105 ILCS 5/1E-160
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 1E - Downstate School Finance Authority

(This Section scheduled to be repealed in accordance with 105 ILCS 5/1E-165)Sec. 1E-160.         Limitations of actions after abolition;  indemnification; legal representation.(a) Abolition of the Authority pursuant to Section 1E-155 of this Code shall  bar any remedy available against the Authority, its members, employees, or  agents for any right or claim existing or any liability incurred prior to the  abolition unless the action or other proceeding is commenced prior to the  expiration of 2 years after the date of the abolition.(b) The Authority may indemnify any member, officer, employee, or  agent who was or is a party or is threatened to be made a party to any  threatened, pending, or completed action, suit, or proceeding, whether  civil, criminal, administrative, or investigative, by reason of the fact  that he or she was a member, officer, employee, or agent of the Authority,  against expenses (including attorney's fees, judgments, fines, and  amounts paid in settlement actually and reasonably incurred by him or her in  connection with the action, suit, or proceeding) if he or she acted in good  faith and in a manner that he or she reasonably believed to be in or not  opposed to the best interests of the Authority and, with respect to any  criminal action or proceeding, had no reasonable cause to believe his or her  conduct was unlawful. The termination of any action, suit, or proceeding by  judgment, order, settlement, or conviction or upon a plea of nolo  contendere or its equivalent, shall not, of itself, create a presumption  that the person did not act in good faith in a manner that he or she reasonably  believed to be in or not opposed to the best interest of the Authority and,  with respect to any criminal  action or proceeding, had reasonable cause to believe that his or her conduct  was unlawful.To the extent that a member, officer, employee, or agent of the  Authority has been successful, on the merits or otherwise, in the  defense of any such action, suit, or proceeding referred to in this  subsection (b) or in defense of any claim, issue, or matter therein, he or she  shall be indemnified against expenses, including attorney's fees, actually and  reasonably incurred by him or her in connection therewith. Any such  indemnification shall be made by the Authority only as authorized in the  specific case, upon a  determination that indemnification of the member, officer, employee, or agent  is proper in the circumstances because he or she has met the applicable  standard of conduct. The determination shall be made (i) by the Authority by a  majority vote of a quorum consisting of members who are not parties to the  action, suit, or proceeding or (ii) if such a quorum is not obtainable  or, even if obtainable, a quorum of disinterested members so directs,  by independent legal counsel in a written opinion.Reasonable expenses incurred in defending an action, suit, or  proceeding shall be paid by the Authority in advance of the final  disposition of the action, suit, or proceeding, as authorized by the  Authority in the specific case, upon receipt of an undertaking  by or on behalf of the member, officer, employee, or agent to repay  the amount, unless it is ultimately determined that he or she is  entitled to be indemnified by the Authority as authorized in this  Section.Any member, officer, employee, or agent against whom any action,  suit, or proceeding is brought may employ his or her own attorney to  appear on his or her behalf.The right to indemnification accorded by this Section shall not  limit any other right to indemnification to which the member, officer,  employee, or agent may be entitled. Any rights under this Section shall inure  to the benefit of the heirs, executors, and administrators of any member,  officer, employee, or agent of the Authority.The Authority may purchase and maintain insurance on behalf of any  person who is or was a member, officer, employee, or agent of the  Authority against any liability asserted against him or her and incurred by him  or her in any such capacity or arising out of his or her status as such,  whether or not the Authority would have the power to indemnify him or her  against the liability under the provisions of this Section.The Authority shall be considered a State agency for purposes of  receiving representation by the Attorney General. Members, officers,  employees, and agents of the Authority shall be entitled to representation  and indemnification under the State Employee Indemnification Act.    (Source: P.A. 92-547, eff. 6-13-02.)