(a) The directors shall apportion any surplus-savings and earnings by first setting aside at least 10 percent thereof for a reserve fund until the reserve fund equals 30 percent of the paid-up shares, and thereafter the directors may continue to set aside 10 percent of the net surplus-savings for a reserve fund. The directors may then declare a dividend upon the paid-up shares at a yearly rate not to exceed 5 percent. No such dividend shall be cumulative.
(b) The directors may then set aside such an amount of the remaining surplus-savings or earnings as may be provided in the bylaws as an educational fund to be used in teaching cooperation.
(c) The directors may distribute all remaining surplus-savings or earnings uniformly to patrons of the corporation who are shareholders, and in the discretion of the corporation, they may also distribute uniform surplus-savings to patrons who are not shareholders, based in amount upon volume of business transacted with the corporation by such patrons. The rate of such distribution, and the ratio of savings returns to shareholders and nonshareholders shall be determined by resolution of the directors. However, surplus-savings or earnings shall not be distributed to nonshareholders patrons unless at least 50 percent of such amount is applied toward purchase of shares in the corporation.
(d) Alternatively, the corporation may employ a part or all of such surplus-savings for its general welfare.