(a)        A nonprofit association is a legal entity separate from its members for the purposes of determining and enforcing rights, duties, and liabilities.

Terms Used In North Carolina General Statutes 59B-7

  • Contract: A legal written agreement that becomes binding when signed.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.

(b)        A person is not liable for the contract, tort, or other obligations of a nonprofit association merely because the person is a member, is authorized to participate in the management of the affairs of the nonprofit association, or is referred to as a “member” by the nonprofit association.

(c)        Reserved for future codification purposes.

(d)       A tortious act or omission of a member or other person for which a nonprofit association is liable is not imputed to a person merely because the person is a member of the nonprofit association, is authorized to participate in the management of the affairs of the nonprofit association, or is referred to as a “member” by the nonprofit association.

(e)        A member of, or a person referred to as a “member” by, a nonprofit association may assert a claim against or on behalf of the nonprofit association. A nonprofit association may assert a claim against a member or a person referred to as a “member” by the nonprofit association. (2006-226, s. 1.)