HARRY HUGHES, Governor

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(B)  THE ANNUAL CONTRACT WILL BE DEVELOPED BY THE CHIEF
EXECUTIVE OFFICER AND, THE DEAN OF THE SCHOOL OF MEDICINE AND,
THE DIRECTOR OF THE INSTITUTE, AND OTHER UNIVERSITY OFFICIALS AS
DETERMINED BY THE CHANCELLOR. THE ANNUAL CONTRACT WILL BE
SUBMITTED TO THE CHANCELLOR FOR CONSIDERATION, MODIFICATION, AND
APPROVAL.

(C)  THE BOARD OF DIRECTORS AND BOARD OF REGENTS MAY
ESTABLISH PROCEDURES FOR THE APPROVAL OF THE ANNUAL CONTRACT.

(D)  IF THE UNIVERSITY AND THE MEDICAL SYSTEM CORPORATION DO
NOT ENTER INTO AN ANNUAL CONTRACT FOR ANY FISCAL YEAR, THE ANNUAL
CONTRACT FOR THE PREVIOUS YEAR SHALL REMAIN IN FORCE UNTIL
ANOTHER ANNUAL CONTRACT IS APPROVED.

13-1B-07.

(A)  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)  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)  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)  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)  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