Upon the winding up of a series, the assets of or associated with the series shall
be distributed as follows:
(1) First, payment or adequate provisions for payment shall be made to creditors,
including, to the extent permitted by law, beneficial owners who are creditors, in
satisfaction of liabilities of the series or associated with the properties of or
associated with the series;
(2) Second, unless otherwise provided in the governing instrument, to beneficial
owners in satisfaction of liabilities for distributions declared but unpaid; and
(3) Third, unless otherwise provided in the governing instrument, to beneficial owners
in proportion to their respective rights to share in distributions from the series
prior to dissolution.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.