Section 1206 - Issuance of fractional shares or scrip(a) Authorization--An institution may issue a certificate for a fractional share and, by action of its board of directors, may issue in lieu thereof scrip or other evidence of ownership, in bearer form or in the name of the holder, which:(i) Shall entitle the bearer or holder to receive a certificate for a full share upon the surrender of such scrip or other evidence of ownership aggregating a full share,(ii) Shall entitle the bearer or holder to participate proportionately in the assets of the institution in the event of liquidation, and(iii) Shall not entitle the holder to exercise any voting right or to receive dividends.(b) Conditions--The board of directors may cause such scrip or evidence of ownership to be issued subject to:(i) The condition that it shall become void if not exchanged for share certificates before a specified date,(ii) The condition that after such specified date the shares for which such scrip or evidence of ownership is exchangeable may be sold by the institution and the proceeds thereof distributed to the bearers or holders of such scrip or evidence of ownership, and(iii) Other conditions which the board of directors may deem advisable.1965, Nov. 30, P.L. 847, No. 356, § 1206.