§ 704 — Distribution of assets

New York § 704

• Jurisdiction: New York
• Law LLC: Limited Liability Company Law
• Art. 7: Dissolution

Text

§ 704. Distribution of assets. Upon the winding up of a limited\nliability company, the assets shall be distributed as follows:\n (a) to creditors, including members who are creditors, to the extent\npermitted by law, in satisfaction of liabilities of the limited\nliability company, whether by payment or by establishment of adequate\nreserves, other than liabilities for distributions to members and former\nmembers under section five hundred seven or section five hundred nine of\nthis chapter;\n (b) except as provided in the operating agreement, to members and\nformer members in satisfaction of liabilities for distributions under\nsection five hundred seven or section five hundred nine of this chapter;\nand\n (c) except as provided in the operating agreement, to members first\nfor the return of their contributions, to the extent not previously\nreturned, and second respecting their membership interests, in the\nproportions in which the members share in distributions in accordance\nwith section five hundred four of this chapter.\n