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<br />the Secretary shall prepare and sign a notice of sale, which notice shall refer to the stock to be sold by
<br />date and number of the certificate and number of shares, and shall state that such stock has bee ordered
<br />forfeited and sold by the Board of Directors for the payment of such assessment or installment with
<br />interest and other charges thereon, and shall designate the time, place and manner of sale, which notice
<br />shall be published in a public newspaper published in the County of Crowley, Colorado, at least once a
<br />week for not less than two weeks prior to the date of sale; and the Secretary shall mail a marked copy of
<br />such paper to such delinquent stockholder at his last known Post Office address.
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<br />SALE
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<br />Section 16. All sales provided for in these by-laws shall be at public auction at such place in the County
<br />of Crowley and State of Colorado. at may be designated in the order or notice of sale, and shall be
<br />conducted by any officer of the Company, or other person designated by the Board of Directors, and all
<br />proceeds thereof over and above the amount due on the stock sold, including interest and costs and
<br />expenses of forfeiture, notice and sale chargeable against such stock shall be paid to the delinquent
<br />stockholder.
<br />
<br />Upon such sale being made a new certificate or certificates of stock may be issued to the purchaser or
<br />purchasers of the stock to be sold, with a memorandum written across the face thereof, describing the
<br />certificate or certificates of stock forfeited and sold, by certificate number, date and number of shares, the
<br />date of the order of forfeiture and date of sale; and thereafter neither such defaulting stockholder, nor his
<br />successors, administrator, heirs or assigns, shall have any right, title or interest whatever, either in law of
<br />in equity, in and to such forfeited stock, or any part thereof.
<br />
<br />CERTIFICATES OF STOCK
<br />
<br />Section 17. General. Certificates of stock in the Company shall be issued, accepted and held subject to
<br />the Articles of Incorporation and By-laws, as such Articles and By-laws shall be amended from time to
<br />time, and the laws under which the Company is organized, and shall be subject to assessments as
<br />authorized by law and provided in the Articles of Incorporation and By-laws. The certificates shall be
<br />numbered consecutively and registered as they are issued.
<br />
<br />Lost or Destroved Stock Certificates. In the case of a lost, mislaid, or destroyed certificate, a duplicate
<br />certificate may be issued in lieu thereof upon the stockholder fumishing:
<br />1. Proof of ownership of the stock satisfactory to the Board;
<br />2. Proof of the loss, misplacement, or destruction of the certificate satisfactory to the Board (which
<br />proof shall include a statement under oath that the stock is the property of the person making
<br />such statement; that the certificate has been lost, misplaced, or destroyed; and that the stock has
<br />not been transferred, pledged, mortgaged, or hypothecated); and
<br />3. A bond with sureties satisfactory to the Board in such penal sum as the Board may decide,
<br />indemnifying the Company from loss on account of the reappearance of the lost, misplaced, or
<br />destroyed certificate.
<br />In the alternative, a stockholder may avail itself of the statutory procedure for issuance of duplicate stock
<br />certificates set forth in the Colorado Ditch and Reservoir Companies Statute, C.R.S. 7-42-101 et seq.
<br />
<br />Voluntarv Transfers of Stock. Transfers of stock shall be made upon the books of the Company, either in
<br />person, or by attorney, only upon surrender of the original certificate, properly endorsed, and upon
<br />payment of the transfer fee fixed by the Board of Directors from time to time; provided, that no transfer
<br />shall be made until all assessments, interest, and charges due or authorized upon the stock have been
<br />paid.
<br />
<br />Involuntarv Transfers of Stock. An "involuntary transfer" shall include, but not be limited to, a transfer of
<br />stock that is effected in order to satisfy a debt of the stockholder that has been collateralized or secured by
<br />the stock or that is effected in the course of bankruptcy proceedings. Absent a court order requiring such
<br />transfer, the Company shall have no obligation to effect a transfer of stock if it reasonably, concludes,
<br />based upon the information available to it at the time of its decision, that the transfer in an involuntary
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