110 DEPARTMENT OF AGRICULTURE

of either the quantity or the value of the products furn
ished by them, or ib) for the purpose of purchasing sup-
plies and equipment for the use of members or other
persons, and turning over such supplies and equipment
to them at actual cost, plus necessary expenses. Exemp-
tion shall not be denied any such association because it
has capital stock, if the dividend rate of such stock is
fixed at not to exceed the legal rate of interest in the
State of incorporation or 8 per centum per annum, which-
ever is greater, on the value of the consideration for
which the stock was issued, and if substantially all such
stock (other than non-voting preferred stock, the owners
of which are not entitled or permitted to participate,
directly or indirectly, in the profits of the association,
upon dissolution or otherwise, beyond the fixed divi-
dends) is owned by producers who market their products
or purchase their supplies and equipment through the
association; nor shall exemption be deemed any such asso-
ciation because there is accumulated and maintained by
it a reserve required by State law or a reasonable reserve
for any necessary purpose. Such an association may
market the products of nonmembers in an amount the
value of which does not exceed the value of the products
marketed for members and may purchase supplies and
equipment for nonmembers in an amount the value of
which does not exceed the value of the supplies and
equipment purchased for members, provided the value
of the purchases made for persons who are neither mem-
bers nor producers does not exceed 15 per centum of
the value of all its purchases Business done for the
United States or any of its agencies shall be disregarded
in determining the right to exemption under this para-
graph.

 (13) Corporations organized by an association ex-
empt under the provisions of paragraph (12), or members
thereof, for the purpose of financing the ordinary crop
operations of such members or other producers, and
operated in conjunction with such association. Exemp-