Section 1056 Bylaws

Section 1056. Right of Claimant to Bring Suit. -- If a claim under this chapter is not paid in full by the Association within 30 days after a written claim has been received by the Association, the claimant may at any time thereafter bring an action against the Association to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending any Proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Association) that the claimant has not met the standards of conduct which make it permissible under applicable law for the Association to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Association. Neither the failure of the Association (including the Board, independent legal counsel or the House) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct, nor an actual determination by the Association (including its Board of Governors, independent legal counsel or the House of Delegates) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant is not entitled to indemnification.