Article VII
Mortgaging, Encumbering and Disposition of Property
Section 1. Mortgaging and Encumbering Assets.
The Board of Directors of the Cooperative, without authorization by the members thereof, shall have the full power and authority to authorize the execution and delivery of security agreements, a mortgage or mortgages, or deed or deeds of trust, or instruments affecting 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 therefrom, all upon such terms and conditions as the Board of Directors shall determine, to secure any indebtedness of the Cooperative to the United States of America or any agency or instrumentality thereof or any other lender.
Section 2. Disposition of Property.
The Cooperative may not, except as provided by Section 1 hereof, sell, lease, or otherwise dispose of all or a substantial portion of its property, unless such sale, lease or other disposition is authorized by the affirmative vote of a majority of all members of the Cooperative at a meeting of the members called for that purpose, at which meeting all members voting must be present and vote on the question in person or by mail ballot, if such method is approved by resolution of the Board of Directors; and that if authorized by the majority vote of all members of the Cooperative at a meeting as hereinbefore provided, the Board of Directors may sell, lease, or otherwise dispose of all or a substantial portion of its property to another Cooperative, or to the holder or holders of any notes, bonds, or other evidences of indebtedness of this Cooperative issued to the United States of America or any agency or instrumentality thereof or any other lender.