Okla. Stat. tit. 18, § 18-441-1004

ALLOCATIONS OF PROFITS AND LOSSES.

(a) The organic rules may provide for allocating profits of a

limited cooperative association among members, among persons that

are not members but conduct business with the association, to an

unallocated account, or to any combination thereof. Unless the

organic rules otherwise provide, losses of the association must be

allocated in the same proportion as profits.

Oklahoma Statutes - Title 18. Corporations Page 206

(b) Unless the organic rules otherwise provide, all profits and

losses of a limited cooperative association must be allocated to

patron members.

(c) If a limited cooperative association has investor members,

the organic rules may not reduce the allocation to patron members to

less than fifty percent (50%) of profits. For purposes of this

subsection, the following rules apply:

(1) Amounts paid or due on contracts for the delivery to the

association by patron members of products, goods, or services are

not considered amounts allocated to patron members.

(2) Amounts paid, due, or allocated to investor members as a

stated fixed return on equity are not considered amounts allocated

to investor members.

(d) Unless prohibited by the organic rules, in determining the

profits for allocation under subsections (a), (b) and (c) of this

section, the board of directors may first deduct and set aside a

part of the profits to create or accumulate:

(1) An unallocated capital reserve; and

(2) Reasonable unallocated reserves for specific purposes,

including expansion and replacement of capital assets; education,

training, cooperative development; creation and distribution of

information concerning principles of cooperation; and community

responsibility.

(e) Subject to subsections (b) and (f) of this section and the

organic rules, the board of directors shall allocate the amount

remaining after any deduction or setting aside of profits for

unallocated reserves under subsection (d) of this section:

(1) To patron members in the ratio of each member’s patronage

to the total patronage of all patron members during the period for

which allocations are to be made; and

(2) To investor members, if any, in the ratio of each investor

member’s contributions to the total contributions of all investor

members.

(f) For purposes of allocation of profits and losses or

specific items of profits or losses of a limited cooperative

association to members, the organic rules may establish allocation

units or methods based on separate classes of members or, for patron

members, on class, function, division, district, department,

allocation units, pooling arrangements, members’ contributions, or

other equitable methods.