SECTION 810:25-11-11. Deficits and assessments

(a)   If the association incurs a deficit for a particular year, the board must address the issue with the Commission. If the loss is significant, the board may be required to increase rates or to reduce expenses and discounts to return the group to profitability. If the cumulative net worth of the association is in a deficit position, the board may be required to assess its membership to make up the deficit. If an assessment is made, it shall be done in an equitable manner in accordance with the association's bylaws.

(b)   The following assessment guidelines shall apply:

(1)   Assessments must be declared by the board, and approved by the Commission. On the date the declaration is made, the assessment can be recorded as a receivable on the association's financial statements;

(2)   A member cannot be assessed for a deficit in a fiscal year it was not a member;

(3)   The assessment can be payable over a thirty-six (36) month period, or shorter time frame, if desired by the board or required by the Commission; and

(4)   Any member who does not pay its assessment when due, shall be cancelled from the group with ten (10) days' notice to the member and the Commission.

[Source: Added at 31 Ok Reg 497, eff 2-4-14 (emergency); Added at 32 Ok Reg 1493, eff 8-27-15]