{"data":{"id":"us-ky/krs-279.510","jurisdiction":"us-ky","citation":"KRS 279.510","heading":"Obligations, how issued, secured, purchased or redeemed -- Power of","body":"board of trustees to encumber or dispose of property.\n(1) The board of trustees of a cooperative shall have full power and authority, without\nauthorization by the members thereof, to authorize the execution and delivery of a\nmortgage or mortgages or a deed or deeds of trust of, or the pledging or\nencumbering of, any or all of the property, assets, rights, privileges, licenses,\nfranchises and permits of the cooperative, whether acquired  or to be acquired, and\nwherever situated as well as the revenues therefrom, all upon such terms and\nconditions as the board of trustees shall determine, to secure any indebtedness of the\ncooperative to the United States of America or any agency or instrum entality\nthereof. Any such mortgage or mortgages or deed or deeds of trust shall be exempt\nfrom mortgage recordation tax.\n(2) A cooperative may not otherwise sell, mortgage, lease or otherwise dispose of or\nencumber all or a substantial portion of its prop erty unless such sale, mortgage,\nlease or other disposition or encumbrance is authorized by the affirmative vote of\nnot less than two -thirds (2/3) of all the members of the cooperative; provided\nhowever, that notwithstanding any other provision of KRS 279. 310 to 279.600, or\nany other provision of law, the board of trustees may, upon the authorization of a\nmajority of those members of the cooperative present at a meeting of the members\nthereof, the notice of which shall have set forth the proposed action, se ll, lease or\notherwise dispose of all or a substantial portion of its property to another\ncooperative or a foreign corporation doing business in this state pursuant to KRS\n279.310 to 279.600 or to the holder or holders of any notes, bonds or other\nevidences of indebtedness issued to the United States of America or any agency or\ninstrumentality thereof.","path":["KRS Chapter 279"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14227","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:32Z","sha256":"abac78b1898630a74aad097a4359bac7f457f58046d2b12f63c9d461f8b9a562","source_id":"us-ky","stale":false,"prev":"us-ky/krs-279.500","next":"us-ky/krs-279.520"},"notice":"GroundRules: Original legal text. Not legal advice."}