§ 503. Subscription for shares; time of payment, forfeiture for default.

(a) 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 three months from its date.

(b) A subscription, whether made before or after the formation of a
corporation, shall not be enforceable unless in writing and signed by
the subscriber.

(c) 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
installments 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 a receiver
of the corporation has been appointed, all unpaid subscriptions shall be
paid at such times and in such installments as such receiver or the
court may direct.

(d) In the event of default in the payment of any installment 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 installments 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 or a binding obligation to pay 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 or a binding obligation to pay
cash 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.

(e) Notwithstanding the provisions of paragraph (d) of this section,
in the event of default in payment or other performance under the
instrument evidencing a subscriber's binding obligation to pay a portion
of the subscription price or perform services, the corporation may
pursue such remedies as are provided in such instrument or a related
agreement or under law.