36. If a board member is sued by a third party for an act done in the exercise of the functions of office, the Institute assumes the board member’s defence and pays any damages awarded as compensation for the injury resulting from the act. In penal or criminal proceedings, however, the Institute pays the board member’s defence costs only if the board member had reasonable grounds to believe that his or her conduct was in conformity with the law, or was discharged or acquitted.
Despite the first paragraph, the Institute does not assume the member’s defence and does not pay any damages awarded as compensation for the injury resulting from the act if the member committed a gross fault or a personal fault separable from the functions of office.
2021, c. 32021, c. 3, s. 36.