Statute · California Business and Professions Code
Cal. Bus. & Prof. Code § 26228.2 — Financial Provisions
Cal. Bus. & Prof. Code § 26228.2
- Type
- Statute
- Source
- California Business and Professions Code
- Jurisdiction
- California
- Date
- 2017-06-27
- Current through
- Nov 2, 2026 (California Legislative Counsel)
If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations that are so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred stock to an amount that…
Citator
Cal. Bus. & Prof. Code § 26228.2 — Financial Provisions is in force in the current edition of the Code, and nothing recorded condemns it.
If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations that are so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred stock to an amount that at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case, the transfer to the association of the stock or interest that is purchased is equivalent to payment in cash for the shares of stock that are issued.