501A.906 - RESTRICTION ON TRANSFER OR REGISTRATION OF MEMBERSHIP INTERESTS.

        501A.906  RESTRICTION ON TRANSFER OR REGISTRATION OF      MEMBERSHIP INTERESTS.         1.  How imposed.  A restriction on the transfer or      registration of transfer of membership interests of a cooperative may      be imposed in the articles, in the bylaws, by a resolution adopted by      the members, or by an agreement among or other written action by a      number of members or holders of other membership interests or among      them and the cooperative.  A restriction is not binding with respect      to membership interests issued prior to the adoption of the      restriction, unless the holders of those membership interests are      parties to the agreement or voted in favor of the restriction.         2.  Restrictions permitted.  A written restriction on the      transfer or registration of transfer of membership interests of a      cooperative that is not manifestly unreasonable under the      circumstances may be enforced against the holder of the restricted      membership interests or a successor or transferee of the holder,      including a pledgee or a legal representative, if the restriction is      any of the following:         a.  Noted conspicuously on the face or back of the      certificate.         b.  Included in this chapter or the articles or bylaws.         c.  Included in information sent to the holders of      uncertificated membership interests.         Unless otherwise restricted by this chapter, the articles, bylaws,      noted conspicuously on the face or back of the certificate, or      included in information sent to the holders of uncertificated      membership interests, a restriction, even though permitted by this      section, is ineffective against a person without knowledge of the      restriction.  A restriction under this section is deemed to be noted      conspicuously and is effective if the existence of the restriction is      stated on the certificate and reference is made to a separate      document creating or describing the restriction.  
         Section History: Recent Form
         2005 Acts, ch 135, §72