This legislation has been repealed.
(1) If a cooperative repurchases a share of a member, the cooperative may instead of paying the purchase price to the member—
(a) for a deposit-taking cooperative—apply the amount as an interest-bearing deposit by the member with the cooperative; or
(b) allot or issue debentures of the cooperative to the member in satisfaction of the amount.
(2) Subsection (1) applies only if—
(a) the board is of the opinion that payment of the repurchase price would adversely affect the financial position of the cooperative; or
(b) the board and the member agree.
(3) The deposit or debenture bears interest during any period—
(a) for a cooperative with share capital—
(i) at the rate (or, if there is more than 1 rate, at the higher or highest rate) of dividend payable in relation to the period on the share capital of the cooperative; or
(ii) if the rate of dividend payable in relation to the period has not been decided—at the rate (or the higher or highest rate) payable in relation to the last period for which a rate has been decided; or
(iii) if a rate of dividend has never been decided in relation to the share capital of the cooperative—at the rate that the board of the cooperative considers reasonable; or
(b) for a cooperative without share capital—at the rate that the board of the cooperative considers reasonable; or
(c) if the rules provide for a rate to be payable that is higher than the rate applying under paragraph (a) or (b)—at the higher rate.
(4) The deposit or debenture must be repaid to the member as soon as repayment would not, in the board's opinion, adversely affect the financial position of the cooperative.
(5) The deposit or debenture must in any case be repaid within 10 years (or, if the rules of the cooperative provided for a shorter period, the shorter period) after the repurchase of the shares.