Part 2 — Membership in Cooperatives Division 1 Becoming a Member
37 Redemption of membership shares and loans
no later than one year after the effective date of a notice of
voluntary withdrawal of a member,
(a) redeem all membership sha res held by the withdrawing
member at the redemption price determined in accordance
with section 128, and
(b) repay to the member all me mber loans, all other amounts
held to the member's credit and all amounts outstanding on
loans made to the cooperative by the member, if any,
together with any interest accrued on those amounts up to
the date of the payment.
(2) Notwithstanding subsection (1), the directors may delay the
redemption and payment if
(a) the directors believe, on reasonable grounds, that the
redemption or payment would affect the financial
well-being of the cooperative, or
(b) the directors believe, on reasonable grounds, that
(i) the cooperative is, or after the redemption or payment
would be, unable to pay its liabilities as they become
due, or
(ii) the realizable value of the cooperative's assets after the
redemption or payment would be less than the total of
(A) its liabilities, and
(B) the amount that would be required 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.
(3) Unless the directors decide otherwise,
(a) the withdrawal of a member f rom the cooperative does not
release the member from any debt or obligation to the
cooperative or contract with the cooperative, and
(b) despite subsection (1), the cooperative need not repay to the
member amounts outstanding on loans made to the
cooperative that have a fixed maturity date, until that date
arrives.