[§414D-162] Advance for expenses. (a) A corporation, before final disposition of a proceeding, may advance funds to pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding; provided:
(1) The director furnishes the corporation with a written affirmation of the director's good faith belief that the director has met the standard of conduct described in section 414D-160;
(2) The director furnishes the corporation with a written undertaking, executed personally or on the director's behalf, to repay the advance if it is ultimately determined that the director did not meet the standard of conduct; and
(3) A determination is made that the facts then known to those making the determination would not preclude indemnification under this part.
(b) The undertaking required by subsection (a)(2) must be an unlimited general obligation of the director but need not be secured and may be accepted without reference to financial ability to make repayment.
(c) Determinations and authorizations of payments under this section shall be made in the manner specified in section 414D-164. [L 2001, c 105, pt of §1]
Section: Previous 414d-155 414d-156 414d-157 414d-158 414d-159 414d-160 414d-161 414d-162 414d-163 414d-164 414d-165 414d-166 414d-167 414d-181 414d-182 NextLast modified: October 27, 2016