Section 47-16-51 - Remaining funds--Distribution to patrons--Distinction between members andnonmembers--Classification of patrons. - South Dakota Statutes

47-16-51. Remaining funds--Distribution to patrons--Distinction between members and nonmembers--Classification of patrons. If the articles or bylaws of a cooperative so provide, none of the remainder of the net proceeds after credits pursuant to § 47-16-50 shall constitute income to the cooperative, but all thereof shall be distributed and paid in accordance with the ratio which individual patronage bears to total patronage, either to all patrons, to member patrons only, or to all patrons with nonmembers receiving a lower proportion than members, as the bylaws may provide. There shall be no other distinction between members and nonmembers, but distribution may be based on business done with particular departments, or in particular commodities, supplies, or services, or upon classification of business according to type or nature thereof.

Source: SDC 1939, § 11.1131 (4) (b) as enacted by SL 1965, ch 23, § 1.