9103 - Nontransferable membership interests.
§ 9103. Nontransferable membership interests. (a) General rule.--For the purpose of encouraging lawful associational activity among agricultural and industrial workers through the organization of unincorporated associations for mutual benefit insurance, saving or other lawful objects where the persons so organizing derive benefits from the preservation and continuance of the membership and interest among persons engaged in a common calling, labor or enterprise, the unincorporated association may provide, in its organic documents, that membership in the association or interest in its funds or property shall be nontransferable without the consent of the association. (b) Assignments and pledges.--No attempted assignment, transfer or pledge of a membership or interest made in violation of a transfer restriction adopted pursuant to subsection (a) shall pass any right or interest, legal or equitable, to the person to whom it is attempted to be made if the transfer restriction is brought to the knowledge of that person. (c) Knowledge of nontransferability.--Whenever the interest of a member in the funds or property of any unincorporated association subject to subsection (a) is evidenced by a certificate, an endorsement thereon that the certificate is nontransferable shall be conclusive evidence that the person to whom any attempted assignment, transfer or pledge of the certificate is made has knowledge of the nontransferable character of the interest of the member.