§ 42-116-25 — § 42-116-25. Duration of corporation — Termination.

§ 42-116-25. Duration of corporation — Termination.

The corporation and its corporate existence shall continue until it is dissolved in accordance with procedures contained in §§ 7-6-50 — 7-6-55 after its board of directors has determined that the purposes for which it has been created have been substantially fulfilled; provided, however, that no dissolution shall take effect so long as the corporation has bonds outstanding unless adequate provision has been made for the payment or satisfaction of their payment or unless there is a consent to a dissolution by an authorized action of the holders of these bonds or their trustee or other authorized representative. Notwithstanding any provisions to the contrary in §§ 7-6-50 — 7-6-55, upon termination of the corporation, title to all funds and other properties owned by it which remain after provision for the payment or satisfaction of all bonds, certificates of indebtedness, promissory notes, and other obligations of the corporation shall be transferred to and shall vest in the sinking fund as provided in chapter 8 of title 35. Net proceeds, after expenses, arising from any assets and legal settlements that have reverted to the sinking fund shall be deposited into the sinking fund as provided in chapter 8 of title 35.

Legislative History

P.L. 1991, ch. 3, § 4; P.L. 1992, ch. 9, § 1; P.L. 1998, ch. 31, art. 26, § 4.