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17-1604. Purposes of association. An association may be organized to engage in any activity in connection with the marketing or selling of the agricultural products of the association's members; harvesting, threshing, milling, preserving, drying, processing, canning, packing, storing, handling, shipping, or utilization of the agricultural products; manufacturing or marketing of the agricultural by-products; manufacturing, selling, or supplying to the association's members and other patrons of services, products, machinery, equipment or supplies; agricultural education, research, legislation and economic and social conditions; improvement of livestock breeds by means of artificial breeding or otherwise; financing of the above-enumerated activities; or in any one or more of the activities specified above.

Nothing in this act shall authorize such association to engage in the banking business. Corporations organized under this act primarily for the purposes stated above, unless prohibited from so doing by their articles of incorporation, also may deal in the products of nonmembers; manufacture, sell or supply to nonmembers services, products, machinery, equipment or supplies, whether or not supplied to members; and otherwise engage in business with nonmembers. Such associations shall not market, handle, process, store, or deal in the products of nonmembers; manufacture, sell or supply to nonmembers services, products, machinery, equipment or supplies, whether or not supplied to members; and otherwise engage in business with nonmembers; or handle supplies for nonmembers, to an amount greater in value than such as are handled by the association for members.

History: L. 1921, ch. 148, § 4; R.S. 1923, 17-1604; L. 1931, ch. 150, § 2; L. 1953, ch. 129, § 2; L. 1992, ch. 227, § 4; July 1.

Law Review and Bar Journal References:

Cooperative marketing act, Ralph E. Hoke, 22 J.B.A.K. 222, 223 (1954).

Problems in fluid milk marketing, John C. Gage, 7 K.L.R. 311, 331 (1959).

The farmer and his cooperative, Edwin H. White, 7 K.L.R. 334, 336, 338 (1959).

Lack of uniformity in financial statements and corporate statutes, 16 W.L.J. 655, 668, 670, 671 (1977).

CASE ANNOTATIONS

1. Act construed and discussed in determining powers of association; right of association to have business transactions with nonmembers determined. State, ex rel., v. Consumers Co-operative Ass'n, 163 Kan. 324, 183 P.2d 423.

2. Plan to convert cooperative society to cooperative marketing association held unjust and inequitable. Hill v. Partridge Co-operative Equity Exchange, 168 Kan. 506, 513, 214 P.2d 316.

3. County farm bureau could not become member of corporation organized hereunder. State, ex rel., v. Franklin County Farm Bureau, 172 Kan. 179, 184, 239 P.2d 570.


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