11-13-608. Termination of associated entity or segment.
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/ut/title-11/chapter-13/11-13-608A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/10/2016
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.
(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:
(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
(ii)after the termination of the associated entity or the segment by:
(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
(B)a majority of the individuals serving as members of the governing body of the terminated segment at the time the segment is terminated.
(b)Subsection (3)(a) applies to each action to:
(i)provide for the claims, debts, obligations, or liabilities of the terminated associated entity or the terminated segment; or
(ii)otherwise wind up the affairs of the terminated associated entity or the terminated segment.
Enacted by Chapter 382 , 2016 General Session