Unless otherwise provided by its articles, a cooperative may:

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Terms Used In North Dakota Code 10-15-03

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • Property: includes property, real and personal. See North Dakota Code 1-01-49
  • seal: includes an impression of such seal upon the paper alone as well as upon wax or a wafer affixed thereto. See North Dakota Code 1-01-38
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49
  • United States: includes the District of Columbia and the territories. See North Dakota Code 1-01-49

1.    Exist perpetually.

2.    Sue and be sued.

3.    Have a seal.

4.    Make contracts, incur liabilities, and borrow money; issue certificates representing indebtedness, or representing equity interests in its assets; acquire property; and

dispose of, mortgage, pledge, lease, or otherwise use in any manner any of its property, or any interest therein, wherever situated.

5.    Invest its funds, lend money for its purposes, and hold any property as security for repayment.

6.    Conduct its business and affairs and have offices and exercise its powers in the United States or in any foreign country.

7.    Elect officers and appoint agents, define their duties, and fix their compensation.

8.    Make and alter bylaws, consistent with its articles and the laws of this state, for the administration and regulation of its affairs.

9.    Make donations for charitable, scientific, educational, or religious purposes.

10.    Indemnify any present or former director, officer, agent, or manager against actual expenses necessarily incurred in defense of any proceeding in which the person is a party because the person is or was a director, officer, agent, or manager. This subsection does not apply to those proceedings in which the person is adjudged liable for gross or willful negligence or gross or willful misconduct in the performance of duty. Such indemnification is not exclusive of other rights to which the person may be entitled. For purposes of this subsection, “manager” means the person who was the most responsible for carrying out the policies and directives of the officers or the board of directors when the act or omission complained of occurred.

11.    Cease its activities and surrender its franchise.

12.    Exercise all powers necessary or convenient to effect its purposes.