12 BULLETIN 860, U. S. DEPARTMENT OF AGRICULTURE. 
Akticle 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 the 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. Stock 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 
