{"data":{"id":"us-ky/krs-272a.6-030","jurisdiction":"us-ky","citation":"KRS 272A.6-030","heading":"Transferability of member's interest.","body":"(1) The provisions of this chapter relating to the transferability of a member's interest\nare subject to the Uniform Commercial Code as enacted in the Commonwealth of\nKentucky in KRS Chapter 355.\n(2) Unless the organic rules otherwise provide, a member's inter est other than financial\nrights is not transferable.\n(3) Unless a transfer is restricted or prohibited by the organic rules, a member may\ntransfer the member's financial rights in the limited cooperative association.\n(4) The terms of any restriction on transferability of financial rights shall be:\n(a) Set forth in the organic rules and the member records of the association; and\n(b) Conspicuously noted on any certificates evidencing a member's interest.\n(5) A transferee of a member's financial rights, to the  extent the rights are transferred,\nhas the right to share in the allocation of profits or losses and to receive the\ndistributions to the member transferring the interest to the same extent as the\ntransferring member. A transferee of a member's financial r ights does not become a\nmember upon transfer of the financial rights unless the transferee is admitted as a\nmember by the limited cooperative association and has no governance rights in the\nassociation.\n(6) Except as provided in the organic rules, a member  who has conveyed all of the\nmember's financial rights shall remain a member.\n(7) A limited cooperative association need not give effect to a transfer under this\nsection until the association has notice of the transfer.\n(8) A transfer of a member's financi al rights in violation of a restriction on transfer\ncontained in the organic rules is ineffective as to a person having notice of the\nrestriction at the time of transfer.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41023","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:22Z","sha256":"e0a94ae312a74f5257d5d4674db78a44058eee792b15189e101137715b469f7c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272a.6-020","next":"us-ky/krs-272a.6-040"},"notice":"GroundRules: Original legal text. Not legal advice."}