(a) Except as provided in § 43-38-809, as soon as the proposed cooperative action is effectuated, or upon receipt of a payment demand, whichever is later, the cooperative shall pay each dissenter who complied with § 43-38-806 the amount the cooperative estimates to be the fair value of the dissenter’s membership interest, plus accrued interest.
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Terms Used In Tennessee Code 43-38-807

  • Cooperative: means a cooperative whose members have obtained rights to dissent under §. See Tennessee Code 43-38-801
  • Dissenter: means a member who is entitled to dissent from cooperative action under §. See Tennessee Code 43-38-801
  • Fair value: means the value of the dissenter's membership interest of a cooperative immediately before the effective date of the cooperative action referred to in §. See Tennessee Code 43-38-801
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Interest: means interest from the effective date of the action referred to in §. See Tennessee Code 43-38-801
  • Member: includes a former member when dissenter's rights exist because:
    (A) The membership of the former member has terminated causing dissolution. See Tennessee Code 43-38-801
  • Membership interest: means a member's interest in a cooperative consisting of a member's financial rights, a member's right to assign financial rights, a member's governance rights and a member's right to assign governance rights. See Tennessee Code 43-38-103
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b) The payment must be accompanied by:

(1) The cooperative’s balance sheet as of the end of a fiscal year ending not more than sixteen (16) months before the date of payment, an income statement for that year, and the latest available interim financial statements, if any;
(2) A statement of the cooperative estate of the fair value of the membership interests;
(3) An explanation of how the value of the membership interest was calculated;
(4) A statement of the dissenter’s right to demand payment under § 43-38-810; and
(5) A copy of this part, if the cooperative has not previously sent a copy of this part to the member pursuant to § 43-38-803 or § 43-38-805.
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