Notwithstanding section 5551 (relating to dividends prohibited; compensation and certain payments authorized), a cooperative corporation may make patronage rebates or other distributions to its members or patrons in conformity with the purposes for which it is incorporated. A patronage rebate or dividend that is, or is equivalent to, a reduction in the charge made by a cooperative corporation to a member for goods or services shall not constitute a dividend or distribution within the meaning of this part or any other provision of law.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 71 - Cooperative Corporations Generally
Section 7101 - Short title of subpart
Section 7102 - Cooperative corporations generally
Section 7103 - Use of term "cooperative" in corporate name
Section 7104 - Election of an existing business corporation to become a cooperative corporation
Section 7105 - Termination of status as a cooperative corporation for profit
Section 7106 - Election of an existing nonprofit corporation to become a cooperative corporation
Section 7107 - Termination of nonprofit cooperative corporation status
Section 7121 - Cooperative contracts generally
Section 7122 - Notice of cooperative contracts
Section 7123 - Filing procedures
Section 7124 - Relief against breach or threatened breach of contract; penalty for interference
Section 7125 - Action for civil penalty for inducing breach or spreading false reports