17-7689.   Events of bankruptcy.A person ceases to be a member of a limited liabilitycompany and shall becomean assignee upon the happening of any of the following events:

      (a)   Unless otherwise provided in an operating agreement, or with the writtenconsent of allmembers, 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 anorderfor relief, in anybankruptcy or insolvency proceeding;

      (4)   files a petition or answer seeking for the member's own self anyreorganization,arrangement, composition, readjustment, liquidation, dissolution or similarrelief under any statute,law or regulation;

      (5)   files an answer or other pleading admitting or failing to contest thematerial allegationsof 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 themember'sproperties; or

      (b)   Unless otherwise provided in an operating agreement, or with the writtenconsent of allmembers, 120 days after the commencement of any proceeding against the memberseekingreorganization, arrangement, composition, readjustment, liquidation,dissolution or similar reliefunder any statute, law or regulation, if the proceeding has not been dismissed,or if within 90 daysafter the appointment without the member's consent or acquiescence of atrustee,receiver or liquidator of themember or of all or any substantial part of the member's properties, theappointment isnot vacated or stayed,or within 90 days after the expiration of any such stay, the appointment is notvacated.

      History:   L. 1999, ch. 119, § 28; Jan. 1, 2000.