A. Under the terms and conditions prescribed in the bylaws adopted by it, an association may admit as members, or issue common stock to only cooperative associations and/or persons engaged in the production of agricultural products to be handled by or through the association, including the lessees and tenants of land used for the production of such products and any lessors and landlords who receive as rent all or part of the crop raised on the leased premises. An association organized hereunder may become a member or stockholder of any other cooperative association organized in this or any other state.

B. A member shall lose his membership and voting rights if he ceases to belong to the class of persons eligible for membership under this section, but he shall remain subject to any liability already incurred by him as a member of the association and shall be entitled to receive from the association within three years after his ceasing to be a member the value of his membership interest in the association subject to the conclusive appraisal by the board of directors. If the association shall approve the member's designation of a transferee of his membership interest the association shall be under no obligation to pay the transferrer [transferor] the value of this interest.

C. Except for debts lawfully contracted between him and the association no member shall be liable for the debts of the association to any amount exceeding the sum remaining unpaid on his subscription to membership.

D. Under the provisions of its bylaws an association may provide that no members shall have more than one vote, or it may provide that members may vote according to actual patronage. However, in no case shall a member be allowed to have more than five (5) votes, and a member shall not be allowed more than one vote because of the amount of stock or membership capital he may own.

History: Laws 1937, ch. 152, § 11; 1941 Comp., § 48-1311; 1953 Comp., § 45-14-11.

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Compiler's notes. — For similar provisions in earlier acts, see Laws 1925, ch. 99, § 8 (as amended by Laws 1931, ch. 27, § 1) and § 9, Laws 1923, ch. 36, § 1 and Laws 1915, ch. 64, § 2.

Intent of legislature in establishing required reserve in Section 76-12-12C NMSA 1978 was to assure protection of the association's creditors by establishing an adequate reserve fund and to establish a means for maintaining capital in the association. 1963 Op. Att'y Gen. No. 63-149.

Only common stock to be included in reserve fund requirement. — Because, in a stock association, the holders of common stock are the members of the association, but the preferred stockholders are not members and do not have a voice in the control of the corporation, the intention of the legislature was to include only common stock in the reserve fund requirement of Section 76-12-12C NMSA 1978 for stock associations. 1963 Op. Att'y Gen. No. 63-149.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 18 Am. Jur. 2d Cooperative Associations §§ 14, 21.

Legality of combination among farmers, 25 A.L.R. 1113, 33 A.L.R. 247, 47 A.L.R. 936, 77 A.L.R. 405, 98 A.L.R. 1406, 12 A.L.R.2d 130.

Benefits: validity and enforceability of by-law amendment reducing benefits available to members, 61 A.L.R.3d 976.

Membership: competency of juror as affected by his membership in cooperative association interested in the case, 69 A.L.R.3d 1296.

Liability of member or former member of marketing or purchasing cooperative for its debts or losses, 96 A.L.R.3d 1243.

3 C.J.S. Agriculture §§ 141, 142.