CHAPTER 220

An Act to amend and reenact § 18.1-820 of the Code of Virginia, relating
to powers of ugricultural cooperative associations.

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Be it enacted by the General Assembly of Virginia:

1. That § 13.1-320 of the Code of Virginia be amended and reenacted,
as follows:

§ 13.1-320. (a) An association shall have the capacity to act pos-
sessed by natural persons, but such association shall have authority to
perform only such acts as are necessary or proper to accomplish the pur-
poses as set forth in its articles of incorporation and which are not repug-
nant to law.

(b) Without limiting or enlarging the grant of authority contained
in paragraph (a) of this section, it is hereby specifically provided that every
such association shall have authority:

(1) To act as agent, broker or attorney-in-fact for its members,
and for any subsidiary or affiliated association, and otherwise to assist or
join with associations engaged in any one or more of the activities author-
ized by its articles of incorporation, and to hold title for its members
and for subsidiary and affiliated associations to property handled or
managed by the association on their behalf.

(2) Tomake contracts, and to exercise by its board or duly authorized
officers or agents, all such incidental powers as may be necessary, suitable
or proper for the accomplishment of the purposes of the association and
not inconsistent with law or its articles of incorporation and that may
be conducive 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 members of an association which is itself a member or subsidiary
thereof; to purchase, or otherwise acquire, endorse, discount or sell any
evidence of debt, obligation or security.

(4) To establish and accumulate reserves and surplus to capital, and
such other funds as may be authorized by the articles of incorporation or
the by-laws.

(5) To own and hold membership in, or shares of the capital stock
of, other associations and corporations and the bonds or other obligations
thereof, engaged in any related activity; or engaged in producing, ware-
housing or marketing any of the products handled by the association; or
engaged in financing its activities or of its members, and while the owner
thereof, to exercise all the rights of ownership, including the right to vote

ereon.

(6) If such associations are warehousing corporations, they may
issue legal warehouse receipts to the association, or to any other person,
and such legal warehouse receipts shall be considered as adequate col-
lateral to the extent of the current value of the commodity represented
thereby. In case such warehouse is licensed or licensed and bonded under
the laws of this State or the United States, its warehouse receipt shall not
be challenged or discriminated against because of ownership or control,
wholly or in part, by the association.

(7) Toacquire, hold, sell, dispose of, pledge or mortgage any property
which its purposes may require, subject to any limitation prescribed by law
or its articles of incorporation.

(8) To borrow money and to give its notes, bonds, or other obliga-
tions therefor and secure the payment thereof in any manner consistent
with law.

(9) To deal in products of, and handle machinery, equipment, sup-
plies and perform services for, nonmembers to an amount not greater in
annual value than such as are dealt in, handled or performed for or on
behalf of its members. *

(10) To have a corporate seal and to alter the same at pleasure.

(11) To continue as a corporation for the time limited in its articles
of incorporation, or if no time limit is specified, then perpetually.

(12) To sue and to be sued in its corporate name.
(18) To conduct business in this State and elsewhere.
(14) To dissolve and wind up.