2006 Code of Virginia § 13.1-878 - Advance for expenses

13.1-878. Advance for expenses.

A. A corporation may pay for or reimburse the reasonable expenses incurred bya director who is a party to a proceeding in advance of final disposition ofthe proceeding if:

1. The director furnishes the corporation a written statement of his goodfaith belief that he has met the standard of conduct described in 13.1-876;

2. The director furnishes the corporation a written undertaking, executedpersonally or on his behalf, to repay the advance if it is ultimatelydetermined that he did not meet the standard of conduct; and

3. A determination is made that the facts then known to those making thedetermination would not preclude indemnification under this article.

B. The undertaking required by subdivision 2 of subsection A of this sectionshall be an unlimited general obligation of the director but need not besecured and may be accepted without reference to financial ability to makerepayment.

C. Determinations and authorizations of payments under this section shall bemade in the manner specified in 13.1-880.

(Code 1950, 13.1-205.1; 1968, c. 689; 1975, c. 500; 1981, c. 57; 1985, c.522.)