| (a) Adequate funds. (1) A corporation shall not enter into a contract for goods or services that creates a legally binding obligation against the corporation unless there are available to it, at the time of execution of the contract, adequate funds and projected receipts sufficient to pay the obligation created by such contract as well as all other known obligations of the corporation. (2) Each contract shall specify on its face whether or not there are adequate funds and projected receipts available at the time of its execution. If adequate funds and projected receipts are not available at the time of its execution, the contract must state that the corporation is not legally obligated for such goods and services beyond funds on hand and actual payment for such goods and services shall be within the sole discretion of the Board at such time as funds may be available to the corporation. Each contract where there is inadequate
funding shall also include a statement to the effect that: (A) the contract does not create a present or future legally binding obligation of the corporation beyond monies on hand as of the effective date of the contract; (B) the contractor waives his or her right to sue for non-payment if no monies are available; and (C) the contract is subject to termination upon 30 days written notice by either party. (b) Department review. (1) The following contracts must be submitted to the executive director prior to contract execution for review as to form and consistency with the provisions of this subchapter: (A) construction contracts; (B) contracts relating to the provision of professional services; (C) contracts relating to the provision of scientific services; and (D) all contracts in excess of $100,000.
(2) A corporation may not divide contracts into smaller quantities, reduce time periods, or otherwise limit the maximum amount payable to a contractor to avoid or appear to avoid the requirements of this subsection. (c) The department will not be a third party to a contract.
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