6-429. Issuance, delivery, and transfer of
certificates and account books
A. An association may evidence an account by one or more appropriate certificates.
B. The holder of an account may transfer his rights in the account absolutely or
conditionally to any other person eligible to hold the same by written
assignment. Notwithstanding the effectiveness of such a transfer between the parties to
the transfer, the association may treat the holder of record as the owner of the account
for payment, voting and all other purposes until the assignment and any accompanying
certificate or account books have been received by the association with a request for the
transfer on the association's records.
C. Account certificates, account books and any other evidences of membership are
negotiable or nonnegotiable and not subject to, but shares of guaranty capital
certificates are subject to, the provisions of title 47, chapter 8.
D. All certificates and account books delivered to the holders as prescribed by
this article are subject to garnishment, attachment and execution as provided by the laws
of this state.
E. If the holder of an account, or the personal representative of any such person,
files with the association an affidavit to the effect that his account book or
certificate has been lost or destroyed, and that the account book or certificate has not
been pledged or assigned either in whole or in part, then the association may issue a
substitute account book or certificate in the name of the holder, with a statement that
the account book or certificate is issued in lieu of the one lost or destroyed. The
association is not liable thereafter with respect to the original account book or
certificate, but the board of directors may require a bond in sufficient amount to
indemnify the association against any loss which might result from the issuance of the
substitute account book or certificate.
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