{"data":{"id":"us-ky/krs-279.140","jurisdiction":"us-ky","citation":"KRS 279.140","heading":"Power of board of directors to encumber or dispose of property.","body":"(1) Except as provided in KRS 279.090, 279.120 and 279.130, and in subsection (2) of\nthis section, no corporation formed under this chapter may sell, lease or otherwise\ndispose of any of its property unless the board of directors is authorized so to do by\na majority vote of the total membership. Due notice shall be given to all members of\nthe proposed sale, lease or other disposition of such property. The board of\ndirectors, without authorization by the members, shall have full power and authority\nto authorize the execution and delivery of a mortgage or mortgages or a deed or\ndeeds of trust upon, or the pledging or encumbering of any or all of, the property,\nassets, rights, privileges, licenses, franchises, and permits of such a corporation,\nwhether acquired or to be acquired, and wherever situated, as well as the revenues\nand income therefrom, upon such terms and conditions as the board of directors\nshall determine, to secure any obligation of such corporation, any provision of the\narticles of incorporation or b ylaws of such corporation to the contrary\nnotwithstanding.\n(2) The board may sell any of the following property without authority from the\nmembers:\n(a) Property that is not necessary in operating and maintaining the system, but\nsales of such property sha ll not in any one year exceed ten percent (10%) in\nvalue of all the property of the corporation other than merchandise and\nproperty acquired for resale;\n(b) Services and electric energy;\n(c) Property acquired for resale; and\n(d) Merchandise.","path":["KRS Chapter 279"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14198","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"d7ef3d71c8d84dbec55cf8d19b2b159cc9886451354ec14fdb3c61571afdeb0a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-279.130","next":"us-ky/krs-279.150"},"notice":"GroundRules: Original legal text. Not legal advice."}