Whenever any shareholder or shareholder’s assignee fails to pay any assessment of the stock when the assessment is required to be paid, the board of directors of the association may sell at public or private sale, whichever appears to it best for all concerned, so much of the stock, at the best price obtainable, as is necessary to pay the assessment and costs of the sale. The sale must be made on a day certain to be fixed by the board not less than thirty days after the day set for the payment of the assessment. Notice of the time and place of the sale must be given to the shareholder in the manner following:

1.    In the event of a private sale, by forwarding the notice to the person or persons in whose name the stock stands on the books of the association, at least twenty days prior to the date fixed for the sale, by registered or certified mail addressed to the shareholder’s address last known to the board of directors.

2.    In the event of a public sale, by one publication of a notice thereof, at least twenty days prior to the date fixed for such sale, in a newspaper published in the county wherein the association is located.

A sale of stock as herein provided effects an absolute cancellation of the outstanding certificate or certificates in the hands of the delinquent shareholder, or the delinquent shareholder’s assignee or pledgee, and a new certificate must be issued by the association and delivered to the purchaser for the number of shares purchased, and a new certificate for the remaining shares, if any, must be issued to the shareholder and delivered to the shareholder, or the shareholder’s assignee or pledgee, upon the surrender of the original certificate or certificates involved. Any proceeds of such sale remaining after the delinquent assessment and the expenses of the sale have been fully paid must be paid over to the shareholder, or the shareholder’s assignee or pledgee.