§ 2024. Performance of obligations--Compromise--Remedies for failure to perform
Oklahoma Statutes AnnotatedTitle 18. Corporations
18 Okl.St.Ann. § 2024
§ 2024. Performance of obligations--Compromise--Remedies for failure to perform
A. 1. Except as otherwise provided in the articles of organization or the operating agreement, a member is obligated to the limited liability company to perform any written promise to contribute cash or property or to perform services, even if he is unable to perform because of death, disability or other reason.
B. 1. The obligation of a member to make a contribution or return money or other property paid or distributed in violation of this act1 may be compromised only upon compliance with the operating agreement, or, if the operating agreement does not so provide, with the unanimous consent of the members.
C. An operating agreement may provide that the capital interest of a member who fails to make any contribution or other payment that the member is required to make shall be subject to specified remedies for, or specified consequences of, the failure. The remedy or consequence may take the form of reducing the defaulting member's capital interest in the limited liability company, subordinating the defaulting member's capital interest in the limited liability company to that of the nondefaulting members, a forced sale of the capital interest in the limited liability company, forfeiture of the capital interest in the limited liability company, the lending by the nondefaulting members of the amount necessary to meet the commitment, a fixing of the value of the member's capital interest in the limited liability company by appraisal or by formula and redemption and sale of the member's capital interest in the limited liability company at that value, or other remedy or consequences.
Credits
Laws 1992, c. 148, § 25, eff. Sept. 1, 1992; Laws 1993, c. 366, § 14, eff. Sept. 1, 1993.
Footnotes
Title 18, § 2000 et seq.
18 Okl. St. Ann. § 2024, OK ST T. 18 § 2024
Current with legislation of the First Regular Session of the 59th Legislature (2023) and the First Extraordinary Session of the 59th Legislature (2023). Some sections may be more current, see credits for details.
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