The Cooperative may sell property that does not exceed two (2%) of the book value of the Cooperative, if such property shall have no necessary purpose or useful function and where the proceeds of such sale will be used to upgrade the Cooperative system. It shall be the duty of the Secretary to mail notification of intent of such sale to the membership not less than thirty (30) days prior to the sale. (Amended October 1986)

The Cooperative may not sell, mortgage, lease or otherwise dispose of or encumber all or any substantial portion of its property that exceeds two percent (2%) of the cooperative book value unless such sale, mortgage, lease or other disposition or encumbrance is authorized at a meeting of the members thereof by the affirmative vote of not less than two-thirds of all of the members of the Cooperative, and unless 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 notwithstanding anything contained, the Board of Trustees of the Cooperative, without authorization by the members thereof, shall have full power and authority to authorized the execution and delivery of a mortgage or mortgages or a deed or deeds of trust upon, 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 revenue and income therefrom, all upon such terms and conditions as the Board of Trustees shall determine, to secure any indebtedness of the cooperative to the United States of America or an instrumentality or agency thereof, or any other lending agency or lending corporation. (Amended October 1986).