{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-231.24.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-231.24.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-231.24.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-231.24.html"}],"law_id":81307,"edition_id":1,"section_id":81307,"structure_id":13548,"section_number":"56-231.24","catch_line":"Power to dispose of property","history":"1999, c. 874; 2000, cc. 944, 999.","full_text":"No cooperative may sell, lease or dispose of all or substantially all of its property (other than property which, in the judgment of the board, is neither necessary nor useful in operating and maintaining the cooperative’s system and which in any one year shall not exceed fifty percent in value of the value of all the property of the cooperative, or merchandise), unless authorized to do so by the votes of at least a two-thirds majority of its members; however, a cooperative (i) may mortgage, finance (including, without limitation, pursuant to a sale and leaseback or lease and leaseback transaction), or otherwise encumber its assets by a vote of at least two-thirds of its board of directors; (ii) may sell or transfer its assets to another cooperative upon the vote of a majority of its members at any regular or special meeting if the notice of such meeting contains a copy of the terms of the proposed sale or transfer; (iii) may sell or transfer distribution system facilities to a city or town at any time following the annexation of additional territory pursuant to \u00a7 56-265.4:2 by a vote of at least two-thirds of its board of directors; or (iv) may sell, lease or dispose of its property to an affiliate pursuant to a plan approved by the Commission in accordance with subsection B of \u00a7 56-590 by a vote of at least two-thirds of the members of the Board.","order_by":null,"text":{"0":{"id":291397,"text":"No cooperative may sell, lease or dispose of all or substantially all of its property (other than property which, in the judgment of the board, is neither necessary nor useful in operating and maintaining the cooperative’s system and which in any one year shall not exceed fifty percent in value of the value of all the property of the cooperative, or merchandise), unless authorized to do so by the votes of at least a two-thirds majority of its members; however, a cooperative (i) may mortgage, finance (including, without limitation, pursuant to a sale and leaseback or lease and leaseback transaction), or otherwise encumber its assets by a vote of at least two-thirds of its board of directors; (ii) may sell or transfer its assets to another cooperative upon the vote of a majority of its members at any regular or special meeting if the notice of such meeting contains a copy of the terms of the proposed sale or transfer; (iii) may sell or transfer distribution system facilities to a city or town at any time following the annexation of additional territory pursuant to \u00a7 56-265.4:2 by a vote of at least two-thirds of its board of directors; or (iv) may sell, lease or dispose of its property to an affiliate pursuant to a plan approved by the Commission in accordance with subsection B of \u00a7 56-590 by a vote of at least two-thirds of the members of the Board.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":13548,"edition_id":1,"name":"Utility Consumer Services Cooperatives Act","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13182,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":251325,"object_type":"structure","relational_id":13548,"identifier":"1","token":"56\/9.1\/1","url":"\/56\/9.1\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13182,"edition_id":1,"name":"Utility Consumer Services Cooperatives and Utility Aggregation Cooperatives","identifier":"9.1","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:24","date_modified":"2026-06-26 03:44:24","permalink":{"id":251323,"object_type":"structure","relational_id":13182,"identifier":"9.1","token":"56\/9.1","url":"\/56\/9.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":77567,"structure_id":13548,"section_number":"56-231.15","catch_line":"Definitions","url":"\/56-231.15\/","token":"56\/9.1\/1\/56-231.15","metadata":false},{"id":69452,"structure_id":13548,"section_number":"56-231.16","catch_line":"Organization; purpose","url":"\/56-231.16\/","token":"56\/9.1\/1\/56-231.16","metadata":false},{"id":84775,"structure_id":13548,"section_number":"56-231.17","catch_line":"Articles of incorporation","url":"\/56-231.17\/","token":"56\/9.1\/1\/56-231.17","metadata":false},{"id":62056,"structure_id":13548,"section_number":"56-231.18","catch_line":"Name of other corporations not to include term \"electric cooperative\" or \"utility consumer services cooperative.\"","url":"\/56-231.18\/","token":"56\/9.1\/1\/56-231.18","metadata":false},{"id":56649,"structure_id":13548,"section_number":"56-231.19","catch_line":"Filing articles of incorporation; effect thereof; other provisions of law applicable","url":"\/56-231.19\/","token":"56\/9.1\/1\/56-231.19","metadata":false},{"id":56722,"structure_id":13548,"section_number":"56-231.20","catch_line":"Repealed","url":"\/56-231.20\/","token":"56\/9.1\/1\/56-231.20","metadata":false},{"id":63207,"structure_id":13548,"section_number":"56-231.21","catch_line":"Dissolution and termination of cooperatives","url":"\/56-231.21\/","token":"56\/9.1\/1\/56-231.21","metadata":false},{"id":83080,"structure_id":13548,"section_number":"56-231.22","catch_line":"Charter amendments","url":"\/56-231.22\/","token":"56\/9.1\/1\/56-231.22","metadata":false},{"id":72128,"structure_id":13548,"section_number":"56-231.23","catch_line":"General powers granted","url":"\/56-231.23\/","token":"56\/9.1\/1\/56-231.23","metadata":false},{"id":81307,"structure_id":13548,"section_number":"56-231.24","catch_line":"Power to dispose of property","url":"\/56-231.24\/","token":"56\/9.1\/1\/56-231.24","metadata":false},{"id":73620,"structure_id":13548,"section_number":"56-231.25","catch_line":"Power to issue obligations","url":"\/56-231.25\/","token":"56\/9.1\/1\/56-231.25","metadata":false},{"id":82512,"structure_id":13548,"section_number":"56-231.26","catch_line":"Covenants in connection with obligations","url":"\/56-231.26\/","token":"56\/9.1\/1\/56-231.26","metadata":false},{"id":56541,"structure_id":13548,"section_number":"56-231.27","catch_line":"Power to purchase its own obligations","url":"\/56-231.27\/","token":"56\/9.1\/1\/56-231.27","metadata":false},{"id":54513,"structure_id":13548,"section_number":"56-231.28","catch_line":"Board of directors of cooperatives","url":"\/56-231.28\/","token":"56\/9.1\/1\/56-231.28","metadata":false},{"id":55041,"structure_id":13548,"section_number":"56-231.29","catch_line":"Powers of board of directors","url":"\/56-231.29\/","token":"56\/9.1\/1\/56-231.29","metadata":false},{"id":62265,"structure_id":13548,"section_number":"56-231.30","catch_line":"Rights and liabilities of members","url":"\/56-231.30\/","token":"56\/9.1\/1\/56-231.30","metadata":false},{"id":63250,"structure_id":13548,"section_number":"56-231.31","catch_line":"Payment of certain patronage capital to spouse or next of kin of deceased person","url":"\/56-231.31\/","token":"56\/9.1\/1\/56-231.31","metadata":false},{"id":82313,"structure_id":13548,"section_number":"56-231.31:1","catch_line":"Donation of certain patronage capital to the cooperative","url":"\/56-231.31_1\/","token":"56\/9.1\/1\/56-231.31_1","metadata":false},{"id":59045,"structure_id":13548,"section_number":"56-231.32","catch_line":"Service to members","url":"\/56-231.32\/","token":"56\/9.1\/1\/56-231.32","metadata":false},{"id":75936,"structure_id":13548,"section_number":"56-231.33","catch_line":"Adequate service; rates","url":"\/56-231.33\/","token":"56\/9.1\/1\/56-231.33","metadata":false},{"id":66118,"structure_id":13548,"section_number":"56-231.34","catch_line":"Regulation by Commission","url":"\/56-231.34\/","token":"56\/9.1\/1\/56-231.34","metadata":false},{"id":71119,"structure_id":13548,"section_number":"56-231.34:1","catch_line":"Separation of regulated and unregulated businesses","url":"\/56-231.34_1\/","token":"56\/9.1\/1\/56-231.34_1","metadata":false},{"id":82749,"structure_id":13548,"section_number":"56-231.34:2","catch_line":"Right of action; violation of rules or regulations","url":"\/56-231.34_2\/","token":"56\/9.1\/1\/56-231.34_2","metadata":false},{"id":69534,"structure_id":13548,"section_number":"56-231.35","catch_line":"Charter fees, etc","url":"\/56-231.35\/","token":"56\/9.1\/1\/56-231.35","metadata":false},{"id":58392,"structure_id":13548,"section_number":"56-231.36","catch_line":"Construction of article; conflicting laws","url":"\/56-231.36\/","token":"56\/9.1\/1\/56-231.36","metadata":false},{"id":85836,"structure_id":13548,"section_number":"56-231.37","catch_line":"How article cited","url":"\/56-231.37\/","token":"56\/9.1\/1\/56-231.37","metadata":false}],"previous_section":{"id":72128,"structure_id":13548,"section_number":"56-231.23","catch_line":"General powers granted","url":"\/56-231.23\/","token":"56\/9.1\/1\/56-231.23","metadata":false},"next_section":{"id":73620,"structure_id":13548,"section_number":"56-231.25","catch_line":"Power to issue obligations","url":"\/56-231.25\/","token":"56\/9.1\/1\/56-231.25","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-231.24\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 874<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2000, chapters 944<\/a> and 999<\/a>.<\/p>","references":false,"refers_to":[{"id":82310,"section_number":"56-265.4:2","catch_line":"Extension of service by cities and towns into annexed areas","order_by":null,"url":"\/56-265.4_2\/"},{"id":86105,"section_number":"56-590","catch_line":"Divestiture, functional separation and other corporate relationships","order_by":null,"url":"\/56-590\/"}],"permalink":{"id":251363,"object_type":"law","relational_id":81307,"identifier":"56-231.24","token":"56\/9.1\/1\/56-231.24","url":"\/56-231.24\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-231.24\/","token":"56\/9.1\/1\/56-231.24","dublin_core":{"Title":"Power to dispose of property","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-231.24","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

No cooperative<\/span> may sell, lease or dispose of all or substantially all of its property (other than property which, in the judgment<\/span> of the board<\/span>, is neither necessary nor useful in operating and maintaining the cooperative<\/span>’s system<\/span> and which in any one year shall not exceed fifty percent in value of the value of all the property of the cooperative<\/span>, or merchandise), unless authorized to do so by the votes of at least a two-thirds majority of its members<\/span>; however, a cooperative<\/span> (i) may mortgage, finance (including, without limitation, pursuant to a sale and leaseback or lease and leaseback transaction), or otherwise encumber its assets<\/span> by a vote of at least two-thirds of its board<\/span> of directors; (ii) may sell or transfer its assets<\/span> to another cooperative<\/span> upon the vote of a majority of its members<\/span> at any regular or special meeting if the notice of such meeting contains a copy of the terms of the proposed sale or transfer; (iii) may sell or transfer distribution system<\/span> facilities to a city or town at any time following the annexation of additional territory pursuant to \u00a7 56-265.4:2<\/a> by a vote of at least two-thirds of its board<\/span> of directors; or (iv) may sell, lease or dispose of its property to an affiliate<\/span> pursuant to a plan approved by the Commission<\/span> in accordance with subsection B of \u00a7 56-590<\/a> by a vote of at least two-thirds of the members<\/span> of the Board<\/span>.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPOWER TO DISPOSE OF PROPERTY (\u00a7 56-231.24)\n\nNo cooperative may sell, lease or dispose of all or substantially all of its\nproperty (other than property which, in the judgment of the board, is neither\nnecessary nor useful in operating and maintaining the cooperative’s system\nand which in any one year shall not exceed fifty percent in value of the value\nof all the property of the cooperative, or merchandise), unless authorized to do\nso by the votes of at least a two-thirds majority of its members; however, a\ncooperative (i) may mortgage, finance (including, without limitation, pursuant\nto a sale and leaseback or lease and leaseback transaction), or otherwise\nencumber its assets by a vote of at least two-thirds of its board of directors;\n(ii) may sell or transfer its assets to another cooperative upon the vote of a\nmajority of its members at any regular or special meeting if the notice of such\nmeeting contains a copy of the terms of the proposed sale or transfer; (iii) may\nsell or transfer distribution system facilities to a city or town at any time\nfollowing the annexation of additional territory pursuant to \u00a7 56-265.4:2 by a\nvote of at least two-thirds of its board of directors; or (iv) may sell, lease\nor dispose of its property to an affiliate pursuant to a plan approved by the\nCommission in accordance with subsection B of \u00a7 56-590 by a vote of at least\ntwo-thirds of the members of the Board.\n\nHISTORY: 1999, c. 874; 2000, cc. 944, 999.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}