2013 Kentucky Revised Statutes CHAPTER 279 - RURAL ELECTRIC AND RURAL TELEPHONE COOPERATIVE CORPORATIONS 279.510 Obligations, how issued, secured, purchased or redeemed -- Power of board of trustees to encumber or dispose of property.
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279.510 Obligations, how issued, secured, purchased or redeemed -- Power
of board of trustees to encumber or dispose of property.
(1)
(2)
The board of trustees of a cooperative shall have full power and authority,
without authorization by the members thereof, to authorize the execution and
delivery of a mortgage or mortgages or a deed or deeds of trust of, or the
pledging or encumbering of, any or all of the property, assets, rights, privileges,
licenses, franchises and permits of the cooperative, whether acquired or to be
acquired, and wherever situated as well as the revenues therefrom, all upon
such terms and conditions as the board of trustees shall determine, to secure
any indebtedness of the cooperative to the United States of America or any
agency or instrumentality thereof. Any such mortgage or mortgages or deed or
deeds of trust shall be exempt from mortgage recordation tax.
A cooperative may not otherwise sell, mortgage, lease or otherwise dispose of
or encumber all or a substantial portion of its property unless such sale,
mortgage, lease or other disposition or encumbrance is authorized by the
affirmative vote of not less than two-thirds (2/3) of all the members of the
cooperative; provided however, that notwithstanding any other provision of
KRS 279.310 to 279.600, or any other provision of law, the board of trustees
may, upon the authorization of a majority of those members of the cooperative
present at a meeting of the members thereof, the notice of which shall have set
forth the proposed action, sell, lease or otherwise dispose of all or a substantial
portion of its property to another cooperative or a foreign corporation doing
business in this state pursuant to KRS 279.310 to 279.600 or to the holder or
holders of any notes, bonds or other evidences of indebtedness issued to the
United States of America or any agency or instrumentality thereof.
Effective:March 25, 1950
History: Created 1950 Ky. Acts ch. 147, sec. 20, effective March 25, 1950.
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