Common use of Order of Payment of Liabilities Upon Dissolution Clause in Contracts

Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC's liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to creditors who are Members; and (c) to Members in accordance with, but only to the extent of, their respective positive adjusted Capital Account balances; and (d) to Members PRO RATA in accordance with their respective Percentage Interests.

Order of Payment of Liabilities Upon Dissolution. Upon dissolution, the LLC's ’s liabilities shall be settled in the following order, as required by the Act: (a) to creditors other than Members, in the order of priority as provided by law; (b) to the Class B Members, any Liquidating Payment as provided by Section 8.7, pro rata in accordance with their Percentage Interests in the LLC vis-à-vis each other; (c) to creditors who are Members; and (cd) to Members in accordance with, but only solely to the extent of, their respective positive adjusted Capital Account balances; and (d) to Class A Members PRO RATA pro rata in accordance with their respective Percentage InterestsInterests in the LLC vis-à-vis each other.