NY Banking L § 5003 (2021)
2021 New York Laws BNK - Banking Article 15 - General Provisions Applicable to Banking Stock Corporations, Limited Liability Investment Companies, and Limited Liability Trust Companies Title 5 - Corporate Finance 5003 - Subscription for Shares; Time of Payment, Forfeiture for Default.

§ 5003.  Subscription  for  shares;  time  of  payment, forfeiture for   default. 1. Unless otherwise provided by the terms of the  subscription,   a  subscription  for  shares  of  a  corporation  to  be formed shall be   irrevocable, except with the consent of all  other  subscribers  or  the   corporation, for a period of seven months from its date.2.  A  subscription,  whether  made before or after the formation of a   corporation, shall not be enforceable unless in writing  and  signed  by   the subscriber.3.  Unless  otherwise  provided  by  the  terms  of  the subscription,   subscriptions for shares, whether made before or after the formation  of   a  corporation,  shall  be  paid  in  full  at  such  time,  or  in such   instalments and at such times, as shall be determined by the board.  Any   call made by the board for payment on subscriptions shall be uniform  as   to  all  shares  of  the  same  class  or  of  the same series.   If the   superintendent has taken possession of the business and property of  the   corporation, all unpaid subscriptions shall be paid at such times and in   such instalments as the superintendent may direct.4.  In  the  event of default in the payment of any instalment or call   when due, the corporation may proceed to collect the amount due  in  the   same  manner  as any debt due the corporation or the board may declare a   forfeiture  of  the  subscriptions.  The  subscription   agreement   may   prescribe  other  penalties, not amounting to forfeiture, for failure to   pay instalments or calls that may  become  due.  No  forfeiture  of  the   subscription  shall  be  declared  as  against any subscriber unless the   amount due thereon shall remain unpaid for a period of thirty days after   written demand has been made therefor. If mailed,  such  written  demand   shall be deemed to be made when deposited in the United States mail in a   sealed  envelope  addressed  to  the  subscriber at his last post-office   address known to the corporation, with  postage  thereon  prepaid.  Upon   forfeiture  of  the  subscription,  if  at  least  fifty  percent of the   subscription price has been paid, the shares  subscribed  for  shall  be   offered for sale for cash at a price at least sufficient to pay the full   balance  owed  by the delinquent subscriber plus the expenses incidental   to such sale, and any excess of net proceeds realized  over  the  amount   owed on such shares shall be paid to the delinquent subscriber or to his   legal  representative.  If  no prospective purchaser offers a cash price   sufficient to pay the full balance owed  by  the  delinquent  subscriber   plus the expenses incidental to such sale, or if less than fifty percent   of the subscription price has been paid, the shares subscribed for shall   be  cancelled  and  restored  to  the  status of authorized but unissued   shares and all previous payments  thereon  shall  be  forfeited  to  the   corporation and transferred to surplus.