N.Y. REL Law § 60

§ 60. Refunds to members. Revenues of a cooperative for any fiscal\nyear in excess of the amount thereof necessary:\n (a) To defray the expenses of the operation and maintenance of the\nfacilities of the cooperative during such fiscal year;\n (b) To pay interest and principal obligations of the cooperative\ncoming due in such fiscal year;\n (c) To finance, or to provide a reserve for the financing of, the\nconstruction or acquisition by the cooperative of additional facilities\nto the extent determined by the board of directors;\n (d) To provide a reasonable reserve for working capital as determined\nby the board of directors;\n (e) To provide a reserve for the payment of indebtedness of the\ncooperative in an amount not less than the total of the interest and\nprincipal payment in respect thereof required to be made during the next\nfollowing fiscal year; and\n (f) To provide a fund for education in cooperation and for the\ndissemination of information concerning the effective use of electric\nenergy and other services made available by the cooperative, shall,\nunless otherwise determined by a vote of the members, be distributed by\nthe cooperative to its members and to other persons to whom the\ncooperative supplies electric energy or other services, as patronage\nrefunds prorated in accordance with the patronage of the cooperative by\nthe respective members and such other persons, paid for during such\nfiscal year; provided, however, that such distribution shall not be made\nto any such other person until he has become a member of the\ncooperative. If such other person does not become a member of the\ncooperative within one year after the amount of his distributive share\nor accumulated distributive shares equals the membership fee required by\nthe by-laws of the cooperative, or, if no membership fee is required,\nwithin two years after the declaration of any such patronage refund, he\nshall cease to be entitled to such share or shares, which shall, in such\ncase, be paid into the fund provided for in this subdivision. The\ncooperative shall make such additional provision, in the by-laws or\notherwise, relative to the disposition of the revenues of the\ncooperative, as may be necessary and appropriate to establish and\nmaintain the non-profit character of the cooperative. Nothing herein\ncontained shall be construed to prohibit the payment by a cooperative of\nall or any part of its indebtedness prior to the date when the same\nshall become due.\n