LEGAL PHASES OF COOPERATIVE ASSOCIATIOlSrS, 67 



Article XI. — Emergency Capital. 



Section 1. At the time of uniting with the association, or any time thereafter 

 when called upon by the board of directors, each member, in consideration of 

 the maintenance and operation of the association, shall give a negotiable 

 promissory note, payable on demand to the order of the association. Such 

 note shall be for the sum of ($25) and an additional ($1) for each acre of 

 land farmed by the member, the products of which are to be marketed through 

 the association. But in no case shall this note be for less than ($35). 



Sec. 2. Such note shall be the property of the association for the purpose of 

 being pledged by the board of directors as collateral security for any loan that 

 may be necessary in the conduct of the association's business and also for the 

 purpose of securing the payment of any debt or claim due by the member to 

 the association. And such note shall retain its negotiable character without 

 reference to the date of its negotiation. 



Note. — This article is intended to supply capital which is needed 

 only for short periods ; for example, during the harvesting and 

 shipping period and other periods when a temporary supply of 

 money is required. The exact legal status of notes of this charac- 

 ter in the State where they are to be employed should be ascer- 

 tained. 



Article XII. — Grading and Inspecting. 



Section 1. All products grown by the members for sale through the associa- 

 tion shall either be graded and packed on the growers' premises, in accordance 

 with the rules of the association, subject to such inspection as may be estab- 

 lished by the board of directors, or shall be delivered to the association, as di- 

 rected by the manager, in prime conditions for grading, packing, and shipping. 



Sec. 2. All produce offered for shipment shall be inspected before shipment. 

 If any produce is not of good quality and in good condition for shipping, such 

 produce shall be sorted and prepared for shipment at the expense of the owner. 



Sec. 3. All brands, labels, trade-marks, and the like established by the associa- 

 tion shall be registered and become its property, and they shall be attached 

 only to such grades as shall be approved by the board of directors. 



Note. — The nature of organization and the kind of business en- 

 gaged in should be kept in mind, and the grading and inspecting 

 rules given in this article adapted to fit the requirements of the 

 organization and the products handled. 



Article XIII. — Conteacts and Agreements. 



Section 1. Every member of this association shall enter into a contract with 

 the association in the form required by the board of directors, subject to the 

 following provisions : 



(a.) That the member, by said contract, appoints the (Monvoe County Co- 

 operative Fruit Association) his sales agent to sell all products grown by him 

 for sale, or such part thereof as shall be specified in the contract, and binds 

 himself to deliver such products to the (Monroe County Cooperative Fruit As- 

 sociation) for sale at such time and place as the rules fixed by the board of 

 directors of the association may direct. 



(&) That said contract shall run continuously unless canceled by the member 

 on (April 1) of any year by giving written notice to that effect to the association 

 at least (30) days prior to said date and by delivering his copy of the contract 



