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155.030 Powers of corporation.

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155.030 Powers of corporation. In furtherance of the purposes set forth in KRS 155.020 above and in addition to the <br>powers conferred on business corporations by the provisions of KRS Chapter 271B, the <br>corporation shall, subject to the restrictions and limitations herein contained, have the <br>following powers: <br>(1) To elect, appoint and employ officers, agents and employees; to make contracts and incur liabilities for any of the purposes of the corporation; provided, that the <br>corporation shall not incur any secondary liability by way of guaranty or <br>indorsement of the obligations of any person, firm, corporation, joint-stock <br>company, association, or trust, or in any other manner; (2) To borrow money from any source including the United States government, or any instrumentality thereof, including the small business administration and similar <br>agencies, for any of the purposes of the corporation; to issue therefor its bonds, <br>debentures, notes or other evidences of indebtedness, whether secured or unsecured, <br>and to secure the same by mortgage, pledge, deed of trust or other lien on its <br>property, franchises, rights and privileges of every kind and nature or any part <br>thereof or interest therein, without stockholder or member approval; provided, that <br>no loan to the corporation shall be secured in any manner unless all outstanding <br>loans to the corporation are secured equally and ratably in proportion to the unpaid <br>balance of such loans and in the same manner; (3) To make loans to any person, firm, corporation, joint-stock company, association or trust, and to establish and regulate the terms and conditions with respect to any such <br>loans and the charges for interest and service connected therewith; provided, <br>however, that the corporation shall not approve any application for a loan unless <br>and until the person applying for said loan shall show that he has applied for the <br>loan through ordinary banking channels and that the application has been refused by <br>at least one (1) bank or other financial institution. The corporation may charge <br>interest on such loans at rates of interest not to exceed whichever is the higher of the <br>two (2) following rates: (a) the rate mentioned in KRS 360.010; (b) two percent <br>(2%) in excess of the prime rate prevailing on unsecured commercial loans among <br>the majority of the New York City clearinghouse member banks on the first day of <br>the month in which the loan is made; (4) To purchase, receive, hold, lease, or otherwise acquire, and to sell, convey, transfer, lease or otherwise dispose of real and personal property, together with such rights <br>and privileges as may be incidental and appurtenant thereto and the use thereof, <br>including, but not restricted to, any real or personal property acquired by the <br>corporation from time to time in the satisfaction of debts or enforcement of <br>obligations; (5) To acquire the good will, business, rights, real and personal property, and other assets, or any part thereof, or interest therein, of any persons, firms, corporations, <br>joint-stock companies, associations, or trusts, and to assume, undertake, or pay the <br>obligations, debts, and liabilities of any such person, firm, corporation, joint-stock <br>company, association or trust; to acquire improved or unimproved real estate for the <br>purpose of constructing industrial plants or other business establishments thereon or for the purpose of disposing of such real estate to others for the construction of <br>industrial plants or other business establishments; and to acquire, construct or <br>reconstruct, alter, repair, maintain, operate, sell, convey, transfer, lease, or otherwise <br>dispose of industrial plants or business establishments; (6) To acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of the stock, shares, bonds, debentures, notes or other securities <br>and evidences of interest in, or indebtedness of, any person, firm, corporation, joint-<br>stock company, association or trust, and while the owner or holder thereof to <br>exercise all the rights, powers, and privileges of ownership, including the right to <br>vote thereon; and to acquire stock or stock options in the corporation or <br>organization to which it makes loans; (7) To mortgage, pledge, or otherwise encumber any property, right or thing of value, acquired pursuant to the powers contained in subsections (4), (5), or (6), as security <br>for the payment of any part of the purchase price thereof; (8) To cooperate with and avail itself of the facilities of the Cabinet for Economic Development and the Industrial Development Finance Authority and any similar <br>governmental or private agencies; and to cooperate with and assist, and otherwise <br>encourage organizations in the various communities of the Commonwealth in the <br>promotion, assistance, and development of the business prosperity and economic <br>welfare of such communities or of this Commonwealth or of any part thereof; (9) To do all acts and things necessary or convenient to carry out the powers granted in this chapter. Effective: July 15, 1982 <br>History: Amended 1982 Ky. Acts ch. 396, sec. 37, effective July 15, 1982. -- Amended 1980 Ky. Acts ch. 188, sec. 115, effective July 15, 1980. -- Created 1960 Ky. Acts <br>ch. 73, sec. 4, effective March 21, 1960. Legislative Research Commission Note (10/29/96). Under KRS 7.136(2), a reference to the Department of [i.e., for] Existing Business and Industry in subsection (8) of <br>this statute has been changed to the Cabinet for Economic Development. This <br>department was eliminated by the repeal of KRS 154.12-209 by 1994 Ky. Acts <br>ch. 499, sec. 28, and the duties and functions of the department were reassigned to <br>the cabinet, see 1994 Ky. Acts ch. 499, secs. 13, 14, and 15.