§421-9  Powers.  (a)  An associationformed under this chapter, or an association which might be formed under thischapter and which existed at the time this chapter took effect, shall have thecapacity to act possessed by natural persons, but the association shall havethe authority to perform only such acts as are necessary or proper toaccomplish the purposes as set forth in its articles and which are notrepugnant to law.

(b)  Without limiting or enlarging the grant ofauthority contained in subsection (a), every association shall have authority:

(1)  To act as agent, broker, or attorney in fact forits members, and for any subsidiary or affiliated association, and otherwise toassist or join with associations engaged in any one or more of the activitiesauthorized by its articles, and to hold title for its members and forsubsidiary and affiliated associations to property handled or managed by theassociation on their behalf.

(2)  To make contracts, and to exercise by its boardor duly authorized officers or agents, all such incidental powers as may benecessary, suitable, or proper for the accomplishment of the purposes of theassociation and not inconsistent with law or its articles, and that may beconducive to or expedient for the interest or benefit of the association.

(3)  To make loans or advances to members orproducer-patrons or to the members of an association which is itself a memberor subsidiary thereof; to purchase or otherwise acquire, endorse, discount, orsell any evidence of debt, obligation, or security, but it shall not engage inbanking.

(4)  To establish and accumulate reserves to capital.

(5)  To own and hold membership in or shares of thecapital stock of other associations and corporations and the bonds or otherobligations thereof, engaged in any related activity; or, in producing,warehousing, or marketing any of the products handled by the association; or,in financing its activities, and while the owner thereof, to exercise all therights of ownership, including the right to vote thereon.

(6)  To acquire, hold, sell, dispose of, pledge, ormortgage, any property which its purposes may require, subject to anylimitation prescribed by law or its articles.

(7)  To borrow money and to give its notes, bonds, orother obligations therefor and secure the payment thereof by mortgage orpledge.

(8)  To deal in agricultural products and handleagricultural machinery, equipment, and supplies, and perform services fornonmembers to an amount not greater in annual value than such as are dealt in,handled, or performed for or on behalf of its members.

(9)  To have a corporate seal and to alter it atpleasure.

(10)  To continue as a corporation for the time limitin its articles, which may be perpetual.

(11)  To sue and be sued in its corporate name.

(12)  To conduct business in this State and elsewhereas may be permitted by law.

(13)  To dissolve and wind up its affairs.

(14)  To charge differential rates on the sale of itsgoods and services to members and nonmembers as provided for in its bylaws. [L1949, c 234, pt of §1; RL 1955, §176-10; HRS §421-9; am L 1972, c 103, §4; am L1982, c 257, §2]