Nevada § 78.220 - Subscriptions for corporate shares: Payment; default; irrevocability

§ 78.220. Subscriptions for corporate shares: Payment; default; irrevocability

1. Subscriptions to the shares of a corporation, whether made before or after its

organization, must be paid in full at such time or in such installments at such times

as determined by the board of directors. Any call made by the board of directors for payment on subscriptions must be uniform

as to all shares of the same class or series. 2. If default is made in the payment of any installment or call, the corporation may

proceed to collect the amount due in the same manner as any debt due the corporation. In addition, the corporation may sell a sufficient number of the subscriber's shares

at public auction to pay for the installment or call and any incidental charges incurred

as a result of the sale. No penalty causing a forfeiture of a subscription, of stock for which a subscription

has been signed, or of amounts paid thereon, may be declared against any subscriber

unless the amount due remains unpaid for 30 days after written demand. Such written demand shall be deemed made when it is mailed by registered or certified

mail, return receipt requested, to the subscriber's last known address. If any of the subscriber's shares are sold at public auction, any excess of the

proceeds over the total of the amount due plus any incidental charges of the sale

must be paid to the subscriber or the subscriber’s legal representative. If an action is brought to recover the amount due on a subscription or call, any

judgment in favor of the corporation must be reduced by the amount of the net proceeds

of any sale by the corporation of the subscriber's stock. 3. All stock subject to a delinquent installment or call and all amounts previously

paid by a delinquent subscriber for the stock must be forfeited to the corporation

if an amount due from a subscriber remains unpaid, the corporation has complied with

the requirements of subsection 2 and: (a) A bidder does not purchase the subscriber's shares at public auction; or (b) The corporation does not collect the defaulted amount by an action at law. 4. If a receiver of a corporation has been appointed, all unpaid subscriptions must

be paid at such times and in such installments as the receiver or the court may direct,

subject, however, to the provisions of the subscription contract. 5. A subscription for shares of a corporation to be organized is irrevocable for 6

months unless otherwise provided by the subscription agreement or unless all of the

subscribers consent to the revocation of the subscription.