Examples of Liquidating Distribution in a sentence
Upon dissolution, all assets remaining after the payment of all liabilities (including any insurance claim and payments due on any surplus note) shall be distributed in equal proportions exclusively to the Members which, on the date of the Liquidating Distribution, are organizations described in I.R.C. § 501(c)(3) and exempt from federal income tax under I.R.C. § 501(a).
If there are no Members on the date of the Liquidating Distributions, then payment shall be made to former Members which are organizations described in I.R.C. § 501(c)(3) and exempt from tax under I.R.C. § 501(a) on the date of the Liquidating Distribution and which were Members on the date of the completion of the vote by the Members to dissolve, or to those former Members specified in a court or other governmental order for the dissolution.
The LLC shall only make a Liquidating Distribution in the circumstances and on the terms set forth in Article 18.