State Codes and Statutes
Statutes > Utah > Title-03 > Chapter-01 > 3-1-203-1-20. Voluntary dissolution -- Distribution of assets -- Proceedings.
(1) (a) An association may be dissolved:
(i) at a regular meeting, or a special meeting called for that purpose;
(ii) after 30 days advance notice of the time, place, and object of the meeting is served onthe members of the association as prescribed in the bylaws; and
(iii) by a two-thirds vote of the members voting.
(b) (i) The members shall elect a committee of three members to act as trustees on behalfof the association, and the trustees shall liquidate and distribute the association's assets within thetime fixed by the members.
(ii) The trustees may bring and defend actions necessary to protect and enforce the rightsof the association.
(iii) Any vacancies in the trusteeship may be filled by the remaining trustees.
(2) (a) If an association dissolves pursuant to this section, the trustees, a creditor, amember, or the attorney general may bring an action in the district court in the county where theprincipal place of business of the association is located.
(b) The court may specify:
(i) appropriate notice of the time and place for the submission of claims against theassociation, which notice may require creditors of and claimants against the association to submitaccounts and demands in writing at the specified place by a specific day, which date shall be atleast 40 days from the date of service or first publication of the notice;
(ii) the payment or satisfaction of claims and demands against the association, or theretention of money for such purpose;
(iii) the administration of trusts or the disposition of the property held in trust by or for theassociation;
(iv) the sale and disposition of any remaining property of the association and thedistribution or division of the property or its proceeds among the members or persons entitled tothem; and
(v) other matters related to the dissolution.
(c) All orders and judgments shall be binding upon the association, its property andassets, trustees, members, creditors, and all claimants against it.
(3) On dissolution, the assets of the association shall be distributed in the followingmanner and order:
(a) to pay the association's debts and expenses;
(b) to return to any investors the par value of their capital;
(c) to pay patrons on a pro rata basis the amount of any patronage capital credited to theiraccounts; and
(d) if there is a surplus, to distribute it among those patrons who have been members ofthe association at any time during the last five years preceding dissolution or for a longer periodof time if determined by the board of directors to be practicable, on the basis of patronage duringthat period.
(4) After the final settlement by the trustees, the association shall be considered dissolvedand shall cease to exist.
(5) The trustees shall make a report in duplicate of the proceedings held under thissection, which shall be signed, acknowledged, and filed as required for the filing of the articles ofincorporation.
(6) This section shall apply to all associations incorporated in this state.
Amended by Chapter 202, 1994 General Session
