§ 3031.
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/vt/title-30/chapter-81/3031A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 3031. Mortgage and investment
(a)The board of directors of a cooperative shall have full power and authority, without authorization by the members, to authorize the execution and delivery of a mortgage or mortgages or a deed or deeds of trust of, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the cooperative, whether acquired or to be acquired, and wherever situated, as well as the revenues and income, all upon such terms and conditions as the board of directors shall determine, to secure indebtedness of the cooperative in the ordinary course of the cooperative’s electric business.
(b)The board of directors of a cooperative shall have full power and authority, with the approval of two-thirds of the members of the cooperative voting on such authorization, to authorize the execution and delivery of a mortgage or mortgages or a deed of trust of, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the cooperative, whether acquired or to be acquired, and wherever situated, as well as the revenues and income, upon terms and conditions as the board of directors shall determine, to secure indebtedness of the cooperative for purposes authorized by statute other than operation of the cooperative’s electric business.
(c)No more than 50 percent of the member equity of an electric cooperative subject to the provisions of this chapter may be used to invest in all business activities authorized by statute, other than electric business activities. Each individual investment by the electric cooperative in a business activity authorized by statute, other than electric, exceeding three percent of the members’ equity, may be made only with approval of two-thirds of the members voting on such proposal.
(d)Business activities authorized by statute, other than electric, shall be geographically limited to any county in which the cooperative has authority to sell energy or other services furnished by the cooperative when they are made available through its electric distribution facilities, or any county in which an authorized business is presently serving. (Amended 1969, No. 192 (Adj. Sess.), eff. March 12, 1970; 1999, No. 143 (Adj. Sess.), § 21; 2023, No. 85 (Adj. Sess.), § 427, eff. July 1, 2024.)