§ 60. Patronage capital contributions, allocations, and retirements.\n(a) Each cooperative's by-laws shall, unless otherwise determined by\nagreement of the members, provide for patronage capital allocations and\nretirements in the manner provided by this section. Agreement by the\nmembers for purposes of this section shall mean member approval of\nby-law provisions or by a majority vote of the members voting at a duly\ncalled meeting. Any matter set forth in this section which is subject to\ndetermination of the board of directors shall be determined in the\nexercise of such board of director's business judgment.\n (b) Patronage capital shall be determined by a cooperative on an\nannual basis and shall be the excess, if any, of amounts received or\nreceivable by such cooperative from furnishing electricity over such\ncooperative's operating costs and expenses properly chargeable against\nfurnishing electricity, as determined using such accounting method or\nmethods as agreed upon by the members. Costs and expenses chargeable\nagainst furnishing electricity shall include:\n (1) expenses of the operation and maintenance of its facilities during\nsuch fiscal year;\n (2) interest obligations of the cooperative coming due in such fiscal\nyear;\n (3) depreciation and other expenses to finance or to provide a reserve\nfor the financing of the construction or acquisition by the cooperative\nof additional facilities to the extent determined by the board of\ndirectors;\n (4) expenses to provide a reasonable reserve for working capital as\ndetermined by the board of directors;\n (5) expenses to provide a reserve for the payment of indebtedness of\nthe cooperative maturing more than one year after the date of the\nincurrence of such indebtedness in an amount not less than the total of\nthe interest and principal payments in respect thereof required to be\nmade during the next following fiscal year;\n (6) expenses to provide a fund for education in cooperation and for\nthe dissemination of information concerning the effective use of\nelectric energy and other services made available by the cooperative;\nand\n (7) all other costs and expenses from and directly related to the\nfurnishing of electric energy to the patrons.\n (c) "Patron", as referred to in subdivisions (b) through (h) of this\nsection, shall be defined as (1) a member and (2) a nonmember to whom\nthe cooperative furnishes electric energy or other services on a\npatronage basis pursuant to bylaws or as agreed upon by the members.\n (d) On an annual basis, patronage capital determined under subdivision\n(b) of this section shall be allocated on the books of the cooperative\nto each patron having furnished such capital and shall be based upon and\nin proportion to:\n (1) the revenue from each patron or group of similar patrons to the\ncooperative's total revenue;\n (2) the contribution of each patron or group of similar patrons to the\ncooperative's overall patronage capital;\n (3) the kilowatt-hour usage of each patron or group of similar patrons\nto the total kilowatt-hour usage of all patrons;\n (4) any other method which is agreed upon by the members; or\n (5) any combination of paragraphs one, two, three and/or four of this\nsubdivision as agreed upon by the members.\n (e) "Retirement" in reference to patronage capital shall mean the\nredemption and payment in cash or other property, as provided by\nsubdivision (f) of this section, of patronage capital to the cooperative\npatrons or former patrons to whom it has previously been allocated. The\nallocation of patronage capital to a patron's patronage capital account\nshall in no event create a vested right to the retirement of the amount\nso allocated. The board of directors of a cooperative may, in its\ndiscretion, retire patronage capital allocated on the books of the\ncooperative when it determines such retirement is consistent with sound\nbusiness and management practices and the long-term financial stabi
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