Article IX – Disposition of Property

The Cooperative may not sell, mortgage, lease or otherwise dispose of or encumber any of its property other than:

  • Property which in the judgment of the directors neither is nor will be necessary or useful in operating and maintaining the Cooperative’s system and facilities; provided, however, that all sales of such property shall not in any one year exceed in value 10% of the value of all the property of Cooperative;
  • Services of all kinds, including electric energy; and
  • Personal property acquired for resale, unless such sale, mortgage, lease of other disposition or encumbrance is authorized at a meeting of the members by the affirmative vote of at least two thirds of the members who are present at such meeting, and the notice of such proposed sale, mortgage, lease or other disposition or encumbrance shall have been contained in the notice of the meeting; provided, however, that the Cooperative may not sell, mortgage, lease or otherwise dispose of or encumber all, or substantially all, the property of the Cooperative unless the same shall be authorized by a resolution adopted by the affirmative vote of at least a majority of all the members of the Cooperative at a meeting called for the purpose and the notice of such meeting shall have stated that such proposed sale, mortgage, lease or other disposition or encumbrance was to be acted upon at such meeting.