§ 7-58-1209 — Court proceeding

(1) Upon application by a dissolved limited
cooperative association that has published a notice under section 7-90-912, the
proper court may determine the amount and form of security to be provided for
payment of claims against the association that are contingent, have not been made
known to the association, or are based on an event occurring after the effective
date of dissolution but that, based on the facts known to the association, are
reasonably anticipated to arise after the effective date of dissolution.

(2) Not later than ten days after filing an application under subsection (1) of
this section, a dissolved limited cooperative association shall give notice of the
proceeding to each known claimant holding a contingent claim.

(3) The court may appoint a representative in a proceeding brought under
this section to represent all claimants whose identities are unknown. The dissolved
limited cooperative association shall pay reasonable fees and expenses of the
representative, including all reasonable attorney fees and expert witness fees.

(4) Provision by the dissolved limited cooperative association for security in
the amount and the form ordered by the court satisfies the association's obligations
with respect to claims that are contingent, have not been made known to the
association, or are based on an event occurring after the effective date of
dissolution, and the claims shall not be enforced against a member that received a
distribution.

Legislative History

Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 808, � 1, effective April 2, 2012.