Section 491.904 - Subscription for shares; enforceability; subscription irrevocable; exception; contract to purchase shares as subscription agreement.
SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980
491.904 Subscription for shares; enforceability; subscription irrevocable; exception; contract to purchase shares as subscription agreement.
Sec. 904.
(1) A subscription for shares in a stock association made before or after organization of the association is not enforceable unless in writing and signed by the subscriber.
(2) A subscription for shares of a stock association to be organized is irrevocable and may be accepted by the association for a period of 6 months, unless otherwise provided by the subscription agreement or unless all the subscribers consent to the revocation.
(3) A contract with an association to purchase its shares to be issued is a subscription agreement and not an executory contract to purchase shares, unless otherwise provided in the contract.
History: 1980, Act 307, Eff. Jan. 1, 1981