KRS 272A.10-030: Contribution agreements.

(1) Except as otherwise provided in the agreement, the following rules apply to an

agreement made by a person before formation of a limited cooperative association

to make a contribution to the association:

(a) The agreement is irrevocable for six (6) months a fter the agreement is signed

by the person unless all parties to the agreement consent to the revocation; and

(b) If a person does not make a required contribution:

1. The person is obligated, at the option of the association, once formed, to

contribute money equal to the value of that part of the contribution that

has not been made, and the obligation may be enforced as a debt to the

association; or

2. The association, once formed, may rescind the agreement if the debt

remains unpaid more than twenty (20) days after the association

demands payment from the person, and upon rescission the person has

no further rights or obligations with respect to the association.

(2) With respect to any agreement to make a contribution to a limited cooperative

association made at the time of or subsequent to its formation, unless the organic

rules or an agreement to make a contribution to a limited cooperative association

otherwise provide, if a person does not make a required contribution to an

association, the person or th e person's estate is obligated, at the option of the

association, to contribute money equal to the value of the part of the contribution

which has not been made.