N.Y. Cooperative Corporations Law § 120: Organization

§ 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.