New York Laws
Article 5-A - Worker Cooperative Corporations
92 - Internal Capital Accounts; Recall or Redemption of Shares; Interest; Collective Reserve Account.

§ 92. Internal capital accounts; recall or redemption of shares;
interest; collective reserve account. 1. Any worker cooperative may
establish through its certificate of incorporation or by-laws a system
of internal capital accounts, to reflect the book value and to determine
the redemption price of membership shares, capital stock and written
notices of allocation. As used in this article, "written notice of
allocation" means a written instrument which discloses to a member the
stated dollar amount of such member's patronage allocation and the terms
for payment of that amount by the worker cooperative.

2. The certificate of incorporation or by-laws of a worker cooperative
may permit the periodic redemption of written notices of allocation and
capital stock, and must provide for recall and redemption of the
membership share upon termination of membership in the cooperative. No
redemption shall be made if such redemption would result in the
liability of any director or officer of the worker cooperative under
section seven hundred nineteen and section seven hundred twenty of the
business corporation law.

3. The certificate of incorporation or by-laws may provide for the
worker cooperative to pay or credit interest on the balance in each
member's internal capital account.

4. The certificate of incorporation or by-laws may authorize
assignment of a portion of net retained proceeds and net losses to a
collective reserve account. Net retained proceeds assigned to the
collective reserve account may be used for any and all corporate
purposes as determined by the board of directors.