Common use of Net Effect Clause in Contracts

Net Effect. The net effect of the exchange of North Dakota Cooperative Equity Interests for equal Colorado Cooperative Equity Interests shall be that the holders of North Dakota Cooperative Equity Interests standing on the books of the North Dakota Cooperative immediately prior to the Effective Time shall hold and will have equal Colorado Cooperative Equity Interests immediately following the Effective Time, in terms of stated dollar amount on a dollar-for-dollar basis, year of issue (as determined necessary), loss allocation obligations and any other rights and preferences, and that the deferred patronage, unallocated reserves and other unallocated North Dakota Cooperative Equity Interests, as standing on its books immediately prior to the Effective Time, shall be exchanged and credited for an equal Colorado Cooperative Equity Interest immediately following the Effective Time, in terms of stated dollar amount on a dollar-for-dollar basis and other rights and preferences.