Page:United States Statutes at Large Volume 54 Part 1.djvu/515

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54 STAT.] 76TH CONG. , 3D SESS.-CH. 397-JUNE 19, 1940 (b) that the maximum rate at which any return is paid on share or membership capital is limited to not more than 8 per centum per annum; (c) that the net savings after payment, if any, of said limited return on capital and after making provision for such separate funds as may be required or specifically permitted by statute, arti- cles, or bylaws, or allocated or distributed to member patrons, or to all patrons, in proportion to their patronage; or retained by the enterprise, for the actual or potential expansion of its services or the reduction of its charges to the patrons, or for other purposes not inconsistent with its nonprofit character. ARTICLE II-WHO MAY INCORPORATE; PURPOSES AND PowERS OF AssocximoNs ASSOCIATIONS SEC. 2. WHO MAY INCORPORATE.- Any five or more natural persons or two or more associations may incorporate in the District of Columbia under this Act. SEC. 3. PURPOSES. -An association may be incorporated under this Act to engage in any one or more lawful mode or modes of acquiring, producing, building, operating, manufacturing, furnishing, exchang- ing, or distributing any type or types of property, commodities, goods, or services for the primary and mutual benefit of the patrons of the association (or their patrons, if any) as ultimate consumers. SEC. 4 . PowERs.-An association shall have the capacity to act possessed by natural persons and the authority to do anything required or permitted by this Act and also- (1) To continue as a corporation for the time specified in its articles; (2) To have a corporate seal and to alter the same at pleasure; (3) To sue and be sued in its corporate name; ) To make bylaws for the government and regulation of its affairs; (5) To acquire, own, hold, sell, lease, pledge, mortgage, or other- wise dispose of any property incident to its purposes and activities; (6) To own and hold membership in and share capital of other associations and any other corporations, and any types of bonds or other obligations; and while the owner thereof to exercise all the rights of ownership; (7) To borrow money, contract debts, and make contracts, includ- ing agreements of mutual aid or federation with other associations, other groups organized on a cooperative basis, and other nonprofit groups; (8) To conduct its affairs within or without the District of Columbia; (9) To exercise in addition any power granted to ordinary business corporations, save those powers inconsistent with this Act; (10) To exercise all powers not inconsistent with this Act which may be necessary, convenient, or expedient for the accomplishment of its purposes, and, to that end, the foregoing enumeration of powers shall not be deemed exclusive. ARTICLE III-ARTICLEs OF INCORPORATION SEC. 5. ARTICLES OF INCORPORATION; CONTENTS. -Articles of incor- poration shall be signed by each of the incorporators and acknowl- edged by at least three of them if natural persons, and by the presidents and secretaries, if associations, before an officer authorized to take acknowledgments. 1934 0°--41 -PT. I 31 481 Who may incorpo- rate. Purposes Powers. Articles of incorpo- ration. Signing, etc.