79-29-805 - Distribution of assets.
§ 79-29-805. Distribution of assets.
Upon the winding up of a limited liability company, the assets must be distributed as follows:
(a) To creditors, including members and managers who are creditors, to the extent permitted by law, in satisfaction of liabilities of the limited liability company (whether by payment or by establishment of reserves) other than liabilities for distributions to members under Section 79-29-601 or 79-29-604;
(b) Except as provided in the certificate of formation or limited liability company agreement, to members and former members in satisfaction of liabilities for distributions under Section 79-29-601 or 79-29-604; and
(c) Except as provided in the certificate of formation or limited liability company agreement, to members first for the return of their contributions and secondly respecting their limited liability company interests, in the proportions in which the members share in distributions.
Sources: Laws, 1994, ch. 402, § 52, eff from and after July 1, 1994.