Common use of Periodic Distributions of Available Funds Clause in Contracts

Periodic Distributions of Available Funds. (a) Upon the Vote of a majority of the Directors, provided that the Cooperative has achieved at least break even operating status as indicated by the Cooperative’s audited financial statements for the previous fiscal year, all cash that is available for distribution by the Cooperative after paying all operating expenses, including without limitation, the Cooperative’s annual PILOT payment and establishing such reserves required by law or as the Directors shall determine by majority Vote, shall be distributed to the Members proportionately in accordance with their respective holdings of the Cooperative’s Percentage Interests up to an amount approximating each Member’s debt service obligations relating to the cost of the Broadband Assets contributed by such Member. Any retained earnings available after payment of the Members debt service obligations may be distributed pro rata based on each Member’s Percentage Interest to the Members by an affirmative Vote of a majority of the Board of Directors.

Periodic Distributions of Available Funds. (a) Upon the Vote of a majority of the Directors, provided that the Cooperative has achieved at least break even operating status as indicated by the Cooperative’s audited financial statements for the previous fiscal year, all cash that is available for distribution by the Cooperative after paying all operating expenses, including without limitation, the Cooperative’s annual PILOT payment and establishing such reserves required by law or as the Directors shall determine by majority Vote, shall be distributed to the Members proportionately in accordance with their respective holdings of the Cooperative’s Percentage Interests up to an amount approximating each Member’s debt service obligations relating to the cost of the Broadband Assets contributed by such Member. Any retained earnings available after payment of the Members debt service obligations may be distributed pro rata based on each Member’s Percentage Interest proportionately to the Members by an affirmative Vote of a majority of the Board of Directors.