KRS 279.095: Nonprofit operation.

A rural electric cooperative shall be operated on a nonprofit basis for the mutual benefit

of its members and patrons. The bylaws of a cooperative or its contracts with members

and patrons shall contain such provisions relative to the disposition of revenu e and

receipts as may be necessary and appropriate to establish and maintain its nonprofit and

cooperative character. In the case of a cooperative authorized to issue shares of stock,

such bylaws or contracts shall provide that no moneys shall be paid or c redits given on

the basis of patronage except after the declaration or payment of dividends on the

outstanding shares of stock in accordance with the articles of incorporation of the

cooperative, and such bylaws or contracts shall otherwise be consistent w ith the

cooperative's obligations in respect of such shares of stock.