Utah § 16-20-708 - Disposition of assets in winding up. (Effective 10/1/2026)

Full text of Utah Utah Code § 16-20-708 — Disposition of assets in winding up. (Effective 10/1/2026), with citation guidance and answers to common questions.

§ 16-20-708. Disposition of assets in winding up. (Effective 10/1/2026)

Effective 10/1/2026
16-20-708.  Disposition of assets in winding up.
(1)In winding up its activities and affairs, a limited liability company shall apply the limited liability company's assets to discharge the limited liability company's obligations to creditors, including members that are creditors.
(2)After a limited liability company complies with Subsection (1), any surplus must be distributed in the following order, subject to any charging order in effect under Section 16-20-503:
(a)to each person owning a transferable interest that reflects contributions made and not previously returned, an amount equal to the value of the unreturned contributions; and
(b)in equal shares among members and dissociated members, except to the extent necessary to comply with any transfer effective under Section 16-20-502.
(3)If a limited liability company does not have sufficient surplus to comply with Subsection (2)(a), any surplus must be distributed among the owners of transferable interests in proportion to the value of the respective unreturned contributions.
(4)All distributions made under Subsections (2) and (3) must be paid in money.


Renumbered and Amended by Chapter 93, 2026 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 16-20-708

What does Utah Code § 16-20-708 cover?

Section 16-20-708 ("Disposition of assets in winding up. (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 § 16-20-708?

A common citation format is "Utah Code § 16-20-708" (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 § 16-20-708 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.