Nevada § 81.860 - Reimbursement; indemnification; advancement of expenses

§ 81.860. Reimbursement; indemnification; advancement of expenses

1. 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. 2. 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 member or manager seeking indemnification

has complied with NRS 81.815 and 81.840 . Governing principles in a record may broaden or limit indemnification. 3. 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 2 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. 4. 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 the provisions of NRS 81.700 to 81.890 , inclusive, to reimburse, indemnify or advance expenses to the member or manager

against the liability. 5. 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.