The bylaws of the district may set forth a provision eliminating or limiting the personal liability of a director to the district or its qualified electors for monetary damages for breach of fiduciary duty as a director, provided that such provision shall not eliminate or limit the liability of a director:

1. (a) For any breach of the director’s duty of loyalty to the district or its qualified electors.
2. (b) For acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law.

3. (c) For any transaction from which the director derived an improper personal benefit.

   No such provision shall eliminate or limit the liability of a director for any act or omission occurring prior to the date when such provision becomes effective.

[43-204B, added 1988, ch. 325, sec. 2, p. 988.]