17-4670.   Disposition of property.(a) The board of directors of a cooperative shall have fullpower and authority, without authorization by the members thereof, to authorizethe execution and delivery of a mortgage or mortgages or a deed or deeds oftrust of, or the pledging or encumbering of, any or all of the property,assets, rights, privileges, licenses, franchises and permits of thecooperative, whether acquired or to be acquired, and wherever situated, as wellas the revenues and income therefrom, all upon such terms and conditions as theboard of directors shall determine, to secure any indebtedness of thecooperative.

      (b)   A cooperative may not otherwise sell, mortgage, lease or otherwisedispose of or encumber all or a substantial portion of its property unless suchsale, mortgage, lease or other disposition or encumbrance is authorized by theaffirmative vote of not less than a majority of all the members of thecooperative.

      History:   L. 2003, ch. 81, § 20; July 1.