REDEMPTION OF CAPITAL CERTIFICATES. Upon written request, capital certificates may be redeemed, but not sooner than five (5) years from the date of full purchase for certificates secured by money. Before redemption of the certificates can occur the capital must be secured by the Cooperative. Capital certificates shall be redeemed at their carrying value on the books of the Cooperative or their net book value, whichever is lesser. A reasonable processing fee may be imposed as determined by the Board. No redemptions shall be made; unless after the redemption, the Cooperative would be able to pay its debts as they become due in the usual course of its activities and the Cooperative’s total assets would at least equal the sum of its liabilities. Member redemption proceeds by amounts otherwise due and payable to the Cooperative.
Appears in 4 contracts
Samples: Operating Agreement, Operating Agreement, Operating Agreement
