2013 New York Consolidated Laws
CCO - Cooperative Corporations
Article 5-A - (80 - 94) WORKER COOPERATIVE CORPORATIONS
92 - Internal capital accounts; recall or redemption of shares; interest; collective reserve account.

 
    §  92.  Internal  capital  accounts;  recall  or redemption of shares;
  interest; collective reserve account.  1.  Any  worker  cooperative  may
  establish  through  its certificate of incorporation or by-laws a system
  of internal capital accounts, to reflect the book value and to determine
  the redemption price of membership shares,  capital  stock  and  written
  notices  of  allocation.  As  used  in  this article, "written notice of
  allocation" means a written instrument which discloses to a  member  the
  stated dollar amount of such member's patronage allocation and the terms
  for payment of that amount by the worker cooperative.
    2. The certificate of incorporation or by-laws of a worker cooperative
  may  permit the periodic redemption of written notices of allocation and
  capital stock, and  must  provide  for  recall  and  redemption  of  the
  membership  share  upon termination of membership in the cooperative. No
  redemption shall  be  made  if  such  redemption  would  result  in  the
  liability  of  any  director  or officer of the worker cooperative under
  section seven hundred nineteen and section seven hundred twenty  of  the
  business corporation law.
    3. The  certificate  of  incorporation  or by-laws may provide for the
  worker cooperative to pay or credit interest  on  the  balance  in  each
  member's internal capital account.
    4. The   certificate   of   incorporation  or  by-laws  may  authorize
  assignment of a portion of net retained proceeds and  net  losses  to  a
  collective  reserve  account.  Net  retained  proceeds  assigned  to the
  collective reserve account  may  be  used  for  any  and  all  corporate
  purposes as determined by the board of directors.