New York § 505 Distributions in kind

New York Statutes

§ 505 — Distributions in kind

New York § 505

Law LLCLimited Liability Company Law

Art. 5Contributions and Distributions

This text of New York § 505 (Distributions in kind) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Limited Liability Company Law § 505 (2026).

Text

§ 505. Distributions in kind.

(a)Except as provided in the operating\nagreement, a member, regardless of the nature of his or her\ncontribution, has no right to demand and receive any distribution from\nthe limited liability company in any form other than cash.\n (b) Except as provided in the operating agreement, a member may not be\ncompelled to accept a distribution of any asset in kind from a limited\nliability company to the extent that the percentage of the asset\ndistributed to him or her exceeds a percentage of that asset that is\nequal to the percentage in which he or she shares in distributions from\nthe limited liability company.\n

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§ 505. Distributions in kind. (a) Except as provided in the operating\nagreement, a member, regardless of the nature of his or her\ncontribution, has no right to demand and receive any distribution from\nthe limited liability company in any form other than cash.\n (b) Except as provided in the operating agreement, a member may not be\ncompelled to accept a distribution of any asset in kind from a limited\nliability company to the extent that the percentage of the asset\ndistributed to him or her exceeds a percentage of that asset that is\nequal to the percentage in which he or she shares in distributions from\nthe limited liability company.\n