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Why "Transfer or Hypothecate"?

Section 204(b) permits the articles of incorporation to include reasonable restrictions upon the right to transfer or hypothecate shares of any class or classes or series.  This is the only time the word "hypothecate" appears in the General Corporation Law (it can also be found in Corporations Code Sections 2603 and 25102(j)(2)).  

Although not defined by the GCL, "hypothecate" means to pledge property without delivery of possession. Wadhwa v. Aurora Loan Servs., LLC, 2012 U.S. Dist. LEXIS 31035, *44-45 (citing Black's Law Dictionary).  It is derived from two Greek words, ὑπό (meaning under) and τιθέναι (meaning to place).  

Norwegian Constitution Day

In honor of Norway's national day, below are photographs of the country in summer and winter:

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