As used in the Limited Liability Company Act:

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

Terms Used In New Mexico Statutes 53-19-2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Statute: A law passed by a legislature.

A. “articles of organization” means the original or restated articles filed pursuant to the Limited Liability Company Act and any amendments to those articles, including articles of merger or consolidation;

B. “corporation” means an organization incorporated under the laws of New Mexico or a foreign corporation;

C. “commission” means the public regulation commission [secretary of state] or its designee;

D. “court” means a court having jurisdiction in the case;

E. “event of dissociation” means an event that causes a person to cease to be a member of a limited liability company;

F. “foreign corporation” means a corporation that is organized under the laws of another state or a foreign country;

G. “foreign limited liability company” means a person that is: (1)     an unincorporated association;

(2)     organized under the laws of another state or foreign country;

(3)     organized under a statute pursuant to which an association may be formed that affords to each of its members limited liability with respect to the liabilities of the person; and

(4)     is not required to be registered or organized under the laws of New Mexico other than the Limited Liability Company Act;

H. “foreign limited partnership” means a limited partnership formed under the laws of another state or a foreign country;

I. “limited liability company” or “domestic limited liability company” means an organization formed pursuant to the provisions of the Limited Liability Company Act;

J. “limited liability company interest” means a member’s or assignee’s right to receive distributions and a return of capital from the limited liability company. A member’s or assignee’s limited liability company interest does not include rights the member or assignee has on account of other matters, such as a right to receive accrued salary for services the member or assignee rendered to, repayment of a loan the member or assignee made to or indemnification by the limited liability company;

K. “limited partnership” means a limited partnership under the laws of New Mexico or a foreign limited partnership;

L. “manager” means, with respect to a limited liability company that has included a statement in its articles of organization that it is to be managed by a manager, the person designated as manager in accordance with the articles of organization or an operating agreement;

M. “member” means a person who has been admitted to membership in a limited liability company and who has not dissociated from that company;

N. “membership interest” or “interest” means a member’s limited liability company interest and his rights to participate in management and control of the limited liability company;

O. “operating agreement” means a written agreement providing for the conduct of the business and affairs of a limited liability company and that agreement as amended in writing;

P. “person” means an individual, a general partnership, a limited partnership, a domestic or foreign limited liability company, a trust, an estate, an association, a corporation or any other legal entity; and

Q. “state” means a state, territory or possession of the United States, the District of Columbia or the commonwealth of Puerto Rico.