The Cooperative may not sell, mortgage, lease, or otherwise dispose of or encumber any of its property other than:
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- property which in the judgment of the Board of Directors neither is, nor will be, necessary or useful in operating and maintaining the Cooperative’s system and facilities; provided, however, that all sales of such property shall not, in any 1 year exceed in value 10% of all of the property of the Cooperative;
- services of all kinds, including electric energy; and
- personal property acquired for resale,
Unless such sale, mortgage, lease or other disposition or encumbrance is authorized at a meeting of the Members by the affirmative vote of at least 2/3 of the Members voting thereon at such meeting in person or by mail, and the notice of such proposed sale, mortgage, lease, or other disposition or encumbrance shall have been contained in the notice of the meeting; provided, however, that not withstanding anything herein contained, the Board of Directors, without authorization by the Members, shall have full power and authority to borrow money from the National Rural Utilities Cooperative Finance Corporation, the United States of America, Reconstruction Finance Corporation, or any agency or instrumentality thereof, and in connection with such borrowing to authorize the making and issuance of bonds, notes or other evidences of indebtedness and, to secure the payment thereof, the authorized execution and delivery of a mortgage or mortgages, or deed or deeds of trust upon, or the pledging or encumbrance of any or all the property, assets, rights, privileges, licenses, franchises and permits of the Cooperative whether acquired or to be acquired, and wherever situated, all upon such terms and conditions as the Board of Directors shall determine.