Part 2 — Membership in Cooperatives Division 1 Becoming a Member
44 Limitation on bylaw
membership or the termination of the membership of a member
may authorize a redemption of shares or member loans if
(a) the cooperative is, or after redeeming the member's shares
and repaying loans and other money held to the member's
credit would be, unable to pay its liabilities as they become
due, or
(b) the realizable value of the cooperative's assets after the
redemption or payment would be less than the total of
(i) its liabilities, and
(ii) the amount that would be re quired to pay the holders of
shares that have a right to be paid, on a redemption or
liquidation, rateably with or in priority to the holders of
the shares to be purchased or redeemed.