Section 47-21-82 - Cooperatives able to use property and funds to promote economic development andmay lend money--Restrictions on loans.
47-21-82. Cooperatives able to use property and funds to promote economic development and may lend money--Restrictions on loans. Unless otherwise provided in its articles, a cooperative may use its property and funds to promote and encourage economic development and may lend money for any purpose the board of directors determines to be in the best interest of the cooperative.
However, such loans may only be made from funds received by way of loan or grant from the Rural Electrification Administration of the United States Department of Agriculture, or out of cash and securities representing equity or accumulated margins belonging to the cooperative or funds received from any other source, provided that no loan may be made out of funds derived from the pledging, assigning, or encumbering of revenues to be earned from the future sale of electricity.
Source: SL 1991, ch 378, § 1.