Iowa Code 501A.802 – Member liability
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Terms Used In Iowa Code 501A.802
- Cooperative: means a business association organized under this chapter. See Iowa Code 501A.102
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: means a person or entity reflected on the books of a cooperative as the owner of governance rights of a membership interest of the cooperative and includes patron and nonpatron members. See Iowa Code 501A.102
- Membership interest: includes patron membership interests and nonpatron membership interests. See Iowa Code 501A.102
A member is not, merely on the account of that status, personally liable for the acts, debts, liabilities, or obligations of a cooperative. A member is liable for any unpaid subscription for the membership interest, unpaid membership fees, or a debt for which the member has separately contracted with the cooperative.