TITLE 17. EDUCATION

CHAPTER 15. EDUCATIONAL COOPERATIVE LAW

17:2821      Use of revenues

  A. Revenues of a cooperative for any fiscal year shall first be used to:

  (1) Defray expenses of the cooperative and of the operation and maintenance of its facilities during such fiscal year;

  (2) Pay interest and principal of obligations of the cooperative coming due in such fiscal year;

  (3) Finance, or to provide a reserve for the financing of, the construction or acquisition by the cooperative of additional facilities to the extent determined by the board of directors;

  (4) Provide a reasonable reserve for working capital;

  (5) Provide a reserve for the payment of indebtedness of the cooperative maturing more than one year after the date of the incurrence of such indebtedness in an amount not less than the total of the interest and payments in respect thereof required to be made during the next following fiscal year; and

  (6) Provide a fund for education in cooperation and for the dissemination of information concerning the services made available by the cooperative.

  B. Nothing herein contained shall be construed to prohibit the payment by a cooperative of all or any part of its indebtedness prior to the date when the same shall become due.

Added by Acts 1958, No. 257, Sec. 21.