(a) Except as otherwise provided in the governing principles, an unincorporated nonprofit association shall reimburse a member or manager for authorized expenses reasonably incurred in the course of the member's or manager's activities on behalf of the association.
(b) An unincorporated nonprofit association may indemnify a member or manager for any debt, obligation, or other liability incurred in the course of the member's or manager's activities on behalf of the association if the person seeking indemnification has complied with §§ 4-28-618 and 4-28-623. Governing principles in a record may broaden or limit indemnification.
(c) If a person is made or threatened to be made a party in an action based on that person's activities on behalf of an unincorporated nonprofit association and the person makes a request in a record to the association, a majority of the disinterested managers may approve in a record advance payment, or reimbursement, by the association, of all or a part of the reasonable expenses, including attorney's fees and costs, incurred by the person before the final disposition of the proceeding. To be entitled to an advance payment or reimbursement, the person must state in a record that the person has a good faith belief that the criteria for indemnification in subsection (b) have been satisfied and that the person will repay the amounts advanced or reimbursed if the criteria for payment have not been satisfied. The governing principles in a record may broaden or limit the advance payments or reimbursements.
(d) An unincorporated nonprofit association may purchase insurance on behalf of a member or manager for liability asserted against or incurred by the member or manager in the capacity of a member or manager, whether or not the association has authority under this subchapter to reimburse, indemnify, or advance expenses to the member or manager against the liability.
(e) The rights of reimbursement, indemnification, and advancement of expenses under this section apply to a former member or manager for an activity undertaken on behalf of the unincorporated nonprofit association while a member or manager.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 3 - Corporations and Associations
Chapter 28 - Nonprofit Organizations
Subchapter 6 - Revised Uniform Unincorporated Nonprofit Association Act
§ 4-28-603. Relation to other law
§ 4-28-605. Legal entity; Perpetual existence; Powers
§ 4-28-606. Ownership and transfer of property
§ 4-28-607. Statement of authority as to real property
§ 4-28-609. Assertion and defense of claims
§ 4-28-610. Effect of judgment or order
§ 4-28-611. Appointment of agent to receive service of process
§ 4-28-612. Service of process
§ 4-28-613. Action or proceeding not abated by change
§ 4-28-616. Approval by members
§ 4-28-617. Meetings of members; Voting, notice, and quorum requirements
§ 4-28-619. Admission, suspension, dismissal, or expulsion of members
§ 4-28-620. Member's resignation
§ 4-28-621. Membership interest not transferable
§ 4-28-622. Selection of managers; Management rights of managers
§ 4-28-623. Duties of managers
§ 4-28-624. Notice and quorum requirements for meetings of managers
§ 4-28-625. Right of member or manager to information
§ 4-28-626. Distributions prohibited; Compensation and other permitted payments
§ 4-28-627. Reimbursement; Indemnification; Advancement of expenses
§ 4-28-629. Winding up and termination
§ 4-28-631. Transition concerning real and personal property
§ 4-28-632. Uniformity of application and construction
§ 4-28-633. Relation to Electronic Signatures in Global and National Commerce Act