69-14-505. Procedure in case of delinquency in payment of installments.

     69-14-505. Procedure in case of delinquency in payment of installments. (1) If any installment of stock remains unpaid for 60 days after the time specified for payment, whether the stock is held by the original subscriber or the subscriber's assignee, trustee, or successor in interest, the directors may sell the stock at public auction for the installment then due after giving 30 days' public notice of the time and place of sale in some newspaper of general circulation in this state and by written notice sent by mail within 5 days after default to each stockholder who is in default and whose name appears upon the books of the corporation. The written notice must be sent to the stockholder at the stockholder's place of residence or if that is not known to the secretary, then to the stockholder's address as last reported by the secretary of the corporation. If any stock belonged to a deceased person, the claim for installments is not liable to sale unless there is a failure by the personal representative of the deceased owner to pay the installments due in the regular course of administration.
     (2) If any money remains after paying the amount due on the stock, the money must, on demand, be paid over to the owner.
     (3) After the first election of directors, a person other than the personal representatives of deceased persons may not vote on any share on which any installment is in default by reason of the nonpayment after the expiration of the 30 days' notice of sale.

History: (1), (2)En. Sec. 6, p. 94, Ex. L. 1873; re-en. Sec. 304, 5th Div. Rev. Stat. 1879; re-en. Sec. 682, 5th Div. Comp. Stat. 1887; amd. Sec. 892, Civ. C. 1895; re-en. Sec. 4273, Rev. C. 1907; re-en. Sec. 6505, R.C.M. 1921; re-en. Sec. 6505, R.C.M. 1935; Sec. 72-203, R.C.M. 1947; (3)En. Sec. 7, p. 95, Ex. L. 1873; re-en. Sec. 305, 5th Div. Rev. Stat. 1879; re-en. Sec. 683, 5th Div. Comp. Stat. 1887; amd. Sec. 893, Civ. C. 1895; re-en. Sec. 4274, Rev. C. 1907; re-en. Sec. 6506, R.C.M. 1921; re-en. Sec. 6506, R.C.M. 1935; Sec. 72-204, R.C.M. 1947; R.C.M. 1947, 72-203, 72-204(part); amd. Sec. 2041, Ch. 56, L. 2009.