§ 2-2-310 - No approval for financial obligations -- Exception. - Arkansas Statutes

2-2-310. No approval for financial obligations -- Exception.

(a) The board of directors shall not be required to procure any consent from or authorization by the members, except in the instance of the increase of bonded indebtedness of the association, in authorizing:

(1) The procurement of loans, the creation of obligations under which the association is to be primarily or secondarily liable, and the issuance of notes, bonds, and other obligations; and

(2) The mortgage and pledge of all or any part of the association's assets, including after-acquired property, as security for any obligations so incurred.

(b) Where the bonded indebtedness is increased within the meaning of Arkansas Constitution, Article 12, Section 8, authorization of both the creation of the additional indebtedness and the lien securing it shall be required in conformity with the constitutional provision.