Md. Code Ann., Corps. & Ass'ns § 5-640
Redline — January 1, 2019 → current.View current text →
Current — January 1, 2021
As of January 1, 2019
(a) (1) Without authorization by the members and on the conditions the board of directors determines, the board of directors of a cooperative may authorize the execution and delivery of a mortgage or deed of trust of, or the pledging or encumbering of, any or all of the assets of the cooperative, whether acquired or to be acquired, and wherever located, and the revenues and income from the assets, to secure any indebtedness of the cooperative to:
(i) The United States or an agency or instrumentality of the United States; or
(ii) 1. A national financing institution that is organized on a cooperative plan for the purpose of financing its members’ programs, projects, and undertakings, and in which the cooperative holds membership; or
2. Any other financing institution.
(2) A loan described in paragraph (1) of this subsection is not subject to § 4-106(b) of the Real Property Article.
(b) (1) A cooperative may not sell, lease, or otherwise dispose of all or a substantial portion of its assets unless:
(i) The sale, lease, or disposition is authorized at a meeting of the members by the affirmative vote of not less than a majority of all the members of the cooperative; and
(ii) The notice of the meeting contained notice of the proposed sale, lease, or disposition.
(2) Notwithstanding any other provision of law, on the authorization of a majority of the members of the cooperative present at a meeting of the members, the board of directors may sell, lease, or otherwise dispose of all or a substantial portion of its assets to:
(i) Another cooperative or a foreign corporation doing business in the State under this subtitle; or
(ii) The holder of any note, bond, or other evidence of indebtedness of the cooperative issued to the United States or an agency or instrumentality of the United States.
(a) A member–regulated cooperative shall adopt procedures to hear, decide, and resolve, in a prompt and fair manner, complaints from its members, including complaints regarding net metering.
(b) (1) The procedures adopted under subsection (a) of this section shall provide for a formal and an informal complaint process.
(2) A formal complaint proceeding shall include, at a minimum:
(i) The right to present a complaint in writing;
(ii) The right to have a complaint heard by the chief executive officer of the member–regulated cooperative, or the chief executive officer’s designee;
(iii) The right to a written response that states the reasons for the member–regulated cooperative’s decision; and
(iv) The right to have the complaint and response reviewed by the board of directors.
(c) (1) A member–regulated cooperative may not require a member to use the formal or informal complaint process.
(2) If a member uses the formal or informal complaint process, the member may:
(i) Accept the decision resulting from the process; or
(ii) Reject the decision resulting from the process and pursue any other remedy authorized by law.
(d) A decision made under a formal or informal complaint process is binding on the member–regulated cooperative.
Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.