RSA 301-A:1 · Definitions

301-A:1 Definitions. – In this chapter:

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I.

"Association" means any corporation formed under this chapter on a nonprofit basis.

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II.

"Capital" means, when an association is formed without capital stock, the total consideration for which the entire number of memberships in an association is issued.

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III.

"Member" means any ultimate consumer which has made full payment of the membership fee or minimum membership capital.

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IV.

"Membership" means membership in an association formed without shares or capital stock as well as membership in a share association or association organized with capital stock.

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V.

"Net savings" means the total income of an association minus the costs of operation.

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VI.

"Par value", when used in connection with an association without capital stock, means the consideration for which membership is issued in an association.

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VII.

"Stockholder" means, in addition to any other definitions used in RSA 292 and 293-A, members in associations formed without capital stock; provided, however, that no association formed under this chapter shall be permitted to issue stock without par value.

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VIII.

"Ultimate consumer" means a natural person, family, household, or an association, organization, corporation, partnership, sole proprietorship, or other entity, whether organized on a nonprofit or for-profit basis, that uses the goods, services, or facilities provided by an association primarily for purposes other than for resale.

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IX.

"Cooperative basis", as applied to any incorporated or unincorporated group, means:

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(a)

That each member has one and only one vote, except as may be altered in the certificate of organization or bylaws in order to provide for voting by member organizations.

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(b)

That in associations formed with capital stock, the maximum rate of dividends paid on share capital shall not exceed 10 percent per year or such percentage per year as may be approved under the bylaws of the National Consumer Cooperative Bank under 12 U.S.C. section 3001 and 12 U.S.C. section 3015(a)(2), whichever is lower.

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(c)

That the net savings, after inclusion of the return on capital, are allocated to member patrons or to all patrons in proportion to their patronage of one or more departments within the association; provided, that said net savings may be retained by the association for the actual or potential expansion of services or for the reduction of charges to patrons or for other purposes not inconsistent with the association's nonprofit nature.

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(d)

That voting by proxy is prohibited. Source. 1983, 462:1. 1997, 229:4, 5, eff. Aug. 17, 1998.

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