70 BULLETIN 1106, U. S. DEPARTMENT OF AGRICULTURE. 
association by agreeing to comply with the requirements of these by-laws and 
purchasing at least one share of capital stock of the association. 
Note. — See note following Article III of the by-laws for or- 
ganizations without capital stock. 
Article X. — Capital Stock. 
Section 1. The capital stock of this association shall be $5,000, divided into 
500 shares of $10 each. 
Sec. 2. No member shall hold more than 10 per cent of the capital stock of 
the association. 
Sec. 3. No stock shall be issued or delivered by the association to any sub- 
scriber until he has paid the full price therefor. 
Sec 4. Transfers of shares will be made upon the books of the association 
only when the stockholder is free from indebtedness to the association. 
Sec 5. Whenever any stockholder desires to sell his stock he shall first offer 
it to the association for purchase by it or by a person or persons designated 
by the board of directors of the association at a price to be conclusively de- 
termined by the board of directors. In the event the stock is not purchased by 
the association, or by a person or persons designated as aforesaid, within 30 
days after the receipt of a written notice by the association offering the stock 
for sale, then the stockholder may sell the stock to any person engaged in the 
production of agricultural products. This restriction on the transfer of stock 
shall be printed on every certificate of stock. 
Sec 6. If any member shall by purchase or by the operation of law come 
into possession of more than shares of the capital stock of this 
association, the board of directors may elect to purchase, and such member 
shall then sell to the association such excess shares at a price to be conclusively 
determined by the board of directors, plus any dividends or refunds due and 
unpaid. Also, in the event of the death or disability of the owner of any shares 
of stock in this association such shares of stock may be purchased by the 
association and shall, in the event the board of directors elects to purchase them, 
be sold by the legal representatives of such owner to the association at a price 
to be conclusively determined by the board of directors, plus any dividends or 
refunds due and unpaid. 
Note. — The law of the State in which the association is organized 
should be carefully examined to determine the status of sections 
4, 5, and 6 of this article. In general, provision should be made 
for them in the charter in order that they may be legal. 
FORM OF CONTRACT. 
The form of contract which is here given is simply suggestive and 
is designed to serve only as a guide in the preparation of a contract 
for use by an association, and, of course, like the form of by-laws, 
should be considered with respect to the law of the State where the 
association is to operate. 
The Cooperative Association. 
standard form of crop contract. 
This Agreement, made and entered into at on this 
day of , A. D. 19__, between the 
Association, formed under the laws of the State of 
, having its principal place of business at 
