Kentucky Statutes 273A.040 – Judgment against association
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(1) A judgment or order against an unincorporated nonprofit association is not by itself a judgment or order against a member or manager.
(2) Pursuant to this chapter, a judgment creditor of an unincorporated nonprofit association shall not levy execution against the assets of a member to satisfy a judgment based on a claim against the association unless:
(a) A judgment based on the same claim has been obtained against the association and a writ of execution on the judgment has been returned unsatisfied in whole or in part;
(b) The association is a debtor in bankruptcy;
(c) The member has agreed that the creditor need not exhaust association assets; or
(d) Liability is imposed on the member by law or contract independent of the existence of the association.
(3) Subsection (2) of this section shall not apply to any judgment or order for which the members are not liable in accordance with KRS § 273A.030(1).
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 193, sec. 10, effective June 29, 2017. — Created 2015 Ky. Acts ch. 34, sec. 19, effective June 24, 2015.
(2) Pursuant to this chapter, a judgment creditor of an unincorporated nonprofit association shall not levy execution against the assets of a member to satisfy a judgment based on a claim against the association unless:
Terms Used In Kentucky Statutes 273A.040
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Contract: A legal written agreement that becomes binding when signed.
- Manager: means a person that is responsible, whether alone or in concert with others, for the management of an unincorporated nonprofit association. See Kentucky Statutes 273A.005
- Member: means a person that, under the governing principles, may participate in the selection of persons authorized to manage the affairs of the unincorporated nonprofit association or in the development of the policies and activities of the association. See Kentucky Statutes 273A.005
- Unincorporated nonprofit association: means an unincorporated organization consisting of two (2) or more members joined under an agreement that is oral, in a record, or implied from conduct, for one (1) or more common, nonprofit purposes. See Kentucky Statutes 273A.005
- Writ: A formal written command, issued from the court, requiring the performance of a specific act.
(a) A judgment based on the same claim has been obtained against the association and a writ of execution on the judgment has been returned unsatisfied in whole or in part;
(b) The association is a debtor in bankruptcy;
(c) The member has agreed that the creditor need not exhaust association assets; or
(d) Liability is imposed on the member by law or contract independent of the existence of the association.
(3) Subsection (2) of this section shall not apply to any judgment or order for which the members are not liable in accordance with KRS § 273A.030(1).
Effective:June 29, 2017
History: Amended 2017 Ky. Acts ch. 193, sec. 10, effective June 29, 2017. — Created 2015 Ky. Acts ch. 34, sec. 19, effective June 24, 2015.