New Jersey § 42:2c-56
Full text of New Jersey New Jersey Statutes § 42:2c-56, with citation guidance and answers to common questions.
§ 42:2c-56.
Distribution of Assets in Winding Up Limited Liability Company’s Activities. a. In winding up its activities, a limited liability company shall apply its assets
to discharge its obligations to creditors, including members that are creditors. b. After a limited liability company complies with subsection a. of this section,
any surplus shall be distributed in the following order, subject to any order in effect under section 43 of this act: 1 (1) to each person owning a transferable interest that reflects contributions made
by a member and not previously returned, an amount equal to the value of the unreturned
contributions; and (2) in equal shares among members and dissociated members, except to the extent necessary
to comply with any transfer effective under section 42 of this act. 2 c. If a limited liability company does not have sufficient surplus to comply with
paragraph (1) of subsection b. of this section, any surplus shall be distributed among
the owners of transferable interests in proportion to the value of their respective
unreturned contributions. d. All distributions made under subsections b. and c. of this section shall be paid
in money. 1
L.2012, c. 50 (N.J.S.A. § 42:2C-43). 2
L.2012, c. 50 (N.J.S.A. § 42:2C-42).
Frequently Asked Questions About New Jersey § 42:2c-56
What does New Jersey Statutes § 42:2c-56 cover?
Section 42:2c-56 is part of the New Jersey Statutes, the codified statutory law of New Jersey. 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 New Jersey § 42:2c-56?
A common citation format is "New Jersey Statutes § 42:2c-56" (New Jersey). 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 New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 42:2c-56 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey 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 New Jersey.