SCS CSHB 92(JUD) am S: "An Act relating to the purchase of interests in corporations, including limited liability companies, by the University of Alaska."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 92(JUD) am S 01 "An Act relating to the purchase of interests in corporations, including limited liability 02 companies, by the University of Alaska." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.40 is amended by adding a new section to read: 05 Sec. 14.40.458. University corporate interests. (a) The university may 06 purchase an interest in a corporation if the Board of Regents of the University of 07 Alaska authorizes the purchase and the purchase advances a public purpose of the 08 university. 09 (b) If the university purchases an interest in a corporation, the corporation is 10 not considered to be a part of the university for any purpose, except to the extent that 11 both the Board of Regents of the University of Alaska and the corporation's articles of 12 incorporation state otherwise. 13 (c) Notwithstanding AS 09.50.250 and any other law, the University of Alaska 14 is not liable for the obligations of a corporation that the University of Alaska has
01 purchased an interest in under (a) of this section, 02 (1) except to the extent that the president of the university signs a 03 written agreement on behalf of the university that expressly states that the university is 04 liable for the obligations of the corporation and the obligations for which the 05 university is liable are identified in the written agreement; or 06 (2) unless the university has engaged in fraudulent or other wrongful 07 conduct relating to an obligation of the corporation or to the assets of the corporation 08 that may be used to pay the obligation. 09 (d) In this section, 10 (1) "corporation" means a for-profit corporation, a nonprofit 11 corporation, or a limited liability company, whether or not the corporation or company 12 is organized in this state; 13 (2) "interest" means a membership, or a share or other ownership 14 interest; 15 (3) "nonprofit corporation" means a corporation that qualifies for 16 exemption from taxation under 26 U.S.C. 501(c) (Internal Revenue Code); 17 (4) "university" means the University of Alaska. 18 * Sec. 2. AS 37.10.085(a) is amended to read: 19 (a) Except as provided in AS 14.40.458 or (c) or (d) of this section, neither the 20 state nor a political subdivision of the state may 21 (1) make a subscription to the capital stock of a corporation; 22 (2) lend its credit for the use of a corporation; or 23 (3) borrow money for the use of a corporation.