§ 6A-8-210 - Overissue. - Rhode Island Statutes

SECTION 6A-8-210

   § 6A-8-210  Overissue. – (a) In this section, "overissue" means the issue of securities in excess of theamount the issuer has corporate power to issue, but an overissue does not occurif appropriate action has cured the overissue.

   (b) Except as otherwise provided in subsections (c) and (d),the provisions of this chapter which validate a security or compel its issue orreissue do not apply to the extent that validation, issue, or reissue wouldresult in overissue.

   (c) If an identical security not constituting an overissue isreasonably available for purchase, a person entitled to issue or validation maycompel the issuer to purchase the security and deliver it if certificated orregister its transfer if uncertificated, against surrender of any securitycertificate the person holds.

   (d) If a security is not reasonably available for purchase, aperson entitled to issue or validation may recover from the issuer the pricethe person or the last purchaser for value paid for it with interest from thedate of the person's demand.