                                 CODE OF VIRGINIA

DISPOSITION OF PROPERTY (§ 56-496)

No cooperative may sell, lease or dispose of any of its property other than
property which, in the judgment of the board, is neither necessary nor useful in
operating or maintaining the cooperative&#8217;s system and which in any one
year shall not exceed ten per centum in value of the value of all the property
of the cooperative, unless authorized so to do by the votes of at least a
two-thirds majority of its members; provided, however, that a cooperative: (i)
may mortgage or otherwise encumber its assets by a vote of at least two-thirds
of its board of directors; or (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.

HISTORY: 1950, p. 593; 1956, c. 434; 1979, c. 103.