20 BULLETIN 541, U. S. DEPARTMENT OF AGBICULTUEE. 



shall not affect any right or lien which the Association has against the retiring member 

 or his property until his indebtedness to the Association is fully paid. 



Note.— The time of withdrawal should be so fixed as to take elleet some time between the close of 

 one season's business and the opening of the next. To permit a member to withdraw during a busy 

 marketing season will result in confusion and may seriously handicap the manager in filling his contracts. 



Sec. 8. Any member having a grievance or complaint against the Association may 

 appeal to the Board of Directors [or to the members at any regular or called meeting]. 

 No member shall be suspended or expelled or deprived of the benefits of the Associa- 

 tion without having charges preferred against him. reasonable notice thereof having 

 been given and a hearing before the Board of Directors [or by the members at a 

 regular or called meeting]. 



Article XV. — Indebtedness, Membership Liability. 



Section 1. The amount of indebtedness which may be incurred by or on behalf of 

 this Association shall at no time exceed [$20,000]. 



Sec. 2. Each member shall be responsible for his per capita share of all contracts, 

 debts, and engagements of the Association up to and including the maximum in- 

 debtedness prescribed in section 1 of this article; but if any member's share of such 

 contracts, debts, and engagements shall prove to be uncollectible, each remaining 

 member shall be responsible, as his additional liability, for such unpaid share or part 

 thereof to an amount equal to such member's original liability. No member shall 

 be liable to the Association for any contract, debt, or engagement arising out of any 

 specific transaction between the Association and any member or members thereof in 

 which he does not participate, unless and until the association shall have exhausted 

 every legal recourse and failed to enforce satisfaction from the member or members 

 participating therein. In all cases any member who. voluntarily or otherwise, con- 

 tributes to the payment of the debt or obligation of another member or other mem- 

 bers shall have an action, several or joint as he may elect, against such defaulting 

 member or members for reimbursement. 



Note.— Section 2 should be changed to agree with the requirements of the laws under which the 

 organization is incorporated. 



Article XVI. — Expenses and Payments. 



Section 1. The expenses of operating the Association shall be met by a percentage 

 charge laid upon returns for produce sold or by a uniform fixed commission per package 

 and by a percentage charge upon supplies purchased, the amount of such charge to 

 be fixed by the Board of Directors. 



Sec. 2. Except in cases provided for in Article XIV, section 2, in making sales, 

 all produce of the same grade shall be paid for on the basis of the average price received 

 during such periods as the Board of Directors from time to time may determine. 

 Payments for such produce shall be made to the shippers at the end of each period; 

 in all other cases, payment shall be made to the shippers on the receipt by the Associa- 

 tion of the returns for the sale of the produce. 



Note.— It is important that prices should be averaged on products of the same grade, in order to deal 

 With all members fairly. If prices are not averaged, one man may receive a higher price than his neighbor 

 for shipments of the same quality made on the same day, and this would create dissatisfaction and dis- 

 trust among the members. 



Article XVII. — Cooperative Purchase of Supplies. 



Section 1. All merchandise purchased by the Association for any member shall 

 be paid for in cash by the member ordering such supplies at the time of ordering the 

 same, or the proper credit arranged for with some bank, approved by the Board of 

 Directors, at the time of ordering. 



Note.— Without such a provision an organization purchasing supplies for its members may find that 

 some of the mcmb"rs will refuse to take supplii s ordered or else will not pay promptly. A cooperative 

 organization should extend credit to no one, unless it is amply secured. 



