§ 318. Excluded entities and transactions.

231 words·~1 min read·/pa/title-15/chapter-3/318

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Excluded entities.-- The following entities may not participate in a transaction under this chapter:

(1)A cooperative corporation subject to Chapter 73 (relating to electric cooperative corporations).

(2)A beneficial, benevolent, fraternal or fraternal benefit society:

(i)having a lodge system and a representative form of government; or

(ii)transacting any type of insurance.

(3)A credit union.

(b)Excluded transactions involving certain nonprofit corporations.-- The following apply to nonprofit corporations:

(1)Except as provided in paragraph (2), this chapter may not be used to accomplish a transaction that has the effect of converting a domestic nonprofit corporation that is subject to the supervision of the Department of Banking and Securities, the Insurance Department or the Pennsylvania Public Utility Commission to a different type of entity.

(2)Paragraph

(1)does not apply to a transaction under this chapter in which a health maintenance organization is converted to a different type of entity if the transaction has received the prior approval of the Insurance Department.

(c)Cross references.-- See sections 103 (relating to subordination of title to regulatory laws) and 314 (relating to regulatory conditions and required notices and approvals).

15c318v

(Nov. 3, 2022, P.L.1791, No.122, eff. 60 days)

2022 Amendment. Act 122 added subsec. (a)(3).

Cross References. Section 318 is referred to in sections 314, 331, 341, 351, 361, 371 of this title.

15c319s