Section 13-311 - Termination of Corporation. - Maryland Statutes

§ 13-311. Termination of Corporation.
 

(a)  Continuation until termination.- The Medical System Corporation and its corporate existence shall continue until terminated in accordance with law; provided, however, that no such law or termination shall take effect so long as the Medical System Corporation shall have bonds, notes, or other obligations outstanding, unless adequate provision has been made for the payment thereof. 

(b)  Rights and properties to pass to and be vested in State upon termination.- Upon termination of the existence of the Medical System Corporation, all its rights and properties shall pass to and be vested in the State, but subject in all cases to any mortgages, liens, or other encumbrances or any other rights or interests of creditors of the Medical System Corporation or other third parties. 

(c)  Failure of Corporation to realize purposes.- The articles of incorporation of the Medical System Corporation and the documents of transfer of the medical system assets must state that the Board of Regents and the Board of Public Works may determine that the Medical System Corporation has failed to realize the purposes set forth in this subtitle; in the event of such a determination, the Board of Directors shall be required to undertake appropriate legal proceedings to return all assets of the medical system then held by the Medical System Corporation to the State, but only if adequate provision has been made for the payment of any outstanding bonds, notes, or other obligations of the Medical System Corporation. 
 

[1984, ch. 288; 1996, ch. 10, § 16.]