§ 9007 — Payment of indemnification other than by court award

New York § 9007

• Jurisdiction: New York
• Law BNK: Banking
• Art. 16: General Provisions Applicable to Banking Non-stock Corporations

Text

§ 9007. Payment of indemnification other than by court award. 1. A\nperson who has been successful, on the merits or otherwise, in the\ndefense of a civil or criminal action or proceeding of the character\ndescribed in section nine thousand six shall be entitled to\nindemnification as authorized in such section.\n 2. Except as provided in subdivision one, any indemnification under\nsection nine thousand six or otherwise permitted by section nine\nthousand five, unless ordered by a court under section nine thousand\neight, shall be made by the corporation, only if authorized in the\nspecific case:\n (a) By the board acting by a quorum consisting of directors who are\nnot parties to such action or proceeding upon a finding that the\ndirector or officer has met the standard of conduct set forth in section\nnine thousand six or established pursuant to section nine thousand five,\nas the case may be, or,\n (b) If a quorum under paragraph (a) is not obtainable or, even if\nobtainable, a quorum of disinterested directors so directs:\n (1) By the board upon the opinion in writing of independent legal\ncounsel that indemnification is proper in the circumstances because the\napplicable standard of conduct set forth in such sections has been met\nby such director or officer, or\n (2) By the shareholders upon a finding that the director or officer\nhas met the applicable standard of conduct set forth in such sections.\n 3. Expenses incurred in defending a civil or criminal action or\nproceeding may be paid by the corporation in advance of the final\ndisposition of such action or proceeding upon receipt of an undertaking\nby or on behalf of such director or officer to repay such amount as, and\nto the extent, required by subdivision one of section nine thousand\nnine.\n