delivered to the Secretary prior to meeting. The director so nominated 

 by each member shall be automatically elected to office. In the event 

 the required number of directors shall exceed the number of directors 

 so elected, nominations shall be made by members and after the nomina- 

 tions have been closed, the director shall vote upon the remaining 

 directors to be chosen. At such election each member may vote for as 

 many more directors as there are directors to be chosen, but may not 

 cumulate his vote. If there has been nominated for the office of 

 director more than the additional number to be elected, then upon the 

 demand of any member, the election shall be by written ballot; other- 

 wise it shall be viva voce. 



ARTICLE VIII. 



Capital 



Section 1. Revolving Fund. The Board is authorized to require mem- 

 bers to pay an amount determined by the Board to be sufficient to cover 

 the original organization expense and the initial operating expense. 

 The Board is further authorized to require each member to pay some part 

 of the proceeds of sale of produce by the Association. These payments 

 shall be provided for in the Marketing Contract between member and 

 Association. The amounts so collected shall be used by the Association 

 for organization and operating expense and any capital expenditure 

 determined by the Board. This shall be designated as the Revolving 

 Fund. At the end of each calendar year an account shall be made of 

 the amounts collected from members and added to the Revolving Fund and 

 the amount thereof which has been used in the operation of the Associa- 

 tion. In the event the Board determines that it is necessary, a portion 

 of the balance may be set aside to finance operations in the succeeding 

 year and the remainder shall be distributed among the members in the 

 same proportion as the payments of each bear to the total payments. 



Section 2. Evidence of Assignment. No assignment or transfer of any 

 Revolving Fund credits, whether voluntary or involuntary, shall be of 

 any effect as against the Association or entitle the assignee or 

 transferee to be paid or to receive any moneys from the Association 

 unless and until evidence satisfactory to the Association of such 

 assignment or transfer be submitted to the cooperative. 



Section 3. No Assignment While Indebted to the Association. No 

 assignment or transfer of any Revolving Fund credits, whether voluntary 

 or involuntary, by act of law or otherwise, can be made, nor will any 

 purported assignment or transfer be of any effect against the Associa- 

 tion so long as the party whose interest is to be assigned or trans- 

 ferred is indebted to the Association in any manner or for anything, 



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