s 258
In forcePriority of CCU’s on winding‑up
Part 10Funds and property
Division 2Co‑operative capital units
258 Priority of CCU’s on winding‑up
(1)
On a winding‑up of a co‑operative, a debt owed to a person as the holder of a CCU issued by the co‑operative is to rank for priority of payment in accordance with the terms of issue of the CCU.
(2)
Such a debt may rank as a secured debt if it is secured but if it is unsecured may not rank in priority to other unsecured debts.
(3)
It may rank equally with or behind unsecured debts and, if the debt ranks behind unsecured debts, may rank in priority to, equally with or behind debts due to contributories.
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