2017 Kentucky Revised Statutes CHAPTER 279 - RURAL ELECTRIC AND RURAL TELEPHONE COOPERATIVE CORPORATIONS .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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