§ 11-13-608 — Termination of associated entity or segment.

(1) The termination of a segment does not affect the segment's or the segment's associated entity's limitation on liabilities under this part.
(2) A segment is terminated upon the termination of the segment's associated entity.
(3) (3)(a) Subject to Subsection (3)(b), the termination of a segment's associated entity or a segment may not affect the liability of the governing board, the governing body, a member of the governing board, a member of the governing body, an officer, an official, a contractor, or an employee for an action authorized:
(3)(a)(i) before the termination of the associated entity or the segment by the governing board of the terminated associated entity or by the governing body of the terminated segment; or
(3)(a)(ii) after the termination of the associated entity or the segment by:

(3)(a)(ii)(A) a majority of individuals serving as members of the governing board of the terminated associated entity at the time the associated entity is terminated; or
(3)(a)(ii)(B) a majority of the individuals serving as members of the governing body of the terminated segment at the time the segment is terminated.
(3)(b) Subsection (3)(a) applies to each action to:
(3)(b)(i) provide for the claims, debts, obligations, or liabilities of the terminated associated entity or the terminated segment; or
(3)(b)(ii) otherwise wind up the affairs of the terminated associated entity or the terminated segment.

Legislative History

Enacted by Chapter 382, 2016 General Session