No note or obligation given by any shareholder, whether secured by deed of trust, mortgage or otherwise, shall be considered as payment of any part of any original issue share or shares, and no loan of money for the purpose of such payment shall be made by the corporation to any shareholder therein; and if such loan shall be made to a shareholder, the officers making it, or who shall assent thereto, shall be jointly and severally liable to the corporation for the repayment of such loan and interest.
Mo. Rev. Stat. § 351.165
Note or obligation not to be considered payment for original issue shares —..
Known as the Missouri Cooperative Associations Act
The act spans §§ 351–351 (291 sections).
Effective: 28 Aug 1998; (RSMo 1939 § 5349, A.L. 1943 p. 410 § 18, A.L. 1979 S.B. 216, A.L. 1998 S.B. 680); Prior revisions: 1929 § 4944; 1919 § 10155; 1909 § 3350
Official source: Missouri Revisor of Statutes. Reproduced from public-domain Missouri statutes; confirm against the official source for the current text. Not legal advice.