A proceeding may not be brought by a creditor to reach the liability, if any, of a member to the nonprofit corporation unless:

(1)

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Terms Used In Utah Code 16-6a-607

  • 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.
  • Member: includes :
              (34)(b)(i) "voting member"; and
              (34)(b)(ii) a shareholder in a water company. See Utah Code 16-6a-102
  • Proceeding: includes :
         (42)(a) a civil suit;
         (42)(b) arbitration;
         (42)(c) mediation;
         (42)(d) a criminal action;
         (42)(e) an administrative action; or
         (42)(f) an investigatory action. See Utah Code 16-6a-102
     (1)(a) final judgment has been rendered in favor of the creditor against the nonprofit corporation; and
     (1)(b) execution has been returned unsatisfied in whole or in part; or
(2) a proceeding described in Subsection (1) would be useless.