§ 5-508

(a) A cooperative may:

(1) Limit the sale of its common stock or membership to persons designated or described in the bylaws;

(2) Provide that a stockholder or member who ceases to belong to the class of persons designated or described in the bylaws loses his right to vote;

(3) Limit the number of shares of stock which a person may hold; and

(4) Reserve to the board of directors:

(i) The option to purchase for the cooperative the stock offered by any stockholder; and

(ii) The right to redeem the stock of any stockholder.

(b) If a cooperative exercises an option to purchase or a right to redeem, it shall pay for the stock the greater of its book value or its par value.

(c) A restriction on the ownership, transfer, or voting of stock authorized by this section is not valid unless the restriction is:

(1) Set forth in the charter; and

(2) Printed on any stock subscription document and the stock certificate.