163Repayment of amounts owing because of cancelled membership

#### 163 Repayment of amounts owing because of cancelled membership 163 Repayment of amounts owing because of cancelled membership > > (1) If the membership of a member of a co-operative is cancelled under this Part, the co-operative must, within one year after the date of cancellation— > > > > > (a) repay to the former member the amount owing to the member because of the cancellation; or > > > > > (b) apply the amount under subsection (2) if— > > > > > > > (i) the board considers repayment would adversely affect the financial position of the co-operative; or > > > > > > > (ii) the board and the former member so agree. > > > (2) The amount payable may be applied as follows— > > > > > (a) if the co-operative is a deposit-taking co-operative—the co-operative may apply the amount as a deposit by the former member with the co-operative (subject to the requirements of section 164 as to interest on the deposit); > > > > > (b) the co-operative may allot or issue debentures or CCUs of the co-operative to the former member in satisfaction of the amount; > > > > > (c) the co-operative may appropriate the amount as a donation to the co-operative, but only if the former member consents in writing to the donation. > > > (3) The amount payable to a former member because of the cancellation of membership includes any amount paid up for shares forfeited because of the cancellation of membership. > > > (4) If the former member is subsequently readmitted to membership, any amount held by the co-operative under this section must, if the member asks, be applied towards the cost of readmission to membership (including any subscription for share capital). > > > (5) The co-operative may retain the amount otherwise payable to a former member under this section, if— > > > > > (a) the former member cannot be found by the co-operative, after reasonable efforts by the co-operative to find the former member; and > > > > > (b) the amount is less than $100 (or any other amount prescribed by the National Regulations).