{"data":{"id":"us-ky/krs-273a.120","jurisdiction":"us-ky","citation":"KRS 273A.120","heading":"Reimbursement -- Indemnification -- Advancement -- Insurance.","body":"(1) Except as otherwise provided in the governing principles, an unincorporated\nnonprofit association shall reimburse a member or manager for authorized expenses\nreasonably incurred in the course of the member's or manager's activities on behalf\nof the association.\n(2) An unincorporated nonprofit association may indemnify a member or manager for\nany debt, obligation, or other liability incurred in the course of the member's or\nmanager's activities on behalf of the association if the person seeking\nindemnification has complied with KRS 273A.075 and 273A.100, as applicable.\nGoverning principles in a record may broaden or limit indemnification.\n(3) If a person is made or threatened to be made a party in an action based on that\nperson's activities on behalf of an un incorporated nonprofit association and the\nperson makes a request in a record to the association, a majority of the disinterested\nmanagers may approve in a record advance payment, or reimbursement, by the\nassociation, of all or a part of the reasonable exp enses, including attorney's fees and\ncosts, incurred by the person before the final disposition of the proceeding. To be\nentitled to an advance payment or reimbursement, the person shall state in a record\nthat the person has a good faith belief that the cr iteria for indemnification in\nsubsection (2) of this section have been satisfied and that the person will repay the\namounts advanced or reimbursed if the criteria for payment have not been satisfied.\nThe governing principles in a record may broaden or limi t the advance payments or\nreimbursements.\n(4) An unincorporated nonprofit association may purchase insurance on behalf of a\nmember or manager for liability asserted against or incurred by the member or\nmanager in the capacity of a member or manager, whether or not the association has\nauthority under this chapter to reimburse, indemnify, or advance expenses to the\nmember or manager against the liability.\n(5) The rights of reimbursement, indemnification, and advancement of expenses under\nthis section apply to  a former member or manager for an activity undertaken on\nbehalf of the unincorporated nonprofit association while a member or manager.","path":["KRS Chapter 273A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44348","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:26Z","sha256":"85724e33e4b47b777208d314aced0efbe775357dd2bf2adfe1c96999551cf2bd","source_id":"us-ky","stale":false,"prev":"us-ky/krs-273a.115","next":"us-ky/krs-273a.125"},"notice":"GroundRules: Original legal text. Not legal advice."}