California CodesBusiness and Professions Code - BPCDivision 10 — CannabisChapter 22 — Cannabis Cooperative AssociationsArticle 8 — Financial ProvisionsSection 26228.2
If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations that are so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred stock to an amount that at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest that is purchased is equivalent to payment in cash for the shares of stock that are issued.
Notes
Allows an association with preferred stock to pay wholly or partly for acquired stock, property, or property interests by issuing preferred shares whose par value equals the board-determined fair market value of the acquired interest. Transfer of the purchased interest to the association is then treated as cash payment for the issued shares.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 26228.2 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-10/chapter-22/article-8/section-26228-2