16-20-403. Liability for contributions.
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/ut/title-16/chapter-20/16-20-403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 10/1/2026
16-20-403. Liability for contributions.
(1)A person's obligation to make a contribution to a limited liability company is not excused by the person's death, disability, or other inability to perform personally.
(2)If a person does not fulfill an obligation to make a contribution other than money, the person is obligated at the option of the limited liability company to contribute money equal to the value of the part of the contribution which has not been made.
(a)The obligation of a person to make a contribution may be compromised only by consent of all members.
(b)If a creditor of a limited liability company extends credit or otherwise acts in reliance on an obligation described in Subsection
(1)without notice of a compromise under this Subsection
(3), the creditor may enforce the obligation.
Renumbered and Amended by Chapter 93 , 2026 General Session