17-1613.Certificate of membership; stock and stockholders.
(a) When a member of an association established without capital stock has paid
such member's membership fee in full, such member shall receive a certificate
of membership. No association shall issue stock to a member until such stock
has been fully paid for; promissory notes of the members may be accepted by the
association as full or partial payment. The association shall hold the stock as
security for the payment of the note, but such retention as security shall not
affect the member's right to vote. Except for debts lawfully contracted between
the member and the association, no member shall be liable for the debts of the
association to an amount exceeding the sum remaining unpaid on such member's
membership fee or such member's subscription to the capital stock. No
stockholder of a cooperative association, except another cooperative
association shall own more than 20% of the common stock of the association. An
association in its bylaws may limit the amount of common stock which one member
may own to any amount less than 20% of the common stock.
(b) The articles of incorporation or the bylaws may provide that no member
or stockholder shall be entitled to more than one vote and may also provide for
voting based on patronage or patronage equity or both. In the event voting is
based on patronage or patronage equity or both, no member shall have more than
5% of the total vote unless the member is another cooperative association. If
voting based on patronage or patronage equity, or both, is used, the provisions
of this act referring to a majority or similar percentage vote by members,
shareholders or shares shall refer to such majority or other proportion of the
voting power of the members, stockholders or shares. Any association organized
with stock, under this act, may issue preferred stock with or without the right
to vote, or with such restrictions on its voting power as the articles of
incorporation may prescribe; such stock may be redeemed or retired by the
association upon such terms and conditions as may be provided for in the
articles of incorporation, and printed on the certificate.
(c) The bylaws shall prohibit the transfer of the common stock of the
association to persons not eligible to be a member of the association and such
restrictions must be printed upon every certificate of stock subject thereto.
(d) The association may at any time buy in or purchase its common stock at
par or book value as conclusively determined by the board of directors.
History: L. 1921, ch. 148, § 13; R.S. 1923, 17-1613; L. 1931, ch.
150, § 6; L. 1992, ch. 227, § 13; July 1.
17-1613.Certificate of membership; stock and stockholders.
(a) When a member of an association established without capital stock has paid
such member's membership fee in full, such member shall receive a certificate
of membership. No association shall issue stock to a member until such stock
has been fully paid for; promissory notes of the members may be accepted by the
association as full or partial payment. The association shall hold the stock as
security for the payment of the note, but such retention as security shall not
affect the member's right to vote. Except for debts lawfully contracted between
the member and the association, no member shall be liable for the debts of the
association to an amount exceeding the sum remaining unpaid on such member's
membership fee or such member's subscription to the capital stock. No
stockholder of a cooperative association, except another cooperative
association shall own more than 20% of the common stock of the association. An
association in its bylaws may limit the amount of common stock which one member
may own to any amount less than 20% of the common stock.
(b) The articles of incorporation or the bylaws may provide that no member
or stockholder shall be entitled to more than one vote and may also provide for
voting based on patronage or patronage equity or both. In the event voting is
based on patronage or patronage equity or both, no member shall have more than
5% of the total vote unless the member is another cooperative association. If
voting based on patronage or patronage equity, or both, is used, the provisions
of this act referring to a majority or similar percentage vote by members,
shareholders or shares shall refer to such majority or other proportion of the
voting power of the members, stockholders or shares. Any association organized
with stock, under this act, may issue preferred stock with or without the right
to vote, or with such restrictions on its voting power as the articles of
incorporation may prescribe; such stock may be redeemed or retired by the
association upon such terms and conditions as may be provided for in the
articles of incorporation, and printed on the certificate.
(c) The bylaws shall prohibit the transfer of the common stock of the
association to persons not eligible to be a member of the association and such
restrictions must be printed upon every certificate of stock subject thereto.
(d) The association may at any time buy in or purchase its common stock at
par or book value as conclusively determined by the board of directors.
History: L. 1921, ch. 148, § 13; R.S. 1923, 17-1613; L. 1931, ch.
150, § 6; L. 1992, ch. 227, § 13; July 1.
17-1613.Certificate of membership; stock and stockholders.
(a) When a member of an association established without capital stock has paid
such member's membership fee in full, such member shall receive a certificate
of membership. No association shall issue stock to a member until such stock
has been fully paid for; promissory notes of the members may be accepted by the
association as full or partial payment. The association shall hold the stock as
security for the payment of the note, but such retention as security shall not
affect the member's right to vote. Except for debts lawfully contracted between
the member and the association, no member shall be liable for the debts of the
association to an amount exceeding the sum remaining unpaid on such member's
membership fee or such member's subscription to the capital stock. No
stockholder of a cooperative association, except another cooperative
association shall own more than 20% of the common stock of the association. An
association in its bylaws may limit the amount of common stock which one member
may own to any amount less than 20% of the common stock.
(b) The articles of incorporation or the bylaws may provide that no member
or stockholder shall be entitled to more than one vote and may also provide for
voting based on patronage or patronage equity or both. In the event voting is
based on patronage or patronage equity or both, no member shall have more than
5% of the total vote unless the member is another cooperative association. If
voting based on patronage or patronage equity, or both, is used, the provisions
of this act referring to a majority or similar percentage vote by members,
shareholders or shares shall refer to such majority or other proportion of the
voting power of the members, stockholders or shares. Any association organized
with stock, under this act, may issue preferred stock with or without the right
to vote, or with such restrictions on its voting power as the articles of
incorporation may prescribe; such stock may be redeemed or retired by the
association upon such terms and conditions as may be provided for in the
articles of incorporation, and printed on the certificate.
(c) The bylaws shall prohibit the transfer of the common stock of the
association to persons not eligible to be a member of the association and such
restrictions must be printed upon every certificate of stock subject thereto.
(d) The association may at any time buy in or purchase its common stock at
par or book value as conclusively determined by the board of directors.
History: L. 1921, ch. 148, § 13; R.S. 1923, 17-1613; L. 1931, ch.
150, § 6; L. 1992, ch. 227, § 13; July 1.