§ 7-16-25 - Liability for contribution. - Rhode Island Statutes

SECTION 7-16-25

   § 7-16-25  Liability for contribution.– (a) A promise by a member to make a capital contribution to the limitedliability company is not enforceable unless set out in a writing signed by themember.

   (b) Except as provided in the operating agreement, a member'sobligation to make his or her capital contribution is not excused because ofdeath, disability or other reason.

   (c) If a member does not make a capital contribution ofproperty or services as and when promised, the member is obligated, at theoption of the limited liability company, to contribute cash equal to thatportion of the value of the capital contribution that has not been made.

   (d) Unless otherwise provided in the operating agreement, theobligation of a member to make a capital contribution may be compromised onlywith the unanimous consent of the members.

   (2) Notwithstanding the compromise, a creditor of a limitedliability company who extends credit or otherwise acts in reliance on thatobligation after the member signs a writing which reflects the obligation andbefore the compromise may enforce the original obligation.