2009 Iowa Code
Title 12 - Business Entities
Subtitle 2 - Business and Professional Corporations and Companies
CHAPTER 490 - BUSINESS CORPORATIONS
490.620 - SUBSCRIPTION FOR SHARES BEFORE INCORPORATION.

        490.620  SUBSCRIPTION FOR SHARES BEFORE
      INCORPORATION.
         1.  A subscription for shares entered into before incorporation is
      irrevocable for six months unless the subscription agreement provides
      a longer or shorter period or all the subscribers agree to
      revocation.
         2.  The board of directors may determine the payment terms of
      subscriptions for shares that were entered into before incorporation
      unless the subscription agreement specifies them.  A call for payment
      by the board of directors must be uniform so far as practicable as to
      all shares of the same class or series, unless the subscription
      agreement specifies otherwise.
         3.  Shares issued pursuant to subscriptions entered into before
      incorporation are fully paid and nonassessable when the corporation
      receives the consideration specified in the subscription agreement.
         4.  If a subscriber defaults in payment of money or property under
      a subscription agreement entered into before incorporation, the
      corporation may collect the amount owed as any other debt.
      Alternatively, unless the subscription agreement provides otherwise,
      the corporation may rescind the agreement and may sell the shares if
      the debt remains unpaid more than twenty days after the corporation
      sends written demand for payment to the subscriber.
         5.  A subscription agreement entered into after incorporation is a
      contract between the subscriber and the corporation subject to
      section 490.621.  

         89 Acts, ch 288, §40
         Referred to in § 490.622, 534.508