04. Security interest and set-off. (a) A member or transferee may create an enforceable security interest in its financial rights in a limited cooperative association. (b) Unless the organic rules otherwise provide, a member shall not create an enforceable security interest in the member’s governance interests in a limited cooperative association. (c) The organic rules may provide that a limited cooperative association has a security interest in the financial rights of a member to secure payment of any indebtedness or other obligation of the member to the association. A security interest provided for in the organic rules shall be enforceable under, and governed by, Article 9 of Subtitle I of Title 28. (d) Unless the organic rules otherwise provide, a member shall not compel the limited cooperative association to offset financial rights against any indebtedness or obligation owed to the association. (July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720.) Editor's Notes Uniform Law: This section is based on § 604 of the Uniform Limited Cooperative Association Act.
District of Columbia Legal Code