Common use of Order of Payment of Liabilities Upon Dissolution Clause in Contracts

Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC’s liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (d) solely to the Class A Members pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other.

Appears in 2 contracts

Samples: Limited Liability Company Operating Agreement (Peoples Liberation Inc), Limited Liability Company Operating Agreement (Peoples Liberation Inc)

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Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC’s 's liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (c) to Members in accordance with, but only to the extent of, their respective positive adjusted Capital Account balances; and (d) solely to the Class A Members pro rata PRO RATA in accordance with their respective Percentage Interests in the LLC vis-à-vis each otherInterests.

Appears in 2 contracts

Samples: Operating Agreement (Peoples Liberation Inc), Operating Agreement (Peoples Liberation Inc)

Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC’s 's liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (dc) solely to the Class A Members pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each otherprovisions of SECTION 5.3 hereof.

Appears in 1 contract

Samples: Limited Liability Company Operating Agreement (Peoples Liberation Inc)

Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC’s 's liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (dc) solely to the Class A Members pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each otherrespective positive adjusted Capital Account balances.

Appears in 1 contract

Samples: Limited Liability Company Operating Agreement (Tarrant Apparel Group)

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Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC’s 's liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (dc) solely to the Class A Members pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each otherprovisions of SECTION 5.3 HEREOF.

Appears in 1 contract

Samples: Limited Liability Company Operating Agreement (Peoples Liberation Inc)

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