Limitation of county liability

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11-1439. Limitation of county liability

A. Debts and other liabilities of the nonprofit corporation are not liabilities or responsibilities of the sponsoring county. Unless expressly authorized by this chapter:

1. Public monies of the county shall not be appropriated to pay the debts or obligations of the corporation.

2. A garnishment, attachment or execution shall not be levied or issued against the sponsoring county for the benefit of any creditor or judgment creditor of the nonprofit corporation whether or not the corporation's obligation accrues by operation of law, contract or tortious act by the corporation or its agents or employees.

B. The nonprofit corporation is not considered to be the alter ego of the sponsoring county, except as specifically permitted by this chapter. A creditor or judgment creditor of the corporation may not pierce the corporate veil of the corporation to seek monetary damages from the sponsoring county.


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