New York Consolidated Laws, Cooperative Corporations Law - CCO § 113. Reserves

In addition to reserves for depreciation, depletion, obsolescence and bad debts, agricultural cooperatives shall create and maintain minimum general purpose reserves. Such reserves shall be set aside periodically until or unless they total an aggregate minimum amount computed in accordance with one of the following optional methods.

The aggregate minimum amount of such general purpose reserve shall be computed and equal either (1) at least two per centum of the average annual gross receipts of the preceding five years to be accumulated at a rate of not less than two-fifths of one per centum of the gross receipts per annum or such part thereof as may be necessary to establish and maintain such reserves, or (2) at least the total amount of paid up capital stock or membership capital contributed to the corporation accumulated at a rate of not less than ten per centum of the net margins in each year or such part thereof as may be necessary to establish and to maintain such reserve, or (3) at least an amount necessary to establish a sixty per centum net worth wherein the paid in capital and surplus (including the general purpose reserve) shall equal sixty per centum of the total assets of the cooperative. Such a reserve shall be accumulated at a rate of not less than ten per centum of the net margins in each year or such part thereof as may be necessary to establish and to maintain such reserves.

The general purpose reserve created, accumulated and maintained in accordance with this article six shall be deemed to be a required statutory reserve for each agricultural cooperative as defined in this article.