KRS 273.303: Distribution of assets.

The assets of a corporation in the process of dissolution shall be applied and distributed

as follows:

(1) All liabilities and obligations of the corporation shall be paid and discharged, or

adequate provisions shall be made therefor;

(2) Assets held by the corporation upon condition requiring return, transfer or

conveyance, which condition occurs by reason of the dissolution, shall be returned,

transferred or conveyed in accordance with such requirements;

(3) Assets received and held by the corporation subject to limitations permitting their

use only for charitable, religious, eleemosynary, benevolent, educational or similar

purposes, but not held upon a condition requiring return, transfer or conveyance by

reason of the dissolution, shall be transferred or conveyed to one or more domestic

or foreign nonprofit corporations, societies, or organizations engaged in activities

substantially similar to those of the dissolving corporation, pursuant to a plan of

distribution adopted as provided in KRS 273.161 to 273.390;

(4) Other assets, if any, shall be distributed in accordance with the provisions of the

articles of incorporation or the bylaws to the extent that the articles of incorporation

or bylaws determine the distributive rights of members, or any class or classes of

members, or provide for distribution to others;

(5) Any remaining assets may be distributed to such nonprofit societies, organizations

or domestic or foreign corporations, as may be specified in a plan of distribution

adopted as provided in KRS 273.161 to 273.390.