§ 7-6-7 - Guarantee authorized by members. - Rhode Island Statutes

SECTION 7-6-7

   § 7-6-7  Guarantee authorized by members.– Each corporation has the power to make guarantees, although not in furtheranceof its corporate purposes, when authorized at a meeting of members by theaffirmative vote of a majority of the members entitled to vote on theguarantees, or a greater percentage that may be provided by the articles ofincorporation or bylaws, or if there are no members, or no members entitled tovote on the guarantees, by the affirmative vote of a majority of the directorsin office, or a greater percentage that is provided by the articles ofincorporation or bylaws. If authorized by a like vote, a corporation has thepower to mortgage, pledge, or give a security interest in all or any of itsproperty, franchises, and income to secure the guarantee or to secureobligations other than its own.