(805 ILCS 315/6)
(from Ch. 32, par. 445)
Each association organized under this Act shall have the following
(a) To engage in any activity in connection with the producing,
marketing, selling, preserving, harvesting, drying, processing,
manufacturing, canning, packing, grading, storing, warehousing, handling or
utilizing of agricultural products the manufacturing or marketing of the
by-products thereof; or in any activities in connection with the
purchasing, hiring or using of supplies, machinery or equipment; or in the
financing of any of the above enumerated activities; or in performing
business or educational services on a co-operative basis, for those engaged
in agricultural activities as bona fide producers of agricultural products,
or in any one or more of the activities specified herein.
(b) To borrow money from any source without limitation as to amount of
corporate indebtedness or liability, with authority to give any bond or
form of obligation or security therefor.
(c) To act as the agent or representative of any person in any of the
above mentioned activities.
(d) To make loans or advances to members or stockholders and/or to their
members or stockholders or to their producer patrons with authority to
accept any kind, form or type of obligation and/or security, therefor; to
purchase, endorse, discount and/or sell any note, draft, bill of exchange,
indenture, bill of sale, mortgage or other obligation acquired by it, the
proceeds of which have been advanced or used in the first instance for any
of the purposes provided for herein; to discount for or purchase from any
association, organized under the laws of any state with or without its
endorsement any note, draft, bill of exchange, indenture, bill of sale,
mortgage or other obligation the proceeds of which are advanced or used in
the first instance for carrying on any co-operative activity authorized in
this Act and with authority to dispose of same with or without endorsement.
Any association organized under this Act and exercising any of the powers
provided in this paragraph shall not engage in the business of banking.
(e) To purchase or otherwise acquire, hold, own and exercise all rights
of ownership in, and to sell, transfer, pledge or guarantee the payment of
dividends or interest on, or the retirement or redemption of, shares of
capital stock, bonds, or other obligations of any corporation or
association, engaged in any directly or indirectly related activity, or in
the warehousing, handling or marketing of any of the products handled by
(f) To establish reserves and to invest the funds thereof in bonds, or
in such other property as may be provided in the by-laws.
(g) To buy, hold and exercise all privileges of ownership over such real
or personal property, as may be necessary or convenient for the conduct and
operation of any of the business of the association, or incidental thereto.
(h) To establish and secure, own and develop patents, trade-marks and
(i) To do each and everything necessary, suitable or proper for the
accomplishment of any one of the purposes, or the attainment of any one or
more of the subjects herein enumerated, or conducive to or expedient for
the interest or benefit of the association, and to contract accordingly;
and in addition, to exercise and possess all powers, rights and privileges
necessary or incidental to the purposes for which the association is
organized, or to the activities in which it is engaged; and any other
rights, powers and privileges granted by the laws of this State to ordinary
corporations, except such as are inconsistent with the express provisions
of this Act; and to do any such thing anywhere.
(j) No association organized under this Act, during any fiscal year
thereof, shall deal in products, handle machinery, equipment, or supplies,
or perform services for and on behalf of non-members to an amount greater
in value than such as are dealt in, handled or performed by it for and on
behalf of members during the same period.
(Source: Laws 1931, p. 390.)