Common use of Terms of Shares Clause in Contracts

Terms of Shares. 1. Shares of stock initially subscribed by members shall be issued at par. Other shares shall be issued at par unless the Board of Governors by a Special Majority vote as provided in Article 28 decides in special circumstances to issue them on other terms. 2. Shares of stock shall not be pledged or encumbered in any manner whatsoever, and they shall be transferable only to the Bank. 3. The liability of the members on shares shall be limited to the unpaid portion of their issue price. 4. No member shall be liable, by reason of its membership, for obligations of the Bank.

Terms of Shares. 1. Shares of stock initially subscribed by members shall be issued at par. Other shares shall be issued at par unless the Board of Governors by a Special Majority vote as provided in Article 28 decides in special circumstances circum- stances to issue them on other terms. 2. Shares of stock shall not be pledged or encumbered in any manner whatsoever, and they shall be transferable trans- ferable only to the Bank. 3. The liability of the members on shares shall be limited to the unpaid portion of their issue price. 4. No member shall be liable, by reason of its membership, for obligations of the Bank.