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Title 04
Chapter 04.25A
Section 04.25A.050
 

Title 04 Administrative Agencies and Procedures

Chapter 04.25A United Native Americans Public Development Authority

Section 04.25A.050 Limitation of Powers

The authority, in all activities and transactions, shall be limited in the following respects:

  1. The authority shall have neither power of eminent domain nor any power to levy taxes or special assessments.

  2. The authority may not incur or create any liability that permits recourse by any party or member of the public to any assets, services, resources or credit of the City. All liabilities incurred by the authority shall be satisfied exclusively from the assets and credit of the authority, and no creditor or other person shall have any recourse to the assets, credit or services of the City on account of any debts, obligations, liabilities, acts or omissions of the authority.

  3. No funds, assets or property of the authority shall be used for any partisan political activity or to further the election or defeat of any candidate for public office; nor shall any funds or a substantial part of the activities of the authority be used for publicity or educational purposes designed to support or defeat legislation pending before the Congress of the United States of America, the Legislature of the State, the city council, or any federally-recognized tribe; provided, however, that funds may be used for representatives of the authority to communicate with members of Congress, state legislators, city council members, and the elected leaders of any federally-recognized tribe concerning funding and other matters directly affecting the authority, so long as such activities do not constitute a substantial part of the authority’s activities and unless such activities are specifically limited in its charter.

  4. All funds, assets or credit of the authority shall be applied toward or expended upon services, projects and activities authorized by its charter.

  5. No part of the net earnings of the authority shall inure to the benefit of, or be distributable as such to, its directors, its officers or other private persons, except that the authority is authorized and empowered to:

    1. compensate its officials and others performing services for the authority, including legal counsel, a reasonable amount for services rendered, and reimburse reasonable expenses actually incurred in performing their duties;

    2. assist its officials as members of a general class of persons to be assisted by an authority-approved project or activity to the same extent as other members of the class as long as no special privileges or treatment accrues to such official by reason of his status or position in the authority;

    3. defend and indemnify any current or former director or employee and their successors, spouses and marital communities against all costs, expenses, judgments and liabilities, including attorneys’ fees, reasonably incurred by or imposed upon him in connection with or resulting from any claim, action or proceeding, civil or criminal, in which he is or may be made a party by reason of being or having been an official of the authority, or by reason of any action alleged to have been taken or omitted by him as such official, provided, that he was acting in good faith on behalf of the authority and within the scope of duties imposed or authorized by law. This power of indemnification shall not be exclusive of other rights to which officials of the authority may be entitled as a matter of law;

    4. purchase insurance to protect and hold personally harmless any of its officials (including its employees and agents) from any action, claim or proceeding instituted against the foregoing individuals arising out of the performance, in good faith, of duties for, or employment with, the authority and to hold these individuals harmless from any expenses connected with the defense, settlement, or monitor judgments from such actions, claims or proceedings, provided the purchase of such insurance and its policy limits shall be discretionary with the board of directors, and such insurance shall not be considered as compensation to the insured individuals; and provided further, the powers conferred by this subsection shall not be exclusive of any other powers conferred by law to purchase liability insurance; and

    5. sell its assets for a consideration greater than their reasonable market value or acquisition costs, charge more for services than the expense of providing them, or otherwise secure an increment in a transaction, or carry out any other transaction or activity, as long as such gain is not the principal object or purpose of the authority’s transactions or activities and is applied to or expended upon services, projects and activities as aforesaid.

  6. The authority shall not issue shares of stock, pay dividends, make private distribution of assets, make loans to its directors or employees or otherwise engage in business for private gain.

  7. The authority shall not acquire goods, services, properties or other assets for less than fair and adequate consideration; provided, however, that if such goods, services, properties or other assets are being acquired for allegedly sufficient consideration, the authority shall secure specific approval of the city council of the City.

Date Passed: Monday, October 27, 2014

Effective Date: Friday, December 12, 2014

ORD C35168 Section 3