N.Y. Limited Liability Company Law § 704: Distribution of assets

§ 704. Distribution of assets. Upon the winding up of a limited

liability company, the assets shall be distributed as follows:

(a) to creditors, including members who are creditors, to the extent

permitted by law, in satisfaction of liabilities of the limited

liability company, whether by payment or by establishment of adequate

reserves, other than liabilities for distributions to members and former

members under section five hundred seven or section five hundred nine of

this chapter;

(b) except as provided in the operating agreement, to members and

former members in satisfaction of liabilities for distributions under

section five hundred seven or section five hundred nine of this chapter;

and

(c) except as provided in the operating agreement, to members first

for the return of their contributions, to the extent not previously

returned, and second respecting their membership interests, in the

proportions in which the members share in distributions in accordance

with section five hundred four of this chapter.