§ 21-2948 — Security interest

(1) An investor member or transferee may grant a security interest in financial rights in a limited cooperative association, but not in the governance rights in such association.
(2) A patron member shall not grant a security interest in financial rights or governance rights in a limited cooperative association.
(3) The granting of a security interest in financial rights is not considered a transfer for purposes of section 21-2947 . Upon foreclosure of a security interest in financial rights a person obtaining the financial rights shall only obtain financial rights subject to the security interest and shall not obtain any governance rights or other rights with respect to the limited cooperative association.
(4) The limitation of this section to financial rights shall not apply in the case of a member interest that is not subject to a restriction or prohibition on transfer under the articles of organization or bylaws.

Legislative History

Source: Laws 2007, LB368, § 48.