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155.030 Powers of corporation.
In furtherance of the purposes set forth in KRS 155.020 above and in addition to the
powers conferred on business corporations by the provisions of KRS Chapter 271B,
the corporation shall, subject to the restrictions and limitations herein contained,
have the following powers:
(1) To elect, appoint and employ officers, agents and employees; to make
contracts and incur liabilities for any of the purposes of the corporation;
provided, that the corporation shall not incur any secondary liability by way of
guaranty or indorsement of the obligations of any person, firm, corporation,
joint-stock company, association, or trust, or in any other manner;
(2) To borrow money from any source including the United States government, or
any instrumentality thereof, including the small business administration and
similar agencies, for any of the purposes of the corporation; to issue therefor its
bonds, debentures, notes or other evidences of indebtedness, whether secured
or unsecured, and to secure the same by mortgage, pledge, deed of trust or
other lien on its property, franchises, rights and privileges of every kind and
nature or any part thereof or interest therein, without stockholder or member
approval; provided, that no loan to the corporation shall be secured in any
manner unless all outstanding loans to the corporation are secured equally and
ratably in proportion to the unpaid balance of such loans and in the same
manner;
(3) To make loans to any person, firm, corporation, joint-stock company,
association or trust, and to establish and regulate the terms and conditions with
respect to any such loans and the charges for interest and service connected
therewith; provided, however, that the corporation shall not approve any
application for a loan unless and until the person applying for said loan shall
show that he has applied for the loan through ordinary banking channels and
that the application has been refused by at least one (1) bank or other financial
institution. The corporation may charge interest on such loans at rates of
interest not to exceed whichever is the higher of the two (2) following rates: (a)
the rate mentioned in KRS 360.010; (b) two percent (2%) in excess of the
prime rate prevailing on unsecured commercial loans among the majority of the
New York City clearinghouse member banks on the first day of the month in
which the loan is made;
(4) To purchase, receive, hold, lease, or otherwise acquire, and to sell, convey,
transfer, lease or otherwise dispose of real and personal property, together
with such rights and privileges as may be incidental and appurtenant thereto
and the use thereof, including, but not restricted to, any real or personal
property acquired by the corporation from time to time in the satisfaction of
debts or enforcement of obligations;
(5) To acquire the good will, business, rights, real and personal property, and
other assets, or any part thereof, or interest therein, of any persons, firms,
corporations, joint-stock companies, associations, or trusts, and to assume,
undertake, or pay the obligations, debts, and liabilities of any such person, firm,
corporation, joint-stock company, association or trust; to acquire improved or
unimproved real estate for the purpose of constructing industrial plants or other
business establishments thereon or for the purpose of disposing of such real
(6)
(7)
(8)
(9)
estate to others for the construction of industrial plants or other business
establishments; and to acquire, construct or reconstruct, alter, repair, maintain,
operate, sell, convey, transfer, lease, or otherwise dispose of industrial plants
or business establishments;
To acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, pledge or
otherwise dispose of the stock, shares, bonds, debentures, notes or other
securities and evidences of interest in, or indebtedness of, any person, firm,
corporation, joint-stock company, association or trust, and while the owner or
holder thereof to exercise all the rights, powers, and privileges of ownership,
including the right to vote thereon; and to acquire stock or stock options in the
corporation or organization to which it makes loans;
To mortgage, pledge, or otherwise encumber any property, right or thing of
value, acquired pursuant to the powers contained in subsections (4), (5), or (6),
as security for the payment of any part of the purchase price thereof;
To cooperate with and avail itself of the facilities of the Cabinet for Economic
Development and the Industrial Development Finance Authority and any similar
governmental or private agencies; and to cooperate with and assist, and
otherwise encourage organizations in the various communities of the
Commonwealth in the promotion, assistance, and development of the business
prosperity and economic welfare of such communities or of this Commonwealth
or of any part thereof;
To do all acts and things necessary or convenient to carry out the powers
granted in this chapter.
Effective:July 15, 1982
History: Amended 1982 Ky. Acts ch. 396, sec. 37, effective July 15, 1982. -Amended 1980 Ky. Acts ch. 188, sec. 115, effective July 15, 1980. -- Created
1960 Ky. Acts ch. 73, sec. 4, effective March 21, 1960.
Legislative Research Commission Note (10/29/96). Under KRS 7.136(2), a
reference to the Department of [i.e., for] Existing Business and Industry in
subsection (8) of this statute has been changed to the Cabinet for Economic
Development. This department was eliminated by the repeal of KRS 154.12-209
by 1994 Ky. Acts ch. 499, sec. 28, and the duties and functions of the
department were reassigned to the cabinet, see 1994 Ky. Acts ch. 499,
secs. 13, 14, and 15.
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