48-2c-1006 - Duty to return wrongful distributions. - Utah Statutes

48-2c-1006. Duty to return wrongful distributions.
If a member receives a distribution by mistake or in violation of the articles oforganization, the operating agreement, or Section 48-2c-1005, that member is obligated to returnthe wrongful distribution to the company and shall remain liable to the company for a period offive years thereafter for the amount of the distribution wrongfully made provided a proceeding torecover the distribution from the member is commenced prior to the expiration of the five-yearperiod.

Enacted by Chapter 260, 2001 General Session