Current as of January 01, 2020 | Updated by FindLaw Staff
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1. Only an asset of a protected series may be an associated asset of the protected series. Only an asset of a series limited liability company may be an associated asset of the company.
2. An asset of a protected series of a series limited liability company is an associated asset of the protected series only if the protected series creates and maintains records that state the name of the protected series and describe the asset with sufficient specificity to permit a disinterested, reasonable individual to do all of the following:
a. Identify the asset and distinguish it from any other asset of the protected series, any asset of the company, and any asset of any other protected series of the company.
b. Determine when and from what person the protected series acquired the asset or how the asset otherwise became an asset of the protected series.
c. If the protected series acquired the asset from the company or another protected series of the company, determine any consideration paid, the payor, and the payee.
3. An asset of a series limited liability company is an associated asset of the company only if the company creates and maintains records that state the name of the company and describe the asset with sufficient specificity to permit a disinterested, reasonable individual to do all of the following:
a. Identify the asset and distinguish it from any other asset of the company and any asset of any protected series of the company.
b. Determine when and from what person the company acquired the asset or how the asset otherwise became an asset of the company.
c. If the company acquired the asset from a protected series of the company, determine any consideration paid, the payor, and the payee.
4. The records and recordkeeping required by subsections 2 and 3 may be organized by specific listing, category, type, quantity, or computational or allocational formula or procedure, including a percentage or share of any asset, or in any other reasonable manner.
5. To the extent permitted by this section and law of this state other than this part, a series limited liability company or protected series of the company may hold an associated asset directly or indirectly, through a representative, nominee, or similar arrangement, except that all of the following applies:
a. A protected series shall not hold an associated asset in the name of the company or another protected series of the company.
b. The company shall not hold an associated asset in the name of a protected series of the company.
Cite this article: FindLaw.com - Iowa Code Title XII. Business Entities [Chs. 486-504C] § 489.12301. Associated asset - last updated January 01, 2020 | https://codes.findlaw.com/ia/title-xii-business-entities-chs-486-504c/ia-code-sect-489-12301/
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