N.Y. Business Corporation Law § 628: Liability of subscribers and shareholders

§ 628. Liability of subscribers and shareholders.

(a) A holder of or subscriber for shares of a corporation shall be

under no obligation to the corporation for payment for such shares other

than the obligation to pay the unpaid portion of his subscription which

in no event shall be less than the amount of the consideration for which

such shares could be issued lawfully.

(b) Any person becoming an assignee or transferee of shares or of a

subscription for shares in good faith and without knowledge or notice

that the full consideration therefor has not been paid shall not be

personally liable for any unpaid portion of such consideration, but the

transferor shall remain liable therefor.

(c) No person holding shares in any corporation as collateral security

shall be personally liable as a shareholder but the person pledging such

shares shall be considered the holder thereof and shall be so liable.

No executor, administrator, guardian, trustee or other fiduciary shall

be personally liable as a shareholder, but the estate and funds in the

hands of such executor, administrator, guardian, trustee or other

fiduciary shall be liable.