Kentucky Statutes 273A.130 – Winding up and termination
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Winding up and termination of an unincorporated nonprofit association shall proceed in accordance with the following rules:
(1) All known debts and liabilities shall be paid or adequately provided for;
(2) Any property subject to a condition requiring return to the person designated by the donor shall be transferred to that person;
(3) Any property subject to a trust shall be distributed in accordance with the trust agreement; and
(4) Any remaining property shall 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; or
(c) If neither paragraph (a) nor (b) of this subsection applies, as directed by the appropriate court.
Effective: June 24, 2015
History: Created 2015 Ky. Acts ch. 34, sec. 37, effective June 24, 2015.
(1) All known debts and liabilities shall be paid or adequately provided for;
Terms Used In Kentucky Statutes 273A.130
- Appropriate court: means the Circuit Court of the county of the Commonwealth in which the unincorporated nonprofit association's principal office is located or, if none, the county in which the registered office is or was last maintained. See Kentucky Statutes 273A.005
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Donor: The person who makes a gift.
- Governing principles: means the agreements, whether oral, in a record, or implied from its established practices, that govern the purpose or operation of an unincorporated nonprofit association and the rights and obligations of its members and manager. See Kentucky Statutes 273A.005
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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
(2) Any property subject to a condition requiring return to the person designated by the donor shall be transferred to that person;
(3) Any property subject to a trust shall be distributed in accordance with the trust agreement; and
(4) Any remaining property shall 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; or
(c) If neither paragraph (a) nor (b) of this subsection applies, as directed by the appropriate court.
Effective: June 24, 2015
History: Created 2015 Ky. Acts ch. 34, sec. 37, effective June 24, 2015.