N.Y. Cooperative Corporations Law § 70: Marketing contract

§ 70. Marketing contract. 1. The certificate of incorporation or the

by-laws may obligate the members to sell all or any part of their

specified commodities exclusively to or through the corporation or any

facilities created by it, during any designated period of time, subject

to the right of any member to be released at a designated period in each

year, by giving a prescribed notice.

2. The certificate or by-laws or the marketing contract may fix

specific sums to be paid by the member, or contracting non-member, as

liquidated damages upon a breach of the marketing obligation, which sums

shall not be regarded as penalties; and may further provide that such

member pay all the costs, premiums for bonds, expenses and fees in case

the corporation recovers judgment therefor.

3. In the event of a breach or threatened breach by a member, or

contracting non-member, of such marketing obligation, the corporation

shall be entitled to an injunction to prevent any further breach and to

a decree of specific performance; and, upon filing of a verified

complaint showing such breach and of a bond approved by the court, the

corporation shall be entitled to a temporary restraining order.

4. The marketing contract may provide that the corporation may sell or

resell the products delivered by its members, with or without taking

title thereto; and may pay over to its members the resale-price, or the

pool price in case of pooling of sales, after deducting all necessary

selling, overhead and other costs and expenses, including interest or

distribution on stock, not exceeding six per centum per annum, and any

other deductions authorized by the by-laws or marketing contract.