{"data":{"id":"us-ok/okla.-stat.-tit.-18-18-441-1004","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 18, § 18-441-1004","heading":"Allocations of profits and losses","body":"ALLOCATIONS OF PROFITS AND LOSSES.\n\n(a) The organic rules may provide for allocating profits of a\n\nlimited cooperative association among members, among persons that\n\nare not members but conduct business with the association, to an\n\nunallocated account, or to any combination thereof. Unless the\n\norganic rules otherwise provide, losses of the association must be\n\nallocated in the same proportion as profits.\n\n(b) Unless the organic rules otherwise provide, all profits and\n\nlosses of a limited cooperative association must be allocated to\n\npatron members.\n\n(c) If a limited cooperative association has investor members,\n\nthe organic rules may not reduce the allocation to patron members to\n\nless than fifty percent (50%) of profits. For purposes of this\n\nsubsection, the following rules apply:\n\n(1) Amounts paid or due on contracts for the delivery to the\n\nassociation by patron members of products, goods, or services are\n\nnot considered amounts allocated to patron members.\n\n(2) Amounts paid, due, or allocated to investor members as a\n\nstated fixed return on equity are not considered amounts allocated\n\nto investor members.\n\n(d) Unless prohibited by the organic rules, in determining the\n\nprofits for allocation under subsections (a), (b) and (c) of this\n\nsection, the board of directors may first deduct and set aside a\n\npart of the profits to create or accumulate:\n\n(1) An unallocated capital reserve; and\n\n(2) Reasonable unallocated reserves for specific purposes,\n\nincluding expansion and replacement of capital assets; education,\n\ntraining, cooperative development; creation and distribution of\n\ninformation concerning principles of cooperation; and community\n\nresponsibility.\n\n(e) Subject to subsections (b) and (f) of this section and the\n\norganic rules, the board of directors shall allocate the amount\n\nremaining after any deduction or setting aside of profits for\n\nunallocated reserves under subsection (d) of this section:\n\n(1) To patron members in the ratio of each member’s patronage\n\nto the total patronage of all patron members during the period for\n\nwhich allocations are to be made; and\n\n(2) To investor members, if any, in the ratio of each investor\n\nmember’s contributions to the total contributions of all investor\n\nmembers.\n\n(f) For purposes of allocation of profits and losses or\n\nspecific items of profits or losses of a limited cooperative\n\nassociation to members, the organic rules may establish allocation\n\nunits or methods based on separate classes of members or, for patron\n\nmembers, on class, function, division, district, department,\n\nallocation units, pooling arrangements, members’ contributions, or\n\nother equitable methods.","path":["OK Code","Title 18"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os18.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"f6ee128b8225d313bd07b07b5b7362c0a16fa5a2de553eea896904acd7c9628c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-18-18-441-1003","next":"us-ok/okla.-stat.-tit.-18-18-441-1005"},"notice":"GroundRules: Original legal text. Not legal advice."}