOR, OR NECESSARY FOR MEMBERSHIP, AS
SPECIFIED IN ITS ARTICLES OF INCORPORATION OR BYLAWS, OR IF A
NONMEMBER HAS ACCUMULATED IN THE NONMEMBER'S ACCOUNT THE SUM
NECESSARY FOR MEMBERSHIP, OR HAS ACCUMULATED THE SUM BUT, WITHIN
30 DAYS OF BEING NOTIFIED OF THE ACCUMULATION, NEITHER REQUESTS
NOR AGREES TO BECOME A MEMBER, OR FAILS TO COMPLY WITH THE
PROVISIONS OF THIS SUBTITLE OR THE BYLAWS FOR ADMISSION TO
MEMBERSHIP, THEN THE AMOUNT SO ACCUMULATED OR PAID MAY, IF THE
ARTICLES OF INCORPORATION OR BYLAWS PROVIDE, BE ADDED TO THE
GENERAL FUNDS OF THE COOPERATIVE.

(II) THEREAFTER NO SUBSCRIBER PATRON OR
NONMEMBER MAY HAVE ANY FURTHER RIGHTS IN THAT PAID-IN CAPITAL OR
ACCUMULATED CREDITS.

(C)  THIS SUBTITLE DOES NOT PREVENT A COOPERATIVE ENGAGED IN
PROVIDING GOODS, FACILITIES, OR SERVICES FROM USING THE NET
SAVINGS IN A MANNER CALCULATED TO LOWER THE FEES CHARGED FOR
GOODS, FACILITIES, OR SERVICES OR OTHERWISE TO FURTHER THE
COMMON BENEFIT OF THE MEMBERS.

(D)  THIS SUBTITLE DOES NOT PREVENT A COOPERATIVE FROM
ADOPTING A SYSTEM BY WHICH THE PAYMENT OF NET SAVINGS, WHICH
WOULD OTHERWISE BE DISTRIBUTED, IS DEFERRED FOR A FIXED PERIOD OF
TIME, NOR FROM ADOPTING A SYSTEM BY WHICH THE NET SAVINGS
DISTRIBUTED ARE PARTLY IN CASH, STOCK, MEMBERSHIP CAPITAL, DEBT
INSTRUMENTS, GOODS, OR SERVICES.

5-5A-23.

(A) (1) EACH COOPERATIVE SHALL HAVE AN AUDIT COMMITTEE AS
SPECIFIED IN ITS BYLAWS.