{"data":{"id":"us-ok/okla.-stat.-tit.-18-18-441-1007","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 18, § 18-441-1007","heading":"Limitations on distributions","body":"LIMITATIONS ON DISTRIBUTIONS.\n\n(a) A limited cooperative association may not make a\n\ndistribution if, after the distribution:\n\n(1) The association would not be able to pay its debts as they\n\nbecome due in the ordinary course of the association’s activities;\n\nor\n\n(2) The association’s assets would be less than the sum of its\n\ntotal liabilities.\n\n(b) A limited cooperative association may base a determination\n\nthat a distribution is not prohibited under subsection (a) of this\n\nsection on financial statements prepared on the basis of accounting\n\npractices and principles that are reasonable in the circumstances or\n\non a fair valuation or other method that is reasonable in the\n\ncircumstances.\n\n(c) Except as otherwise provided in subsection (d) of this\n\nsection, the effect of a distribution allowed under subsection (b)\n\nof this section is measured:\n\n(1) In the case of distribution by purchase, redemption, or\n\nother acquisition of financial rights in the limited cooperative\n\nassociation, as of the date money or other property is transferred\n\nor debt is incurred by the association; and\n\n(2) In all other cases, as of the date:\n\n(A) the distribution is authorized, if the payment occurs\n\nnot later than one hundred twenty (120) days after\n\nthat date; or\n\n(B) the payment is made, if payment occurs more than one\n\nhundred twenty (120) days after the distribution is\n\nauthorized.\n\n(d) If indebtedness is issued as a distribution, each payment\n\nof principal or interest on the indebtedness is treated as a\n\ndistribution, the effect of which is measured on the date the\n\npayment is made.\n\n(e) For purposes of this section, “distribution” does not\n\ninclude reasonable amounts paid to a member in the ordinary course\n\nof business as payment or compensation for commodities, goods, past\n\nor present services, or reasonable payments made in the ordinary\n\ncourse of business under a bona fide retirement or other benefits\n\nprogram.","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":"c953e8f0d54c864acb9772291039b2b8ff1d599e60f2e49a759e8c5ab7331270","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-18-18-441-1006","next":"us-ok/okla.-stat.-tit.-18-18-441-1008"},"notice":"GroundRules: Original legal text. Not legal advice."}