§ 48-245-502 — Known and unknown claims against LLC

Tennessee § 48-245-502

• Jurisdiction: Tennessee
• Title: 48

Text

(a) General. When a notice of dissolution has been filed with the secretary of state, and the business of the LLC is not to be wound up and terminated by merging the dissolved LLC into a successor organization under § 48-245-501(a) , then the LLC may give notice of the filing to each creditor of and claimant against the LLC, known or unknown, present or future, and contingent or noncontingent, in accordance with subsections (b) and (c). (b) Known Claims Against Dissolved LLC - Notice of Dissolution. (1) An LLC may dispose of the known claims against it by following the procedure described in this subsection (b). (2) The dissolved LLC shall notify its known claimants in writing of the dissolution at any time after the effective date of the dissolution. The written notice must: (A) Describe information that must be included in a claim; (B) State whether the claim is admitted, or not admitted, and if admitted: (i) The amount that is admitted, which may be as of a given date; and (ii) Any interest obligation if fixed by an instrument of indebtedness; (C) Provide a mailing address where a claim may be sent; (D) State the deadline, which may not be fewer than four (4) months from the effective date of the written notice, by which the dissolved LLC must receive the claim; and (E) State that, except to the extent that any claim is admitted, the claim will be barred if written notice of the claim is not received by the deadline. (3) A claim against the dissolved LLC is barred to the extent that it is not admitted: (A) If the dissolved LLC delivered written notice to the claimant in accordance with subdivision (b)(2) and the claimant does not deliver a written notice of the claim to the dissolved LLC by the deadline; or (B) If the dissolved LLC delivered written notice to the claimant that the claimant's claim is rejected, in whole or in part, and the claimant does not commence a proceeding to enforce the claim within three (3) months from the effective date of the rejection notice. (4) For purposes of this section, "claim" does not include a contingent liability or a claim based on an event occurring after the effective date of dissolution. (5) For purposes of this section, written notice is effective at the earliest of the following: (A) When received; (B) Five (5) days after its deposit in the United States mail, if mailed correctly addressed and with first class postage affixed thereon; (C) On the date shown on the return receipt, if sent by registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the addressee; or (D) Twenty (20) days after deposit in the United States mail, as evidenced by the postmark if mailed correctly addressed, and with other than first class, registered or certified postage affixed. (c) Unknown Claims Against Dissolved LLC - Notice - Limitations. (1) A dissolved LLC may also publish notice of its dissolution and request that persons with claims against the LLC present them in accordance with the notice. (2) The notice must: (A) Be published one (1) time in a newspaper of general circulation in the county where the dissolved LLC's principal executive office is or was last located; (B) Describe the information that must be included in a claim and provide a mailing address where the claim may be sent; and (C) State that a claim against the LLC will be barred unless a proceeding to enforce the claim is commenced within two (2) years after the publication of the notice. (3) If the dissolved LLC publishes a newspaper notice in accordance with subsection (b), the claim of each of the following claimants is barred unless the claimant commences a proceeding to enforce the claim against the dissolved LLC within two (2) years after the publication date of the newspaper notice: (A) A claimant who did not receive written notice under subsection (b); (B) A claimant whose claim was timely sent to the dissolved LLC but not acted on; or (C) A claimant whose claim is contingent or based on an event occurring after the effective date of dissolution. (4) A claim may be enforced under this subsection (c): (A) Against the dissolved LLC, to the extent of its undistributed assets; or (B) If the assets have been distributed in liquidation, against a member of the dissolved LLC to the extent of the member's pro rata share of the claim or the LLC assets distributed to the member in liquidation, whichever is less, but a member's total liability for all claims under this subsection (c) may not exceed the total amount of assets distributed to the member. (d) If Notice is Not Given. If the dissolved LLC does not comply with subsections (b) and (c), then claimants against the LLC may enforce their claims: (1) Against the dissolved LLC to the extent of its undistributed assets; or (2) If the assets have been distributed in liquidation, against a member of the dissolved LLC to the extent of the member's pro rata share of the claim or the LLC assets distributed to the member in liquidation, whichever is less, but a member's total liability for all claims under this section may not exceed the total amount of assets distributed to the member; provided, that a claim may not be enforced against a member of a dissolved LLC who received a distribution in liquidation after three (3) years from the date of the filing of articles of termination.

Legislative History

Acts 1994, ch. 868, § 1.