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KRS 275.220

Member not entitled to distribution other than in cash -- Restriction on in-kind distribution

Known as the Kentucky Limited Liability Company Act

The act spans §§ 275.001–275.540 (110 sections).

Effective: July 15, 2010 History: Amended 2010 Ky

Member not entitled to distribution other than in cash -- Restriction on in- kind distribution. Unless otherwise provided in a written operating agreement:

(1) A member, regardless of the nature of the member's contribution, shall not have a right to demand and receive any distribution from the limited liability company in any form other than cash;

(2) A member shall not be compelled to accept from a limited liability company a distribution of any asset in kind to the extent that the percentage of the asset distributed to the member exceeds the percentage that the member would have shared in a cash distribution equal to the value of the property at the time of distribution; and (3) The property of a limited liability company shall not be subject to KRS 381.135(1)(a)1.

Official source: Kentucky General Assembly. Reproduced from public-domain Kentucky statutes; confirm against the official source for the current text. Not legal advice.