KRS 272A.10-080: Liability for improper distributions.

(1) A director who consents to a distribution that violates KRS 272A.10 -070 is

personally liable to the limited cooperative association for the amount of the

distribution which exceeds the amount that could have been distributed without the

violation if it is established that in consenting to the distribution the director failed

to comply with KRS 272A.8-180.

(2) A member or transferee of financial rights which received a distribution knowing

that the distribution was made in violation of KRS 272A.10 -070 is personally liable

to the limited cooperative association to the extent the distribution exceeded the

amount that could have been properly paid.

(3) A director against whom an action is commenced under subsection (1) of this

section may:

(a) Implement in the a ction any other director who is liable under subsection (1)

of this section and compel contribution from the person; and

(b) Implement in the action any person that is liable under subsection (2) of this

section and compel contribution from the person in t he amount the person

received as described in subsection (2) of this section.

(4) An action under this section is barred if it is commenced later than two (2) years

after the distribution.