Allocated patronage equity
Allocated patronage equity is a term chapter 308B uses as a form of patronage distribution without defining it; it refers to patronage retained in the cooperative and allocated to a member's account.
Chapter 308B lists "allocated patronage equities" as a form in which net income may be distributed to patron members § 308B.725, subd. 5 P1. Section 308B.005 does not define the term P1. In general usage it means patronage that the cooperative keeps as equity but allocates to individual patrons' accounts; your bylaws should say how it is recorded and when, if ever, it is redeemed.
See Capital credit and Revolving fund certificate.
Statute sections referenced
- § 308B.005 DEFINITIONS.
- § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.
Related
Sources
- P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)