§194-C. Notice and approval for conversion transaction
1.Notice or approval required.
Prior to completing a conversion transaction, a public charity must:
A. If the fair market value of assets to be converted in the transaction is $500,000 or more, obtain approval of the court
in accordance with section 194-F; [2001, c. 550, Pt. A, §2 (NEW).]
B. If the fair market value of assets to be converted in the transaction is less than $500,000 but at least $50,000, obtain
approval from the Attorney General in accordance with section 194-E or, if the Attorney General does not approve the transaction,
obtain approval from the court in accordance with section 194-F; or [2001, c. 550, Pt. A, §2 (NEW).]
C. If the value of the transaction is less than $50,000, provide notice to the Attorney General in accordance with section
194-D. [2001, c. 550, Pt. A, §2 (NEW).]
[
2001, c. 550, Pt. A, §2 (NEW)
.]
2.Appraisal required.
Fair market value must be determined by an independent appraisal for conversion transactions with a fair market value of
$50,000 or more. If the appraisal provides a range of values, the highest point of the range determines which section of law
applies to the transaction pursuant to subsection 1.
[
2001, c. 550, Pt. A, §2 (NEW)
.]
3.Failure to comply with this section or sections 194-D to 194-H.
A transaction consummated in violation of any provision of this section or sections 194-D to 194-H is voidable. Officers
and directors who receive private inurement or excess benefits from such a transaction are subject to the civil penalties
provided in section 194-K.
[
2001, c. 550, Pt. A, §2 (NEW)
.]
4.Applicability to nonprofit hospital or medical service organizations.
This section, section 194-B and sections 194-D to 194-K do not apply to a corporation or other entity licensed under Title
24, chapter 19. A conversion of a corporation or other entity licensed under Title 24, chapter 19 is governed by section
194-A and Title 24, section 2301, subsection 9-D.
[
2001, c. 550, Pt. A, §2 (NEW)
.]
SECTION HISTORY
2001, c. 550, §A2 (NEW).
Data for this page extracted on 10/16/2012 08:18:44.