Utah § 16-20-408 - Reimbursement, indemnification, advancement, and insurance. (Effective 10/1/2026)
Full text of Utah Utah Code § 16-20-408 — Reimbursement, indemnification, advancement, and insurance. (Effective 10/1/2026), with citation guidance and answers to common questions.
§ 16-20-408. Reimbursement, indemnification, advancement, and insurance. (Effective 10/1/2026)
16-20-408. Reimbursement, indemnification, advancement, and insurance.
| (1) | A limited liability company shall reimburse a member of a member-managed limited liability company or the manager of a manager-managed limited liability company for any payment made by the member or manager in the course of the member's or manager's activities on behalf of the limited liability company, if the member or manager complied with Sections 16-20-407 and 16-20-409 in making the payment. |
| (2) | A limited liability company shall indemnify and hold harmless a person with respect to any claim or demand against the person and any debt, obligation, or other liability incurred by the person by reason of the person's former or present capacity as a member or manager, if the claim, demand, debt, obligation, or other liability does not arise from the person's breach of Section 16-20-405, 16-20-407, or 16-20-409. |
| (3) | In the ordinary course of its activities and affairs, a limited liability company may advance reasonable expenses, including attorney's fees and costs, incurred by a person in connection with a claim or demand against the person by reason of the person's former or present capacity as a member or manager, if the person promises to repay the limited liability company if the person ultimately is determined not to be entitled to be indemnified under Subsection (2). |
| (4) | A limited liability company may purchase and maintain insurance on behalf of a member or manager of the limited liability company against liability asserted against or incurred by the member or manager in that capacity or arising from that status even if, under Subsection 16-20-107(3)(g), the operating agreement could not eliminate or limit the person's liability to the limited liability company for the conduct giving rise to the liability. |
Renumbered and Amended by Chapter 93, 2026 General Session
Source: official Utah text · Last verified 2026-08-27
Frequently Asked Questions About Utah § 16-20-408
What does Utah Code § 16-20-408 cover?
Section 16-20-408 ("Reimbursement, indemnification, advancement, and insurance. (Effective 10/1/2026)") is part of the Utah Code, the codified statutory law of Utah. 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 Utah § 16-20-408?
A common citation format is "Utah Code § 16-20-408" (Utah). 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 Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 16-20-408 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah 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 Utah.