Chapter 377 Oregon Laws 1999

Session Law

AN ACT

SB 623

Relating to cooperative corporations; creating new provisions; and amending ORS 62.430.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 62.430 is amended to read:

62.430. (1) If authorized by the bylaws, a cooperative may pay the following persons up to [$250] $10,000 in redemption or refund of capital credits or retains recorded on the books and records of the cooperative in the name of a deceased owner thereof:

(a) The surviving spouse of the deceased owner;

(b) If there is no surviving spouse, the deceased owner's surviving children 18 years of age or older;

(c) If the deceased owner left no surviving spouse or surviving children 18 years of age or older, the deceased owner's surviving parents; or

(d) If there is no surviving spouse, surviving children 18 years of age or older or surviving parent, the deceased owner's surviving brothers and sisters 18 years of age or older.

(2) The affidavit of the person claiming payment shall:

(a) State where and when the deceased owner died;

(b) State that the total face value of the capital credits or retains of the deceased owner in the cooperative does not exceed [$250] $10,000 and that they are free and clear of any security interest or other lien or encumbrance;

(d) Embody a promise to pay the expenses of last sickness, funeral expenses and just debts of the deceased owner out of the capital credits or retains to be redeemed or refunded to the full extent thereof if necessary, and to distribute any balance to those persons entitled thereto by law; and

(e) State any other information deemed appropriate by the cooperative.

(3) A cooperative is under no obligation to determine the relationship of the affiant to the deceased owner, or to determine other than from its books and records whether the deceased owner's capital credits or retains are subject to a security interest or other lien or encumbrance. Payment made in good faith to the person making the affidavit is a full acquittance and release of the cooperative for the amount so paid.

(4) A probate proceeding is not necessary to establish the right of the surviving spouse, surviving children, surviving parent or surviving brothers and sisters to obtain payment of the capital credits or retains as provided by this section. However, if a personal representative is appointed in an estate of a deceased member or patron whose capital credits or retains have been redeemed or refunded under this section, the person or persons signing the affidavit shall account for them to the personal representative.

(5) Nothing in this section shall abrogate the rights of a cooperative set forth in ORS 62.235, and a cooperative's right to set off from a deceased owner's capital credits or retains any debts owed to the cooperative by the deceased owner. This section shall not require that redemption or refund of capital credits or retains be made in accordance with this section, or otherwise limit or affect the manner in which a cooperative may pay, redeem, refund, administer or distribute its net savings, or any retains thereof, capital credits or other equity interests, nor shall it be deemed or construed to impose any further obligation or liability on a cooperative in its payment or redemption of retains in excess of [$250] $10,000.

(6) Notwithstanding any provision of this section, if the cooperative's books and records reflect that the deceased owner's capital credits or retains are subject to a security interest or other encumbrance, the cooperative shall not be relieved of any liability arising from the security interest or the encumbrance if the redemption or refund of capital credits is made to the person making the affidavit under this section.

SECTION 2. The amendments to ORS 62.430 by section 1 of this 1999 Act apply to payments made on or after the effective date of this 1999 Act.

Approved by the Governor June 28, 1999

Filed in the office of Secretary of State June 29, 1999

Effective date October 23, 1999

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