Disposition of Assets not Requiring Member Approval

(a)Unless the articles of organization otherwise provide and if the disposition does not leave the association without significant continuing business activity, member approval under § 171402 is not required for a limited cooperative association to:

(1)sell, lease, exchange, license, or otherwise dispose of all or any part of the assets of the association in the usual and regular course of business; or

(2)mortgage, pledge, dedicate to the repayment of indebtedness, or encumber in any way all or any part of the assets of the association whether or not in the usual and regular course of business.