4:13-32 - Dividing yearly balance of associations without capital stock - New Jersey Statutes

4:13-32.  Dividing yearly balance of associations without capital stock
    In the case of associations without capital stock after payment of expenses  and the establishment of the funds, as authorized in section 4:13-31 of this  Title, and as soon after the end of the fiscal year as possible, the whole  balance remaining shall be divided among those patrons, members, and nonmember  producers and may include nonproducers on the basis of patronage in the  proportion that the volume of business done for such patrons by the association  during the fiscal year bears to the total volume of business transacted by the  association during the fiscal year; provided, however, that the association  instead of paying patronage dividends to member and nonmember producers in cash  may keep a permanent record from which the proportionate shares of the  patronage dividends due to member and nonmember producers can be determined, as  part of a reserve or patrons' revolving fund, which may be evidenced by  certificates or notices, and in the case of nonmember producers, such shares  may be made applicable toward the cost of membership in the association.

    In calculating the amount to be paid to a nonmember upon whom liability for  the debts of the association has not been imposed as authorized by section  4:13-30 of this Title, such sum shall be deducted as in the opinion of the  directors is a reasonable charge, in lieu of such liability.

     Amended by L.1940, c. 146, p. 311, s. 2;  L.1951, c. 303, p. 1089, s. 5; L.1966, c. 286, s. 29.