Indiana Code 23-17-20-1. Disposal and encumbrance of property
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Sec. 1. (a) A corporation may, on the terms and conditions and for the consideration determined by the board of directors, do the following:
(2) Mortgage, pledge, dedicate to the repayment of indebtedness, with or without recourse, or otherwise encumber the corporation’s property whether or not in the usual and regular course of the corporation’s activities.
(1) Sell, lease, exchange, or otherwise dispose of all, or substantially all, of the corporation’s property in the usual and regular course of the corporation’s activities.
Terms Used In Indiana Code 23-17-20-1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
(b) Unless articles of incorporation require approval of the members or any other person of a transaction described in subsection (a) is not required.
As added by P.L.179-1991, SEC.1.