Nevada § 86.5426 - Distribution of money to creditors and members
Full text of Nevada Nevada Revised Statutes § 86.5426 — Distribution of money to creditors and members, with citation guidance and answers to common questions.
§ 86.5426. Distribution of money to creditors and members
After payment of all allowances, expenses and costs, and the satisfaction of all special
and general liens upon the funds of the limited-liability company to the extent of
their lawful priority, the creditors shall be paid proportionately to the amount of
their respective debts, excepting mortgage and judgment creditors when the judgment
has not been by confession for the purpose of preferring creditors. The creditors shall be entitled to distribution on debts not due, making in such
case a rebate of interest, when interest is not accruing on the same. Unless otherwise provided in the articles of organization or operating agreement,
the surplus funds, if any, after payment of the creditors and the costs, expenses
and allowances, shall be distributed among the members or their legal representatives
in respect of their contributions to capital.
Source: official Nevada text · Last verified 2026-08-27
Frequently Asked Questions About Nevada § 86.5426
What does Nevada Revised Statutes § 86.5426 cover?
Section 86.5426 ("Distribution of money to creditors and members") is part of the Nevada Revised Statutes, the codified statutory law of Nevada. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Nevada § 86.5426?
A common citation format is "Nevada Revised Statutes § 86.5426" (Nevada). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Nevada law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Nevada official source linked on this page or consult a licensed Nevada attorney.
How does Nevada § 86.5426 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Nevada can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Nevada.