(a) No association may issue shares or investment certificates with provision for a definite rate of return thereon; provided, however, that nothing contained in this section shall be deemed to forbid any association from (a) issuing shares or certificates providing that the return thereon shall not exceed a maximum figure specified therein; nor (b) issuing installment shares or installment certificates providing for an additional rate of return for the investor in excess of the rate of return paid by such association to its shareholders or certificate holders generally, and conditioned upon the faithful performance of such installment contract by the shareholder or certificate holder.

(b) The rate or rates of return on shares or investment certificates, or both, issued pursuant to the provisions of this section without a definite rate of return stated therein shall be fixed and determined in the manner provided in Section 127109 of this act.

SOURCE: GC § 41409.

2017 NOTE: Subsection designations added/altered pursuant to the authority of 1
GCA § 1606.