Pennsylvania Consolidated Statutes

15 Pa. Cons. Stat. § 5745 (2026)

 Advancing expenses.

✓ current as of May 2026
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§ 5745.  Advancing expenses.

Expenses (including attorneys' fees) incurred in defending any action or proceeding referred to in this subchapter may be paid by a nonprofit corporation in advance of the final disposition of the action or proceeding upon receipt of an undertaking by or on behalf of the representative to repay the amount if it is ultimately determined that he is not entitled to be indemnified by the corporation as authorized in this subchapter or otherwise. Except as otherwise provided in the bylaws, advancement of expenses shall be authorized by the board of directors. Section 5728 (relating to interested members, directors or officers; quorum) shall not be applicable to the advancement of expenses under this section.

(Dec. 21, 1988, P.L.1444, No.177, eff. Oct. 1, 1989; Dec. 19, 1990, P.L.834, No.198, eff. imd.; June 22, 2001, P.L.418, No.34, eff. 60 days)

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 1995–2023 · leading case: Neal v. Neumann Med. Ctr., 667 A.2d 479 (Pa. Commw. Ct. 1995).
Neal v. Neumann Med. Ctr., 667 A.2d 479 (Pa. Commw. Ct. 1995). · cites it 2× “Initially, we note that Section 5745 of the Nonprofit Corporation Law of 1988 (Nonprofit Law), as amended, 15 Pa.C.S. § 5745 [Advancing Expenses] provides: Expenses (including attorneys’ fees) incurred in defending any action or proceeding referred to in this subehapter may be…”
Porat, M. v. Temple Univ. (Pa. Super. Ct. 2023). “15 Pa.C.S. § 5745 (emphasis added). The Code defines “representative” as follows: When used with respect to an association, joint venture, trust or other enterprise, a person occupying the position or discharging the functions of a director, officer, partner, manager, trustee,…”
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