Guam § 17603 - Transferability of Member’s Interest.

§ 17603. Transferability of Member’s Interest.

(a) The provisions of this Act relating to the transferability of a member’s interest are subject to the

Uniform Commercial Code of Guam, 13 GCA §§ 1101 through 10104.

(b) Unless the organic rules otherwise provide, a member’s interest other than financial rights is not

transferable.

(c) Unless a transfer is restricted or prohibited by the organic rules, a member may transfer its financial

rights in the limited cooperative association.

(d) The terms of any restriction on transferability of financial rights must be:

(1) set forth in the organic rules and the member records of the association; and

(2) conspicuously noted on any certificates evidencing a member’s interest.

(e) A transferee of a member’s financial rights, to the extent the rights are transferred, has the right to

share in the allocation of profits or losses and to receive the distributions to the member transferring the

interest to the same extent as the transferring member.

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(f) A transferee of a member’s financial rights does not become a member upon transfer of the rights

unless the transferee is admitted as a member by the limited cooperative association.

(g) A limited cooperative association need not give effect to a transfer under this Section until the

association has notice of the transfer.

(h) A transfer of a member’s financial rights in violation of a restriction on transfer contained in the

organic rules is ineffective if the intended transferee has notice of the restriction at the time of transfer.