(1) An association is dissolved by the opening of insolvency proceedings and upon the order becoming final and binding by means of which the opening of the insolvency proceedings has been rejected for insufficiency of assets. If the proceedings are discontinued on the request of the debtor, or terminated after the confirmation of an insolvency plan that provides for the association to continue in existence, then the general meeting may pass a resolution that the association is to continue in existence. The articles of association may provide that, if insolvency proceedings are opened, the association is to continue as an association without legal personality; in this case as well, provided the prerequisites of sentence 2 are satisfied, a resolution may be passed to continue the association as an association with legal personality.
(2) If an association is insolvent or is overindebted, then the board is to apply for the opening of insolvency proceedings. If the filing of the request is delayed, the members of the board who are at fault are responsible to the creditors for the damage resulting from this; they are liable as joint and several debtors.