§ 8931. Contributions to capital.
(a) General rule.--An interest in a limited liability company may be issued in exchange for cash, tangible or intangible property, services rendered or a promissory note or other obligation to contribute cash or tangible or intangible property or to perform services.
(b) Enforceability.--A promise by a member to contribute to a company is not enforceable unless set out in a writing signed by the member. This subsection may not be varied by any provision of the certificate of organization or operating agreement.
(c) Inability to perform.--A member is obligated to the company to perform any enforceable promise to contribute cash or property or to perform services even if the member is unable to perform because of death, disability or other reason.
(d) Substitute performance.--If a member does not make the required contribution of property or services, the member is obligated, at the option of the company, to contribute cash equal to that portion of the value of the stated contribution that has not been made.
(e) Compromise.--The obligation of a member to make a contribution may be compromised only with the unanimous consent of the members.Section: Previous 8916 8921 8922 8923 8924 8925 8926 8931 8932 8933 8934 8935 8941 8942 8943 Next
Last modified: October 8, 2016