Section 24: Indemnification of directors, officers and employees; liability insurance
Section 24. A credit union may indemnify its directors, officers, employees and other agents to whatever extent specified in or authorized by a by-law adopted pursuant to law. Such indemnification may include payment by the credit union of expenses incurred in defending a civil or criminal action or proceeding in advance of the final disposition of such action or proceeding upon receipt of an undertaking by the person indemnified to repay such payment if he shall be adjudicated to be not entitled to indemnification under this section. Any such indemnification may be provided although the person to be indemnified is no longer an officer, director, employee or agent of the credit union.
No indemnification shall be provided for any person with respect to any matter as to which he shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his action was in the best interests of the credit union.
A credit union shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or other agent of the credit union against any liability incurred by him in any such capacity or arising out of his status as such, whether or not the credit union would have the power to indemnify him against such liability.