Section 47-21-40 - Liquidation of affairs of cooperative--Distribution of assets--Rights of patrons--Rights of members--Distribution of remains. - South Dakota Statutes

47-21-40. Liquidation of affairs of cooperative--Distribution of assets--Rights of patrons--Rights of members--Distribution of remains. The board of directors shall liquidate and settle the affairs of a cooperative which has filed the certificate and affidavit described in § 47-21-38, collect sums owing to it, liquidate its property and assets, pay and discharge its debts, obligations, and liabilities, other than those to patrons arising by reason of their patronage, and do all other things required to terminate its business, and after paying or discharging or adequately providing for the payment or discharge of all its debts, obligations, and liabilities, other than those to patrons arising by reason of their patronage, shall distribute any remaining sums, first to patrons for the prorata return of all amounts standing to their credit by reason of their patronage, and second to members for the prorata repayment of membership fees. Any sums then remaining shall be distributed among its members and former members in proportion to their patronage.

Source: SL 1947, ch 33, § 21; SDC Supp 1960, § 11.2221 (2).