Arizona Revised Statutes § 6-429 Issuance, Delivery, And Transfer Of Certificates And Account Books

6-429. Issuance, delivery, and transfer of certificates and account books

A. An association may evidence an account by one or more appropriate certificates.

B. The holder of an account may transfer his rights in the account absolutely or conditionally to any other person eligible to hold the same by written assignment. Notwithstanding the effectiveness of such a transfer between the parties to the transfer, the association may treat the holder of record as the owner of the account for payment, voting and all other purposes until the assignment and any accompanying certificate or account books have been received by the association with a request for the transfer on the association's records.

C. Account certificates, account books and any other evidences of membership are negotiable or nonnegotiable and not subject to, but shares of guaranty capital certificates are subject to, the provisions of title 47, chapter 8.

D. All certificates and account books delivered to the holders as prescribed by this article are subject to garnishment, attachment and execution as provided by the laws of this state.

E. If the holder of an account, or the personal representative of any such person, files with the association an affidavit to the effect that his account book or certificate has been lost or destroyed, and that the account book or certificate has not been pledged or assigned either in whole or in part, then the association may issue a substitute account book or certificate in the name of the holder, with a statement that the account book or certificate is issued in lieu of the one lost or destroyed. The association is not liable thereafter with respect to the original account book or certificate, but the board of directors may require a bond in sufficient amount to indemnify the association against any loss which might result from the issuance of the substitute account book or certificate.

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Last modified: October 13, 2016