KRS § 275.530 Distribution of assets of nonprofit limited liability company.
AI-assisted research summary: A nonprofit LLC in dissolution must first pay debts, return property held on a return condition, and transfer restricted assets to similar nonprofit entities; leftover assets may be distributed as allowed by a dissolution plan.
275.530 Distribution of assets of nonprofit limited liability company. The assets of a nonprofit limited liability company in the process of dissolution shall be applied and distributed as follows: (1) All liabilities and obligations of the nonprofit limited liability company shall be paid and discharged or adequate provisions made for them; (2) Assets received and held by the nonprofit limited liability company upon condition requiring return, transfer, or conveyance, which condition occurs by reason of the dissolution, shall be returned, transferred, or conveyed in accordance with the condition's requirements; (3) Assets received and held by the nonprofit limited liability company subject to limitations permitting their use only for a nonprofit purpose, but not held upon a condition requiring return, transfer, or conveyance by reason of the dissolution, shall be transferred or conveyed to one (1) or more domestic or foreign nonprofit corporations, limited liability companies, societies, or organizations engaged in activities substantially similar to those of the dissolving nonprofit limited liability company, pursuant to a plan of distribution; and (4) Any remaining assets may be distributed to those nonprofit corporations, limited liability companies, societies, or organizations as may be specified in a plan of dissolution, including those that are members of the nonprofit limited liability companies. Effective: July 15, 2010 History: Repealed and reenacted 2010 Ky. Acts ch. 51, sec. 11, effective July 15, 2010. -- Created 2007 Ky. Acts ch. 137, sec. 11, effective June 26, 2007. Legislative Research Commission Note (7/15/2010). 2010 Ky. Acts ch. 51, sec. 183, provides, "The specific textual provisions of Sections 1 to 178 of this Act which reflect amendments made to those sections by 2007 Ky. Acts ch. 137 shall be deemed effective as of June 26, 2007, and those provisions are hereby made expressly retroactive to that date, with the remainder of the text of those sections being unaffected by the provisions of this section."