KRS 272A.6-030: Transferability of member's interest.

(1) The provisions of this chapter relating to the transferability of a member's interest

are subject to the Uniform Commercial Code as enacted in the Commonwealth of

Kentucky in KRS Chapter 355.

(2) Unless the organic rules otherwise provide, a member's inter est other than financial

rights is not transferable.

(3) Unless a transfer is restricted or prohibited by the organic rules, a member may

transfer the member's financial rights in the limited cooperative association.

(4) The terms of any restriction on transferability of financial rights shall be:

(a) Set forth in the organic rules and the member records of the association; and

(b) Conspicuously noted on any certificates evidencing a member's interest.

(5) A transferee of a member's financial rights, to the extent the rights are transferred,

has the right to share in the allocation of profits or losses and to receive the

distributions to the member transferring the interest to the same extent as the

transferring member. A transferee of a member's financial r ights does not become a

member upon transfer of the financial rights unless the transferee is admitted as a

member by the limited cooperative association and has no governance rights in the

association.

(6) Except as provided in the organic rules, a member who has conveyed all of the

member's financial rights shall remain a member.

(7) A limited cooperative association need not give effect to a transfer under this

section until the association has notice of the transfer.

(8) A transfer of a member's financi al rights in violation of a restriction on transfer

contained in the organic rules is ineffective as to a person having notice of the

restriction at the time of transfer.