Section 489.404 - Sharing of and right to distributions before dissolution1. Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under section 489.502 and any charging order in effect under section 489.503.2. A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the limited liability company decides to make an interim distribution. A person's dissociation does not entitle the person to a distribution.3. A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in section 489.707, subsection 4, a limited liability company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person's share of distributions.4. If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the company's obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made. 2008 Acts, ch 1162, § 34, 155; 2023 Acts, ch 152, §38, 161 2023 amendment effective January 1, 2024; 2023 Acts, ch 152, §161
Amended by 2023 Iowa, ch 152, s 38, eff. 1/1/2024.2008 Acts, ch 1162, §34, 1552023 amendment effective January 1, 2024; 2023 Acts, ch 152, §161
Section amended