13.1-320 - Powers. - Virginia Statutes

§ 13.1-320. Powers.

A. An association shall have the capacity to act possessed by naturalpersons, but such association shall have authority to perform only such actsas are necessary or proper to accomplish the purposes as set forth in itsarticles of incorporation and which are not repugnant to law.

B. Without limiting or enlarging the grant of authority contained insubsection A of this section, it is hereby specifically provided that everysuch association shall have authority:

1. To act as agent, broker or attorney-in-fact for its members, and for anysubsidiary or affiliated association, and otherwise to assist or join withassociations engaged in any one or more of the activities authorized by itsarticles of incorporation, and to hold title for its members and forsubsidiary and affiliated associations to property handled or managed by theassociation on their behalf.

2. To make contracts, and to exercise by its board or duly authorizedofficers or agents, all such incidental powers as may be necessary, suitableor proper for the accomplishment of the purposes of the association and notinconsistent with law or its articles of incorporation and that may beconducive to or expedient for the interest or benefit of the association.

3. To make loans or advances to members or producer-patrons or to the membersof an association which is itself a member or subsidiary thereof; topurchase, or otherwise acquire, endorse, discount or sell any evidence ofdebt, obligation or security.

4. To establish and accumulate reserves and surplus to capital, and suchother funds as may be authorized by the articles of incorporation or thebylaws.

5. To own and hold membership in, or shares of the capital stock of, otherassociations and corporations and the bonds or other obligations thereof,engaged in any related activity, in producing, warehousing or marketing anyof the products handled by the association or in financing its activities orof its members, and while the owner thereof, to exercise all the rights ofownership, including the right to vote thereon.

6. If such associations are warehousing corporations, they may issue legalwarehouse receipts to the association, or to any other person, and such legalwarehouse receipts shall be considered as adequate collateral to the extentof the current value of the commodity represented thereby. In case suchwarehouse is licensed or licensed and bonded under the laws of thisCommonwealth or the United States, its warehouse receipt shall not bechallenged or discriminated against because of ownership or control, whollyor in part, by the associations.

7. To acquire, hold, sell, dispose of, pledge or mortgage any property whichits purposes may require, subject to any limitation prescribed by law or itsarticles of incorporation.

8. To borrow money and to give its notes, bonds or other obligations thereforand secure the payment thereof in any manner consistent with law.

9. To purchase or otherwise handle machinery, equipment, supplies and performservices for nonmembers.

10. To market or otherwise deal in products of nonmembers to an amount notgreater in annual value than such products as are dealt in for or on behalfof its members.

11. To have a corporate seal and to alter the same at pleasure.

12. To continue as a corporation for the time limited in its articles ofincorporation, or if no time limit is specified, then perpetually.

13. To sue and to be sued in its corporate name.

14. To conduct business in this Commonwealth and elsewhere.

15. To dissolve and wind up.

(Code 1950, § 13-260; 1956, c. 428; 1964, c. 220; 1989, c. 576.)