2009 California Corporations Code - Section 13310-13316 :: Chapter 5. Stock

13310.  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. An association, in its by-laws, may limit
the amount of common stock which one member may own.

13311.  One class of stock shall always be known as common stock and
voting power may be restricted to holders of common stock.

13312.  There shall be printed upon each common stock certificate a
statement that the transfer thereof to any person not engaged in the
production of the products handled by the association is prohibited
by the by-laws of the association.

13313.  Except as to the matters and things stated in the articles
of incorporation no distinction shall exist between classes of stock
or the holders thereof.

13314.  If an association issues nonpar value stock the issuance of
such stock shall be governed by the terms of the General Corporation
Law covering the issuance of nonpar value stock in domestic
corporations.

13315.  An association may, at any time, as specified in the
by-laws, except when the debts of the association exceed 50 percent
of its assets, 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 year thereafter.

13316.  Whenever an association, organized with preferred shares of
stock, purchases the stock or any property, or any interest in any
property of any person, it may discharge the obligations so incurred,
wholly or in part, by exchanging for the acquired interest, shares
of its preferred stock to an amount which at par value would equal
the fair market value of the stock or interest so purchased, as
determined by the board of directors. In that case the transfer to
the association of the stock or interest purchased shall be
equivalent to payment in cash for the shares of stock issued.