COMPILED CODE - Iowa Legislature - State of Iowa

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§§ 5408-all-5408-al4. COOPERATIVE ASSOCIATIONS. Tit. XVII, Ch. 3-A.
SEC. 5408-all. Power to compel sales and purchases—liquidated
damages.
1 The association may require members to sell all or a stipulated
2 part of their specifically enumerated products exclusively through the
3 association or to buy specifically enumerated supplies exclusively
4 through the association, but in such case, a reasonable period during
5 each year shall be specified during which any member, by giving notice
6 in prescribed form, may be released from such obligation thereafter.
7 Where it is desired to enter into the exclusive arrangement provided
8 in this section, the association shall execute a contract with each such
9 member setting forth what goods or wares are to be handled and upon
10 what terms. In order to protect itself in the necessary outlay, which
11 it may make for the maintenance of its services, the association may
12 stipulate that some regular charge shall be paid by the member for
13 each unit of goods covered by such contract whether actually handled
14 by the association or not, and in order to reimburse the association for
15 any loss or damage which it or its members may sustain through the
16 member's failure to deliver his products to or to procure his supplies
17 from the association.
18 In case it is difficult or impracticable to determine the actual
19 amount of damage suffered by the association or its members through
20 such failure to comply with the terms of such a contract, the associa-
21 tion and the member may agree upon a sum to be paid as liquidated
22 • damages for the breach of his contract, said amount to be stated in
23 the contract.
[39 G. A., ch. 122, § 11.]
SEC. 5408-alS. Power to borrow and to execute notes, bonds and
mortgages.
1 Every association may borrow money necessary for the conduct of
2 its business, and may issue notes, bonds, or debentures therefor, and
3 may give security in the form of mortgage or otherwise for the repay-
4 ment thereof.
[39 G. A., ch. 122, § 12.]
SEC. 5408-al3. Personal liability.
1 Members of such association may limit their personal liability to
2 the amount of their membership fee as provided in their articles of in-
3 corporation.
[39 G. A., ch. 122, § 13.]
SEC. 5408-al4. Cost of service—dues, etc.—reserve fund.
1 Associations formed under this chapter shall perform services for
2 their members on a basis of the lowest practicable cost, and may pro-
3 vide for meeting the cost thereof through dues, assessments, or service
4 charges, which shall be prescribed in the by-laws. Such charges shall
5 be set high enough to provide a margin of safety above current operat-
6 ing costs and fixed charges upon borrowed capital.
7 Out of any surplus remaining in any given year, the directors shall
8 each year set aside not less than ten per cent of such savings for the
9 accumulation of a reserve fund until such reserve shall equal at least
10 forty per cent of thé invested capital of the association, not less than