§ 48-3a-711 — Disposition of assets in winding up.

Utah § 48-3a-711

• Jurisdiction: Utah
• Title 48: Unincorporated Business Entity Act
• Ch. 48-3a: Utah Revised Uniform Limited Liability Company Act
• Part 48-3a-7: Dissolution and Winding up

Text

(1) In winding up its activities and affairs, a limited liability company shall apply its assets to discharge its obligations to creditors, including members that are creditors.
(2) After a limited liability company complies with Subsection (1), any surplus must be distributed in the following order, subject to any charging order in effect under Section 48-3a-503:

(2)(a) to each person owning a transferable interest that reflects contributions made and not previously returned, an amount equal to the value of the unreturned contributions; and
(2)(b) in equal shares among members and dissociated members, except to the extent necessary to comply with any transfer effective under Section 48-3a-502.
(3) If a limited liability company does not have sufficient surplus to comply with Subsection (2)(a), any surplus must be distributed among the owners of transferable interests in proportion to the value of the respective unreturned contributions.
(4) All distributions made under Subsections (2) and (3) must be paid in money.

Legislative History

Enacted by Chapter 412, 2013 General Session