351.1135. Contributions accepted, when, requirements.

308 words·~1 min read·/mo/chapter-351/351-1135

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

351.1135. Contributions accepted, when, requirements. — 1. Subject to any restrictions in sections 351.1000 to 351.1228 , the articles, or bylaws regarding patron and nonpatron membership interests, and only when authorized by the board, a cooperative may accept contributions which may be patron or nonpatron membership contributions under this section, make contribution agreements under section 351.1138 , and make contribution rights agreements under section 351.1141 .

2. Except as otherwise set forth in the bylaws, a person may make a contribution to a cooperative:

(1)By paying money or transferring the ownership of an interest in property to the cooperative or rendering services to or for the benefit of the cooperative; or

(2)Through a written obligation signed by the person to pay money or transfer ownership of an interest in property to the cooperative or to perform services to or for the benefit of the cooperative.

3. No purported contribution shall be treated or considered as a contribution, unless:

(1)The board accepts the contribution on behalf of the cooperative and in that acceptance describes the contribution, including terms of future performance, if any, and agrees to and states the value being accorded to the contribution; and

(2)The fact of contribution and the contribution's accorded value are both reflected in the required records of the cooperative.

4. The determination of the board as to the amount or fair value or the fairness to the cooperative of the contribution accepted or to be accepted by the cooperative or the terms of payment or performance, including under a contribution agreement under section 351.1138 , and a contribution rights agreement under section 351.1141 , are presumed to be proper if they are made in good faith and on the basis of accounting methods, or a fair valuation or other method, reasonable in the circumstances.

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(L. 2011 S.B. 366)