§ 1207.
182 words·~1 min read·
/vt/1207A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1207. Distribution of assets in winding up mutual benefit enterprise
(a)In winding up a mutual benefit enterprise’s business, the enterprise shall apply its assets to discharge its obligations to creditors, including members that are creditors. The enterprise shall apply any remaining assets to pay in money the net amount distributable to members in accordance with their right to distributions under subsection
(b)of this section.
(b)Unless the organic rules otherwise provide, in this subsection, “financial interests” means the amounts recorded in the names of members in the records of a mutual benefit enterprise at the time a distribution is made, including amounts paid to become a member, amounts allocated but not distributed to members, and amounts of distributions authorized but not yet paid to members. Unless the organic rules otherwise provide, each member is entitled to a distribution from the enterprise of any remaining assets in the proportion of the member’s financial interests to the total financial interests of the members after all other obligations are satisfied. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)