Statute · New York Limited Liability Company Law
N.Y. Ltd. Liab. Co. Law § 505 — Distributions in kind
N.Y. Ltd. Liab. Co. Law § 505
- Type
- Statute
- Source
- New York Limited Liability Company Law
- Jurisdiction
- New York
- Current through
- Nov 4, 2026 (NY Senate Open Legislation)
§ 505. Distributions in kind. (a) Except as provided in the operating agreement, a member, regardless of the nature of his or her contribution, has no right to demand and receive any distribution from the limited liability company in any form other than cash.
Citator
N.Y. Ltd. Liab. Co. Law § 505 — Distributions in kind is in force in the current edition of the Code, and nothing recorded condemns it.
§ 505. Distributions in kind. (a) Except as provided in the operating agreement, a member, regardless of the nature of his or her contribution, has no right to demand and receive any distribution from the limited liability company in any form other than cash.
(b) Except as provided in the operating agreement, a member may not be compelled to accept a distribution of any asset in kind from a limited liability company to the extent that the percentage of the asset distributed to him or her exceeds a percentage of that asset that is equal to the percentage in which he or she shares in distributions from the limited liability company.