If one member of a club wants to transfer shares to another
member to pay off a debt from outside the club how would
that best be handled? Thanks in advance!

> If one member of a club wants to transfer shares to another
> member to pay off a debt from outside the club how would
> that best be handled?

The first member (payer) would have to withdraw the money from the
club and give the money or stock to the second member (payee). The
transfer of monies (stocks) between members can't be handled within
the club.

To learn how to enter a partial withdrawal, please visit:

http://www.bivio.com/hp/member-transactions.html

Cheers,
Rob

Disclaimer: statements are opinions expressed by me. These statements
are not intended to replace professional advice. When in doubt, follow
the advice of your investment, tax or legal advisors who are familiar
with your particular circumstances.

In my opinion, this would best be handled by selling sufficient shares
outright, give the debtor partner his cash and allow him to give the funds
to the lender partner. Let the partner then buy the shares directly. If
you don't have sufficient liquidity to do that, then liquidate the units for
cash and immediately use the cash proceeds to purchase new units for the
other partner. I'd want it in writing from each partner directing you to do
as they ask.

John Munn


----- Original Message -----
From: "TIM/DARCI THOMAS" <lric@bivio.com>
To: <club_cafe@bivio.com>
Sent: Wednesday, November 07, 2001 1:45 PM
Subject: club_cafe: member transfers


> If one member of a club wants to transfer shares to another
> member to pay off a debt from outside the club how would
> that best be handled? Thanks in advance!

TIM/DARCI THOMAS wrote:
> If one member of a club wants to transfer shares to another
> member to pay off a debt from outside the club how would
> that best be handled? Thanks in advance!


Our club would probably handle it as follows (as per our
club agreement):

The debtor partner would request a partial withdrawal for
the amount needed.

The club members could then choose to pay the withdrawal as
cash, securities, or a combination of the two. If our club
did not have the cash to pay for the withdrawal, we would
more than likely transfer shares to the member requesting
withdrawal (club members would choose which shares to
transfer). We likely would not sell shares to pay cash since
that would involve costs to all members (commissions, gains
or losses). The shares chosen by the club would be
transferred from the club brokerage account to the debtor
member's personal brokerage account (member would have to
open a personal account if needed).

Once transferred, it is the debtor member's choice as to how
to pay his debt, ie. sell the stock, pay cash or transfer
shares to the one he owes. Either way, the transaction is
between the two, and is done outside club business.