KRS 272A.12-070: Distribution of assets in winding up.

(1) In winding up a limited cooperative association's business, the association shall

apply its assets to discharge its obligations to creditors, including members that are

creditors. The association shall apply any remaining assets to pay in money the net

amount distributable to members in accordance with their right to distributions

under subsection (2) of this section.

(2) Unless the organic rules otherwise provide, in this section "financial interests"

means the amounts recorded in the names of members in t he records of a limited

cooperative association at the time a distribution is made, including amounts paid to

become a member, amounts allocated but not distributed to members, and amounts

of distributions authorized but not yet paid to members. Unless the organic rules

otherwise provide, each member is entitled to a distribution from the association of

any remaining assets in the proportion of the member's financial interests to the

total financial interests of the members after all other obligations are satisfied.