§ 93. Internal capital account cooperatives. 1. A worker cooperative
may provide in its by-laws that it shall operate as an internal capital
account cooperative. An internal account cooperative is a worker
cooperative whose entire net book value is reflected in internal capital
accounts, one for each member, and a collective reserve account, and in
which no persons other than members own capital stock. In an internal
capital account cooperative, each member shall have one and only one
vote in any matter requiring voting by stockholders.

2. An internal capital account cooperative shall credit the paid-in
membership fee and additional paid-in capital of a member to the
member's internal capital account, and shall also record the
apportionment of net retained proceeds or net losses to the members in
accordance with patronage by appropriately crediting or debiting the
internal capital accounts of members. The collective reserve account in
an internal capital account cooperative shall reflect any paid-in
capital, net losses and net retained proceeds not allocated to
individual members.

3. In an internal capital account cooperative, the balances in all the
individual internal capital accounts and collective reserve account, if
any, shall be adjusted at the end of each accounting period so that the
sum of the balances is equal to the net book value of the worker
cooperative.

4. Section six hundred twenty-three of the business corporation law
shall not apply to an internal capital account cooperative.