(1) A sale, lease, or exchange of all, or substantially all of the property and assets of an association may be made upon such terms and conditions and for such consideration, which may consist in whole or in part of money or property, real or personal, including shares of any association, or corporation, as may be authorized in the following manner: The board shall adopt a resolution recommending such sale, lease, or exchange and directing that it be submitted to a vote at a meeting of the association members, which may be at either an annual or a special meeting. Written or printed notice of the meeting shall be given to each member of the association entitled to vote at such meeting. The notice shall state that the proposed sale, lease, or exchange will be considered and acted upon at the meeting, and a statement of the terms of the proposed sale, lease, or exchange shall be included in or inclosed with such notice. Each notice shall be mailed by first-class mail at a time that not less than ten (10) full days shall elapse between the date of mailing the notice and the date of the meeting, and shall be mailed to each member of the association at his last known address as it appears on the records of the association. The proposed sale, lease, or exchange shall be adopted by the affirmative vote of not less than two-thirds (2/3) of the votes entitled to be cast by members present, in person or by proxy (if permitted by the bylaws), and voting at any such meeting.
(2) A mortgage or pledge of, or any other security interest in, all or any part of the property of an association may be made by authority of its board, unless otherwise provided in its articles of incorporation or bylaws.
History: Created 1966 Ky. Acts ch. 208, sec. 27.