§ 5-526. Operating on nonprofit basis

   (a) As selling agent. --

   (1) A cooperative may operate as an agent to sell the products of its members or nonmember patrons on a nonprofit basis by contracting to pay the members or nonmember patrons the resale price for products sold by them to or through the cooperative, less a uniform charge to cover the expenses involved in the handling of these products.

   (2) The resale price shall be:

      (i) The actual resale price; or

      (ii) A price based on the average price during any period for products of the same type and quality.

   (3) The uniform charge for expenses shall be:

      (i) Specified in the contract;

      (ii) Made otherwise ascertainable; or

      (iii) Left for determination by the directors.

(b) As purchasing or servicing agent. -- A cooperative desiring to purchase goods or obtain or perform services under this subtitle may operate on a nonprofit basis in a manner similar to that described in this section.

HISTORY: An. Code 1957, art. 23, § 372; 1975, ch. 311, § 2; 1976, ch. 694.