17-7689. Events of bankruptcy.
17-7689
17-7689. Events of bankruptcy.
A person ceases to be a member of a limited liability
company and shall become
an assignee upon the happening of any of the following events:
(a) Unless otherwise provided in an operating agreement, or with the written
consent of all
members, a member:
(1) Makes an assignment for the benefit of creditors;
(2) files a voluntary petition in bankruptcy;
(3) is adjudged a bankrupt or insolvent, or has entered against the member an
order
for relief, in any
bankruptcy or insolvency proceeding;
(4) files a petition or answer seeking for the member's own self any
reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief under any statute,
law or regulation;
(5) files an answer or other pleading admitting or failing to contest the
material allegations
of a petition filed against the member in any proceeding of this nature;
(6) seeks, consents to or acquiesces in the appointment of a trustee,
receiver or liquidator of the member or of all or any substantial part of the
member's
properties; or
(b) Unless otherwise provided in an operating agreement, or with the written
consent of all
members, 120 days after the commencement of any proceeding against the member
seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief
under any statute, law or regulation, if the proceeding has not been dismissed,
or if within 90 days
after the appointment without the member's consent or acquiescence of a
trustee,
receiver or liquidator of the
member or of all or any substantial part of the member's properties, the
appointment is
not vacated or stayed,
or within 90 days after the expiration of any such stay, the appointment is not
vacated.
History: L. 1999, ch. 119, § 28; Jan. 1, 2000.