Iowa Code 501B.29 – Winding up and termination
Current as of: 2024 | Check for updates
|
Other versions
Winding up and termination of an unincorporated nonprofit association shall proceed in accordance with all of the following rules:
1. All known debts and liabilities must be paid or adequately provided for.
Terms Used In Iowa Code 501B.29
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- association: means an unincorporated organization consisting of two or more members joined under an agreement that is oral, in a record, or implied from conduct, for one or more common, nonprofit purposes. See Iowa Code 501B.2
- Donor: The person who makes a gift.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Governing principles: includes any amendment or restatement of the agreements constituting the governing principles. See Iowa Code 501B.2
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: means an individual, corporation, business trust, statutory entity trust, estate, trust, partnership, limited liability company, cooperative, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Iowa Code 501B.2
- property: includes personal and real property. See Iowa Code 4.1
2. Any property subject to a condition requiring return to the person designated by the donor must be transferred to that person.
3. Any property subject to a trust must be distributed in accordance with the trust agreement.
4. Any remaining property must be distributed as follows:
a. As required by law other than this chapter that requires assets of an association to be distributed to another person with similar nonprofit purposes.
b. In accordance with the association’s governing principles or in the absence of applicable governing principles, to the members of the association per capita or as the members direct.
c. If neither paragraph “a” nor “b” applies, under chapter 556.