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A. All funds, assets or credit of the public corporation shall be applied toward or expended upon municipal and community services and projects and activities authorized by its charter. A public corporation organized under this chapter shall not issue shares of stock, pay dividends, make private distribution of assets, make loans to corporate officials, or engage in business for profit.

B. The limitation of subsection A does not preclude the following transactions or activities, and a public corporation, unless restricted by its charter, may:

1. Compensate corporate officials or constituents a reasonable amount for services rendered, and reimburse reasonable expenses actually incurred in performing their duties;

2. Assist corporate officials or members as members of a general class of persons to be assisted by a project or activity of an approved program to the same extent as other members of the class and as long as no special privileges or treatment accrues to such corporate official or member by reason of his or her status or position in the public corporation;

3. Return to corporate officials or members fees, dues or service charges originally contributed by them and surplus to the purposes for which collected;

4. Defend any corporate official, or former corporate official (including employees) in any legal or administrative proceeding in which he or she is made a party by reason of his or her position or former corporate position, or at the public corporation’s option, indemnify such corporate official or former corporate official for expenses actually and necessarily incurred by him or her in connection with such defense, except as to matters involving wilful misconduct in the performance of duty; and

5. Sell assets for a consideration greater than their reasonable market value or acquisition costs, or charge for services more than the expense of providing them, or otherwise secure an increment in a transaction, or carry out any other transaction or activity, as long as such gain is not the public corporation’s general object or purpose and is applied to or expended upon municipal and community services and projects and activities as aforesaid. (Ord. 1016-84 § .080, 1984.)