2006 Code of Virginia § 55-532 - Obligations of nonprofit entity

55-532. Obligations of nonprofit entity.

Prior to disposition of assets, any nonprofit entity shall provide to theAttorney General written notice, on a form provided by the Attorney General,of its intent to dispose of such assets, including the terms of the proposal.The notice shall be given at least sixty days in advance of the effectivedate of such proposed transaction in order that the Attorney General mayexercise his common law and statutory authority over the activities of theseorganizations. The Attorney General may employ expert assistance in reviewingany proposed transaction and such reasonable expenses incurred by theAttorney General shall be paid by a party to the proposed transaction.

Within ten days of receipt of the notice from the entity, the AttorneyGeneral shall cause a public notice of the transaction to be published in anewspaper in which legal notices may be published in that jurisdiction.

Notice to the Attorney General pursuant to this section shall be given forState Corporation Commission approval sought pursuant to Article 11 (13.1-898.1) of Chapter 10 of Title 13.1 and 38.2-203 and 38.2-1322 through38.2-1328 and subdivision A 1 of 38.2-4316. Such notice need not be givenwhere the State Corporation Commission determines, in its sole discretion,that there is a reasonable expectation that the foreign or domestic nonstockcorporation licensed and subject to regulation under Chapter 42 ( 38.2-4200et seq.) of Title 38.2 or health maintenance organization referenced hereinwill not be able to meet its obligations to subscribers or enrollees.

The provisions of this section shall not apply to any disposition of assetssubject to the provisions of 38.2-4214.1, or 38.2-4317 or any of theprovisions of Chapter 15 ( 38.2-1500 et seq.) of Title 38.2.

(1997, c. 615; 2002, c. 516.)