Vermont § 13302 - Members of a cooperative financial institution; qualifications and voting rights

§ 13302. Members of a cooperative financial institution; qualifications and voting rights

• (a) The members of a cooperative financial institution organized pursuant to this chapter
  shall be those in whose names accounts are established and persons borrowing from
  or assuming or obligated upon a loan held by such institution or purchasing property
  and assuming the secured loan held by such institution. (b) A single membership in a cooperative financial institution may be held by two or more
  persons, and a joint and survivorship relationship and successor relationship, whether
  investors or borrowers, constitutes a single membership. (c) Each member 18 years of age or over is entitled to one vote at any meeting of the
  cooperative financial institution, regardless of the number of accounts standing in
  that member’s name, provided that only one vote is allowed on an account held by two
  or more persons. The internal governance documents may prohibit voting by persons
  who have become members within six months of the date when the vote is cast. When
  accounts or shares are pledged, the pledgor may vote the accounts or shares so pledged. (d) Profits and losses shall be distributed at least annually among the members. On each
  annual closing day after payment or provision for all expenses and appropriate transfers
  to reserves, the remainder of net earnings for the annual period shall be credited
  to an undivided profits account. At each annual period, the governing body shall declare
  a distribution of earnings. Dividends may also be declared monthly or quarterly. Interim
  dividends may be paid at the rate most recently declared by the governing body. Payments
  of net earnings to members may be referred to as dividends or interest. (e) Membership terminates when the amount of a member’s accounts has been paid in full
  to that member, or when the transfer of membership to other persons has been recorded
  on the books of the financial institution, or when that member’s status as a borrower
  from the institution terminates. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)