Membership stock--Transfer of stock

The articles of a cooperative may require that members own one or more shares of membership stock. Such stock shall be issued or transferred only to a person eligible to become a member, and only when such person satisfies other requisites for membership. Unless restricted by the articles, stock other than membership stock may be issued or transferred to any person. Source: SDC 1939, § 11.1118 (2) as enacted by SL 1965, ch 23 , § 1.