When a member of an association established without shares of stock has paid his membership fee in full, he shall receive a certificate of membership.

No association shall issue a certificate for stock to a member until it has been fully paid for. The promissory notes of the members may be accepted by the association as full or partial payment. The association shall hold the stock as security for the payment of the note; but such retention as security shall not affect the member’s right to vote.

(b) Limitation Upon Stock Ownership. An association, in its bylaws, may limit the amount of common stock which one member may own.

(c) Transfer of Stock or Certificates. The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to persons not qualified to be shareholders or members as specified in this Chapter; and such restrictions must be printed upon every certificate of stock or membership subject thereto.

(d) Buying in stock. The association may, at any time, as specified in the bylaws, except when the debts of the association exceed fifty percent (50%) of the assets thereof, buy in or purchase its common stock at the book value thereof, as conclusively determined by the board of directors, and pay for it in cash within one (1) year thereafter.

(e) Liability for Association Debts. No member or stockholder shall be liable for the debts of the association to an amount exceeding the sum remaining unpaid balance of any promissory note given in payment thereof.

SOURCE: CC § 650.14.