5543 - Debt and security interests. - Pennsylvania Statutes

§ 5543. Debt and security interests. (a) General rule.--No corporation shall issue bonds or other evidences of indebtedness except for money or other property, tangible or intangible, or labor or services actually received by or performed for the corporation or for its benefit or in its formation or reorganization, or a combination thereof. In the absence of fraud in the transaction, the judgment of the board of directors or other body as to the value of the consideration received by the corporation shall be conclusive. (b) Creation of lien on personal property.--The board of directors or other body may authorize any mortgage or pledge of, or the creation of a security interest in, all or any part of the personal property of the corporation, or any interest therein. Unless otherwise restricted in the bylaws no vote or consent of the members shall be required to make effective such action by the board or other body.