cooperative

(redirected from cooperatively)
Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia, Wikipedia.

Cooperative

An association or corporation established for the purpose of providing services on a nonprofit basis to its shareholders or members who own and control it.

The nature and functions of cooperatives differ considerably—such as purchasing cooperatives, consumer cooperatives, and marketing cooperatives.

In the context of agriculture, a farmers' cooperative refers to an organization of farmers residing in the same locale that is established for their mutual benefit in regard to the cultivation and harvest of their products, the purchase of farm equipment and supplies at the lowest possible cost, and the sale of their products at the maximum possible price.

The term cooperative also signifies the ownership of an apartment building by a nonprofit corporation that holds title to it and the property upon which it is situated. Stock in the corporation is allotted among the apartment units on the basis of their relative value or size. The right of occupancy to a particular apartment is granted to each cooperative member, who purchases the shares assigned to the desired unit. The member subsequently receives a long-term proprietary lease to that unit. The rent payable pursuant to the lease is that member's proportionate share of the expenses the corporation incurs in operating the cooperative—such as insurance, taxes, maintenance, management, and debt service. The cooperative concept evolved in New York City during the early 1900s as a mode of accommodating the public's desire for home ownership; it subsequently expanded to other large urban centers.

In order to finance the purchase or construction of the cooperative building, the cooperative places a blanket mortgage on the property, which is pledged to support the given debt. Lenders usually are hesitant to accept an individual member's stock and proprietary lease as security for a long-term loan. The members' lien (a claim on property to satisfy a debt) on the lease would be subordinate to the blanket mortgage on the property. The purchaser of a cooperative apartment usually must have sufficient cash available to pay for the stock allotted to the unit he or she wishes to obtain. The initial price of the stock generally does not exceed the amount required for a down payment on a single-family residence. As cooperative members accumulate Equity (the value of property exceeding the total debts on it) in their stock, subsequent purchasers must either have a substantial amount of cash available or locate a seller who is willing to recoup the equity in installments over several years.

Cooperative members are also financially dependent on each other. The existence of a single blanket mortgage paid by rent receipts means that if several members default in their rent payments, the corporation might not have sufficient funds to pay a mortgage loan installment. Foreclosure will ensue in regard to the entire membership unless it acts to satisfy the default. Although special reserves and assessments are generally employed to cover such a contingency, the available funds might be inadequate to prevent default.

cooperative

n. an association of individual businesses, farmers, ranchers, or manufacturers with similar interests, intending to cooperate in marketing, shipping and related activities (sometimes under a single brand name) to sell their products efficiently, and then share the profits based on the production, capital or effort of each. "Sunkist" oranges is an example of a large cooperative. Cooperatives include dairy milk producers, cotton gins, and thousands of other enterprises of all sizes. There are also cooperatives in which consumers form retail outlets like grocery stores and share the profits based on the amount of patronage of each member, but they have found it difficult to compete with the giant supermarket chains.

cooperative

noun alliance, association, collective, communal business establishment, communal society, commune, concurrent effort, federation, guild, joint action, joint operation, joint possession, partnership, teamwork, union
See also: ancillary, associated, beneficial, benevolent, coadunate, collective, common, concerted, concurrent, consensual, constructive, favorable, harmonious, joint, mutual, synergetic, united
References in periodicals archive ?
Generally, people playing cooperatively seemed to really focus on and value those relationships that are going on when they are playing," Velez said.
cooperatively developing a curriculum that could be used at any institution for multiple purposes;
Our weatherization technicians at People Working Cooperatively can help Ohio and Northern Kentucky residents save on their utility usage this spring and into this summer, too.
Several parts of the frontal brain cooperatively identify apparent regularities in random sequences of events and detect breaks in those patterns, neuroscientists have found.
To do so, they must analyze and discuss scientific concepts; perform hands-on experiments; overcome common misconceptions; and work cooperatively in groups.
Ocean Power Technologies, Inc ("OPT", or the "Company") (LSE:OPT) and Pacific Northwest Generating Cooperative ("PNGC Power") are pleased to announce that they have signed an agreement to work cooperatively on the Company's development of the Reedsport OPT Wave Park located in Douglas County near Reedsport, Oregon.
4, 2011 /PRNewswire/ -- People Working Cooperatively (PWC), which serves 20 counties in Ohio, Kentucky and Indiana, has been selected as a finalist for Aprons in Action, The Home Depot Foundation's Facebook voting program, and now has the opportunity to win a $25,000 gift card from The Home Depot.
Under Meyers' leadership, Houlihan/Lawrence has worked cooperatively with WRO to train its agents in both the letter and spirit of anti-discrimination laws.
The Global Hawk German ELINT demonstration illustrates our progress in cooperatively developing robust unmanned systems,'' said Scott J.
IBM and Hitachi will cooperatively develop and manufacture selected servers, semiconductors and related components.
One of VAMAS's primary missions, Steiner says, is to cooperatively develop within these nations the internationally reproducible tests and data that will ultimately be used to establish a new material's properties.
Aventis CropScience and Novartis Seeds have reached a settlement of three lawsuits under which terms the companies will work cooperatively to promote the use of Aventis' Liberty(R) herbicide on Novartis NK(R) brand insect resistant corn seed hybrids.

Full browser ?