Patronage refunds.
Section 85
SEC. 85. Patronage refunds.—The sums allocated for patronage refunds shall be distributed at the same rate to all patrons of the co-operative in proportion to their individual patronage: Provided, That: In the case of a member patron, his proportionate amount of patronage refund shall be paid to him unless he agrees that the co-operative should credit the amount to his account toward the purchase of an additional share or shares or other capital; In the case of a subscriber patron, his proportionate amount of patronage refund shall be credited to his account until his capital contribution has been fully paid; In the case of a non-member patron, his proportionate amount of patronage refund shall be set aside in a general fund for such patrons and shall be allocated to individual non-member patrons only upon request and presentation of evidence of the amount of his patronage. The amount so allocated shall be credited to such patron toward payment of the minimum, amount of capital contribution for membership. When a sum equal to this amount has accumulated at any time within a period of time specified in the by-laws, such patron shall be deemed and become a member of the co-operative if he so agrees or requests and complies with the provisions of the by-laws for admission to membership; and If within any period of time specified in the by-laws (a) any subscriber has not accumulated and paid in the amount of capital subscribed for; or (b) any non-member patron has not accumulated in his individual account, the sum necessary for membership; or (c) any non-member patron has accumulated the sum necessary for membership but neither requests nor agrees to become a member or fails to comply with the provisions of the by-laws for .admission to membership, then the amounts so accumulated or paid in and any part of the general fund for non-member patrons which has not been allocated to individual non-member patrons, shall go to the educational fund and thereafter no member or other patron shall have any right in said paid in capital or accumulated patronage refund as such: Provided, further, That nothing in this section shall prevent a co-operative from deferring payment of patronage refund for a fixed period of years as prescribed in their by-laws or create a revolving capital under section seventy-eight, nor from adopting a system whereby the payment of patronage refunds shall be made in cash, in kind or in shares.