{"data":{"id":"us-ky/krs-272a.10-070","jurisdiction":"us-ky","citation":"KRS 272A.10-070","heading":"Limitations on distributions.","body":"(1) A limited cooperative association may not make a distribution if, after the\ndistribution:\n(a) The association would not be able to pay its debts as they become due in the\nordinary course of the association's activities;\n(b) The association's assets would be less than the sum of its total liabilities; or\n(c) The distribution violates the organic rules.\n(2) A limited cooperative association may base a determination that a distribution is not\nprohibited under subsection (1) of this section on financial stateme nts prepared on\nthe basis of accounting practices and principles that are reasonable in the\ncircumstances or on a fair valuation or other method that is reasonable in the\ncircumstances.\n(3) Except as otherwise provided in subsection (4) of this section, th e effect of a\ndistribution allowed under subsection (2) of this section is measured:\n(a) In the case of distribution by purchase, redemption, or other acquisition of\nfinancial rights in the limited cooperative association, as of the date money or\nother property is transferred or debt is incurred by the association; and\n(b) In all other cases, as of the date:\n1. The distribution is authorized, if the payment occurs not later than one\nhundred twenty (120) days after that date; or\n2. The payment is made, if pa yment occurs more than one hundred twenty\n(120) days after the distribution is authorized.\n(4) If indebtedness is issued as a distribution, each payment of principal or interest on\nthe indebtedness is treated as a distribution, the effect of which is measu red on the\ndate the payment is made.\n(5) For purposes of this section, \"distribution\" does not include reasonable amounts\npaid to a member in the ordinary course of business as payment or compensation for\ncommodities, goods, past or present services, or re asonable payments made in the\nordinary course of business under a bona fide retirement or other benefits program.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41059","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:22Z","sha256":"7284d659037655abcf9b891370c1d11ece2ee0537dd848aa11ff1365df6804c9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272a.10-060","next":"us-ky/krs-272a.10-080"},"notice":"GroundRules: Original legal text. Not legal advice."}