§ 9630 Corporate Property Security Approval

• •A company can use its stuff (like buildings or equipment) to promise it will pay back a loan.
• •The company's leaders (the board) can decide this without asking the owners (members) first.
• •Unless the company's rules say otherwise, no one else needs to agree to this.

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

The business can use its building as a promise to the bank that it will pay back the loan. The business leaders can decide this without asking all the owners.