One of the following statements does not characterize a delinquent stock:

• A. A stock becomes delinquent when the subscription is not paid in full within the 30-day grace period or on the date of the 'call' after due notice to the stockholders.
• B. A 'call' is not necessary where the subscription contract has provided for a definite date of payment.
• C. A delinquent stock loses its right to receive dividends up to the time of delinquency sale.
• D. Any cash dividend shall first be applied to unpaid subscription before the balance thereof will be given to the stockholder but any stock dividend shall be withheld until full payment of the subscription.

Answer: (C)

Delinquent stock is about what happens when a subscriber doesn’t pay full subscription on time and the remedies a company can enforce, including how dividends are handled while the debt is outstanding. The key idea is that unpaid subscriptions are collected first through cash dividends and that stock dividends are held back until payment is complete. A grace period or a call gives the company a chance to collect, and failure to pay after those steps can lead to delinquency and potential sale of the stock to cover the unpaid amount.

The statement that does not characterize delinquent stock is the one claiming that a delinquent stock loses its right to receive dividends up to the time of delinquency sale. In practice, rights to dividends are not retroactively forfeited in that way. Cash dividends are used to reduce the unpaid subscription first, and any stock dividends are withheld until the subscription is fully paid. The other statements align with how delinquency is triggered, how payments may be demanded, and how dividends are allocated while a subscription remains unpaid.