fees, annual dues, authorized de- 

 ductions, and retention of savings on 

 operations constituting the sources of 

 equity capital. 



Bylaw provisions permit authorized 

 deductions either in the form of a 

 uniform charge per unit marketed or 

 a percentage deduction from the sale 

 price. The cooperative currently (1961) 

 uses the percentage deduction plan. 

 Under this arrangement, the associ- 

 ation deducts a certain percentage of 

 the gross receipts as full compensation 

 for its services. The rate is not fixed 

 but varies withthe association's capital 

 position. 



Refunds retained are operating 

 margins on savings held by the associ- 

 ation as an addition to capital. Such 

 amounts are allocated on the books of 

 the association to the account of an 

 individual member in proportion to his 

 patronage. Payment to the patron is 

 made in the form of a certificate but 

 payment of cash is deferred until some 

 future date. 



Membership capital retained by the 

 cooperative may be returned to the 

 member only whenthe amount reserved 

 for working capital purposes exceeds 

 the amount of paid-in membership 

 fees. If the reserve falls below this 

 amount, the association can set aside 

 10 percent or more of the net savings 

 until the board of directors decides 

 that ample funds have accumulated. 



Savings in excess of the amount 

 set aside for working capital are dis- 



10 



