Coop rules/5 Payment for Shares

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Part 5 -- Payment for Shares

Payment for shares

(Rule 23)

  1. Except as provided in this Rule, EcoReality Sustainable Land Use and Education Cooperative must not issue or allot membership or investment shares unless the shares are paid for in accordance with The Cooperative Association Act.
  2. Membership shares are payable by written agreement approved by the directors or those persons delegated by the directors.
  3. Membership shares may be forfeited for default in the written agreement for payment.
  4. Upon special resolution, investment shares may be loaned to a member in order for that member to attain the minimum number of investment shares required for habitation in the village.
    1. The directors and the borrowing member will agree on a payment plan for paying off the borrowed shares.
      1. In the case of default of the payment plan, borrowed investment shares may be forfeited.
    2. Variable interest is to be paid to EcoReality Sustainable Land Use and Education Cooperative annually on borrowed shares, calculated by adding the share dividend rate paid to Class A shareholders to the Canadian Consumer Price Index, then multiplying that total by 120%.
    3. Borrowed investment shares may be payable on call.

Dividends or interest on membership shares

(Rule 24) Membership shares do not accrue or pay dividends.

Effect of forfeiture

(Rule 25)

  1. A forfeiture under #Payment for shares (Rule 23)(3) or (4.1.1) is effective on the date specified in the written agreement.
  2. A member whose share has been forfeited in accordance with #Payment for shares (Rule 23)(3) ceases to be a member in respect of the forfeited share and the directors may strike the member's name from the register of members and cancel the share certificate in respect of the forfeited share.
  3. A member whose investment share has been forfeited in accordance with #Payment for shares (Rule 23)(4.1.1) may have habitation rights in the village revoked, should that forfeiture result in their investment share holdings to be below the minimum required for village habitation.
  4. A forfeited share may be sold or otherwise disposed of on terms and in a manner the directors think fit and, at any time before a sale or disposition, the forfeiture may be cancelled on terms the directors think fit.

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