Source: https://www.carrollecc.com/cooperative-mission
Timestamp: 2019-04-21 04:08:37+00:00

Document:
Carroll Electric Cooperative became a legal corporation on November 8, 1937, when electricity was not available in rural areas. Today, the Cooperative is one of the largest electric cooperatives nationally and provides service to over 100,000 accounts across eleven counties in Arkansas and Missouri. Carroll Electric remains committed to fulfilling its mission with excellence.
RELIABILITY is our passion. Recent years are the most reliable in the Cooperatives 80+ year history. We are not done with trying to exceed member expectations.
As a not-for-profit cooperative, Carroll Electric’s financial goal is centered on providing members AFFORDABILITY. Residential rates are 25% below the national average. This saves the average residential customer member approximately $40 each month.
Local offices, professional employees, and other benefits of membership are all HERE FOR YOU. If you have interest in any of the following topics, please reach out to us.
(d) paid the membership fee as set by the board of directors of the Cooperative.
Membership in the Cooperative shall be completed and evidenced by a membership certificate which may be in such form and shall contain such provisions as shall be determined by the Cooperative. No member may hold more than one membership in the Cooperative, and no membership in the Cooperative shall be transferable.
(c) members are united in an interdependent relationship.
(d) the individual facts and circumstances regarding the claim or dispute.
If a member is dissatisfied with the Cooperative’s resolution of their claim or dispute, all matters under the jurisdiction of the Arkansas Public Service Commission shall be resolved by the Arkansas Public Service Commission or, if and when appropriate, the applicable regulatory body with jurisdiction over the Cooperative.
All other claims and disputes shall, at the request of either party, first be submitted to mediation conducted by an impartial mediator agreed to by the parties. In the event the claim or dispute is not satisfactorily resolved at mediation, then such shall, at the request of either party, be submitted to binding arbitration to be conducted by the American Arbitration Association. Unless otherwise agreed to by the parties, a panel of three arbitrators shall resolve the claim or dispute. Written notice of the intention to file a claim or dispute must be provided to the other party 60 days prior to submitting the claim or dispute for arbitration.
The Cooperative shall furnish adequate space to conduct arbitration proceedings within one of the counties it serves. Unless otherwise agreed to by the parties, the party submitting the claim or dispute shall fund the cost of the arbitration proceeding. Either party may first petition to the arbitration panel to establish an amount of mutually reciprocating indemnification required to satisfy both parties’ estimated liabilities, damages, costs, or expenses, including reasonable attorney fees and legal expenses associated with resolving the claim or dispute.
The losing party in any arbitration proceeding shall pay the prevailing party its reasonable costs including attorney fees. Should a claim or dispute be dismissed, the party defending the claim or dispute is considered the prevailing party. In cases when the prevailing party is not clearly identified or when the arbitration award to the prevailing party is less than the settlement offer from the losing party, the arbitration panel shall apportion the costs of arbitration, including reasonable attorney fees and other expenses, between the parties in such ratio as the panel deems to be fair and equitable.
No member of the Cooperative shall participate in any class action or putative class action against the Cooperative, either as a class representative or a member of the class.
(e) only one person may be elected or appointed as an officer or director.
SECTION 4. Purchase of Electric Energy.
(a) Each member shall, as soon as electric energy shall be available, purchase from the Cooperative electric energy and shall pay for said energy consumed when billed at such rates as from time to time may be established by the board of directors. It is expressly understood that amounts paid for electric energy in excess of the cost of service and the cost of discharging those powers enumerated in Ark. Code Ann. §23-18-307, are furnished by members as capital and each member shall be credited with the capital so furnished as provided in these bylaws. Each member shall also pay all amounts owed by said member to the Cooperative as and when the same shall become due and payable.
(b) The Cooperative shall provide electric energy in a reasonable manner but does not insure, guarantee, or warrant it will provide adequate, continuous, or non-fluctuating electric energy. The Cooperative shall not be liable for damages or costs of expenses, including attorney fees or legal expenses caused from providing inadequate, non-continuous, or fluctuating electric energy unless the damages, costs, or expenses are a result of the Cooperative’s gross negligence or willful misconduct.
(a) Any member may withdraw from membership upon compliance with such uniform terms and conditions as the Cooperative may prescribe.
(b) Upon the withdrawal, death, or cessation of existence of a member, the membership of such member shall thereupon terminate. Termination of membership in any manner shall not release a member or said member's estate from any debts due the Cooperative.
(c) In case of withdrawal or termination of membership in any manner, the Cooperative shall repay to the member the amount of the membership fee paid by such member; provided, however, the Cooperative shall deduct from the amount of the membership fee the amount of any debts or obligations owed by the member to the Cooperative.
SECTION 1. Annual Meetings. The annual meeting of the members shall be held at such time and at such place in one of the counties served by the Cooperative as selected by the board of directors and designated in the notice of the meeting.
SECTION 2. Official Business at Annual Meetings. At the annual meeting of the Cooperative, the members shall receive reports on the financial condition of the Cooperative and vote on the election of directors, any matters referred to the members by the board of directors, and any member-initiated proposals properly presented to members.
All members shall have a fair opportunity to have actual knowledge of any matters referred to the members by the board of directors and/or any member-initiated proposals. It shall be the duty of the secretary to give official notice of any matters referred to the members by the board of directors and/or any properly presented member-initiated proposal(s) in accordance with the provisions of these bylaws.
Properly presented member-initiated proposals shall be submitted on exact forms provided by the Cooperative at its principal office in Berryville, Ark., and must describe the exact action desired by the proponents of any such proposal. The proposal must be signed by not less than that number of members set out in Ark. Code Ann. §23-18-320(c). Any member-initiated proposal must be presented to the Cooperative not less than 90 days prior to the date of the annual meeting. Upon receipt of any such proposal, the Cooperative shall be obligated to verify the authenticity and number of signatures prior to submitting the matter to all members for a vote.
SECTION 3. Special Meetings. Special meetings of the members may be called in accordance with Ark. Code Ann. §23-18-320(c), (d), (e), and (f) at such place within any one of the counties served by the Cooperative as selected by the board of directors and designated in the notice of the meeting.
SECTION 4. Notice of Members' Meetings. Notice of meetings shall conform to Ark. Code Ann. §23-18-320(d)(1) and (2). The failure of any member to receive notice of an annual or special meeting of the members shall not invalidate any action which may be taken by the members at any such meeting once properly mailed and deemed delivered hereunder.
SECTION 5. Quorum. At all meetings of the members, two percent of the members, present in person, by proxy as defined herein, or represented by mailed ballot, shall constitute a quorum for the transaction of business. The minutes of each meeting of the members shall contain a list of the members present in person, by proxy as defined herein, or represented by mailed ballot. If less than a quorum is present at any meeting, a majority of those present in person may adjourn the meeting from time to time without further notice.
(a) Voting shall be conducted in accordance with Ark. Code Ann. §23-18-320(e).
(b) All matters properly coming before the meeting shall be decided by a vote of a majority of the members voting thereon, except as otherwise provided by law, the articles of incorporation, or these bylaws.
(c) The attorney for the Cooperative or other election official designated by the Cooperative shall be responsible for securing the ballots returned and proxies exercised, counting the votes, and certifying the results. The first member to sign a qualified member-initiated proposal, or his or her designee, and any candidate on the ballot for election of directors, or his or her designee, are entitled to observe these efforts.
SECTION 7. Mail Voting. Any matters required by law or regulation, the election of directors, and other matters determined appropriate by the board of directors shall be voted upon by written ballot sent to each of the members by United States mail prior to a meeting of the members. The secretary shall be responsible for including with the notice of such meeting, an exact copy of all such motions or resolutions to be acted upon and ballots for voting. Members shall express their vote thereon by placing a mark in the space provided therefore opposite each such motion, resolution, or candidate to be elected to the board of directors. Members shall enclose ballots so marked in a sealed envelope, with return postage paid by the Cooperative and addressed to the secretary of the Cooperative. Only ballots received by the Cooperative on or before the deadline stated thereon shall be counted as valid. The failure of any member to receive a copy of any such ballot shall not invalidate any action which may be taken by the members at any such meeting.
(a) Members shall be informed with the notice of the meeting that voting by proxy is permitted. However, the voting by proxy for candidates for director positions shall not be permitted.
(b) A proxy shall be a pre-numbered written instrument provided to all members of record by the Cooperative. All proxies shall be on the exact form prepared by the Cooperative.
(c) No proxy may be used at any meeting of members unless the same shall have been received in a sealed envelope, with return postage paid by the Cooperative and addressed to the secretary, on or before the deadline stated on the proxy.
(d) The Cooperative shall determine the validity of said proxies prior to the meeting at which they are to be voted. In the event a member executes two or more proxies for the same meeting, the most recently dated proxy shall revoke all others; if such proxies carry the same date and are held by different persons, none of them shall be valid or recognized. The presence of a member in person at a meeting shall revoke any proxy theretofore executed by said member for such meeting, and he or she shall be entitled to vote in the same manner and with the same effect as if he or she had not executed a proxy.
(e) No proxy shall be in favor of or used by any person except a member of the Cooperative.
SECTION 1. General Powers. The business and affairs of the Cooperative shall be managed by a board of not less than seven nor more than nine directors which shall exercise all of the powers of the Cooperative except such as are by law, the articles of incorporation, or these bylaws conferred upon or reserved to the members.
(i) place a high value on personal and corporate integrity and ethical behavior.
SECTION 3. Election and Tenure of Office. Each director shall be elected to serve a term of seven years, or until a successor shall have been elected and shall have qualified, subject to the provisions of these bylaws with respect to the removal of directors. If an election of directors shall not be held on the day designated for the annual meeting, or at any adjournment thereof, a special meeting of the members shall be held within a reasonable time thereafter for the election of directors.
District No. 1 - That portion bounded on the north by the state line between Arkansas and Missouri; on the east by the range line between Ranges 31 and 32, thence south to the township line between Townships 20 and 21, thence east to the range line between Ranges 30 and 31, thence south to the southern boundary of the Cooperative's service area; on the south by the southern boundary of the Cooperative’s service area; and, on the west by the state line between Arkansas and Oklahoma.
District No. 2 - That portion bounded on the north by the state line between Arkansas and Missouri; on the east by the range line between Ranges 29 and 30; on the south by the township line between Townships 19 and 20; and, on the west by the range line between Ranges 30 and 31, thence north to the township line between Townships 20 and 21, thence west to the range line between Ranges 31 and 32, thence north to the state line between Arkansas and Missouri.
District No. 3 - That portion bounded on the north by the township line between Townships 19 and 20; on the east by the range line between Ranges 27 and 28; on the south by the township line between Townships 18 and 19; and, on the west by the range line between Ranges 30 and 31.
District No. 4 - That portion bounded on the north by the state line between Arkansas and Missouri; on the east by the range line between Ranges 24 and 25; on the south by the township line between Townships 19 and 20; and, on the west by the range line between Ranges 29 and 30.
District No. 5 - That portion bounded on the north by the state line between Arkansas and Missouri; on the east by the eastern boundary of the Cooperative’s service area; on the south by the township line between Townships 18 and 19; and, on the west by the range line between Ranges 27 and 28, thence north to the township line between Townships 19 and 20, thence east to the range line between Ranges 24 and 25, thence north to the state line between Arkansas and Missouri.
District No. 6 - That portion bounded on the north by the township line between Townships 18 and 19; on the east by the range line between Ranges 21 and 22, thence south to the township line between Townships 15 and 16, thence west to the range line between Ranges 22 and 23, thence south to the township line between Townships 13 and 14; on the south by the southern boundary of the Cooperative’s service area; and, on the west by the range line between Ranges 26 and 27, thence north to the township line between Townships 15 and 16, thence east to the range line between Ranges 25 and 26, thence north to the township line between Townships 18 and 19.
District No. 7 - That portion bounded on the north by the township lines between Townships 18 and 19; on the east by the range line between Ranges 25 and 26; on the south by the township line between Townships 15 and 16, thence west along the southern boundary of the Cooperative’s service area to the range line between Ranges 30 and 31; and, on the west by the range line between Ranges 30 and 31.
District No. 8 - That portion bounded on the north by the township lines between Townships 18 and 19 and Townships 17 and 18; on the east and south by the boundaries of the area served by the Cooperative; and on the west by the range lines between Ranges 22 and 23, thence north to the township line between Townships 15 and 16, thence east to the range line between Ranges 21 and 22, thence north to the service boundary of the Cooperative.
District No. 9 - That portion of the Cooperative's service area north of the Arkansas and Missouri state line.
SECTION 4. Nominations. A nominating official shall be appointed by the Cooperative to determine which individuals seeking nomination to the ballot for the election of directors meet the minimum qualifications of directors as described in these bylaws. No officer, director, or close relative of a director shall serve as a nominating official. The nominating official shall review all completed, up-to-date applications submitted to the Cooperative not less than 120 days nor more than 165 days before the date of the meeting of members at which directors are to be elected. Only applications which satisfy the minimum qualifications of directors as described in these bylaws shall receive further consideration.
ix. serve a three-year term and shall be prohibited from serving consecutive terms.
v. determine the ballot positions should multiple candidates be nominated to the same director district.
iii. contain the original, dated signatures alongside the printed name, address, and telephone number appearing on the Cooperative’s member records.
Said petition must be received by the Cooperative at its business office in Berryville, Ark., not less than 45 days before the date of the meeting of the members. After verifying by the Cooperative the petition complies with these bylaws, the Cooperative shall notify the member seeking nomination of the results. The ballot position(s) of a nominee(s) by petition shall be ordered by the total number of certified signatures and follow the ballot positions determined by the committee.
(d) The secretary shall mail with the notice of the meeting or separately, at least 10 days but not more than 30 days before the date of the meeting, a statement of the number of directors to be elected and the number of the district from which each is to be selected and showing separately the nominations made by the committee and the nominations made by petition, if any.
SECTION 5. Voting for Directors. The election of directors shall be by mail ballot and only the names of those nominees selected by the nominating committee or by valid petition shall be on the ballot. The candidate receiving the greatest number of votes cast in the balloting for each director position to be filled in the election shall be deemed the winner of such director position.
SECTION 6. Removal of Directors. It shall be the responsibility of the board of directors to identify misconduct of any director sufficient to constitute cause for his or her removal. Acts of such director in violation of these bylaws or other rules and regulations of the Cooperative; fraud or dishonesty of such director resulting in his or her enrichment at the expense of the Cooperative; or misappropriation of the assets of the Cooperative to his or her personal benefit shall be grounds for removal. Directors shall be removed upon a two-thirds vote of the board of directors.
SECTION 7. Vacancies. Subject to the provisions of these bylaws with respect to the filling of vacancies, a vacancy occurring on the board of directors shall be filled by the affirmative vote of a majority of the remaining directors for the unexpired portion of the term.
SECTION 8. Compensation. Directors shall not receive any salary for their services as such, but by resolution of the board of directors, a fixed sum may be allowed for each day or portion thereof spent on Cooperative business, such as attendance at meetings, conferences, and training programs or performing committee assignments when authorized by the board of directors. In addition and if authorized by the board of directors, directors may also be reimbursed for expenses actually and necessarily incurred in carrying out such Cooperative business. The board of directors may also authorize the payment of the premiums on individual or family insurance coverage for members of the board of directors in insurance programs maintained by the Cooperative. No director shall receive compensation for serving the Cooperative in any other capacity, nor shall any close relative of a director receive compensation for serving the Cooperative, unless the payment and amount of compensation shall be specifically authorized by a vote of the board of directors or the service by the director or a close relative shall have been certified by the board of directors as an emergency measure.
SECTION 9. Indemnification: Advancement of Expenses. The Cooperative shall indemnify, to the fullest extent expressly authorized by Ark. Code Ann. §23-18-307(22), as amended from time to time, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative (including an action or suit by or in the right of the Cooperative) by reason of the fact that he or she is or was a director, officer, employee, or agent of the Cooperative, or is or was serving at the request of the Cooperative as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement incurred by him or her in connection with such action, suit, or proceeding. The Cooperative, to the fullest extent expressly authorized by Ark. Code Ann. §23-18-307(22), as amended from time to time, shall also pay, in advance of the final disposition of a civil or criminal action, suit, or proceeding, the expenses incurred by a director or officer in defending such action, suit, or proceeding. The indemnification and advancement of expenses provided by this Section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled both as to action in his or her official capacity and as to action in another capacity while holding such office. The provisions of this paragraph shall not apply to any proceeding which the board of directors determines is likely to result in the finding of dishonesty, fraud, or intentional misconduct by any such party.
SECTION 1. Regular Meetings. Regular meetings of the board of directors shall be held at such time and at such place as the board of directors may provide by resolution. Such regular meetings may be held without notice other than such resolution fixing the time and place thereof.
SECTION 2. Special Meetings. Special meetings of the board of directors may be called by the chairman of the board, the president, or by any three directors, and it shall thereupon be the duty of the secretary to cause notice of such meeting to be given as hereinafter provided. The person or persons authorized to call special meetings of the board of directors may fix the time and place for the holding of any special meetings of the board of directors called by them.
SECTION 3. Notice of Special Meetings. Written notice of the time, place, and purpose of any special meeting of the board of directors shall be delivered to each director either personally or by mail, by or at the direction of the secretary, or upon a default in duty by the secretary, by the chairman of the board or the directors calling the meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail addressed to the directors at their addresses as they appear on the records of the Cooperative, with postage thereon prepaid, at least five days before the date set for the meeting.
SECTION 4. Quorum. A majority of the board of directors shall constitute a quorum for the transaction of business at any meeting of the board of directors; provided, however, that if less than a majority of the directors is present at said meeting, a majority of the directors present may adjourn the meeting from time to time without further notice. Unless otherwise provided in these bylaws, any regular board meeting or special board meeting may be conducted with absent directors participating, and deemed present in person, through any means of communication by which all directors participating in the board meeting may reasonably and verifiably identify themselves, and simultaneously and approximately instantaneously communicate with each other during the board meeting.
SECTION 1. Number. The officers of the Cooperative shall be a chairman of the board, vice chairman of the board, secretary, treasurer, and such other officers as may be determined by the board of directors from time to time. The offices of secretary and treasurer may be held by the same person.
SECTION 2. Election and Term of Office. The chairman of the board, vice chairman of the board, secretary, and treasurer shall be held by directors of the board and shall be elected by ballot, annually, by and from the board of directors at the first meeting of the board of directors held after each annual meeting of the members. If the election of board officers shall not be held at such meeting, such election shall be held as soon thereafter as conveniently may be. Each board officer shall hold office until the first meeting of the board of directors following the next succeeding annual meeting of the members or until a successor shall have been duly elected and shall have qualified, subject to the provisions of these bylaws with respect to the removal of officers.
SECTION 3. Removal. Any officer or agent elected or appointed by the board of directors may be removed by the board of directors whenever, in its judgment, the best interests of the Cooperative will be served thereby.
SECTION 4. Vacancies. Except as otherwise provided in these bylaws, a vacancy in any office may be filled by the board of directors.
(c) in general, perform all duties incident to the office of chairman of the board and such other duties as may be prescribed by the board of directors from time to time.
(b) perform such other duties as may be assigned by the board of directors from time to time.
(f) in general, performing all duties incident to the office of secretary and such other duties as may be assigned by the board of directors from time to time.
(c) the general performance of all the duties incident to the office of treasurer and such other duties as may be assigned by the board of directors from time to time.
SECTION 9. President/Chief Executive Officer. The board of directors may appoint a president/chief executive officer who may be, but who shall not be required to be, a member of the Cooperative. The president/chief executive officer shall perform such duties and shall exercise such authority as the board of directors may vest in him or her from time to time.
SECTION 10. Bonds of Officers. The board of directors shall require the treasurer and any other officer of the Cooperative charged with responsibility for the custody of any of its funds or property to be bonded in such sum and with such surety as the board of directors shall determine. The board of directors, in its discretion, may also require any other officer, agent, or employee of the Cooperative to be bonded in such amount and with such surety as it shall determine.
SECTION 11. Compensation. The powers, duties, and compensation of officers shall be fixed by the board of directors.
SECTION 12. Reports. The officers of the Cooperative shall submit at each annual meeting of the members, reports covering the business of the Cooperative for the previous fiscal year. Such reports shall set forth the condition of the Cooperative at the close of such fiscal year.
SECTION 2. Patronage Capital in Connection with Furnishing Electric Energy. In the furnishing of electric energy, the Cooperative's operations shall be so conducted that all patrons will through their patronage furnish capital for the Cooperative. In order to induce patronage and to assure the Cooperative will operate on a non-profit basis, the Cooperative is obligated to account on a patronage basis to all its patrons for all amounts received and receivable from the furnishing of electric energy in excess of operating costs and expenses and the cost of discharging those powers enumerated in Ark. Code Ann. §23-18-307, properly chargeable against the furnishing of electric energy. All such amounts in excess of operating costs and expenses and the cost of discharging those powers enumerated in Ark. Code Ann. §23-18-307, at the moment of receipt by the Cooperative are received with the understanding they are furnished by the patrons as capital. The Cooperative is obligated to pay by credits to a capital account for each patron, all such amounts in excess of operating costs and expenses and the cost of discharging those powers enumerated in Ark. Code Ann. §23-18-307. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each patron is clearly reflected and credited in an appropriate record to the capital account of each patron. All such amounts credited to the capital account of any patron shall have the same status as though they had been paid to the patron in cash pursuant to a legal obligation to do so and the patron had then furnished the Cooperative corresponding amounts for capital.
Provided, however, if costs and expenses exceed the amounts received and receivable from the furnishing of electric energy, hereinafter referred to as “loss,” then the board of directors shall have the authority under accepted accounting practices, loan covenants, and federal cooperative tax law, to prescribe the accounting procedures under which such loss may be addressed.
All other amounts received by the Cooperative from its operations in excess of costs and expenses and the cost of discharging those powers enumerated in Ark. Code Ann. §23-18-307, shall, insofar as permitted by law, (a) may be used to offset any losses incurred during the current or any prior fiscal year, and (b) to the extent not needed for that purpose, shall be allocated to its patrons on a patronage basis and any amount so allocated shall be included as part of the capital credited to the accounts of patrons, as herein provided.
Any time prior to dissolution or liquidation, the Cooperative may retire and pay capital credits if the board of directors determines the retirement and payment will not adversely impact the Cooperative’s financial condition and in compliance with Ark. Code Ann. §23-18-327. Consistent with this bylaw, the retirement and payment of capital credits are in the sole discretion of the board of directors and are not affected by previous retirements and payments. The manner, method, and timing of retiring and paying capital credits shall be determined by the board of directors.
The board of directors, acting under policies of general application to situations of like kind, may approve an early retirement prior to when such capital credits would generally be retired provided the financial condition of the Cooperative will not be impaired. The payment portion of such early retirement shall be on a discounted and net present value basis to reflect the time value of money due the Cooperative. Such policies shall establish the criteria used in determining the discounted and net present value of early retirements. The difference between the total amount of capital credits retired and the cash payment of such early retirement shall be considered a contribution of capital to and part of the net savings of the Cooperative.
Capital credited to the account of each patron shall be assignable only on the books of the Cooperative as per the name on such patron's membership certificate or to a member's successors in interest or by written instructions from the patron to successors in occupancy in all or a part of such patron's premises served by the Cooperative unless the board of directors, acting under policies of general application, shall determine otherwise.
SECTION 3. Right of Set-off. The Cooperative shall at all times have a first lien on, and right of set-off against, such patronage capital for all indebtedness to the Cooperative, whether due or to become due, of the patron credited with such patronage capital as shown by the books and records of the Cooperative, which lien or right shall not be lost or prejudiced by reason of the fact that the certificate representing such patronage capital, if any, is not in the possession of the Cooperative.
SECTION 4. Right of Recoupment. Regardless of a statute of limitation or other time limitation, the Cooperative may recoup, offset, or set-off any amount owed to the Cooperative by the patron, including any compounded interest and late payment fee(s), by reducing the amount of patronage capital to be repaid to the patron by the amount owed to the Cooperative.
(a) A qualifying offer as determined by the board of directors has been properly tendered. At a minimum, however, a qualifying offer must provide assurance all costs associated with evaluating the qualifying offer and competing proposals are paid by the offering entity.
(b) When the economic value of the qualifying offer exceeds the current market value of the Cooperative’s assets as determined through the use of an independent appraiser(s) expert in such matters, the board of directors shall be charged with the responsibility of soliciting other competing proposals to ensure maximum value is derived from a potential sale, lease, lease-sale, exchange, or other disposition. An independent appraiser(s) will be selected by the board of directors.
(c) That members of the board of directors are prohibited from receiving financial benefits, or the promise thereof, unrelated to their membership interest and/or in a manner different from other members of the Cooperative.
(d) A potential sale, lease, lease-sale, exchange, or other disposition must contemplate relevant factors including the Cooperative’s existing commitments and outstanding contracts, termination fees, mortgage requirements, regulatory approvals as well as the acquiring entity’s stability of power supply, generating resources, access to bulk transmission facilities, current and foreseeable electric rates, reliability of electric service, customer complaint records, ongoing and past regulatory proceedings, and the experience and performance within the industry.
(e) The board of directors shall be responsible to exercise due diligence and employ experts to assist with the assessment of the relevant factors and in determining best realization of value between the qualifying offer, another competing proposal(s), and benefits currently offered by the Cooperative.
(f) In considering whether the overall value of the qualifying offer and/or competing proposal(s) exceeds the value of the Cooperative’s assets, the board of directors shall give due consideration to the value of services and benefits offered by the Cooperative to its members in addition to the market value of its assets.
(g) If the board of directors determines the value of the qualifying offer or competing proposal(s) exceeds the value of the assets in accordance with the provision of subparagraph (f) above, the Cooperative shall provide “notice of offer to exercise refusal” as prescribed by the terms of the January 2, 1996, First Refusal Agreement mutually agreed upon by the Cooperative and other participating cooperative entities.
(h) After an acceptance of the “offer to exercise refusal” or upon completion of the conditions of acceptance as set forth by the First Refusal Agreement, the board of directors shall notify the membership and refer the matter to a vote of the membership at a special or annual meeting of members. It shall be the duty of the secretary to cause a notice of the purpose of such meeting to be given in accordance with the provisions of these bylaws.
(i) The Cooperative may not sell, lease, or otherwise dispose of all or any substantial portion of its property unless such sale, lease, or other disposition is authorized at a meeting of the members thereof by the affirmative vote of not less than two-thirds of all of the members of the Cooperative.
(j) Notwithstanding any provision of this article, the board of directors may authorize the sale of any item or items of real or personal property of the Cooperative which, in the opinion of the board, is not needed by the Cooperative in connection with its business, is surplusage, salvage, or otherwise in need of replacement or disposition, and the sale or disposition of which is in the normal course of the operation of the business affairs of the Cooperative.
The foregoing provisions shall not apply to a sale, lease, lease-sale, exchange, or other disposition to one or more other electric membership cooperative corporations if the substantive effect thereof is to merge or consolidate with such other one or more electric membership cooperative corporations, in which event, an affirmative vote of a majority of those members present at any special or annual meeting shall be required; provided, however, that notwithstanding anything herein contained, the board of directors of the Cooperative, without authorization by the members thereof, shall have full power and authority to authorize the execution and delivery of a mortgage or mortgages or a deed or deeds of trust upon, or the pledging or encumbering of, any or all of the property, assets, rights, privileges, licenses, franchises, and permits of the Cooperative, whether acquired or to be acquired, and wherever situated, as well as the revenues and income therefrom, all upon such terms and conditions as the board of directors shall determine, to secure any indebtedness of the Cooperative.
The Corporate Seal of the Cooperative shall have inscribed thereon the name of the Cooperative and the words, "Corporate Seal, Berryville, Arkansas."
SECTION 1. Contracts. Except as otherwise provided in these bylaws, the board of directors may authorize any officer or officers, agent or agents to enter into any contract or execute and deliver any instrument in the name and on behalf of the Cooperative, and such authority may be general or confined to specific instances.
SECTION 2. Checks, Drafts, Etc. All checks, drafts, or other orders for the payment of money, and all notes, bonds, or other evidences of indebtedness issued in the name of the Cooperative shall be signed and/or countersigned by such officer or officers, agent or agents, employee or employees and in such manner as shall from time to time be determined by resolution of the board of directors.
SECTION 3. Deposits. All funds except petty cash of the Cooperative shall be deposited from time to time to the credit of the Cooperative in such bank or banks as the board of directors may select.
SECTION 4. Fiscal Year. The fiscal year of the Cooperative shall begin on the first day of January of each year and shall end on the 31st day of December of the same year.
SECTION 1. Waiver of Notice. Any member or director may waive in writing any notice of a meeting required to be given by these bylaws. The attendance of a member or director at any meeting shall constitute a waiver of notice of such meeting by such member or director, except in case a member or director shall attend a meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting has not been lawfully called or convened.
SECTION 2. Policies, Rules, and Regulations. The board of directors shall have power to make and adopt such policies, rules, and regulations, not inconsistent with law, the articles of incorporation, or these bylaws, as it may deem advisable for the management of the business and affairs of the Cooperative.
SECTION 3. Accounting System and Reports. The board of directors shall cause to be established and maintained a complete accounting system which, among other things, and subject to applicable laws and rules and regulations of any regulatory body, shall conform to such accounting system as may from time to time be designated by the Administrator of the Rural Utilities Service of the United States of America. The board of directors shall also cause to be made by a certified public accountant, a full and complete audit of the accounts, books, and financial condition of the Cooperative. Such audit shall be conducted on an annual basis and shall cover a continuous 12-month period which may not necessarily be the Cooperative’s fiscal year but shall in all aspects render an independent opinion of the Cooperative’s financial condition. A report of such audit shall be made available to members upon request.
A member’s election to refuse delivery of any/all of these communication mediums does not invalidate the Cooperative’s effort to provide the entire membership complete information or entitle individual members to a reduction in their electric bill.
SECTION 5. Close Relative. The term “close relative” is defined as any individual who through blood, law, or marriage is a spouse, child, stepchild, father, stepfather, mother, stepmother, brother, stepbrother, half brother, sister, stepsister, half sister, grandparent, grandchild, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, uncle, aunt, nephew, niece, or first cousin; or who resides in the same residence. Any individual qualified and elected, designated, or appointed to a position does not become a close relative while serving in the position because of marriage or other legal action to which the individual was not a party.
These bylaws may be altered, amended, or repealed by the affirmative vote of not less than two-thirds of all of the members of the board of directors at any regular or special meeting of the board of directors.

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