Article XII – Disposition of Property

The Cooperative may not sell, lease, exchange, mortgage, pledge, or otherwise dispose of, or encumber all or any substantial portion of its property unless such sale, mortgage, lease, or other disposition, or encumbrance is authorized by a resolution, passed by the affirmative vote of ¾ of the Directors present at a Board Meeting at which such resolution shall have been presented, setting forth that it is in the best interest of the Cooperative to sell, mortgage, lease, or otherwise dispose, or encumber all or any substantial portion of its property and such resolution has been submitted to the Membership for approval at a special Membership Meeting and ¾ of all Memberships have voted in favor of adopting said resolution. Thereupon, the Board and Officers shall be deemed to be authorized and directed to proceed to dispose of all or substantially all of the assets of the Cooperative under the terms and conditions as contained in such resolution.

So long as the Cooperative does not have more than 5,000 subscribers to its Services, ¾ of the Directors, by affirmative vote at a duly called Board Meeting, may without the approval of the Members, execute and deliver a mortgage, a deed or deeds of trust, pledge, or encumber any or all of the property, assets, rights, privileges, franchises, and permits, whether acquired or to be acquired and wherever situated as well as the revenues therefrom, all upon such terms and conditions as the Board shall determine, to secure an indebtedness of the Cooperative to the United States of America or any agency or instrumentality thereof, upon condition that a notice of the intention to execute such mortgage, deed of trust, or pledge shall be given by the Cooperative in 2 newspapers of general circulation in Pulaski and White County, Indiana.