Code of Alabama - Title 10A: Alabama Business and Nonprofit Entities Code - Section 10A-1-9.21 - Known claims against dissolved domestic entity

Section 10A-1-9.21 - Known claims against dissolved domestic entity.

(a) A dissolved domestic entity may dispose of the known claims against it by following the procedure described in subsection (b) at any time after the effective date of the dissolution of that dissolved domestic entity.

(b) A dissolved domestic entity shall give notice of the dissolution in writing to the holder of any known claim. The notice must:

(1) Identify the dissolved domestic entity;

(2) Describe the information required to be included in a claim;

(3) Provide a mailing address to which the claim is to be sent;

(4) State the deadline, which may not be fewer than 120 days from the effective date of the notice, by which the dissolved domestic entity must receive the claim; and

(5) State that if not sooner barred, the claim will be barred if not received by the deadline.

(c) Unless sooner barred by any other statute limiting actions, a claim against a dissolved domestic entity is barred:

(1) If a claimant who was given notice under subsection (b) does not deliver the claim to the dissolved domestic entity by the deadline;

(2) If a claimant whose claim was rejected by the dissolved domestic entity does not commence a proceeding to enforce the claim within 90 days from the effective date of the rejection notice.

(d) For purposes of this section, "known claim" or "claim" includes unliquidated claims but does not include a contingent liability that has not matured so that there is no immediate right to bring suit, or a claim based on an event occurring after the effective date of dissolution.

(e) Nothing in this section shall be deemed to extend any otherwise applicable statute of limitations.

(Acts 1994, No. 94-245, p. 343, §1; §10-2B-14.06; amended and renumbered by Act 2009-513, p. 967, §77; Act 2018-125, §6.)

Last modified: May 3, 2021