2005 Idaho Code - 30-3-109 — AUTHORIZED DISTRIBUTIONS

                                  TITLE  30
                                 CORPORATIONS
                                  CHAPTER 3
                       IDAHO NONPROFIT CORPORATION ACT
    30-3-109.  AUTHORIZED DISTRIBUTIONS. (1) Corporations may make
distributions upon dissolution in conformity with section 30-3-114 or
30-3-115, Idaho Code.
    (2)  The operations of a corporation which is a cooperative corporation
shall be so conducted that all members will, through their membership, furnish
capital for the corporation as provided in the corporation's bylaws.  No
interest or dividends shall be paid or payable by the corporation on any
capital furnished by its members.  The corporation is obligated to account on
a membership basis to all its members for all amounts received and receivable
from the furnishing of service and from other sources in excess of operating
costs and expenses properly chargeable against the furnishing of service.  The
corporation is obligated to pay by credits to a capital account for each
member all such amounts in excess of operating costs and expenses.  The books
and records of the corporation shall be set up and kept in such a manner that
at the end of each fiscal year the amount of capital, if any, so furnished by
each member is clearly reflected and credited in an appropriate record to the
capital account of each member.
    In the event of dissolution or liquidation of the corporation, after all
outstanding indebtedness of the corporation shall have been paid, outstanding
capital credits shall be retired without priority on a pro rata basis before
any payments are made on account of property rights of members.
    If, at any time prior to dissolution or liquidation, the board shall
determine that the financial condition of the corporation will not be impaired
thereby, the capital credited to member's accounts may be retired in full or
in part.