{"data":{"id":"us-ky/krs-275.535","jurisdiction":"us-ky","citation":"KRS 275.535","heading":"Procedure in liquidation of nonprofit limited liability company by court.","body":"(1) In proceedings to liquidate the assets and affairs of a nonprofit limited liability\ncompany, the court shall have the power to issue injunctions and to appoint a\nreceiver or receivers while the action is pending. The receivers shall have those\npowers a nd duties as the court from time to time may direct, to take action to\npreserve the corporate assets wherever situated, and to carry on the affairs of the\nnonprofit limited liability company until a full hearing can be held.\n(2) After holding a hearing, upon notice as the court may direct to be given to all parties\nto the proceedings and to any other parties in interest designated by the court, the\ncourt may appoint a liquidating receiver or receivers with authority to collect the\nassets of the nonprofit li mited liability company. The liquidating receiver or\nreceivers shall have authority, subject to the order of the court, to sell, convey, and\ndispose of all or any part of the assets of the nonprofit limited liability company\nwherever situated, either at pu blic or private sale. The order appointing the\nliquidating receiver or receivers shall state their powers and duties. The powers and\nduties may be increased or diminished at any time during the proceedings.\n(3) The assets of the nonprofit limited liability  company or the proceeds resulting from\na sale, conveyance, or other disposition thereof shall be applied and distributed as\nfollows:\n(a) All costs and expenses of the court proceedings and all liabilities and\nobligations of the nonprofit limited liability  company shall be paid, satisfied,\nand discharged, or adequate provision for them shall be made;\n(b) Assets held by the nonprofit limited liability company upon condition\nrequiring return, transfer, or conveyance, which condition occurs by reason of\nthe di ssolution or liquidation, shall be returned, transferred, or conveyed in\naccordance with the condition's requirements;\n(c) Assets received and held by the nonprofit limited liability company subject to\nlimitations permitting their use only for a nonprofit purpose, but not held upon\na condition requiring return, transfer, or conveyance by reason of the\ndissolution or liquidation, shall be transferred or conveyed to one (1) or more\ndomestic or foreign nonprofit limited liability companies, societies, or\norganizations engaged in activities substantially similar to those of the\ndissolving or liquidating nonprofit limited liability company, as the court may\ndirect; and\n(d) Any remaining assets may be distributed to those persons, societies,\norganizations, or dome stic or foreign limited liability companies, whether for\nprofit or nonprofit, specified in the plan of distribution adopted or, if no plan\nof distribution has been adopted, as the court may direct.\n(4) The court shall have power to allow, from time to time , as expenses of the\nliquidation, compensation to the receiver or receivers and to attorneys in the\nproceeding, and to direct the payment thereof out of the assets of the nonprofit\nlimited liability company or the proceeds of any sale or disposition of the assets.\n(5) A receiver of a nonprofit limited liability company appointed under the provisions\nof this section shall have authority to sue and defend in all courts in the receiver's\nown name as receiver of the nonprofit limited liability company. The cour t\nappointing the receiver shall have exclusive jurisdiction of the nonprofit limited\nliability company and its property, wherever situated.","path":["KRS Chapter 275"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=13933","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:28Z","sha256":"0d28770761b3ba94260696e470820696298079e85bb433d0c26ef63cac0f2b29","source_id":"us-ky","stale":false,"prev":"us-ky/krs-275.530","next":"us-ky/krs-275.540"},"notice":"GroundRules: Original legal text. Not legal advice."}