MARVIN MANDEL, Governor                               383

due.
[402] 24. Disposition of property.

(a)   Execution of mortgages, deeds of trust or
pledges. —The board of directors of a cooperative shall
have full power and authority, without authorization by
the members thereof, to authorize the execution and
delivery of a mortgage or mortgages or a deed or deeds of
trust of, or 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 and income therefrom, all upon such
conditions as the board of directors shall determine, to
secure any indebtedness of the cooperative to the United
States of America, to any agency or instrumentality
thereof, to a national financing institution, organized
on a cooperative plan for the purpose of financing its
members' programs, projects and undertakings, in which
the cooperative holds membership, or to any other
financing institution, and provided further that such
loans shall not be subject to the provisions of § 4—106
(b) of the Real Property Article of the Code.

(b)  Authority of members. —A cooperative may not
otherwise sell, lease or otherwise dispose of all or a
substantial portion of its property unless such sale,
lease or other disposition is authorized at a meeting of
the members thereof by the affirmative vote of not less
than a majority of all the members of the cooperative;
and unless the notice of such proposed sale, lease or
other disposition shall have been contained in the notice
of the meeting; provided, however, that notwithstanding
any other provisions of this [subheading] ACT, or any
other provision of law, the board of directors may, upon
the authorization of a majority of those members of the
cooperative present at a meeting of the members thereof,
sell, lease or otherwise dispose of all or a substantial
portion of its property to another cooperative or a
foreign corporation doing business in this State pursuant
to this [subheading] ACT or to the holder or holders of
any notes, bonds or other evidences of indebtedness of
the cooperative issued to the United States of America or
any agency or instrumentality thereof.

[403] 25. Nonliability of members for debts of
cooperative.

No member shall be liable or responsible for any
debts of the cooperative and the property of the members
shall not be subject to execution therefor.

[404] 26. Recordation of mortgages, deeds of trust or
other instruments.

Any mortgage, deed of trust or other instrument
executed by a cooperative or foreign corporation doing