Arizona Laws 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:
Terms Used In Arizona Laws 11-1439
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: means a nonprofit corporation that is organized under title 10 and that is qualified or will qualify under section 501(c)(3) of the internal revenue code. See Arizona Laws 11-1401
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Sponsoring county: means a county that enters into an operating agreement under this chapter. See Arizona Laws 11-1401
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.