§ 15-12-1-28 — Membership certificates

(a) A certificate of membership or a share or
shares of voting stock may not be issued by an association until the
membership fee or consideration for the share of stock has been paid
in full. A promissory note may be accepted in full or partial payment
for a share of stock or membership fee. However, the stock or
membership certificate shall be held as security for the payment of the
note. The acceptance of a note in full or partial payment of a share of
stock or membership fee does not affect the member's right to vote if
the member is not in default under the terms of the note.
(b) A member is not liable for the debts of the association to an
amount exceeding the sum remaining unpaid on the member's
membership fee or on the member's subscription or agreement to
purchase a share or shares of stock, including any unpaid balance on
any note given in payment.
(c) An association may provide in the association's articles of
incorporation or bylaws that a member may not own more than a fixed
amount or percentage of the association's membership capital or a fixed
percentage or number of shares of the association's outstanding voting
stock.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-7-1-13(a); subsection (b) formerly 15-7-1-13(b); subsection (c)
formerly 15-7-1-13(c).]

Legislative History

As added by P.L.2-2008, SEC.3.