§ 13-307. Transfer of assets

   (a) Action by State agencies. -- On the transfer date the Board of Public Works, the Board of Regents, and any other required State department, agency, or body shall take all legal action necessary to transfer, as a grant without consideration, the medical system assets to the Medical System Corporation.

(b) Lease of assets. -- If it is not appropriate or desirable to transfer title to any medical system assets, such assets shall be leased to the Medical System Corporation or other legal arrangement effected giving control and use to the Medical System Corporation, the consideration to be a payment equal to all costs of the University that become due after the transfer date with respect to purchase, maintenance, or repair of such assets.

(c) Assets not transferable on transfer date. -- If ownership of medical system assets cannot be legally transferred on the transfer date, ownership shall be transferred as soon as practicable after it is legal to do so. In any event, provisions shall be made, by lease or other arrangement, for the Medical System Corporation to have control and use of all medical system assets on and after the transfer date.

(d) Conditions for transfer. -- The following conditions shall be satisfied before transfer of the medical system assets:

   (1) The Medical System Corporation must be established in accordance with this subtitle; and

   (2) An annual contract must be in effect.

(e) Approval for transfer. -- The approval of such transfer by the Board of Public Works shall constitute a conclusive determination that:

   (1) Such transfer is in compliance with this subtitle;

   (2) The articles of incorporation of the Medical System Corporation are in proper form; and

   (3) All conditions of the transfer have been satisfied.

HISTORY: 1984, ch. 288; 1996, ch. 10, § 16.