§ 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.