§ 5910 Corporate Property Security Approval

• •A company can use its stuff (like buildings or equipment) to promise they'll pay back a loan or keep a promise.
• •The people in charge of the company (the board) can say yes to this without asking the owners (members) first.
• •Unless the company's rules say they have to ask the owners before doing this.

A small company wants to borrow money from the bank to buy new machines.

The company can say, 'If we don’t pay you back, you can take our office building.' The bosses at the company can agree to this without asking all the owners, unless the company’s rules say they have to ask.