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This entry was published on 2014-09-22
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SECTION 9007
Payment of indemnification other than by court award
Banking (BNK) CHAPTER 2, ARTICLE 16
§ 9007. Payment of indemnification other than by court award. 1. A
person who has been successful, on the merits or otherwise, in the
defense of a civil or criminal action or proceeding of the character
described in section nine thousand six shall be entitled to
indemnification as authorized in such section.

2. Except as provided in subdivision one, any indemnification under
section nine thousand six or otherwise permitted by section nine
thousand five, unless ordered by a court under section nine thousand
eight, shall be made by the corporation, only if authorized in the
specific case:

(a) By the board acting by a quorum consisting of directors who are
not parties to such action or proceeding upon a finding that the
director or officer has met the standard of conduct set forth in section
nine thousand six or established pursuant to section nine thousand five,
as the case may be, or,

(b) If a quorum under paragraph (a) is not obtainable or, even if
obtainable, a quorum of disinterested directors so directs:

(1) By the board upon the opinion in writing of independent legal
counsel that indemnification is proper in the circumstances because the
applicable standard of conduct set forth in such sections has been met
by such director or officer, or

(2) By the shareholders upon a finding that the director or officer
has met the applicable standard of conduct set forth in such sections.

3. Expenses incurred in defending a civil or criminal action or
proceeding may be paid by the corporation in advance of the final
disposition of such action or proceeding upon receipt of an undertaking
by or on behalf of such director or officer to repay such amount as, and
to the extent, required by subdivision one of section nine thousand
nine.