Legislation
SECTION 1112
Certain sales, transfers, security interests and judgments void
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 11
§ 1112. Certain sales, transfers, security interests and judgments void.
A sale, mortgage, conveyance or other transfer of, or the creation of
a security interest in any property of a corporation made, without prior
approval of the court, after service upon the corporation of a summons
in an action, or of an order to show cause in a special proceeding,
under this article in payment of or as security for an existing or prior
debt or for any other or for no consideration, or a judgment thereafter
rendered against the corporation by confession or upon the acceptance of
any offer, shall be void as against such persons and, to such extent, if
any, as the court shall determine.
A sale, mortgage, conveyance or other transfer of, or the creation of
a security interest in any property of a corporation made, without prior
approval of the court, after service upon the corporation of a summons
in an action, or of an order to show cause in a special proceeding,
under this article in payment of or as security for an existing or prior
debt or for any other or for no consideration, or a judgment thereafter
rendered against the corporation by confession or upon the acceptance of
any offer, shall be void as against such persons and, to such extent, if
any, as the court shall determine.