Maine § 194-C. - Notice and approval for conversion transaction
Full text of Maine Maine Revised Statutes § 194-C. — Notice and approval for conversion transaction, with citation guidance and answers to common questions.
§ 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; [PL 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 [PL 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. [PL 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.
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.
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.
Frequently Asked Questions About Maine § 194-C.
What does Maine Revised Statutes § 194-C. cover?
Section 194-C. ("Notice and approval for conversion transaction") is part of the Maine Revised Statutes, the codified statutory law of Maine. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maine § 194-C.?
A common citation format is "Maine Revised Statutes § 194-C." (Maine). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maine law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maine official source linked on this page or consult a licensed Maine attorney.
How does Maine § 194-C. apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maine can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maine.