§ 6-03-31 — Delinquent stock - Sale - Notice

Whenever any shareholder or shareholder's assignee fails to pay any assessment of the
stock when the assessment is required to be paid, the board of directors of the association may
sell at public or private sale, whichever appears to it best for all concerned, so much of the
stock, at the best price obtainable, as is necessary to pay the assessment and costs of the sale.
The sale must be made on a day certain to be fixed by the board not less than thirty days after
the day set for the payment of the assessment. Notice of the time and place of the sale must be
given to the shareholder in the manner following:
1. In the event of a private sale, by forwarding the notice to the person or persons in
whose name the stock stands on the books of the association, at least twenty days
prior to the date fixed for the sale, by registered or certified mail addressed to the
shareholder's address last known to the board of directors.
2. In the event of a public sale, by one publication of a notice thereof, at least twenty
days prior to the date fixed for such sale, in a newspaper published in the county
wherein the association is located.
A sale of stock as herein provided effects an absolute cancellation of the outstanding certificate
or certificates in the hands of the delinquent shareholder, or the delinquent shareholder's
assignee or pledgee, and a new certificate must be issued by the association and delivered to
the purchaser for the number of shares purchased, and a new certificate for the remaining
shares, if any, must be issued to the shareholder and delivered to the shareholder, or the
shareholder's assignee or pledgee, upon the surrender of the original certificate or certificates
involved. Any proceeds of such sale remaining after the delinquent assessment and the
expenses of the sale have been fully paid must be paid over to the shareholder, or the
shareholder's assignee or pledgee.