California CodesBusiness and Professions Code - BPCDivision 10 — CannabisChapter 22 — Cannabis Cooperative AssociationsArticle 9 — MembersSection 26229.4
An association shall not issue a certificate for 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 the retention as security does not affect the member’s right to vote.
Notes
Prohibits an association from issuing a stock certificate to a member before the stock is fully paid, while allowing member promissory notes as full or partial payment. The association must hold the stock as security for the note, but that security retention does not impair the member’s voting right.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 26229.4 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-10/chapter-22/article-9/section-26229-4