Texas Business Organizations Code
§ 101.613 — DISTRIBUTIONS
BO § 101.613Title 3. LIMITED LIABILITY COMPANIES · Ch. 101. LIMITED LIABILITY COMPANIES · Art. M. SERIES LIMITED LIABILITY COMPANY
Statute text
View on source(a)A limited liability company may make a distribution with respect to a protected series or registered series.
(b)A limited liability company may not make a distribution with respect to a protected series or registered series to a member if, immediately after making the distribution, the total amount of the liabilities of the protected series or registered series, other than liabilities described by Subsection (c), exceeds the fair value of the assets associated with the protected series or registered series.
(c)For purposes of Subsection (b), the liabilities of a protected series or registered series do not include:
(1)a liability to a member related to the member's membership interest associated with the protected series or registered series; or
(2)except as provided by Subsection (e), a liability of the protected series or registered series for which the recourse of creditors is limited to specified property of the protected series or registered series.
(d)For purposes of Subsection (b), the assets associated with a protected series or registered series include the fair value of property of the protected series or registered series subject to a liability for which recourse of creditors is limited to specified property of the protected series or registered series only if the fair value of that property exceeds the liability.
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Legislative history
Acts 2021, 87th Leg., R.S., Ch. 43 (S.B. 1523), Sec. 1, eff. June 1, 2022.