2023 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.