524.525 - SUBSCRIPTION FOR SHARES BEFORE INCORPORATION OR ORGANIZATION.
524.525 SUBSCRIPTION FOR SHARES BEFORE INCORPORATION OR ORGANIZATION. 1. A subscription for shares entered into before incorporation or organization of the state bank is irrevocable for six months unless the subscription agreement provides a longer or shorter period, or all subscribers agree to revocation. 2. The board of directors may determine the payment terms of subscriptions for shares that were entered into before incorporation or organization of the state bank unless the subscription agreement specifies the terms. A call for payment by the board of directors must be uniform so far as practicable as to all shares of the same class or series, unless the subscription agreement specifies otherwise. 3. Shares issued pursuant to subscriptions entered into before incorporation or organization of the state bank are fully paid and nonassessable when the state bank receives the consideration specified in the subscription agreement. 4. If a subscriber defaults in payment of money or property under a subscription agreement entered into before incorporation or organization of the state bank, the state bank may do either of the following: a. Collect the amount owed as any other debt. b. Unless the subscription agreement provides otherwise, the state bank may rescind the agreement and may sell the shares if the debt remains unpaid more than twenty days after the state bank sends written demand for payment to the subscriber.
Section History: Early Form [C71, 73, 75, 77, 79, 81, § 524.504]
Section History: Recent Form 95 Acts, ch 148, §42 CS 95, §524.525 2004 Acts, ch 1141, §63 Referred to in § 524.527