COOPERATIVE AGRICULTURE IN FLORIDA 19

small paid-in capital are in a poor position either for
operating or for obtaining credit.
 17. Q. ARE MEMBERS OF COOPERATIVES
 LIABLE FOR DEBTS INCURRED BY THE
 ASSOCIATION?
 A. No, except to the extent of any stock owned
in the association or any unpaid balance on a promissory
note given in payment for stock or membership fees.
 18. Q. HOW DO COOPERATIVES ACQUIRE CAPI-
 TAL TO PAY FOR AND OPERATE WARE-
 HOUSES, PROCESSING PLANTS, PACKING
 PLANTS, MACHINERY, EQUIPMENT, ETC.?
 A. If the cooperative is to belong to the members.
these members must supply much of the capital used
in their business. Some capital is usually raised in cash
and notes at the time the cooperative is organized.
Growers may be issued stock or revolving fund certifi-
cates for this first capital they provide. In most instances,
this capital raised to begin with is not enough. Addi-
tional capital may be acquired by retaining, or borrow-
ing a small sum from patrons on each unit of produce
handled by the cooperative, each dollar's worth of goods
or services supplied, etc. Members contribute this capi-
tal in exact proportion to the use they make of the
facilities of the association and receive certificates of
stock or certificates of equity commonly called "Revolv-
ing Fund Certificates" or "Certificates of Indebtedness."
 19. Q. WHAT IS MEANT BY "ROTATING CAPI-
 TAL"?
 A. In time. these small amounts invested by the
members from each unit of product they deliver to or
purchase from their association will pay off indebted-
ness, pay for physical property, and also set up operating
capital and reserves. By continuing to retain these small
amounts each year. even after the indebtedness is paid.
the cooperative can soon pay off the oldest certificates