Section 1. Right of Indemnification.
The Association shall indemnify its Trustees, Officers and employees, and may indemnify other persons described in Section 7237(a) of the California Corporations Code, including persons formerly occupying any such position, against all expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred by them in connection with any “proceeding,” as that term is used in that Section, and including an action by or in the right of the corporation, by reason of the fact that the person is or was a person described in that Section. “Expenses,” as used in this Section 1 of Article VIII, shall have the same meaning as in Section 7237(a) of the California Corporations Code.
Section 2. Purchase of Insurance.
The Association is authorized to and shall purchase insurance for its Trustees, Officers, employees, and agents protecting them against liabilities and expenses described herein, and the limitation on the payment of indemnification set forth above shall not apply to limit the conditions under which any amount of insurance proceeds may be paid to any Trustee, Officer, employee, or agent.