§ 23-17-7-7 — Liability for obligations; transferee's liability

Indiana § 23-17-7-7

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 17: NONPROFIT CORPORATIONS
• Ch. 7: Members; Admission; Types of Memberships; Rights

Text

(a) A member may become liable to the
corporation for dues, assessments, or fees. However:
(1) an article of incorporation or a bylaw provision; or
(2) a resolution adopted by the board of directors;
authorizing or imposing dues, assessments, or fees does not create
liability to pay the obligation. However, nonpayment constitutes
grounds for expelling or suspending the member or suspending or
terminating the membership. The validity of mandatory membership
and the validity of a lien imposed by a recorded declaration of covenant
or a similar commitment running with the real property or an interest
in the real property is not affected by this subsection.
(b) A permitted transferee of a membership having notice at the
time of the transfer of unpaid dues, assessments, or fees of the
transferor is liable to the corporation for unpaid dues, assessments, or
fees. However, a transferee who is an executor, an administrator, a
guardian, a trustee, a receiver, or a pledgee is not personally liable for
any unpaid consideration due to the corporation. An heir or a legatee
who is a permitted transferee may surrender the membership to the
corporation without incurring any liability for any unpaid
consideration.

Legislative History

As added by P.L.179-1991, SEC.1. Amended by P.L.96-1993, SEC.7.