§ 9127. Member's interest not transferable.
(a) General rule.--Except as set forth in subsection (b) or the governing principles, a member's interest or any right under the governing principles is not transferable.
(b) Certain nonprofit associations formed prior to effective date.--
(1) This subsection applies to a nonprofit association:
(i) which was formed before September 9, 2013;
(ii) which was formed for the purpose of encouraging lawful associational activity among agricultural and industrial workers through the organization of a nonprofit association for mutual benefit insurance, saving or other lawful objects; and
(iii) in which the persons that organized the nonprofit association derive benefits from the preservation and continuance of the membership and interest among persons engaged in a common calling, labor or enterprise.
(2) For a nonprofit association subject to paragraph (1), the following apply:
(i) Except as set forth in subparagraph (ii), a member's interest or any right under the governing principles is transferable.
(ii) A member's interest or any right under the governing principles is nontransferable if the governing principles so provide.
(c) Assignments and pledges.--No legal or equitable right or interest shall pass as a result of an attempted transfer in violation of:
(1) subsection (a); or
(2) a transfer restriction under subsection (b)(2)(ii).
(d) Knowledge of nontransferability.--Whenever the interest of a member in a nonprofit association is evidenced by a certificate, an endorsement on the certificate that the certificate is nontransferable shall be conclusive evidence that the person to whom any attempted transfer of the certificate is made has knowledge of the nontransferable character of the interest of the member.
(July 9, 2013, P.L.476, No.67, eff. 60 days)
2013 Amendment. Act 67 added section 9127.
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