§ 7910 Corporate Property Security Approval

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

A small business wants to borrow money from a bank to buy new machines.

The business can say, 'If we don’t pay you back, you can take our machines.' The bosses at the business can agree to this without asking all the owners, unless their rules say they have to.