New York § 120 - 120Organization

§ 120. 120Organization

§ 120. Organization. A cooperative corporation may be organized as an agency, subsidiary or holding corporation to assist, further and finance other cooperative corporations in their corporate purposes and activities. A credit corporation may be organized solely for the purpose of acting as an agency to enable cooperative corporations, organized or operating under this chapter and the members or stockholders thereof, to obtain loans from the federal intermediate credit bank under and pursuant to an act of congress approved March fourth, nineteen hundred and twenty-three, known as the agricultural credits act of nineteen hundred and twenty-three, same being chapter eight of title twelve of the code of laws of the United States as adopted by congress June thirtieth, nineteen hundred and twenty-six, and amendments thereto. A credit corporation may also be organized by a cooperative corporation for the purpose of financing the ordinary crop operations of the members of such cooperative corporation, through funds obtained by loans from any sources or through the issue and sale of common or preferred stock, bonds, debentures or other obligations of the credit corporation, and the payment of such loans or obligations may be guaranteed by the cooperative corporation whose members are being so financed.