17-629.   Power of corporations to hold stock in and aidsimilar corporations.Any corporation or association which has power to construct, maintain oroperate a dam, reservoir, sluices, ditches or canals, or either of them,for the purpose of irrigation, shall have the power to acquire, hold anddispose of shares of stock in any corporation or association organizedfor the same or similar purposes; and to aid such other corporation,association, or any county or other municipality or public corporationof any kind which has similar powers, in the construction, maintenanceor operation of such works, by lending it money, or by guaranteeing, oracting as surety, for its indebtedness, or any part thereof, or byagreeing to pay in any manner or on any conditions, its indebtedness, orany part thereof, contracted for the purpose aforesaid, and shall havepower in furtherance of any such guarantee, suretyship or agreement, topledge its property, real or personal, and its franchises to secure thepayment of any such debt, or any part thereof, of such other party.

      The making of any such guarantee, suretyship, agreement, pledge ormortgage by the obligor shall be required to be authorized by a majorityvote in favor of the proposition of the shares of stock in thecorporation, or of the members of the corporation or association, ifthere be no shares of stock therein, making the same as such obligor,and also by a majority vote of its board of directors, at meetingscalled, upon at least ten days' notice, for the purpose of passing uponthe proposition.

      History:   L. 1933, ch. 156, § 1; March 21.