(a) A Club shall beoperated by a board of trustees. Each trustee shall also be a member of anassociation. The trustees shall be selected by the Club members under therules of organization of the Club. The board of trustees shall:
(1) Establish the termsand conditions of hull insurance and protection and indemnity coverage withinthe Club, including underwriting and exclusions of coverage;
(2) Ensure that allvalid claims are paid promptly;
(3) Take all necessaryprecautions to safeguard the assets of the Club;
(4) Maintain minutes ofits meeting and make those minutes available to the Commissioner;
(5) Designate anadministrator to carry out the policies established by the trustees; and
(6) Establish guidelinesfor membership in the Club.
(b) The board oftrustees shall not:
(1) Extend credit to anindividual member for payment of a premium, except under a payment planapproved by the Commissioner; or
(2) Borrow money fromthe Club, or in the name of the Club, except in the ordinary course ofbusiness.
Whenever the board of trusteesborrow money from the Club as authorized by this subdivision it shall firstadvise the Commissioner of the nature and purpose of the loan, and shall obtainhis prior approval of such loan. (1987, c. 330.)
(a) A Club shall beoperated by a board of trustees. Each trustee shall also be a member of anassociation. The trustees shall be selected by the Club members under therules of organization of the Club. The board of trustees shall:
(1) Establish the termsand conditions of hull insurance and protection and indemnity coverage withinthe Club, including underwriting and exclusions of coverage;
(2) Ensure that allvalid claims are paid promptly;
(3) Take all necessaryprecautions to safeguard the assets of the Club;
(4) Maintain minutes ofits meeting and make those minutes available to the Commissioner;
(5) Designate anadministrator to carry out the policies established by the trustees; and
(6) Establish guidelinesfor membership in the Club.
(b) The board oftrustees shall not:
(1) Extend credit to anindividual member for payment of a premium, except under a payment planapproved by the Commissioner; or
(2) Borrow money fromthe Club, or in the name of the Club, except in the ordinary course ofbusiness.
Whenever the board of trusteesborrow money from the Club as authorized by this subdivision it shall firstadvise the Commissioner of the nature and purpose of the loan, and shall obtainhis prior approval of such loan. (1987, c. 330.)
(a) A Club shall beoperated by a board of trustees. Each trustee shall also be a member of anassociation. The trustees shall be selected by the Club members under therules of organization of the Club. The board of trustees shall:
(1) Establish the termsand conditions of hull insurance and protection and indemnity coverage withinthe Club, including underwriting and exclusions of coverage;
(2) Ensure that allvalid claims are paid promptly;
(3) Take all necessaryprecautions to safeguard the assets of the Club;
(4) Maintain minutes ofits meeting and make those minutes available to the Commissioner;
(5) Designate anadministrator to carry out the policies established by the trustees; and
(6) Establish guidelinesfor membership in the Club.
(b) The board oftrustees shall not:
(1) Extend credit to anindividual member for payment of a premium, except under a payment planapproved by the Commissioner; or
(2) Borrow money fromthe Club, or in the name of the Club, except in the ordinary course ofbusiness.
Whenever the board of trusteesborrow money from the Club as authorized by this subdivision it shall firstadvise the Commissioner of the nature and purpose of the loan, and shall obtainhis prior approval of such loan. (1987, c. 330.)
