§ 5-1.4-2-7 — Disclosure of interest in contract; abstention; validity of contract

Indiana § 5-1.4-2-7

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.4: LOCAL PUBLIC IMPROVEMENT BOND BANKS
• Ch. 2: Establishment and Organization

Text

(a) Notwithstanding any other law to the
contrary, a director does not violate any law, civil or criminal, if the
director:
(1) has, or to the director's knowledge may have or may later
acquire, a direct or indirect pecuniary interest in a contract with
the bank; or
(2) is an officer, member, manager, director, or employee of, or
has an ownership interest in, any firm, limited liability company,
or corporation that is or may be a party to the contract;
if the director discloses in writing to the bank the nature and extent of
the interest as soon as the director has knowledge of the interest and
abstains from discussion, deliberation, action, and voting with respect
to the contract.
(b) Notwithstanding any provision of this article or any other law,
a contract or transaction is not void or voidable because of the
existence of an interest described in subsection (a), if the provisions of
subsection (a) have been satisfied.

Legislative History

As added by P.L.42-1985, SEC.1. Amended by P.L.8-1993, SEC.50.