Default in Transferring Shares Sample Clauses

Default in Transferring Shares. If any City obligated to sell in accordance with the foregoing provisions of this Article Ten (hereinafter in this Article Ten referred to as the “Selling Member”) makes default in transferring all or any of its membership interests to the City obligated to purchase in accordance with such foregoing provisions (hereinafter in this Article Ten referred to as the “Purchasing Member”) as provided for in this Article Ten, the treasurer of the Corporation is authorized and directed to receive the purchase money and thereupon cause the name of the Purchasing Member be entered in the registers of the Corporation as the holder of the membership interests purchased by him. The said purchase money shall be held in trust by the Corporation on behalf of the Selling Member and not commingled with the Corporation’s assets, except that any interest accruing thereon shall be for the account of the Corporation. The receipt by the treasurer of the Corporation for the purchase money shall be a good discharge to the Purchasing Member and, after his name has been entered in the registers of the Corporation in exercise of the aforesaid power, the validity of the proceedings shall not be subject to question by any person. On such registration, the Selling Member shall cease to have any right to or in respect of the membership interests to be sold except the right to receive, without interest, the purchase price received by the treasurer of the Corporation.

Default in Transferring Shares. If the Offeror makes default in transferring the Offered Shares to the Offeree(s) in accordance with the terms set out in the Notice of Disposition, the Secretary of the Corporation is authorized and directed on behalf of the parties to this Agreement, to receive the purchase price from the Offerees and to thereupon cause the names Of the Offeree(s) to be entered in the registers of the Corporation as the holders of the Shares purchasable by them. The said purchase price shall be held in trust by the Corporation on behalf of the Offeror and not commingled with the Corporation's assets, and any interest thereon shall be for the account of the Offeror. The receipt by the Secretary of the Corporation for the purchase price shall be a good discharge to the Offerees and the Secretary shall thereafter enter the Offeree(s) name(s) in the registers of the Corporation in exercise of the aforesaid power. On such registration, the Offeror will then be entitled to receive, inclusive of interest and without deduction or setoff, the purchase price received by the Secretary of the Corporation.