Hawaii Revised Statutes 421C-19 – Limitations on interest-dividends

(a) Interest-dividend interest on share or membership capital shall not exceed the current annual Consumer Price Index percentage increase, or eight per cent, whichever is greater. Interest on loans by members to the association shall not be limited by this section.

Terms Used In Hawaii Revised Statutes 421C-19

Association: means a consumer cooperative association. See Hawaii Revised Statutes 421C-1
Interest-dividends: means the return on share, membership fee, or membership capital of the association which is limited in accordance with section 421C-19. See Hawaii Revised Statutes 421C-1
Net savings: means the total income of an association minus the costs of operation. See Hawaii Revised Statutes 421C-1
Share or membership capital: refers to the capital paid into an association by a member in accordance with section 421C-3. See Hawaii Revised Statutes 421C-1

(b) Total interest-dividends distributed for any single period shall not exceed thirty per cent of the net savings for that period. Interest-dividends are noncumulative and the association shall have the right to confiscate all interest-dividends not claimed within six months after the notice of the distribution has been made by either mail or by prominent sign in all the association’s locations.

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Hawaii Revised Statutes 421C-19 – Limitations on interest-dividends

Terms Used In Hawaii Revised Statutes 421C-19

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