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Revolving fund certificate

A revolving fund certificate can evidence retained patronage; chapter 308B permits it as a distribution form, while federal written-notice treatment depends on the required disclosures.

Verified against sources: October 15, 2026Last edited: October 16, 2026

Chapter 308B lists "revolving fund certificates" as a form of distribution to patron members § 308B.725, subd. 5 P1 without defining the term. For federal tax purposes, a certificate is a written notice of allocation only if it discloses the stated dollar amount allocated and the portion, if any, constituting a patronage dividend; calling an instrument a revolving fund certificate does not itself satisfy those conditions or make it a qualified notice C5, 1388(b) and (c).

See Written notice of allocation. Tax consequences belong with a tax adviser; see Understand cooperative tax basics.

Statute sections referenced

  • § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.

Sources

  • C5 26 USC 1388 — Definitions; special rules (2024 edition), U.S. Government Publishing Office / Congress. govinfo.gov (primary; accessed October 16, 2026)
  • P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)

glossary

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