(a) The board of directors shall not be required to procure any consent from or authorization by the members, except in the instance of the increase of bonded indebtedness of the association, in authorizing:
(1) The procurement of loans, the creation of obligations under which the association is to be primarily or secondarily liable, and the issuance of notes, bonds, and other obligations; and
(2) The mortgage and pledge of all or any part of the association's assets, including after-acquired property, as security for any obligations so incurred.
(b) Where the bonded indebtedness is increased within the meaning of Arkansas Constitution, Article 12, Section 8, authorization of both the creation of the additional indebtedness and the lien securing it shall be required in conformity with the constitutional provision.
Structure Arkansas Code
Subtitle 1 - General Provisions
Chapter 2 - Agricultural Cooperative Associations
Subchapter 3 - Merger and Consolidation
§ 2-2-302. Provisions supplemental
§ 2-2-303. Procedure for merger
§ 2-2-304. Procedure for consolidation
§ 2-2-305. Approval by members — Abandonment
§ 2-2-306. Articles of merger or consolidation
§ 2-2-307. Effect of merger or consolidation
§ 2-2-308. Merger or consolidation of domestic and foreign associations
§ 2-2-309. Continuance of association existence for title transfers
§ 2-2-310. No approval for financial obligations — Exception
§ 2-2-311. Regular disposition of property
§ 2-2-312. Disposition of property other than in regular course of business