400.8-210. Overissue, definition.
Overissue, definition.
400.8-210. (a) In this section, "overissue" means the issue ofsecurities in excess of the amount the issuer has corporate power to issue,but an overissue does not occur if appropriate action has cured theoverissue.
(b) Except as otherwise provided in subsections (c) and (d), theprovisions of this article which validate a security or compel its issue orreissue do not apply to the extent that validation, issue or reissue wouldresult in overissue.
(c) If an identical security not constituting an overissue isreasonably available for purchase, a person entitled to issue or validationmay compel the issuer to purchase the security and deliver it ifcertificated or register its transfer if uncertificated, against surrenderof any security certificate the person holds.
(d) If a security is not reasonably available for purchase, a personentitled to issue or validation may recover from the issuer the price theperson or the last purchaser for value paid for it with interest from thedate of the person's demand.
(L. 1997 S.B. 6)