§ 113. Reserves. In addition to reserves for depreciation, depletion,\nobsolescence and bad debts, agricultural cooperatives shall create and\nmaintain minimum general purpose reserves. Such reserves shall be set\naside periodically until or unless they total an aggregate minimum\namount computed in accordance with one of the following optional\nmethods.\n The aggregate minimum amount of such general purpose reserve shall be\ncomputed and equal either (1) at least two per centum of the average\nannual gross receipts of the preceding five years to be accumulated at a\nrate of not less than two-fifths of one per centum of the gross receipts\nper annum or such part thereof as may be necessary to establish and\nmaintain such reserves, or (2) at least the total amount of paid up\ncapital stock or membership capital contributed to the corporation\naccumulated at a rate of not less than ten per centum of the net margins\nin each year or such part thereof as may be necessary to establish and\nto maintain such reserve, or (3) at least an amount necessary to\nestablish a sixty per centum net worth wherein the paid in capital and\nsurplus (including the general purpose reserve) shall equal sixty per\ncentum of the total assets of the cooperative. Such a reserve shall be\naccumulated at a rate of not less than ten per centum of the net margins\nin each year or such part thereof as may be necessary to establish and\nto maintain such reserves.\n The general purpose reserve created, accumulated and maintained in\naccordance with this article six shall be deemed to be a required\nstatutory reserve for each agricultural cooperative as defined in this\narticle.\n
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.