                                 CODE OF VIRGINIA

PURCHASE OF BUSINESS BY ISSUE OF SHARES OF STOCK (§ 13.1-304)

Whenever any stock cooperative association shall purchase the business of
another association, person or persons, it may pay for the same in whole or in
part by issuing to the selling association or person shares of its capital stock
to an amount which at par value would equal the fair market value of the
business so purchased, and in such case the transfer to the association of such
business at such valuation shall be equivalent to payment in cash for the shares
of stock so issued. In case the cash value of such purchased business exceeds
$1,000 the directors of the association are authorized to hold the shares in
excess of $1,000 in trust for the vendor and dispose of the same to such persons
and within such time, as may be mutually satisfactory to the parties in
interest, and to pay the proceeds thereof as currently received to the former
owners of such business.

HISTORY: Code 1950, § 13-241; 1956, c. 428; 1994, c. 217.