The contribution of a member to a limited liability company may be in cash, property or services rendered, or a promissory
note or other obligation to contribute cash or property or to perform services.
68 Del. Laws, c. 434, § 1.;
§ 18-502. Liability for contribution.
(a) Except as provided in a limited liability company agreement, a member is obligated to a limited liability company to perform
any promise to contribute cash or property or to perform services, even if the member is unable to perform because of death,
disability or any other reason. If a member does not make the required contribution of property or services, the member is
obligated at the option of the limited liability company to contribute cash equal to that portion of the agreed value (as
stated in the records of the limited liability company) of the contribution that has not been made. The foregoing option
shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the limited
liability company may have against such member under the limited liability company agreement or applicable law.
(b) Unless otherwise provided in a limited liability company agreement, the obligation of a member to make a contribution
or return money or other property paid or distributed in violation of this chapter may be compromised only by consent of all
the members. Notwithstanding the compromise, a creditor of a limited liability company who extends credit, after the entering
into of a limited liability company agreement or an amendment thereto which, in either case, reflects the obligation, and
before the amendment thereof to reflect the compromise, may enforce the original obligation to the extent that, in extending
credit, the creditor reasonably relied on the obligation of a member to make a contribution or return. A conditional obligation
of a member to make a contribution or return money or other property to a limited liability company may not be enforced unless
the conditions of the obligation have been satisfied or waived as to or by such member. Conditional obligations include contributions
payable upon a discretionary call of a limited liability company prior to the time the call occurs.
(c) A limited liability company agreement may provide that the interest of any member who fails to make any contribution that
the member is obligated to make shall be subject to specified penalties for, or specified consequences of, such failure. Such
penalty or consequence may take the form of reducing or eliminating the defaulting member's proportionate interest in a limited
liability company, subordinating the member's limited liability company interest to that of nondefaulting members, a forced
sale of that limited liability company interest, forfeiture of the defaulting member's limited liability company interest,
the lending by other members of the amount necessary to meet the defaulting member's commitment, a fixing of the value of
the defaulting member's limited liability company interest by appraisal or by formula and redemption or sale of the limited
liability company interest at such value, or other penalty or consequence.
68 Del. Laws, c. 434, § 1; 70 Del. Laws, c. 186, § 1.;
§ 18-503. Allocation of profits and losses.
The profits and losses of a limited liability company shall be allocated among the members, and among classes or groups of
members, in the manner provided in a limited liability company agreement. If the limited liability company agreement does
not so provide, profits and losses shall be allocated on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-504. Allocation of distributions.
Distributions of cash or other assets of a limited liability company shall be allocated among the members, and among classes
or groups of members, in the manner provided in a limited liability company agreement. If the limited liability company agreement
does not so provide, distributions shall be made on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-505. Defense of usury not available.
No obligation of a member or manager of a limited liability company to the limited liability company arising under the limited
liability company agreement or a separate agreement or writing, and no note, instrument or other writing evidencing any such
obligation of a member or manager, shall be subject to the defense of usury, and no member or manager shall interpose the
defense of usury with respect to any such obligation in any action.
The contribution of a member to a limited liability company may be in cash, property or services rendered, or a promissory
note or other obligation to contribute cash or property or to perform services.
68 Del. Laws, c. 434, § 1.;
§ 18-502. Liability for contribution.
(a) Except as provided in a limited liability company agreement, a member is obligated to a limited liability company to perform
any promise to contribute cash or property or to perform services, even if the member is unable to perform because of death,
disability or any other reason. If a member does not make the required contribution of property or services, the member is
obligated at the option of the limited liability company to contribute cash equal to that portion of the agreed value (as
stated in the records of the limited liability company) of the contribution that has not been made. The foregoing option
shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the limited
liability company may have against such member under the limited liability company agreement or applicable law.
(b) Unless otherwise provided in a limited liability company agreement, the obligation of a member to make a contribution
or return money or other property paid or distributed in violation of this chapter may be compromised only by consent of all
the members. Notwithstanding the compromise, a creditor of a limited liability company who extends credit, after the entering
into of a limited liability company agreement or an amendment thereto which, in either case, reflects the obligation, and
before the amendment thereof to reflect the compromise, may enforce the original obligation to the extent that, in extending
credit, the creditor reasonably relied on the obligation of a member to make a contribution or return. A conditional obligation
of a member to make a contribution or return money or other property to a limited liability company may not be enforced unless
the conditions of the obligation have been satisfied or waived as to or by such member. Conditional obligations include contributions
payable upon a discretionary call of a limited liability company prior to the time the call occurs.
(c) A limited liability company agreement may provide that the interest of any member who fails to make any contribution that
the member is obligated to make shall be subject to specified penalties for, or specified consequences of, such failure. Such
penalty or consequence may take the form of reducing or eliminating the defaulting member's proportionate interest in a limited
liability company, subordinating the member's limited liability company interest to that of nondefaulting members, a forced
sale of that limited liability company interest, forfeiture of the defaulting member's limited liability company interest,
the lending by other members of the amount necessary to meet the defaulting member's commitment, a fixing of the value of
the defaulting member's limited liability company interest by appraisal or by formula and redemption or sale of the limited
liability company interest at such value, or other penalty or consequence.
68 Del. Laws, c. 434, § 1; 70 Del. Laws, c. 186, § 1.;
§ 18-503. Allocation of profits and losses.
The profits and losses of a limited liability company shall be allocated among the members, and among classes or groups of
members, in the manner provided in a limited liability company agreement. If the limited liability company agreement does
not so provide, profits and losses shall be allocated on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-504. Allocation of distributions.
Distributions of cash or other assets of a limited liability company shall be allocated among the members, and among classes
or groups of members, in the manner provided in a limited liability company agreement. If the limited liability company agreement
does not so provide, distributions shall be made on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-505. Defense of usury not available.
No obligation of a member or manager of a limited liability company to the limited liability company arising under the limited
liability company agreement or a separate agreement or writing, and no note, instrument or other writing evidencing any such
obligation of a member or manager, shall be subject to the defense of usury, and no member or manager shall interpose the
defense of usury with respect to any such obligation in any action.
The contribution of a member to a limited liability company may be in cash, property or services rendered, or a promissory
note or other obligation to contribute cash or property or to perform services.
68 Del. Laws, c. 434, § 1.;
§ 18-502. Liability for contribution.
(a) Except as provided in a limited liability company agreement, a member is obligated to a limited liability company to perform
any promise to contribute cash or property or to perform services, even if the member is unable to perform because of death,
disability or any other reason. If a member does not make the required contribution of property or services, the member is
obligated at the option of the limited liability company to contribute cash equal to that portion of the agreed value (as
stated in the records of the limited liability company) of the contribution that has not been made. The foregoing option
shall be in addition to, and not in lieu of, any other rights, including the right to specific performance, that the limited
liability company may have against such member under the limited liability company agreement or applicable law.
(b) Unless otherwise provided in a limited liability company agreement, the obligation of a member to make a contribution
or return money or other property paid or distributed in violation of this chapter may be compromised only by consent of all
the members. Notwithstanding the compromise, a creditor of a limited liability company who extends credit, after the entering
into of a limited liability company agreement or an amendment thereto which, in either case, reflects the obligation, and
before the amendment thereof to reflect the compromise, may enforce the original obligation to the extent that, in extending
credit, the creditor reasonably relied on the obligation of a member to make a contribution or return. A conditional obligation
of a member to make a contribution or return money or other property to a limited liability company may not be enforced unless
the conditions of the obligation have been satisfied or waived as to or by such member. Conditional obligations include contributions
payable upon a discretionary call of a limited liability company prior to the time the call occurs.
(c) A limited liability company agreement may provide that the interest of any member who fails to make any contribution that
the member is obligated to make shall be subject to specified penalties for, or specified consequences of, such failure. Such
penalty or consequence may take the form of reducing or eliminating the defaulting member's proportionate interest in a limited
liability company, subordinating the member's limited liability company interest to that of nondefaulting members, a forced
sale of that limited liability company interest, forfeiture of the defaulting member's limited liability company interest,
the lending by other members of the amount necessary to meet the defaulting member's commitment, a fixing of the value of
the defaulting member's limited liability company interest by appraisal or by formula and redemption or sale of the limited
liability company interest at such value, or other penalty or consequence.
68 Del. Laws, c. 434, § 1; 70 Del. Laws, c. 186, § 1.;
§ 18-503. Allocation of profits and losses.
The profits and losses of a limited liability company shall be allocated among the members, and among classes or groups of
members, in the manner provided in a limited liability company agreement. If the limited liability company agreement does
not so provide, profits and losses shall be allocated on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-504. Allocation of distributions.
Distributions of cash or other assets of a limited liability company shall be allocated among the members, and among classes
or groups of members, in the manner provided in a limited liability company agreement. If the limited liability company agreement
does not so provide, distributions shall be made on the basis of the agreed value (as stated in the records of the limited
liability company) of the contributions made by each member to the extent they have been received by the limited liability
company and have not been returned.
68 Del. Laws, c. 434, § 1.;
§ 18-505. Defense of usury not available.
No obligation of a member or manager of a limited liability company to the limited liability company arising under the limited
liability company agreement or a separate agreement or writing, and no note, instrument or other writing evidencing any such
obligation of a member or manager, shall be subject to the defense of usury, and no member or manager shall interpose the
defense of usury with respect to any such obligation in any action.