§ 41-08-26 — (8-210) Overissue

North Dakota § 41-08-26

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-08: Investment Securities

Text

1. In this section, "overissue" means the issue of securities in excess of the amount the
issuer has corporate power to issue, but an overissue does not occur if appropriate
action has cured the overissue.
2. Except as otherwise provided in subsections 3 and 4, the provisions of this chapter
which validate a security or compel its issue or reissue do not apply to the extent that
validation, issue, or reissue would result in overissue.

3. If an identical security not constituting an overissue is reasonably available for
purchase, a person entitled to issue or validation may compel the issuer to purchase
the security and deliver it if certificated or register its transfer if uncertificated against
surrender of any security certificate the person holds.
4. If a security is not reasonably available for purchase, a person entitled to issue or
validation may recover from the issuer the price the person or the last purchaser for
value paid for it with interest from the date of the person's demand.