memberships - Liability for debts. A. Under the terms and conditions prescribed in the bylaws adopted by it, an association may admit as members, or issue common stock to only cooperative associations and/or persons engaged in the production of agricultural products to be handled by or through the association, including the lessees and tenants of land used for the production of agricultural products and any lessors and landlords who receive as rent all or part of the crop raised on the leased premises. B. An association organized pursuant to the Cooperative Marketing Association Act may become a member or stockholder of any other cooperative association organized in this or any other state. C. A member shall lose membership and voting rights if the member ceases to belong to the class of persons eligible for membership pursuant to this section, however, such member shall remain subject to any liability already incurred by such member as a member of the association. Upon the death of a member and the deceased member’s estate ceasing to belong to the class of persons eligible for membership pursuant to this section, the deceased member’s estate shall be entitled to receive from the association, within three (3) years after the latter of the member’s death or the member ceasing to be a member, the value of the membership interest in the association subject to the conclusive appraisal by the board of directors. If the association approves the member's designation of a transferee of the membership interest, the association shall be under no obligation to pay the transferor the value of the interest. D. Except for debts lawfully contracted between a member and the association, no member shall be liable for the debts of the association to any amount exceeding the sum remaining unpaid on the subscription to membership of the member. Added by Laws 1937, p. 264, § 11. Amended by Laws 2001, c. 38, § 11, eff. Nov. 1, 2001. Renumbered from § 361j of this title by Laws 2001, c. 38, § 26, eff. Nov. 1, 2001.
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