Notwithstanding the provisions of this chapter, a negotiable instrument issued by a corporation for the purchase or redemption of shares shall be enforceable by a holder in due course (Section 3302 of the Commercial Code) without notice that it was issued for that purpose or by a person who acquired the instrument through such a holder.
Cal. Corp. Code § 511
Dividends and Reacquisitions of Shares
Known as the General Corporation Law
The act spans §§ 100–2319 (398 sections).
Added by Stats. 1978, Ch. 370.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.