§ 1003.
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/vt/1003A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1003. Contribution agreements
(a)Except as otherwise provided in the agreement, the following rules apply to an agreement made by a person before formation of a mutual benefit enterprise to make a contribution to the enterprise:
(1)The agreement is irrevocable for six months after the agreement is signed by the person unless all parties to the agreement consent to the revocation.
(2)If a person does not make a required contribution:
(A)the person is obligated, at the option of the enterprise, once formed, to contribute money equal to the value of that part of the contribution that has not been made, and the obligation may be enforced as a debt to the enterprise; or
(B)the enterprise, once formed, may rescind the agreement if the debt remains unpaid more than 20 days after the enterprise demands payment from the person and, upon rescission, the person has no further rights or obligations with respect to the enterprise.
(b)Unless the organic rules or an agreement to make a contribution to a mutual benefit enterprise otherwise provide, if a person does not make a required contribution to an enterprise, the person or the person’s estate is obligated, at the option of the enterprise, to contribute money equal to the value of the part of the contribution which has not been made. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)