Part 2 — Membership in Cooperatives Division 1 Becoming a Member
41 Redemption of member interests
must, no later than one year after the effective date of the
termination under section 38(3) or a vote of the members under
section 40, whichever is later,
(a) redeem all membership sha res held by the member at the
redemption price determined in accordance with section
128;
(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 of shares 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.