KRS 273A.130: Winding up and termination.

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 retu rn 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 b y 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, t o 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.