7. STATEMENT I: Membership in a non-stock corporation and all rights arising therefrom cannot be transferred even if provided in the articles of incorporation or by laws because membership and the rights arising therefrom are personal and non-transferable. STATEMENT 2: Treasury stocks sold less than par or issued value are considered "watered stock and as such are prohibited by law. 8. STATEMENT I: In the delinquency sale at public auction, the highest bidder is one who offers to pay the full amount of the balance of the subscription plus interest and expenses of the sale for the highest number of shares. STATEMENT 2: The sale of delinquent stock at public auction can be stopped if the Board of Directors stops the sale for valid reason