12 BULLETIN 860, U. S. DEPARTMENT OF AGRICULTURE. 



Abticle II. — Capital Stock. 



Section 1. Authorized. — The authorized capital stock of this Association 

 shall be [twenty-five thousand dollars] divided into [five hundred] shares of 

 the par value of [fifty dollars] each. All shares shall be full paid and non- 

 assessable and the Association shall not commence business until [fifteen 

 thousand dollars] shall have been subscribed and paid in. 



Note. — The amount of capital stock must be determined with reference to the 

 cost of plant, the volume of business to be handled, and the membership of the 

 Association. Share value must be low enough not to exclude any one from member- 

 ship yet high enough to provide the necessary capital. 



Sec. 2. Treasury stock. — The treasury stock of this Association shall consist 

 of such issued and outstanding stock of the Association as may be donated to 

 or otherwise be acquired by it, and shall be held subject to disposal by the 

 Board of Directors. 



Sec. 3. Stock certificates. — Certificates of stock shall be issued to each holder 

 of full-paid stock. Each certificate shall state the par value of the stock, the 

 number of shares represented, the name of the person to whom issued, and 

 shall bear the signatures of the President and Secretary and the seal of the 

 Association and be numbered and issued in numerical order from the stock 

 certificate book. Each certificate shall bear the following statement : 



" This certificate No. is issued and accepted in accordance with and 



subject to the conditions and restrictions stipulated in the By-Laws and amend- 

 ments to the By-Laws of [The Grain Growers' Cooperative Association] 



and more specifically in [section 5 of Article II and sections 2, 3, and 4 of 

 Article III] to wit: [Herein insert those sections of By-Laws which relate to 

 transfer of shares, termination of membership, and restrictions upon share 

 ownership and voting power], all of which is made a part of the signed agree- 

 ment and receipt which appears on the stub-record bearing the same number 

 and date as this certificate." 



Sec. 4. Stock receipts.— A record of each certificate of stock issued shall be 

 kept on the stub thereof and each certificate issued shall be receipted for on 

 the stub in the following form : 



" In consideration of the issuance to me of this certificate of stock No. 



for shares of the capital stock of [The Grain Growers' Cooperative 



Association] of , , I do hereby agree to all of the conditions, re- 

 strictions, limitations, and reservations stipulated in the By-Laws and amend- 

 ments to the By-Laws of this Association, and more specifically in [section 5 

 of Article II and sections 2, 3, and 4 of Article III], which are set out in full 

 on the certificate and made a part of this agreement. I have received the said 

 certificate of stock this day of , 19 — . 



(Signature of Member.) 



Witness : 



Note. — Printing the By-Law restrictions upon the body of tho stock certificate is 

 a convenient and effective means of giving notice of such restrictions to intending 

 purchasers. The receipt form here suggested will constitute a written contract 

 relative to the observance of these restrictions. 



Sec 5. Stork transfers. — Transfers of stock shall be made only upon the books 

 of the Association, and before a new certificate is issued the old certificate must 

 be surrendered for cancellation. The transfer of stock may be refused unless 

 any and all indebtedness to the Association by the member shall first be paid. 

 The stock books of the Association shall be closed for transfer [ten] days before 



