Cooperative Finance
/ˌkoʊˈɒpərətɪv fəˈnæns/
Definitions
- (n.) The system or practice of financing entities formed for mutual benefit, typically involving member-owned cooperatives pooling resources to provide credit, loans, or other financial services.
Cooperative finance enables small farmers to access affordable loans through their collective membership.
- (n.) A sector of financial activity governed by cooperative law that regulates the formation, operation, and regulation of financial cooperatives.
Legal frameworks for cooperative finance ensure transparency and protect members’ interests.
Forms
- cooperative finance
Related terms
See also
Commentary
When drafting cooperative finance agreements, clarity about member rights and governance structure is critical to align with cooperative principles and legal requirements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.