105 ILCS 5/1B-18
2021 Illinois Compiled Statutes|Chapter 105 - SCHOOLS|105 ILCS 5/ - School Code.|Article 1B - School District Financial Oversight Panel And Emergency Financial Assistance

 (from Ch. 122, par. 1B-18)Sec. 1B-18.         Limitations of actions after abolition;  indemnification.  (a)  Termination of the Financial  Oversight Panel shall bar any remedy available against the  Panel, its members, employees, or agents, for any right or  claim existing, or any liability incurred, prior to such  abolition unless the action or other proceeding thereon is  commenced prior to the expiration of 2 years after the date  of such termination.(b) The Panel 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 was a member, officer, employee or agent of the Panel,  against expenses (including attorneys' fees), judgments,  fines and amounts paid in settlement actually and reasonably  incurred by him in connection with such action, suit or  proceeding, if he acted in good faith and in a manner he  reasonably believed to be in, or not opposed to, the best  interests of the Panel and, with respect to any criminal  action or proceeding, had no reasonable cause to believe his  conduct was unlawful.  The termination of any action, suit  or proceeding by judgment, order, settlement, 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 which he reasonably believed to be  in or not opposed to the best interests of the Panel, and,  with respect to any criminal action or proceeding, had  reasonable cause to believe that his conduct was unlawful.To the extent that a member, officer, employee or agent  of the Panel has been successful, on the merits or  otherwise, in the defense of any such action, suit or  proceeding referred to in this subsection or in defense of  any claim, issue or matter therein, he shall be indemnified  against expenses (including attorneys' fees) actually and  reasonably incurred by him in connection therewith.  Any  such indemnification shall be made by the Panel 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 has met the  applicable standard of conduct. The determination shall be  made by the Panel by a majority vote of a quorum consisting  of members who are not parties to such action, suit or  proceeding, or 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 Panel in advance of  the final disposition of such action, suit or proceeding, as  authorized by the Panel in the specific case, upon receipt  of an undertaking by or on behalf of the member, officer,  employee or agent to repay such amount, unless it shall  ultimately be determined that he is entitled to be  indemnified by the Panel 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 hereunder shall inure to the benefit of the heirs,  executors and administrators of any member, officer,  employee or agent of the Panel.The Panel may purchase and maintain insurance on behalf  of any person who is or was a member, officer, employee or  agent of the Panel against any liability asserted against  him and incurred by him in any such capacity, or arising out  of his status as such, whether or not the Panel would have  the power to indemnify him against such liability under the  provisions of this Section.    (Source: P.A. 86-954.)