Vermont § 3031 - Mortgage and investment

§ 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.)