§ 17-10-110 — Members and stock generally

(a) When a member of an association established without
capital stock has paid his membership fee in full, he shall
receive a certificate of membership.
(b) No association shall issue stock to a member until it
has been fully paid for. The 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 of security shall not affect the
members' right to vote.
(c) Except for debts lawfully contracted between him and
the association, no member shall be liable for the debts of the
association to an amount exceeding the sum remaining unpaid on
his membership fee or his subscription to the capital stock,
including any unpaid balance on any promissory notes given in
payment thereof.
(d) No stockholder of a cooperative association shall hold
more than twenty percent (20%) of the common stock of the
association; and the association, in its bylaws, may limit the
amount of common stock which one (1) member may own to any
amount less than twenty percent (20%) of the common stock.
(e) No member or stockholder shall be entitled to more
than one (1) vote.
(f) The bylaws shall prohibit the transfer of the common
stock or membership of the association to persons not engaged in
the production of the agricultural products handled by the
association, and such restrictions must be printed upon every
certificate of stock or membership certificate subject thereto.
(g) Any association organized with stock under this act
may issue preferred stock, without the right to vote, and
bearing a rate of interest not to exceed eight percent (8%).
Such stock may be redeemable or retireable by the association on
such terms and conditions as may be provided for by the
certificate of incorporation and printed on the face of the
certificate.