Notice of Transfer or Encumbrance

(a)No transfer or encumbrance of investment certificates or shares issued by an association shall be effective as to such association until written notice of such transfer or encumbrance shall have been given to the office of the association at which such investment certificates or shares were issued, or at which the account of such association as to such shares or investment certificates is kept, or to the principal office of such association.

(b)Until such notice shall have been so given, such association may conclusively presume that investment certificates and shares have COL4122017 CH. 127 MISCELLANEOUS PROVISIONS AFFECTING INVESTORS not been transferred or encumbered, and may, in the absence of such notice, make any and all payments or issue new investment certificates or shares to or in the name or names of the person or persons in whose name or names its certificates or shares are issued, whether or not such investment certificates or shares are presented at the time of such payment or issuance, and shall have no responsibility to a transferee or lienholder with respect to any investment certificates or shares, or parts thereof, so paid or reissued.