In dissolution, subsidies, donations, legacies, grants and aids from local or foreign institutions shall be escheated to the community where the cooperative operates.

• A. True
• B. Not specified
• C. Depends on charter
• D. False

Answer: (D)

When a cooperative dissolves, how gifts and funding are handled is governed by the Cooperative Code and the cooperative’s own charter and by-laws. Escheatment to the local community is not the standard rule. After settling all debts and liabilities, any remaining assets and donations are typically disposed of in ways allowed by law: they may go to other cooperatives or to a nonprofit organization with similar objectives, or, if no suitable recipients exist, to the government or appropriate public institutions, and donor-restricted funds must be handled according to the donors’ conditions. Because the rules don’t require these subsidies, donations, legacies, grants and aids to escheat specifically to the community where the cooperative operates, the statement is not correct.