N.Y. Cooperative Corporations Law § 72: Reserves, net margins, net retained proceeds, distributions, and patronage refunds

§ 72. Reserves, net margins, net retained proceeds, distributions, and

patronage refunds. The directors shall periodically set aside reasonable

sums for reserves. The net margins or net retained proceeds may, in the

discretion of the directors, be distributed at least once every twelve

months to members or patrons, by uniform distribution and calculated on

such bases as the by-laws or marketing contract may prescribe.

Distributions may be credited on account of the issuance to members or

patrons of capital stock or other securities of the corporation. In the

case of cooperatives with capital stock, dividends shall not exceed

twelve per centum per annum on any class of stock.