Allocation of Net Loss. In the event the Cooperative shall incur a net loss in any calendar year, such loss will be charged against the Member’s capital accounts or other unallocated equity accounts. If the net loss exceeds such amounts, or in any event if the Board so determines, the amount of such loss must be carried forward to subsequent calendar years and allocated to members. Any such allocated net loss shall be charged first against unallocated equity accounts of prior calendar years and then against Member’s capital share allocations. Allocated net losses which are not offset will be charged against the carrying value of capital certificates only upon termination of membership.
Appears in 4 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
