Nevada § 86.5426 Distribution of money to creditors and members

Nevada Statutes

§ 86.5426 — Distribution of money to creditors and members

Nevada·Title 7 BUSINESS ASSOCIATIONS; SECURITIES; COMMODITIES·Ch. 86 Limited-Liability· INSOLVENCY; RECEIVERS AND TRUSTEES

After payment of all allowances, expenses and costs, and the satisfaction of all special and general liens upon the funds of the limited-liability company to the extent of their lawful priority, the creditors shall be paid proportionately to the amount of their respective debts, excepting mortgage and judgment creditors when the judgment has not been by confession for the purpose of preferring creditors. The creditors shall be entitled to distribution on debts not due, making in such case a rebate of interest, when interest is not accruing on the same. Unless otherwise provided in the articles of organization or operating agreement, the surplus funds, if any, after payment of the creditors and the costs, expenses and allowances, shall be distributed among the members or their legal represe

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After payment of all allowances, expenses and costs, and the satisfaction of all special and general liens upon the funds of the limited-liability company to the extent of their lawful priority, the creditors shall be paid proportionately to the amount of their respective debts, excepting mortgage and judgment creditors when the judgment has not been by confession for the purpose of preferring creditors. The creditors shall be entitled to distribution on debts not due, making in such case a rebate of interest, when interest is not accruing on the same. Unless otherwise provided in the articles of organization or operating agreement, the surplus funds, if any, after payment of the creditors and the costs, expenses and allowances, shall be distributed among the members or their legal representatives in respect of their contributions to capital.

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