Laws: Cases and Codes : U.S. Code : Title 7 : Section 291


   
U.S. Code as of: 01/03/05
Section 291. Authorization of associations; powers

      Persons engaged in the production of agricultural products as
    farmers, planters, ranchmen, dairymen, nut or fruit growers may act
    together in associations, corporate or otherwise, with or without
    capital stock, in collectively processing, preparing for market,
    handling, and marketing in interstate and foreign commerce, such
    products of persons so engaged. Such associations may have
    marketing agencies in common; and such associations and their
    members may make the necessary contracts and agreements to effect
    such purposes: Provided, however, That such associations are
    operated for the mutual benefit of the members thereof, as such
    producers, and conform to one or both of the following
    requirements:
      First. That no member of the association is allowed more than one
    vote because of the amount of stock or membership capital he may
    own therein, or,
      Second. That the association does not pay dividends on stock or
    membership capital in excess of 8 per centum per annum.
      And in any case to the following:
      Third. That the association shall not deal in the products of
    nonmembers to an amount greater in value than such as are handled
    by it for members.



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