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First Substitute S.B. 131

This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Feb 28, 2011 at 11:39 AM by kcallred. -->

Senator Lyle W. Hillyard proposes the following substitute bill:


             1     
UNINCORPORATED BUSINESS ENTITY UNIFORM ACTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lyle W. Hillyard

             5     
House Sponsor: John Dougall

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill repeals the existing Partnership Act, Utah Revised Uniform Limited
             10      Partnership Act, and Utah Revised Limited Liability Company Act, and enacts with
             11      modifications the Utah Uniform Partnership Act, Utah Uniform Limited Partnership
             12      Act, and Utah Revised Uniform Limited Liability Company Act.
             13      Highlighted Provisions:
             14          This bill:
             15          .    enacts provisions related to partnerships, including:
             16              .    enacting general provisions related to partnerships such as defining terms,
             17      addressing what constitutes knowledge and notice, addressing the effect of a
             18      partnership agreement, designating supplemental principles of law, providing
             19      for execution, filing, and recording of statements, addressing what is the
             20      governing law, and the affects of amendments or repeals to the chapter;
             21              .    addressing the nature of a partnership;
             22              .    addressing the relations of partners to persons dealing with a partnership;
             23              .    addressing relations of partners to each other and to the partnership;
             24              .    addressing transferees and creditors of partners;
             25              .    providing for a partner's dissociation including when business is not wound up;



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             26
             .    providing for winding up partnership business;
             27              .    providing for conversion and merger; and
             28              .    providing for a limited liability partnership, a limited liability partnership that
             29      provides a professional service, and foreign limited liability partnership;
             30          .    enacts provisions related to limited partnerships, including:
             31              .    providing for general provisions related to limited partnerships;
             32              .    addressing formation of limited partnerships and various filing requirements;
             33              .    addressing limited partners;
             34              .    addressing general partners;
             35              .    providing for contributions and distributions;
             36              .    providing for dissociation;
             37              .    addressing transferable interests and rights of transferees and creditors;
             38              .    providing for dissolution;
             39              .    addressing foreign limited partnerships;
             40              .    providing for actions by partners; and
             41              .    providing for conversions and mergers;
             42          .    enacts provisions related to limited liability companies, including:
             43              .    addressing various general provisions related to limited liability companies;
             44              .    providing for the formation and filings of limited liability companies;
             45              .    addressing relations of members and managers to a person dealing with a
             46      limited liability company;
             47              .    addressing relations of members to each other and to the limited liability
             48      company;
             49              .    addressing transferable interests and rights of transferees and creditors;
             50              .    providing for dissociation;
             51              .    providing for dissolution and winding up;
             52              .    addressing foreign limited liability companies;
             53              .    providing for actions by members;
             54              .    providing for merger, conversion, and domestication;
             55              .    providing for professional services companies;
             56              .    providing for series; and



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             57
             .    providing for low-profit limited liability company act;
             58          .    includes miscellaneous provisions such as providing for uniformity of application,
             59      severability, and savings; and
             60          .    makes technical and conforming amendments.
             61      Money Appropriated in this Bill:
             62          None
             63      Other Special Clauses:
             64          This bill takes effect on July 1, 2012.
             65      Utah Code Sections Affected:
             66      AMENDS:
             67          7-1-810, as last amended by Laws of Utah 2008, Chapter 382
             68          7-3-10, as last amended by Laws of Utah 2007, Chapter 277
             69          7-8-3, as last amended by Laws of Utah 2004, Chapter 92
             70          13-34-114, as last amended by Laws of Utah 2010, Chapter 218
             71          16-6a-1008.7, as last amended by Laws of Utah 2006, Chapter 228
             72          16-10a-401, as last amended by Laws of Utah 2010, Chapters 218 and 378
             73          16-10a-1008.7, as enacted by Laws of Utah 2002, Chapter 193
             74          16-11-16, as last amended by Laws of Utah 2010, Chapters 218 and 378
             75          16-16-111, as last amended by Laws of Utah 2010, Chapter 378
             76          16-17-102, as enacted by Laws of Utah 2008, Chapter 364
             77          31A-37a-102, as enacted by Laws of Utah 2008, Chapter 302
             78          46-4-503, as last amended by Laws of Utah 2008, Chapter 382
             79          53C-1-201, as last amended by Laws of Utah 2010, Chapter 218
             80          61-2b-25, as last amended by Laws of Utah 2010, Chapter 379
             81          61-2f-401, as last amended by Laws of Utah 2010, Chapter 184 and renumbered and
             82      amended by Laws of Utah 2010, Chapter 379
             83          75-7-1011, as enacted by Laws of Utah 2004, Chapter 89
             84      ENACTS:
             85          48-1a-101, Utah Code Annotated 1953
             86          48-1a-102, Utah Code Annotated 1953
             87          48-1b-101, Utah Code Annotated 1953



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             88
         48-1b-102, Utah Code Annotated 1953
             89          48-1b-103, Utah Code Annotated 1953
             90          48-1b-104, Utah Code Annotated 1953
             91          48-1b-105, Utah Code Annotated 1953
             92          48-1b-106, Utah Code Annotated 1953
             93          48-1b-107, Utah Code Annotated 1953
             94          48-1b-201, Utah Code Annotated 1953
             95          48-1b-202, Utah Code Annotated 1953
             96          48-1b-203, Utah Code Annotated 1953
             97          48-1b-204, Utah Code Annotated 1953
             98          48-1b-301, Utah Code Annotated 1953
             99          48-1b-302, Utah Code Annotated 1953
             100          48-1b-303, Utah Code Annotated 1953
             101          48-1b-304, Utah Code Annotated 1953
             102          48-1b-305, Utah Code Annotated 1953
             103          48-1b-306, Utah Code Annotated 1953
             104          48-1b-307, Utah Code Annotated 1953
             105          48-1b-308, Utah Code Annotated 1953
             106          48-1b-401, Utah Code Annotated 1953
             107          48-1b-402, Utah Code Annotated 1953
             108          48-1b-403, Utah Code Annotated 1953
             109          48-1b-404, Utah Code Annotated 1953
             110          48-1b-405, Utah Code Annotated 1953
             111          48-1b-406, Utah Code Annotated 1953
             112          48-1b-501, Utah Code Annotated 1953
             113          48-1b-502, Utah Code Annotated 1953
             114          48-1b-503, Utah Code Annotated 1953
             115          48-1b-504, Utah Code Annotated 1953
             116          48-1b-601, Utah Code Annotated 1953
             117          48-1b-602, Utah Code Annotated 1953
             118          48-1b-603, Utah Code Annotated 1953



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             119
         48-1b-701, Utah Code Annotated 1953
             120          48-1b-702, Utah Code Annotated 1953
             121          48-1b-703, Utah Code Annotated 1953
             122          48-1b-704, Utah Code Annotated 1953
             123          48-1b-705, Utah Code Annotated 1953
             124          48-1b-801, Utah Code Annotated 1953
             125          48-1b-802, Utah Code Annotated 1953
             126          48-1b-803, Utah Code Annotated 1953
             127          48-1b-804, Utah Code Annotated 1953
             128          48-1b-805, Utah Code Annotated 1953
             129          48-1b-806, Utah Code Annotated 1953
             130          48-1b-807, Utah Code Annotated 1953
             131          48-1b-901, Utah Code Annotated 1953
             132          48-1b-902, Utah Code Annotated 1953
             133          48-1b-903, Utah Code Annotated 1953
             134          48-1b-904, Utah Code Annotated 1953
             135          48-1b-905, Utah Code Annotated 1953
             136          48-1b-906, Utah Code Annotated 1953
             137          48-1b-907, Utah Code Annotated 1953
             138          48-1b-908, Utah Code Annotated 1953
             139          48-1b-909, Utah Code Annotated 1953
             140          48-1b-910, Utah Code Annotated 1953
             141          48-1b-911, Utah Code Annotated 1953
             142          48-1b-912, Utah Code Annotated 1953
             143          48-1b-913, Utah Code Annotated 1953
             144          48-1b-914, Utah Code Annotated 1953
             145          48-1b-915, Utah Code Annotated 1953
             146          48-1b-1001, Utah Code Annotated 1953
             147          48-1b-1002, Utah Code Annotated 1953
             148          48-1b-1003, Utah Code Annotated 1953
             149          48-1b-1004, Utah Code Annotated 1953



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             150
         48-1b-1101, Utah Code Annotated 1953
             151          48-1b-1102, Utah Code Annotated 1953
             152          48-1b-1102.1, Utah Code Annotated 1953
             153          48-1b-1103, Utah Code Annotated 1953
             154          48-1b-1104, Utah Code Annotated 1953
             155          48-1b-1105, Utah Code Annotated 1953
             156          48-1b-1201, Utah Code Annotated 1953
             157          48-1b-1202, Utah Code Annotated 1953
             158          48-1b-1203, Utah Code Annotated 1953
             159          48-1b-1204, Utah Code Annotated 1953
             160          48-1b-1205, Utah Code Annotated 1953
             161          48-2d-101, Utah Code Annotated 1953
             162          48-2d-102, Utah Code Annotated 1953
             163          48-2d-103, Utah Code Annotated 1953
             164          48-2d-104, Utah Code Annotated 1953
             165          48-2d-105, Utah Code Annotated 1953
             166          48-2d-106, Utah Code Annotated 1953
             167          48-2d-107, Utah Code Annotated 1953
             168          48-2d-108, Utah Code Annotated 1953
             169          48-2d-109, Utah Code Annotated 1953
             170          48-2d-110, Utah Code Annotated 1953
             171          48-2d-111, Utah Code Annotated 1953
             172          48-2d-112, Utah Code Annotated 1953
             173          48-2d-113, Utah Code Annotated 1953
             174          48-2d-114, Utah Code Annotated 1953
             175          48-2d-201, Utah Code Annotated 1953
             176          48-2d-202, Utah Code Annotated 1953
             177          48-2d-203, Utah Code Annotated 1953
             178          48-2d-204, Utah Code Annotated 1953
             179          48-2d-205, Utah Code Annotated 1953
             180          48-2d-206, Utah Code Annotated 1953



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             181
         48-2d-207, Utah Code Annotated 1953
             182          48-2d-208, Utah Code Annotated 1953
             183          48-2d-209, Utah Code Annotated 1953
             184          48-2d-210, Utah Code Annotated 1953
             185          48-2d-301, Utah Code Annotated 1953
             186          48-2d-302, Utah Code Annotated 1953
             187          48-2d-303, Utah Code Annotated 1953
             188          48-2d-304, Utah Code Annotated 1953
             189          48-2d-305, Utah Code Annotated 1953
             190          48-2d-306, Utah Code Annotated 1953
             191          48-2d-401, Utah Code Annotated 1953
             192          48-2d-402, Utah Code Annotated 1953
             193          48-2d-403, Utah Code Annotated 1953
             194          48-2d-404, Utah Code Annotated 1953
             195          48-2d-405, Utah Code Annotated 1953
             196          48-2d-406, Utah Code Annotated 1953
             197          48-2d-407, Utah Code Annotated 1953
             198          48-2d-408, Utah Code Annotated 1953
             199          48-2d-501, Utah Code Annotated 1953
             200          48-2d-502, Utah Code Annotated 1953
             201          48-2d-503, Utah Code Annotated 1953
             202          48-2d-504, Utah Code Annotated 1953
             203          48-2d-505, Utah Code Annotated 1953
             204          48-2d-506, Utah Code Annotated 1953
             205          48-2d-507, Utah Code Annotated 1953
             206          48-2d-508, Utah Code Annotated 1953
             207          48-2d-509, Utah Code Annotated 1953
             208          48-2d-601, Utah Code Annotated 1953
             209          48-2d-602, Utah Code Annotated 1953
             210          48-2d-603, Utah Code Annotated 1953
             211          48-2d-604, Utah Code Annotated 1953



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             212
         48-2d-605, Utah Code Annotated 1953
             213          48-2d-606, Utah Code Annotated 1953
             214          48-2d-607, Utah Code Annotated 1953
             215          48-2d-701, Utah Code Annotated 1953
             216          48-2d-702, Utah Code Annotated 1953
             217          48-2d-703, Utah Code Annotated 1953
             218          48-2d-704, Utah Code Annotated 1953
             219          48-2d-801, Utah Code Annotated 1953
             220          48-2d-802, Utah Code Annotated 1953
             221          48-2d-803, Utah Code Annotated 1953
             222          48-2d-804, Utah Code Annotated 1953
             223          48-2d-805, Utah Code Annotated 1953
             224          48-2d-806, Utah Code Annotated 1953
             225          48-2d-807, Utah Code Annotated 1953
             226          48-2d-808, Utah Code Annotated 1953
             227          48-2d-809, Utah Code Annotated 1953
             228          48-2d-810, Utah Code Annotated 1953
             229          48-2d-811, Utah Code Annotated 1953
             230          48-2d-812, Utah Code Annotated 1953
             231          48-2d-901, Utah Code Annotated 1953
             232          48-2d-902, Utah Code Annotated 1953
             233          48-2d-903, Utah Code Annotated 1953
             234          48-2d-904, Utah Code Annotated 1953
             235          48-2d-905, Utah Code Annotated 1953
             236          48-2d-906, Utah Code Annotated 1953
             237          48-2d-907, Utah Code Annotated 1953
             238          48-2d-908, Utah Code Annotated 1953
             239          48-2d-1001, Utah Code Annotated 1953
             240          48-2d-1002, Utah Code Annotated 1953
             241          48-2d-1003, Utah Code Annotated 1953
             242          48-2d-1004, Utah Code Annotated 1953



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             243
         48-2d-1005, Utah Code Annotated 1953
             244          48-2d-1101, Utah Code Annotated 1953
             245          48-2d-1102, Utah Code Annotated 1953
             246          48-2d-1103, Utah Code Annotated 1953
             247          48-2d-1104, Utah Code Annotated 1953
             248          48-2d-1105, Utah Code Annotated 1953
             249          48-2d-1106, Utah Code Annotated 1953
             250          48-2d-1107, Utah Code Annotated 1953
             251          48-2d-1108, Utah Code Annotated 1953
             252          48-2d-1109, Utah Code Annotated 1953
             253          48-2d-1110, Utah Code Annotated 1953
             254          48-2d-1111, Utah Code Annotated 1953
             255          48-2d-1112, Utah Code Annotated 1953
             256          48-2d-1113, Utah Code Annotated 1953
             257          48-2d-1114, Utah Code Annotated 1953
             258          48-2d-1115, Utah Code Annotated 1953
             259          48-2d-1116, Utah Code Annotated 1953
             260          48-2d-1117, Utah Code Annotated 1953
             261          48-2d-1201, Utah Code Annotated 1953
             262          48-2d-1202, Utah Code Annotated 1953
             263          48-2d-1203, Utah Code Annotated 1953
             264          48-2d-1204, Utah Code Annotated 1953
             265          48-2d-1205, Utah Code Annotated 1953
             266          48-3-101, Utah Code Annotated 1953
             267          48-3-102, Utah Code Annotated 1953
             268          48-3-103, Utah Code Annotated 1953
             269          48-3-104, Utah Code Annotated 1953
             270          48-3-105, Utah Code Annotated 1953
             271          48-3-106, Utah Code Annotated 1953
             272          48-3-107, Utah Code Annotated 1953
             273          48-3-108, Utah Code Annotated 1953



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             274
         48-3-109, Utah Code Annotated 1953
             275          48-3-110, Utah Code Annotated 1953
             276          48-3-111, Utah Code Annotated 1953
             277          48-3-112, Utah Code Annotated 1953
             278          48-3-201, Utah Code Annotated 1953
             279          48-3-202, Utah Code Annotated 1953
             280          48-3-203, Utah Code Annotated 1953
             281          48-3-204, Utah Code Annotated 1953
             282          48-3-205, Utah Code Annotated 1953
             283          48-3-206, Utah Code Annotated 1953
             284          48-3-207, Utah Code Annotated 1953
             285          48-3-208, Utah Code Annotated 1953
             286          48-3-209, Utah Code Annotated 1953
             287          48-3-301, Utah Code Annotated 1953
             288          48-3-302, Utah Code Annotated 1953
             289          48-3-303, Utah Code Annotated 1953
             290          48-3-304, Utah Code Annotated 1953
             291          48-3-401, Utah Code Annotated 1953
             292          48-3-402, Utah Code Annotated 1953
             293          48-3-403, Utah Code Annotated 1953
             294          48-3-404, Utah Code Annotated 1953
             295          48-3-405, Utah Code Annotated 1953
             296          48-3-406, Utah Code Annotated 1953
             297          48-3-407, Utah Code Annotated 1953
             298          48-3-408, Utah Code Annotated 1953
             299          48-3-409, Utah Code Annotated 1953
             300          48-3-410, Utah Code Annotated 1953
             301          48-3-501, Utah Code Annotated 1953
             302          48-3-502, Utah Code Annotated 1953
             303          48-3-503, Utah Code Annotated 1953
             304          48-3-504, Utah Code Annotated 1953



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             305
         48-3-601, Utah Code Annotated 1953
             306          48-3-602, Utah Code Annotated 1953
             307          48-3-603, Utah Code Annotated 1953
             308          48-3-701, Utah Code Annotated 1953
             309          48-3-702, Utah Code Annotated 1953
             310          48-3-703, Utah Code Annotated 1953
             311          48-3-704, Utah Code Annotated 1953
             312          48-3-705, Utah Code Annotated 1953
             313          48-3-706, Utah Code Annotated 1953
             314          48-3-707, Utah Code Annotated 1953
             315          48-3-708, Utah Code Annotated 1953
             316          48-3-709, Utah Code Annotated 1953
             317          48-3-801, Utah Code Annotated 1953
             318          48-3-802, Utah Code Annotated 1953
             319          48-3-803, Utah Code Annotated 1953
             320          48-3-804, Utah Code Annotated 1953
             321          48-3-805, Utah Code Annotated 1953
             322          48-3-806, Utah Code Annotated 1953
             323          48-3-807, Utah Code Annotated 1953
             324          48-3-808, Utah Code Annotated 1953
             325          48-3-809, Utah Code Annotated 1953
             326          48-3-901, Utah Code Annotated 1953
             327          48-3-902, Utah Code Annotated 1953
             328          48-3-903, Utah Code Annotated 1953
             329          48-3-904, Utah Code Annotated 1953
             330          48-3-905, Utah Code Annotated 1953
             331          48-3-906, Utah Code Annotated 1953
             332          48-3-1001, Utah Code Annotated 1953
             333          48-3-1002, Utah Code Annotated 1953
             334          48-3-1003, Utah Code Annotated 1953
             335          48-3-1004, Utah Code Annotated 1953



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             336
         48-3-1005, Utah Code Annotated 1953
             337          48-3-1006, Utah Code Annotated 1953
             338          48-3-1007, Utah Code Annotated 1953
             339          48-3-1008, Utah Code Annotated 1953
             340          48-3-1009, Utah Code Annotated 1953
             341          48-3-1010, Utah Code Annotated 1953
             342          48-3-1011, Utah Code Annotated 1953
             343          48-3-1012, Utah Code Annotated 1953
             344          48-3-1013, Utah Code Annotated 1953
             345          48-3-1014, Utah Code Annotated 1953
             346          48-3-1015, Utah Code Annotated 1953
             347          48-3-1101, Utah Code Annotated 1953
             348          48-3-1102, Utah Code Annotated 1953
             349          48-3-1103, Utah Code Annotated 1953
             350          48-3-1104, Utah Code Annotated 1953
             351          48-3-1105, Utah Code Annotated 1953
             352          48-3-1106, Utah Code Annotated 1953
             353          48-3-1107, Utah Code Annotated 1953
             354          48-3-1108, Utah Code Annotated 1953
             355          48-3-1109, Utah Code Annotated 1953
             356          48-3-1110, Utah Code Annotated 1953
             357          48-3-1111, Utah Code Annotated 1953
             358          48-3-1112, Utah Code Annotated 1953
             359          48-3-1201, Utah Code Annotated 1953
             360          48-3-1202, Utah Code Annotated 1953
             361          48-3-1203, Utah Code Annotated 1953
             362          48-3-1204, Utah Code Annotated 1953
             363          48-3-1205, Utah Code Annotated 1953
             364          48-3-1206, Utah Code Annotated 1953
             365          48-3-1207, Utah Code Annotated 1953
             366          48-3-1208, Utah Code Annotated 1953



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             367
         48-3-1209, Utah Code Annotated 1953
             368          48-3-1210, Utah Code Annotated 1953
             369          48-3-1301, Utah Code Annotated 1953
             370          48-3-1302, Utah Code Annotated 1953
             371          48-3-1303, Utah Code Annotated 1953
             372          48-3-1304, Utah Code Annotated 1953
             373          48-3-1401, Utah Code Annotated 1953
             374          48-3-1402, Utah Code Annotated 1953
             375          48-3-1403, Utah Code Annotated 1953
             376          48-3-1404, Utah Code Annotated 1953
             377          48-3-1405, Utah Code Annotated 1953
             378      REPEALS:
             379          48-1-1, as last amended by Laws of Utah 2008, Chapter 249
             380          48-1-2, Utah Code Annotated 1953
             381          48-1-3, as last amended by Laws of Utah 1994, Chapter 61
             382          48-1-3.1, as enacted by Laws of Utah 1985, Chapter 14
             383          48-1-4, Utah Code Annotated 1953
             384          48-1-5, Utah Code Annotated 1953
             385          48-1-6, Utah Code Annotated 1953
             386          48-1-7, Utah Code Annotated 1953
             387          48-1-8, Utah Code Annotated 1953
             388          48-1-9, Utah Code Annotated 1953
             389          48-1-10, Utah Code Annotated 1953
             390          48-1-11, Utah Code Annotated 1953
             391          48-1-12, as last amended by Laws of Utah 1994, Chapter 61
             392          48-1-13, Utah Code Annotated 1953
             393          48-1-14, Utah Code Annotated 1953
             394          48-1-15, as last amended by Laws of Utah 1994, Chapter 61
             395          48-1-16, Utah Code Annotated 1953
             396          48-1-17, Utah Code Annotated 1953
             397          48-1-18, Utah Code Annotated 1953



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             398
         48-1-19, Utah Code Annotated 1953
             399          48-1-20, Utah Code Annotated 1953
             400          48-1-21, Utah Code Annotated 1953
             401          48-1-22, Utah Code Annotated 1953
             402          48-1-23, Utah Code Annotated 1953
             403          48-1-24, Utah Code Annotated 1953
             404          48-1-25, Utah Code Annotated 1953
             405          48-1-26, Utah Code Annotated 1953
             406          48-1-27, Utah Code Annotated 1953
             407          48-1-28, Utah Code Annotated 1953
             408          48-1-29, Utah Code Annotated 1953
             409          48-1-30, Utah Code Annotated 1953
             410          48-1-31, as last amended by Laws of Utah 1994, Chapter 61
             411          48-1-32, Utah Code Annotated 1953
             412          48-1-33, as last amended by Laws of Utah 1994, Chapter 61
             413          48-1-34, Utah Code Annotated 1953
             414          48-1-35, Utah Code Annotated 1953
             415          48-1-36, Utah Code Annotated 1953
             416          48-1-37, as last amended by Laws of Utah 1994, Chapter 61
             417          48-1-38, Utah Code Annotated 1953
             418          48-1-39, Utah Code Annotated 1953
             419          48-1-40, Utah Code Annotated 1953
             420          48-1-41, as enacted by Laws of Utah 1994, Chapter 61
             421          48-1-42, as last amended by Laws of Utah 2009, Chapter 183
             422          48-1-43, as enacted by Laws of Utah 1994, Chapter 61
             423          48-1-44, as last amended by Laws of Utah 2008, Chapter 249
             424          48-1-45, as enacted by Laws of Utah 1994, Chapter 61
             425          48-1-46, as enacted by Laws of Utah 1994, Chapter 61
             426          48-1-47, as enacted by Laws of Utah 1994, Chapter 61
             427          48-1-48, as last amended by Laws of Utah 2000, Chapter 261
             428          48-2a-101, as last amended by Laws of Utah 2008, Chapter 249



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             429
         48-2a-102, as last amended by Laws of Utah 2010, Chapter 218
             430          48-2a-103, as last amended by Laws of Utah 1991, Chapter 189
             431          48-2a-103.5, as enacted by Laws of Utah 1991, Chapter 189
             432          48-2a-105, as last amended by Laws of Utah 1991, Chapter 189
             433          48-2a-106, as enacted by Laws of Utah 1990, Chapter 233
             434          48-2a-107, as enacted by Laws of Utah 1990, Chapter 233
             435          48-2a-108, as enacted by Laws of Utah 2001, Chapter 260
             436          48-2a-109, as enacted by Laws of Utah 2001, Chapter 260
             437          48-2a-110, as enacted by Laws of Utah 2001, Chapter 260
             438          48-2a-111, as enacted by Laws of Utah 2001, Chapter 260
             439          48-2a-112, as enacted by Laws of Utah 2001, Chapter 260
             440          48-2a-113, as enacted by Laws of Utah 2001, Chapter 260
             441          48-2a-201, as last amended by Laws of Utah 2008, Chapter 364
             442          48-2a-202, as last amended by Laws of Utah 2002, Chapter 193
             443          48-2a-202.5, as last amended by Laws of Utah 2008, Chapter 364
             444          48-2a-203, as last amended by Laws of Utah 1991, Chapter 189
             445          48-2a-203.5, as last amended by Laws of Utah 2008, Chapter 382
             446          48-2a-204, as enacted by Laws of Utah 1990, Chapter 233
             447          48-2a-205, as enacted by Laws of Utah 1990, Chapter 233
             448          48-2a-206, as last amended by Laws of Utah 2009, Chapter 183
             449          48-2a-207, as last amended by Laws of Utah 1992, Chapter 30
             450          48-2a-208, as last amended by Laws of Utah 1991, Chapter 189
             451          48-2a-209, as enacted by Laws of Utah 1990, Chapter 233
             452          48-2a-210, as last amended by Laws of Utah 2008, Chapter 364
             453          48-2a-301, as last amended by Laws of Utah 1991, Chapter 189
             454          48-2a-302, as enacted by Laws of Utah 1990, Chapter 233
             455          48-2a-303, as last amended by Laws of Utah 1991, Chapter 189
             456          48-2a-304, as last amended by Laws of Utah 1991, Chapter 189
             457          48-2a-305, as enacted by Laws of Utah 1990, Chapter 233
             458          48-2a-401, as enacted by Laws of Utah 1990, Chapter 233
             459          48-2a-402, as last amended by Laws of Utah 2010, Chapter 324



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             460
         48-2a-403, as enacted by Laws of Utah 1990, Chapter 233
             461          48-2a-404, as last amended by Laws of Utah 1991, Chapter 189
             462          48-2a-405, as enacted by Laws of Utah 1990, Chapter 233
             463          48-2a-501, as enacted by Laws of Utah 1990, Chapter 233
             464          48-2a-502, as enacted by Laws of Utah 1990, Chapter 233
             465          48-2a-503, as enacted by Laws of Utah 1990, Chapter 233
             466          48-2a-504, as last amended by Laws of Utah 1991, Chapter 189
             467          48-2a-601, as last amended by Laws of Utah 1991, Chapter 189
             468          48-2a-602, as enacted by Laws of Utah 1990, Chapter 233
             469          48-2a-603, as enacted by Laws of Utah 1990, Chapter 233
             470          48-2a-604, as last amended by Laws of Utah 1991, Chapter 189
             471          48-2a-605, as enacted by Laws of Utah 1990, Chapter 233
             472          48-2a-606, as enacted by Laws of Utah 1990, Chapter 233
             473          48-2a-607, as enacted by Laws of Utah 1990, Chapter 233
             474          48-2a-608, as last amended by Laws of Utah 1991, Chapter 189
             475          48-2a-701, as enacted by Laws of Utah 1990, Chapter 233
             476          48-2a-702, as last amended by Laws of Utah 1991, Chapter 189
             477          48-2a-703, as last amended by Laws of Utah 1991, Chapter 189
             478          48-2a-704, as last amended by Laws of Utah 1991, Chapter 189
             479          48-2a-705, as last amended by Laws of Utah 1991, Chapter 189
             480          48-2a-801, as last amended by Laws of Utah 1991, Chapter 189
             481          48-2a-802, as enacted by Laws of Utah 1990, Chapter 233
             482          48-2a-803, as enacted by Laws of Utah 1990, Chapter 233
             483          48-2a-804, as last amended by Laws of Utah 1991, Chapter 189
             484          48-2a-901, as enacted by Laws of Utah 1990, Chapter 233
             485          48-2a-902, as last amended by Laws of Utah 2008, Chapters 249 and 364
             486          48-2a-903, as enacted by Laws of Utah 1990, Chapter 233
             487          48-2a-904, as enacted by Laws of Utah 1990, Chapter 233
             488          48-2a-905, as last amended by Laws of Utah 1991, Chapter 189
             489          48-2a-906, as last amended by Laws of Utah 1991, Chapter 189
             490          48-2a-907, as last amended by Laws of Utah 1991, Chapter 189



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             491
         48-2a-908, as enacted by Laws of Utah 1990, Chapter 233
             492          48-2a-1001, as enacted by Laws of Utah 1990, Chapter 233
             493          48-2a-1002, as last amended by Laws of Utah 1991, Chapter 189
             494          48-2a-1003, as enacted by Laws of Utah 1990, Chapter 233
             495          48-2a-1004, as enacted by Laws of Utah 1990, Chapter 233
             496          48-2a-1005, as last amended by Laws of Utah 1991, Chapter 189
             497          48-2a-1006, as enacted by Laws of Utah 1990, Chapter 233
             498          48-2a-1101, as enacted by Laws of Utah 1990, Chapter 233
             499          48-2a-1102, as enacted by Laws of Utah 1990, Chapter 233
             500          48-2a-1103, as enacted by Laws of Utah 1990, Chapter 233
             501          48-2a-1104, as last amended by Laws of Utah 1991, Chapters 5 and 189
             502          48-2a-1105, as enacted by Laws of Utah 1990, Chapter 233
             503          48-2a-1106, as enacted by Laws of Utah 1990, Chapter 233
             504          48-2a-1107, as last amended by Laws of Utah 2009, Chapter 183
             505          48-2c-101, as enacted by Laws of Utah 2001, Chapter 260
             506          48-2c-102, as last amended by Laws of Utah 2009, Chapter 141
             507          48-2c-103, as enacted by Laws of Utah 2001, Chapter 260
             508          48-2c-104, as enacted by Laws of Utah 2001, Chapter 260
             509          48-2c-105, as enacted by Laws of Utah 2001, Chapter 260
             510          48-2c-106, as last amended by Laws of Utah 2010, Chapter 218
             511          48-2c-107, as enacted by Laws of Utah 2001, Chapter 260
             512          48-2c-108, as last amended by Laws of Utah 2002, Chapter 193
             513          48-2c-109, as enacted by Laws of Utah 2001, Chapter 260
             514          48-2c-110, as last amended by Laws of Utah 2005, Chapter 141
             515          48-2c-113, as last amended by Laws of Utah 2010, Chapter 43
             516          48-2c-114, as enacted by Laws of Utah 2001, Chapter 260
             517          48-2c-115, as last amended by Laws of Utah 2008, Chapter 364
             518          48-2c-116, as enacted by Laws of Utah 2001, Chapter 260
             519          48-2c-118, as enacted by Laws of Utah 2001, Chapter 260
             520          48-2c-119, as enacted by Laws of Utah 2001, Chapter 260
             521          48-2c-120, as last amended by Laws of Utah 2006, Chapter 92



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             522
         48-2c-121, as last amended by Laws of Utah 2005, Chapter 141
             523          48-2c-122, as enacted by Laws of Utah 2001, Chapter 260
             524          48-2c-201, as enacted by Laws of Utah 2001, Chapter 260
             525          48-2c-202, as enacted by Laws of Utah 2001, Chapter 260
             526          48-2c-203, as last amended by Laws of Utah 2009, Chapter 141
             527          48-2c-204, as last amended by Laws of Utah 2008, Chapter 364
             528          48-2c-205, as enacted by Laws of Utah 2001, Chapter 260
             529          48-2c-206, as enacted by Laws of Utah 2001, Chapter 260
             530          48-2c-207, as enacted by Laws of Utah 2001, Chapter 260
             531          48-2c-208, as enacted by Laws of Utah 2001, Chapter 260
             532          48-2c-209, as enacted by Laws of Utah 2001, Chapter 260
             533          48-2c-210, as enacted by Laws of Utah 2001, Chapter 260
             534          48-2c-211, as last amended by Laws of Utah 2008, Chapter 364
             535          48-2c-212, as enacted by Laws of Utah 2001, Chapter 260
             536          48-2c-213, as enacted by Laws of Utah 2001, Chapter 260
             537          48-2c-214, as last amended by Laws of Utah 2009, Chapter 141
             538          48-2c-305, as enacted by Laws of Utah 2001, Chapter 260
             539          48-2c-309, as last amended by Laws of Utah 2008, Chapter 364
             540          48-2c-311, as enacted by Laws of Utah 2001, Chapter 260
             541          48-2c-401, as last amended by Laws of Utah 2005, Chapter 141
             542          48-2c-402, as enacted by Laws of Utah 2001, Chapter 260
             543          48-2c-403, as last amended by Laws of Utah 2009, Chapter 141
             544          48-2c-404, as enacted by Laws of Utah 2001, Chapter 260
             545          48-2c-405, as last amended by Laws of Utah 2009, Chapter 141
             546          48-2c-406, as last amended by Laws of Utah 2008, Chapter 364
             547          48-2c-407, as enacted by Laws of Utah 2001, Chapter 260
             548          48-2c-408, as last amended by Laws of Utah 2005, Chapter 141
             549          48-2c-409, as enacted by Laws of Utah 2001, Chapter 260
             550          48-2c-410, as last amended by Laws of Utah 2010, Chapter 43
             551          48-2c-411, as last amended by Laws of Utah 2008, Chapter 364
             552          48-2c-412, as enacted by Laws of Utah 2009, Chapter 141



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             553
         48-2c-501, as last amended by Laws of Utah 2005, Chapter 141
             554          48-2c-502, as enacted by Laws of Utah 2001, Chapter 260
             555          48-2c-503, as enacted by Laws of Utah 2001, Chapter 260
             556          48-2c-504, as enacted by Laws of Utah 2001, Chapter 260
             557          48-2c-505, as enacted by Laws of Utah 2001, Chapter 260
             558          48-2c-506, as enacted by Laws of Utah 2001, Chapter 260
             559          48-2c-601, as enacted by Laws of Utah 2001, Chapter 260
             560          48-2c-602, as last amended by Laws of Utah 2002, Chapter 193
             561          48-2c-603, as enacted by Laws of Utah 2001, Chapter 260
             562          48-2c-604, as enacted by Laws of Utah 2001, Chapter 260
             563          48-2c-605, as enacted by Laws of Utah 2001, Chapter 260
             564          48-2c-606, as last amended by Laws of Utah 2010, Chapter 43
             565          48-2c-607, as last amended by Laws of Utah 2010, Chapter 43
             566          48-2c-608, as enacted by Laws of Utah 2006, Chapter 92
             567          48-2c-609, as enacted by Laws of Utah 2006, Chapter 92
             568          48-2c-610, as enacted by Laws of Utah 2006, Chapter 92
             569          48-2c-611, as enacted by Laws of Utah 2006, Chapter 92
             570          48-2c-612, as enacted by Laws of Utah 2006, Chapter 92
             571          48-2c-613, as enacted by Laws of Utah 2006, Chapter 92
             572          48-2c-614, as enacted by Laws of Utah 2006, Chapter 92
             573          48-2c-615, as enacted by Laws of Utah 2006, Chapter 92
             574          48-2c-616, as enacted by Laws of Utah 2006, Chapter 92
             575          48-2c-701, as enacted by Laws of Utah 2001, Chapter 260
             576          48-2c-702, as last amended by Laws of Utah 2005, Chapter 141
             577          48-2c-703, as enacted by Laws of Utah 2001, Chapter 260
             578          48-2c-704, as last amended by Laws of Utah 2008, Chapter 364
             579          48-2c-705, as enacted by Laws of Utah 2001, Chapter 260
             580          48-2c-706, as enacted by Laws of Utah 2001, Chapter 260
             581          48-2c-707, as last amended by Laws of Utah 2002, Chapter 193
             582          48-2c-708, as enacted by Laws of Utah 2001, Chapter 260
             583          48-2c-709, as enacted by Laws of Utah 2001, Chapter 260



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             584
         48-2c-710, as enacted by Laws of Utah 2001, Chapter 260
             585          48-2c-801, as last amended by Laws of Utah 2002, Chapter 193
             586          48-2c-802, as enacted by Laws of Utah 2001, Chapter 260
             587          48-2c-803, as last amended by Laws of Utah 2005, Chapter 141
             588          48-2c-803.1, as enacted by Laws of Utah 2005, Chapter 141
             589          48-2c-804, as last amended by Laws of Utah 2005, Chapter 141
             590          48-2c-805, as enacted by Laws of Utah 2001, Chapter 260
             591          48-2c-806, as enacted by Laws of Utah 2001, Chapter 260
             592          48-2c-807, as last amended by Laws of Utah 2005, Chapter 141
             593          48-2c-808, as enacted by Laws of Utah 2001, Chapter 260
             594          48-2c-809, as last amended by Laws of Utah 2008, Chapter 364
             595          48-2c-901, as enacted by Laws of Utah 2001, Chapter 260
             596          48-2c-902, as enacted by Laws of Utah 2001, Chapter 260
             597          48-2c-903, as last amended by Laws of Utah 2005, Chapter 141
             598          48-2c-904, as enacted by Laws of Utah 2001, Chapter 260
             599          48-2c-905, as enacted by Laws of Utah 2001, Chapter 260
             600          48-2c-906, as enacted by Laws of Utah 2001, Chapter 260
             601          48-2c-1001, as enacted by Laws of Utah 2001, Chapter 260
             602          48-2c-1002, as enacted by Laws of Utah 2001, Chapter 260
             603          48-2c-1003, as enacted by Laws of Utah 2001, Chapter 260
             604          48-2c-1004, as enacted by Laws of Utah 2001, Chapter 260
             605          48-2c-1005, as enacted by Laws of Utah 2001, Chapter 260
             606          48-2c-1006, as enacted by Laws of Utah 2001, Chapter 260
             607          48-2c-1007, as enacted by Laws of Utah 2001, Chapter 260
             608          48-2c-1008, as enacted by Laws of Utah 2001, Chapter 260
             609          48-2c-1101, as enacted by Laws of Utah 2001, Chapter 260
             610          48-2c-1102, as enacted by Laws of Utah 2001, Chapter 260
             611          48-2c-1103, as last amended by Laws of Utah 2005, Chapter 141
             612          48-2c-1104, as enacted by Laws of Utah 2001, Chapter 260
             613          48-2c-1105, as enacted by Laws of Utah 2001, Chapter 260
             614          48-2c-1106, as enacted by Laws of Utah 2001, Chapter 260



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             615
         48-2c-1201, as last amended by Laws of Utah 2005, Chapter 141
             616          48-2c-1202, as enacted by Laws of Utah 2001, Chapter 260
             617          48-2c-1203, as enacted by Laws of Utah 2001, Chapter 260
             618          48-2c-1204, as last amended by Laws of Utah 2008, Chapter 364
             619          48-2c-1205, as enacted by Laws of Utah 2001, Chapter 260
             620          48-2c-1206, as last amended by Laws of Utah 2008, Chapter 364
             621          48-2c-1207, as last amended by Laws of Utah 2009, Chapter 141
             622          48-2c-1208, as last amended by Laws of Utah 2009, Chapter 141
             623          48-2c-1209, as last amended by Laws of Utah 2009, Chapter 141
             624          48-2c-1210, as enacted by Laws of Utah 2001, Chapter 260
             625          48-2c-1211, as last amended by Laws of Utah 2008, Chapter 364
             626          48-2c-1212, as enacted by Laws of Utah 2001, Chapter 260
             627          48-2c-1213, as enacted by Laws of Utah 2001, Chapter 260
             628          48-2c-1214, as enacted by Laws of Utah 2001, Chapter 260
             629          48-2c-1301, as enacted by Laws of Utah 2001, Chapter 260
             630          48-2c-1302, as enacted by Laws of Utah 2001, Chapter 260
             631          48-2c-1303, as enacted by Laws of Utah 2001, Chapter 260
             632          48-2c-1304, as enacted by Laws of Utah 2001, Chapter 260
             633          48-2c-1305, as enacted by Laws of Utah 2001, Chapter 260
             634          48-2c-1306, as last amended by Laws of Utah 2009, Chapter 141
             635          48-2c-1307, as enacted by Laws of Utah 2001, Chapter 260
             636          48-2c-1308, as enacted by Laws of Utah 2001, Chapter 260
             637          48-2c-1309, as enacted by Laws of Utah 2001, Chapter 260
             638          48-2c-1401, as last amended by Laws of Utah 2009, Chapter 141
             639          48-2c-1402, as enacted by Laws of Utah 2001, Chapter 260
             640          48-2c-1403, as enacted by Laws of Utah 2001, Chapter 260
             641          48-2c-1404, as last amended by Laws of Utah 2005, Chapter 141
             642          48-2c-1405, as enacted by Laws of Utah 2001, Chapter 260
             643          48-2c-1406, as last amended by Laws of Utah 2005, Chapter 141
             644          48-2c-1407, as enacted by Laws of Utah 2001, Chapter 260
             645          48-2c-1408, as enacted by Laws of Utah 2001, Chapter 260



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- 22 -
             646
         48-2c-1409, as enacted by Laws of Utah 2001, Chapter 260
             647          48-2c-1410, as enacted by Laws of Utah 2001, Chapter 260
             648          48-2c-1411, as enacted by Laws of Utah 2009, Chapter 141
             649          48-2c-1501, as enacted by Laws of Utah 2001, Chapter 260
             650          48-2c-1502, as last amended by Laws of Utah 2010, Chapter 379
             651          48-2c-1503, as enacted by Laws of Utah 2001, Chapter 260
             652          48-2c-1504, as enacted by Laws of Utah 2001, Chapter 260
             653          48-2c-1505, as enacted by Laws of Utah 2001, Chapter 260
             654          48-2c-1506, as enacted by Laws of Utah 2001, Chapter 260
             655          48-2c-1507, as enacted by Laws of Utah 2001, Chapter 260
             656          48-2c-1508, as enacted by Laws of Utah 2001, Chapter 260
             657          48-2c-1509, as enacted by Laws of Utah 2001, Chapter 260
             658          48-2c-1510, as enacted by Laws of Utah 2001, Chapter 260
             659          48-2c-1511, as last amended by Laws of Utah 2008, Chapter 364
             660          48-2c-1512, as enacted by Laws of Utah 2001, Chapter 260
             661          48-2c-1513, as enacted by Laws of Utah 2001, Chapter 260
             662          48-2c-1601, as enacted by Laws of Utah 2001, Chapter 260
             663          48-2c-1602, as enacted by Laws of Utah 2001, Chapter 260
             664          48-2c-1603, as last amended by Laws of Utah 2008, Chapter 364
             665          48-2c-1604, as last amended by Laws of Utah 2008, Chapters 249 and 364
             666          48-2c-1605, as enacted by Laws of Utah 2001, Chapter 260
             667          48-2c-1606, as enacted by Laws of Utah 2001, Chapter 260
             668          48-2c-1607, as enacted by Laws of Utah 2001, Chapter 260
             669          48-2c-1608, as enacted by Laws of Utah 2001, Chapter 260
             670          48-2c-1609, as enacted by Laws of Utah 2001, Chapter 260
             671          48-2c-1610, as enacted by Laws of Utah 2001, Chapter 260
             672          48-2c-1611, as last amended by Laws of Utah 2008, Chapter 364
             673          48-2c-1612, as last amended by Laws of Utah 2008, Chapter 364
             674          48-2c-1613, as last amended by Laws of Utah 2009, Chapter 141
             675          48-2c-1614, as last amended by Laws of Utah 2008, Chapter 364
             676          48-2c-1615, as enacted by Laws of Utah 2001, Chapter 260



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             677
         48-2c-1701, as enacted by Laws of Utah 2001, Chapter 260
             678          48-2c-1702, as enacted by Laws of Utah 2001, Chapter 260
             679          48-2c-1703, as enacted by Laws of Utah 2001, Chapter 260
             680          48-2c-1704, as enacted by Laws of Utah 2001, Chapter 260
             681          48-2c-1705, as enacted by Laws of Utah 2001, Chapter 260
             682          48-2c-1706, as enacted by Laws of Utah 2001, Chapter 260
             683          48-2c-1801, as enacted by Laws of Utah 2001, Chapter 260
             684          48-2c-1802, as enacted by Laws of Utah 2001, Chapter 260
             685          48-2c-1803, as enacted by Laws of Utah 2001, Chapter 260
             686          48-2c-1804, as enacted by Laws of Utah 2001, Chapter 260
             687          48-2c-1805, as enacted by Laws of Utah 2001, Chapter 260
             688          48-2c-1806, as enacted by Laws of Utah 2001, Chapter 260
             689          48-2c-1807, as enacted by Laws of Utah 2001, Chapter 260
             690          48-2c-1808, as enacted by Laws of Utah 2001, Chapter 260
             691          48-2c-1809, as enacted by Laws of Utah 2001, Chapter 260
             692          48-2c-1901, as enacted by Laws of Utah 2001, Chapter 260
             693          48-2c-1902, as enacted by Laws of Utah 2001, Chapter 260
             694     

             695      Be it enacted by the Legislature of the state of Utah:
             696          Section 1. Section 7-1-810 is amended to read:
             697           7-1-810. Limited liability companies.
             698          (1) Notwithstanding any other provision of this title and subject to Subsection (8), if
             699      the conditions of this section are met, the following may be organized as or convert to a limited
             700      liability company under Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability
             701      Company Act:
             702          (a) an industrial bank chartered under Chapter 8, Industrial Banks;
             703          (b) an industrial loan company as defined in Section 7-8-21 ; or
             704          (c) any of the following if the institution is an S Corporation, as defined in Section
             705      1361, Internal Revenue Code, immediately before becoming a limited liability company:
             706          (i) a bank chartered under Chapter 3, Banks;
             707          (ii) a savings and loan association chartered under Chapter 7, Savings and Loan



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             708
     Associations Act; or
             709          (iii) a depository institution holding company.
             710          (2) (a) Before an institution described in Subsection (1) may organize as or convert to a
             711      limited liability company, the institution shall obtain approval of the commissioner.
             712          (b) (i) To obtain the approval under this section from the commissioner, the institution
             713      shall file a request for approval with the commissioner at least 30 days before the day on which
             714      the institution becomes a limited liability company.
             715          (ii) If the commissioner does not disapprove the request for approval within 30 days
             716      from the day on which the commissioner receives the request, the request is considered
             717      approved.
             718          (iii) When taking action on a request for approval filed under this section, the
             719      commissioner may:
             720          (A) approve the request;
             721          (B) approve the request subject to terms and conditions the commissioner considers
             722      necessary; or
             723          (C) disapprove the request.
             724          (3) To approve a request for approval, the commissioner shall find:
             725          (a) for an institution described in Subsection (1) that is required to be insured by a
             726      federal deposit insurance agency, that the institution:
             727          (i) will operate in a safe and sound manner;
             728          (ii) has the following characteristics:
             729          (A) the institution is not subject to automatic termination, dissolution, or suspension
             730      upon the happening of some event other than the passage of time;
             731          (B) the exclusive authority to manage the institution is vested in a board of managers
             732      or directors that:
             733          (I) is elected or appointed by the owners;
             734          (II) is not required to have owners of the institution included on the board;
             735          (III) possesses adequate independence and authority to supervise the operation of the
             736      institution; and
             737          (IV) operates with substantially the same rights, powers, privileges, duties, and
             738      responsibilities as the board of directors of a corporation;



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             739
         (C) neither state law, nor the institution's operating agreement, bylaws, or other
             740      organizational documents provide that an owner of the institution is liable for the debts,
             741      liabilities, and obligations of the institution in excess of the amount of the owner's investment;
             742      and
             743          (D) (I) neither state law, nor the institution's operating agreement, bylaws, or other
             744      organizational documents require the consent of any other owner of the institution in order for
             745      any owner to transfer an ownership interest in the institution, including voting rights; and
             746          (II) the institution is able to obtain new investment funding if needed to maintain
             747      adequate capital; and
             748          (iii) is able to comply with all legal and regulatory requirements for an insured
             749      depository institution under applicable federal and state law; and
             750          (b) for an institution described in Subsection (1) that is not required to be insured by a
             751      federal deposit insurance agency, that the institution will operate in a safe and sound manner.
             752          (4) An institution described in Subsection (3)(a) that is organized as a limited liability
             753      company shall maintain the characteristics listed in Subsection (3)(a)(ii) during such time as it
             754      is authorized to conduct business under this title as a limited liability company.
             755          (5) (a) All rights, privileges, powers, duties, and obligations of an institution described
             756      in Subsection (1) that is organized as a limited liability company and its members and
             757      managers shall be governed by Title 48, Chapter [2c] 3, Utah Revised Uniform Limited
             758      Liability Company Act, except:
             759          (i) the following [sections] do not apply to an institution that is described in Subsection
             760      (3)(a):
             761          [(A) Subsection 48-2c-402 (2)(a)(ii);]
             762          [(B) Section 48-2c-604 ;]
             763          [(C) Section 48-2c-703 ;]
             764          [(D) Section 48-2c-708 ;]
             765          [(E) Subsection 48-2c-801 (2);]
             766          [(F) Section 48-2c-1102 ;]
             767          [(G) Section 48-2c-1104 ; and]
             768          [(H) Subsections 48-2c-1201 (2) through (5); and]
             769          (A) Section 48-3-110 ;



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             770
         (B) Section 48-3-112 ;
             771          (C) Section 48-3-201 ;
             772          (D) Section 48-3-401 ;
             773          (E) Subsections 48-3-407 (1) and (3)(d);
             774          (F) Section 48-3-410 ;
             775          (G) Subsection 48-3-502 (1)(c);
             776          (H) Title 48, Chapter 3, Part 6, Member's Dissociation;
             777          (I) Section 48-3-701 ; and
             778          (J) Title 48, Chapter 3, Part 8, Foreign Limited Liability Companies; and
             779          (ii) as otherwise provided in this title.
             780          (b) Notwithstanding Subsection (5)(a), for an institution that is described in Subsection
             781      (3)(a):
             782          (i) for purposes of transferring a member's interests in the institution, a member's
             783      interest in the institution shall be treated like a share of stock in a corporation; and
             784          (ii) if a member's interest in the institution is transferred voluntarily or involuntarily to
             785      another person, the person who receives the member's interest shall obtain the member's entire
             786      rights associated with the member's interest in the institution including:
             787          (A) all economic rights; and
             788          (B) all voting rights.
             789          (c) An institution described in Subsection (3)(a) may not by agreement or otherwise
             790      change the application of Subsection (5)(a) to the institution.
             791          (6) Unless the context requires otherwise, for the purpose of applying this title to an
             792      institution described in Subsection (1) that is organized as a limited liability company:
             793          (a) a citation to Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             794      includes the equivalent citation to Title 48, Chapter [2c] 3, Utah Revised Uniform Limited
             795      Liability Company Act;
             796          (b) "articles of incorporation" includes a limited liability company's [articles]
             797      certificate of organization as that term is used in Section [ 48-2c-403 ] 48-3-201 ;
             798          (c) "board of directors" includes one or more persons who have, with respect to an
             799      institution described in Subsection (1), authority substantially similar to that of a board of
             800      directors of a corporation;



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             801
         (d) "bylaws" includes a limited liability company's operating agreement as that term is
             802      defined in Section [ 48-2c-102 ] 48-3-102 ;
             803          (e) "corporation" includes a limited liability company organized under Title 48,
             804      Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act;
             805          (f) "director" includes any of the following of a limited liability company:
             806          (i) a manager;
             807          (ii) a director; or
             808          (iii) other person who has with respect to the institution described in Subsection (1),
             809      authority substantially similar to that of a director of a corporation;
             810          (g) "dividend" includes distributions made by a limited liability company under Title
             811      48, Chapter [2c, Part 10, Distributions] 3, Part 4, Relations of Members to Each Other and to
             812      Limited Liability Company;
             813          (h) "incorporator" includes [the organizers] an organizer of a limited liability company
             814      as provided in Title 48, Chapter [2c, Part 4, Formation] 3, Part 2, Formation - Certificate of
             815      Organization and Other Filings;
             816          (i) "officer" includes any of the following of an institution described in Subsection (1):
             817          (i) an officer; or
             818          (ii) other person who has with respect to the institution described in Subsection (1)
             819      authority substantially similar to that of an officer of a corporation;
             820          (j) "security," "shares," or "stock" of a corporation includes:
             821          (i) a membership interest in a limited liability company as provided in Title 48,
             822      Chapter [2c, Part 7, Members] 3, Part 4, Relations of Members to Each Other and to Limited
             823      Liability Company; and
             824          (ii) [any] a certificate or other evidence of an ownership interest in a limited liability
             825      company; and
             826          (k) "stockholder" or "shareholder" includes an owner of an interest in an institution
             827      described in Subsection (1) including a member as provided in Title 48, Chapter [2c, Part 7,
             828      Members] 3, Part 4, Relations of Members to Each Other and to Limited Liability Company.
             829          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             830      commissioner shall make rules governing the form of a request for approval filed under this
             831      section.



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             832
         (8) A depository institution organized under the laws of this state may not be organized
             833      as or converted to a series of [members, managers, or] transferable interests in a limited
             834      liability company as provided in [Section 48-2c-606 ] Title 48, Chapter 3, Part 12, Series
             835      Limited Liability Companies.
             836          Section 2. Section 7-3-10 is amended to read:
             837           7-3-10. Organization -- Powers, rights, and privileges of banking corporation --
             838      Other business activities.
             839          (1) A bank chartered under this chapter shall be:
             840          (a) a domestic corporation under Title 16, Chapter 10a, Utah Revised Business
             841      Corporation Act; or
             842          (b) subject to Section 7-1-810 , including the requirement that the bank be an S
             843      Corporation immediately before becoming a limited liability company, a limited liability
             844      company created under Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability
             845      Company Act.
             846          (2) A bank has all the rights, privileges, and powers necessary or incidental to carrying
             847      on the business of banking in addition to the powers granted:
             848          (a) if the bank is a corporation, under Title 16, Chapter 10a, Utah Revised Business
             849      Corporation Act; or
             850          (b) subject to Section 7-1-810 , if the bank is a limited liability company, under Title
             851      48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act.
             852          (3) The commissioner may, by rule or order, determine that necessary or incidental
             853      rights, privileges, and powers include:
             854          (a) the rights, privileges, and powers held by national banks; or
             855          (b) other business activities so long as the commissioner's determination is not
             856      inconsistent with the rules, regulations, or other actions of the board of governors of the
             857      Federal Reserve System under Section 4(c)(8) of the Bank Holding Company Act of 1956, 12
             858      U.S.C. Sec. 1843(c)(8).
             859          (4) The commissioner shall implement this section in a manner consistent with the
             860      purposes set forth in Section 7-1-102 .
             861          Section 3. Section 7-8-3 is amended to read:
             862           7-8-3. Organization -- Authorization to conduct business -- Deposit insurance.



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             863
         (1) Subject to Subsection (4), the commissioner may authorize a person described in
             864      Subsection (2) to conduct business as an industrial bank.
             865          (2) (a) Each person organized to conduct the business of an industrial bank in this state
             866      shall be organized under:
             867          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
             868          (ii) in accordance with Section 7-1-810 , Title 48, Chapter [2c] 3, Utah Revised
             869      Uniform Limited Liability Company Act.
             870          (b) A person may not conduct business as an industrial bank authorized under this
             871      chapter to conduct business as an industrial bank in any form of entity other than those
             872      provided in Subsection (2)(a).
             873          (3) (a) All rights, privileges, powers, duties, and obligations of a corporation
             874      authorized to conduct business as an industrial bank and its officers, directors, and stockholders
             875      shall be governed by Title 16, Chapter 10a, Utah Revised Business Corporation Act, except as
             876      otherwise provided in this title.
             877          (b) All rights, privileges, powers, duties, and obligations of a limited liability company
             878      authorized to conduct business as an industrial bank and its members and managers shall be
             879      governed by Title 48, Chapter [2c, Utah Revised] 3, Uniform Limited Liability Company Act,
             880      except as otherwise provided in this title.
             881          (4) (a) An industrial bank is authorized to receive and hold deposits.
             882          (b) An industrial bank may not conduct business under this chapter as an industrial
             883      bank unless the industrial bank obtains insurance from the Federal Deposit Insurance
             884      Corporation or a successor federal deposit insurance entity for any deposits received or held by
             885      the industrial bank.
             886          Section 4. Section 13-34-114 is amended to read:
             887           13-34-114. Consent to use of educational terms in business names.
             888          (1) For purposes of this section:
             889          (a) "Business name" means a name filed with the Division of Corporations and
             890      Commercial Code under:
             891          (i) Section 16-6a-401 ;
             892          (ii) Section 16-10a-401 ;
             893          (iii) Section 16-11-16 ;



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             894
         (iv) Section 42-2-6.6 ;
             895          (v) Section [ 48-2a-102 ] 48-2d-108 ; or
             896          (vi) Section [ 48-2c-106 ] 48-3-108 .
             897          (b) "Educational term" means the term:
             898          (i) "university";
             899          (ii) "college"; or
             900          (iii) "institute" or "institution."
             901          (2) If a statute listed in Subsection (1)(a) requires the written consent of the division to
             902      file a business name with the Division of Corporations and Commercial Code that includes an
             903      educational term, the division may consent to the use of an educational term in accordance with
             904      this statute.
             905          (3) The division shall consent to the use of an educational term in a business name if
             906      the person seeking to file the name:
             907          (a) is registered under this chapter;
             908          (b) is exempt from the chapter under Section 13-34-105 ; or
             909          (c) (i) is not engaged in educational activities; and
             910          (ii) does not represent that it is engaged in educational activities.
             911          (4) The division may withhold consent to use of an educational term in a business
             912      name if the person seeking to file the name:
             913          (a) offers, sells, or awards a degree or any other type of educational credential; and
             914          (b) fails to provide bona fide instruction through student-faculty interaction according
             915      to the standards and criteria established by the division under Subsection 13-34-104 (5).
             916          Section 5. Section 16-6a-1008.7 is amended to read:
             917           16-6a-1008.7. Conversion to or from a domestic limited liability company.
             918          (1) (a) A domestic nonprofit corporation may convert to a domestic limited liability
             919      company subject to Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company
             920      Act, by complying with:
             921          (i) this Subsection (1); and
             922          (ii) Section [ 48-2c-1401 ] 48-3-1006 .
             923          (b) If a domestic nonprofit corporation converts to a domestic limited liability company
             924      in accordance with this Subsection (1), the articles of conversion shall:



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             925
         (i) comply with Section [ 48-2c-1402 ] 48-3-1008 ; and
             926          (ii) if the corporation has any members, provide for:
             927          (A) the cancellation of any membership; or
             928          (B) the conversion of any membership in the domestic nonprofit corporation to a
             929      membership interest in the domestic limited liability company.
             930          (c) [In accordance with Section 48-2c-1404 , before] Before articles of conversion may
             931      be filed with the division, the conversion shall be approved:
             932          (i) in the manner provided for the articles of incorporation or bylaws of the domestic
             933      nonprofit corporation; or
             934          (ii) if the articles of incorporation or bylaws of the domestic nonprofit corporation do
             935      not provide the method for approval:
             936          (A) if the domestic nonprofit corporation has voting members, by all of the members of
             937      the domestic nonprofit corporation regardless of limitations or restrictions on the voting rights
             938      of the members; or
             939          (B) if the nonprofit domestic corporation does not have voting members, by a majority
             940      of:
             941          (I) the directors in office at the time the conversion is approved by the board of
             942      directors; or
             943          (II) if directors have not been appointed or elected, the incorporators.
             944          (2) A domestic limited liability company may convert to a domestic nonprofit
             945      corporation subject to this chapter by:
             946          (a) filing articles of incorporation in accordance with this chapter; and
             947          (b) complying with Section [ 48-2c-1406 ] 48-3-1006 .
             948          (3) Any conversion under this section may not result in a violation, directly or
             949      indirectly, of:
             950          (a) Section 16-6a-1301 ; or
             951          (b) any other provision of this chapter.
             952          Section 6. Section 16-10a-401 is amended to read:
             953           16-10a-401. Corporate name.
             954          (1) The name of a corporation:
             955          (a) except for the name of a depository institution as defined in Section 7-1-103 , shall



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             956
     contain:
             957          (i) the word:
             958          (A) "corporation";
             959          (B) "incorporated"; or
             960          (C) "company";
             961          (ii) the abbreviation:
             962          (A) "corp.";
             963          (B) "inc."; or
             964          (C) "co."; or
             965          (iii) words or abbreviations of like import to the words or abbreviations listed in
             966      Subsections (1)(a)(i) and (ii) in another language;
             967          (b) may not contain language stating or implying that the corporation is organized for a
             968      purpose other than that permitted by:
             969          (i) Section 16-10a-301 ; and
             970          (ii) the corporation's articles of incorporation;
             971          (c) without the written consent of the United States Olympic Committee, may not
             972      contain the words:
             973          (i) "Olympic";
             974          (ii) "Olympiad"; or
             975          (iii) "Citius Altius Fortius"; and
             976          (d) without the written consent of the Division of Consumer Protection issued in
             977      accordance with Section 13-34-114 , may not contain the words:
             978          (i) "university";
             979          (ii) "college"; or
             980          (iii) "institute" or "institution."
             981          (2) Except as authorized by Subsections (3) and (4), the name of a corporation shall be
             982      distinguishable, as defined in Subsection (5), upon the records of the division from:
             983          (a) the name of any domestic corporation incorporated in or foreign corporation
             984      authorized to transact business in this state;
             985          (b) the name of any domestic or foreign nonprofit corporation incorporated or
             986      authorized to transact business in this state;



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             987
         (c) the name of any domestic or foreign limited liability company formed or authorized
             988      to transact business in this state;
             989          (d) the name of any limited partnership formed or authorized to transact business in
             990      this state;
             991          (e) any name reserved or registered with the division for a corporation, limited liability
             992      company, or general or limited partnership, under the laws of this state; and
             993          (f) any business name, fictitious name, assumed name, trademark, or service mark
             994      registered by the division.
             995          (3) (a) A corporation may apply to the division for authorization to file its articles of
             996      incorporation under, or to register or reserve, a name that is not distinguishable upon its records
             997      from one or more of the names described in Subsection (2).
             998          (b) The division shall approve the application filed under Subsection (3)(a) if:
             999          (i) the other person whose name is not distinguishable from the name under which the
             1000      applicant desires to file, or which the applicant desires to register or reserve:
             1001          (A) consents to the filing, registration, or reservation in writing; and
             1002          (B) submits an undertaking in a form satisfactory to the division to change its name to
             1003      a name that is distinguishable from the name of the applicant; or
             1004          (ii) the applicant delivers to the division a certified copy of the final judgment of a
             1005      court of competent jurisdiction establishing the applicant's right to make the requested filing in
             1006      this state under the name applied for.
             1007          (4) A corporation may make a filing under the name, including the fictitious name, of
             1008      another domestic or foreign corporation that is used or registered in this state if:
             1009          (a) the other corporation is incorporated or authorized to transact business in this state;
             1010      and
             1011          (b) the filing corporation:
             1012          (i) has merged with the other corporation; or
             1013          (ii) has been formed by reorganization of the other corporation.
             1014          (5) (a) A name is distinguishable from other names, trademarks, and service marks on
             1015      the records of the division if it:
             1016          (i) contains one or more different letters or numerals; or
             1017          (ii) has a different sequence of letters or numerals from the other names on the



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             1018
     division's records.
             1019          (b) Differences which are not distinguishing are:
             1020          (i) the words or abbreviations of the words:
             1021          (A) "corporation";
             1022          (B) "company";
             1023          (C) "incorporated";
             1024          (D) "limited partnership";
             1025          (E) "L.P.";
             1026          (F) "limited";
             1027          [(G) "ltd.";]
             1028          [(H)] (G) "limited liability company";
             1029          [(I)] (H) "limited company";
             1030          [(J)] (I) "L.C."; or
             1031          [(K)] (J) "L.L.C.";
             1032          (ii) the presence or absence of the words or symbols of the words "the," "and," or "a";
             1033          (iii) differences in punctuation and special characters;
             1034          (iv) differences in capitalization;
             1035          (v) differences between singular and plural forms of words for a corporation:
             1036          (A) incorporated in or authorized to do business in this state on or after May 4, 1998;
             1037      or
             1038          (B) that changes its name on or after May 4, 1998;
             1039          (vi) differences in whether the letters or numbers immediately follow each other or are
             1040      separated by one or more spaces if:
             1041          (A) the sequence of letters or numbers is identical; and
             1042          (B) the corporation:
             1043          (I) is incorporated in or authorized to do business in this state on or after May 3, 1999;
             1044      or
             1045          (II) changes its name on or after May 3, 1999; or
             1046          (vii) differences in abbreviations, for a corporation:
             1047          (A) incorporated in or authorized to do business in this state on or after May 1, 2000;
             1048      or



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             1049
         (B) that changes its name on or after May 1, 2000.
             1050          (c) The director of the division has the power and authority reasonably necessary to
             1051      interpret and efficiently administer this section and to perform the duties imposed on the
             1052      division by this section.
             1053          (6) A name that implies that the corporation is an agency of this state or of any of its
             1054      political subdivisions, if it is not actually such a legally established agency or subdivision, may
             1055      not be approved for filing by the division.
             1056          (7) (a) The requirements of Subsection (1)(d) do not apply to a corporation
             1057      incorporated in or authorized to do business in this state on or before May 4, 1998, until
             1058      December 31, 1998.
             1059          (b) On or after January 1, 1999, any corporation incorporated in or authorized to do
             1060      business in this state shall comply with the requirements of Subsection (1)(d).
             1061          Section 7. Section 16-10a-1008.7 is amended to read:
             1062           16-10a-1008.7. Conversion to or from a domestic limited liability company.
             1063          (1) (a) A corporation may convert to a domestic limited liability company subject to
             1064      Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act, by complying
             1065      with:
             1066          (i) this Subsection (1); and
             1067          (ii) Section [ 48-2c-1401 ] 48-3-1006 .
             1068          (b) If a corporation converts to a domestic limited liability company in accordance with
             1069      this Subsection (1), the articles of conversion shall:
             1070          (i) comply with Section [ 48-2c-1402 ] 48-3-1008 ; and
             1071          (ii) if the corporation has issued shares, provide for:
             1072          (A) the cancellation of any issued share; or
             1073          (B) the conversion of any issued share to a membership interest in the domestic limited
             1074      liability company.
             1075          (c) [In accordance with Section 48-2c-1404 , before] Before articles of conversion may
             1076      be filed with the division, the conversion shall be approved:
             1077          (i) in the manner provided for the articles of incorporation or bylaws of the
             1078      corporation; or
             1079          (ii) if the articles of incorporation or bylaws of the corporation do not provide the



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             1080
     method for approval:
             1081          (A) if the corporation has issued shares, by all of the outstanding shares of all classes
             1082      of shares of the corporation regardless of limitations or restrictions on the voting rights of the
             1083      shares; or
             1084          (B) if the corporation has not issued shares, by a majority of:
             1085          (I) the directors in office at the time that the conversion is approved by the board of
             1086      directors; or
             1087          (II) if directors have not been appointed or elected, the incorporators.
             1088          (2) A domestic limited liability company may convert to a corporation subject to this
             1089      chapter by:
             1090          (a) filing articles of incorporation in accordance with this chapter; and
             1091          (b) complying with Section [ 48-2c-1406 ] 48-3-1006 .
             1092          Section 8. Section 16-11-16 is amended to read:
             1093           16-11-16. Corporate name.
             1094          (1) The name of each professional corporation as set forth in its articles of
             1095      incorporation:
             1096          (a) shall contain the terms:
             1097          (i) "professional corporation"; or
             1098          (ii) "P.C.";
             1099          (b) may not contain the words:
             1100          (i) "incorporated"; or
             1101          (ii) "inc.";
             1102          (c) may not contain language stating or implying that the professional corporation is
             1103      organized for a purpose other than that permitted by:
             1104          (i) Section 16-11-6 ; and
             1105          (ii) the professional corporation's articles of incorporation;
             1106          (d) without the written consent of the United States Olympic Committee, may not
             1107      contain the words:
             1108          (i) "Olympic";
             1109          (ii) "Olympiad"; or
             1110          (iii) "Citius Altius Fortius"; and



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             1111
         (e) without the written consent of the Division of Consumer Protection in accordance
             1112      with Section 13-34-114 , may not contain the words:
             1113          (i) "university";
             1114          (ii) "college"; or
             1115          (iii) "institute" or "institution."
             1116          (2) The professional corporation may not imply by any word in the name that it is an
             1117      agency of the state or of any of its political subdivisions.
             1118          (3) A person, other than a professional corporation formed or registered under this
             1119      chapter, may not use in its name in this state any of the terms:
             1120          (a) "professional corporation"; or
             1121          (b) "P.C."
             1122          (4) Except as authorized by Subsection (5), the name of the professional corporation
             1123      shall be distinguishable, as defined in Subsection (6), upon the records of the division from:
             1124          (a) the name of any domestic corporation incorporated in or foreign corporation
             1125      authorized to transact business in this state;
             1126          (b) the name of any domestic or foreign nonprofit corporation incorporated or
             1127      authorized to transact business in this state;
             1128          (c) the name of any domestic or foreign limited liability company formed or authorized
             1129      to transact business in this state;
             1130          (d) the name of any limited partnership formed or authorized to transact business in
             1131      this state;
             1132          (e) any name reserved or registered with the division for a corporation, limited liability
             1133      company, or general or limited partnership, under the laws of this state; and
             1134          (f) any business name, fictitious name, assumed name, trademark, or service mark
             1135      registered by the division.
             1136          (5) (a) A professional corporation may apply to the division for authorization to file its
             1137      articles of incorporation under, or to register or reserve, a name that is not distinguishable upon
             1138      its records from one or more of the names described in Subsection (4).
             1139          (b) The division shall approve the application filed under Subsection (5)(a) if:
             1140          (i) the other person whose name is not distinguishable from the name under which the
             1141      applicant desires to file, or which the applicant desires to register or reserve:



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             1142
         (A) consents to the filing, registration, or reservation in writing; and
             1143          (B) submits an undertaking in a form satisfactory to the division to change its name to
             1144      a name that is distinguishable from the name of the applicant; or
             1145          (ii) the applicant delivers to the division a certified copy of the final judgment of a
             1146      court of competent jurisdiction establishing the applicant's right to make the requested filing in
             1147      this state under the name applied for.
             1148          (6) (a) A name is distinguishable from other names, trademarks, and service marks
             1149      registered with the division if it:
             1150          (i) contains one or more different letters or numerals from other names upon the
             1151      division's records; or
             1152          (ii) has a different sequence of letter or numerals from the other names on the division's
             1153      records.
             1154          (b) The following differences are not distinguishable:
             1155          (i) the words or abbreviations of the words:
             1156          (A) "corporation";
             1157          (B) "incorporated";
             1158          (C) "company";
             1159          (D) "limited partnership";
             1160          (E) "limited";
             1161          (F) "L.P.";
             1162          [(G) "Ltd.";]
             1163          [(H)] (G) "limited liability company";
             1164          [(I)] (H) "limited company";
             1165          [(J)] (I) "L.C."; or
             1166          [(K)] (J) "L.L.C.";
             1167          (ii) the presence or absence of the words or symbols of the words "the," "and," "a," or
             1168      "plus";
             1169          (iii) differences in punctuation and special characters;
             1170          (iv) differences in capitalization; or
             1171          (v) differences in abbreviations.
             1172          (7) The director of the division shall have the power and authority reasonably necessary



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             1173
     to interpret and efficiently administer this section and to perform the duties imposed upon the
             1174      division by this section.
             1175          Section 9. Section 16-16-111 is amended to read:
             1176           16-16-111. Name.
             1177          (1) Use of the term "cooperative" or its abbreviation under this chapter is not a
             1178      violation of the provisions restricting the use of the term under any other law of this state.
             1179          (2) (a) Notwithstanding Section [ 48-2a-102 ] 48-2d-108 , the name of a limited
             1180      cooperative association shall contain:
             1181          (i) the words "limited cooperative association" or "limited cooperative"; or
             1182          (ii) the abbreviation "L.C.A." or "LCA". ["Limited" may be abbreviated as "Ltd.".]
             1183          (b) "Cooperative" may be abbreviated as "Co-op" or "Coop".
             1184          (c) "Association" may be abbreviated as "Assoc." or "Assn.".
             1185          (d) (i) Use of the term "cooperative" or its abbreviation as permitted by this chapter is
             1186      not a violation of the provisions restricting the use of the term under any other law of this state.
             1187          (ii) A limited cooperative association or a member may enforce the restrictions on the
             1188      use of the term "cooperative" under this chapter and any other law of this state.
             1189          (iii) A limited cooperative association or a member may enforce the restrictions on the
             1190      use of the term "cooperative" under any other law of this state.
             1191          (3) Except as otherwise provided in Subsection (4), a limited cooperative association
             1192      may use only a name that is available. A name is available if it is distinguishable in the records
             1193      of the division from:
             1194          (a) the name of any entity organized or authorized to transact business in this state;
             1195          (b) a name reserved under Section 16-16-112 ; and
             1196          (c) an alternative name approved for a foreign cooperative authorized to transact
             1197      business in this state.
             1198          (4) A limited cooperative association may apply to the division for authorization to use
             1199      a name that is not available. The division shall authorize use of the name if:
             1200          (a) the person with ownership rights to use the name consents in a record to the use and
             1201      applies in a form satisfactory to the division to change the name used or reserved to a name that
             1202      is distinguishable upon the records of the division from the name applied for; or
             1203          (b) the applicant delivers to the division a certified copy of the final judgment of a



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             1204
     court establishing the applicant's right to use the name in this state.
             1205          Section 10. Section 16-17-102 is amended to read:
             1206           16-17-102. Definitions.
             1207          In this chapter:
             1208          (1) "Appointment of agent" means a statement appointing an agent for service of
             1209      process filed by:
             1210          (a) a domestic or foreign unincorporated nonprofit association under Section
             1211      16-17-204 ; or
             1212          (b) a domestic entity that is not a filing entity or a nonqualified foreign entity under
             1213      Section 16-17-210 .
             1214          (2) "Commercial registered agent" means an individual or a domestic or foreign entity
             1215      listed under Section 16-17-204 .
             1216          (3) "Division" means the Division of Corporations and Commercial Code.
             1217          (4) "Domestic entity" means an entity whose internal affairs are governed by the law of
             1218      this state.
             1219          (5) "Entity" means a person that has a separate legal existence or has the power to
             1220      acquire an interest in real property in its own name other than:
             1221          (a) an individual;
             1222          (b) a testamentary, inter vivos, or charitable trust, with the exception of a business
             1223      trust, statutory trust, or similar trust;
             1224          (c) an association or relationship that is not a partnership by reason of [Section 202(c)
             1225      of the Uniform Partnership Act (1997)] Subsection 48-1a-303 (3) or a similar provision of the
             1226      law of any other jurisdiction;
             1227          (d) a decedent's estate; or
             1228          (e) a public corporation, government or governmental subdivision, agency, or
             1229      instrumentality, or quasi-governmental instrumentality.
             1230          (6) "Filing entity" means an entity that is created by the filing of a public organic
             1231      document.
             1232          (7) "Foreign entity" means an entity other than a domestic entity.
             1233          (8) "Foreign qualification document" means an application for a certificate of authority
             1234      or other foreign qualification filing with the division by a foreign entity.



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             1235
         (9) "Governance interest" means the right under the organic law or organic rules of an
             1236      entity, other than as a governor, agent, assignee, or proxy, to:
             1237          (a) receive or demand access to information concerning, or the books and records of,
             1238      the entity;
             1239          (b) vote for the election of the governors of the entity; or
             1240          (c) receive notice of or vote on any or all issues involving the internal affairs of the
             1241      entity.
             1242          (10) "Governor" means a person by or under whose authority the powers of an entity
             1243      are exercised and under whose direction the business and affairs of the entity are managed
             1244      pursuant to the organic law and organic rules of the entity.
             1245          (11) "Interest" means:
             1246          (a) a governance interest in an unincorporated entity;
             1247          (b) a transferable interest in an unincorporated entity; or
             1248          (c) a share or membership in a corporation.
             1249          (12) "Interest holder" means a direct holder of an interest.
             1250          (13) "Jurisdiction of organization," with respect to an entity, means the jurisdiction
             1251      whose law includes the organic law of the entity.
             1252          (14) "Noncommercial registered agent" means a person that is not listed as a
             1253      commercial registered agent under Section 16-17-204 and that is:
             1254          (a) an individual or a domestic or foreign entity that serves in this state as the agent for
             1255      service of process of an entity; or
             1256          (b) the individual who holds the office or other position in an entity that is designated
             1257      as the agent for service of process pursuant to Subsection 16-17-203 (1)(b)(ii).
             1258          (15) "Nonqualified foreign entity" means a foreign entity that is not authorized to
             1259      transact business in this state pursuant to a filing with the division.
             1260          (16) "Nonresident LLP statement" means:
             1261          (a) a statement of qualification of a domestic limited liability partnership that does not
             1262      have an office in this state; or
             1263          (b) a statement of foreign qualification of a foreign limited liability partnership that
             1264      does not have an office in this state.
             1265          (17) "Organic law" means the statutes, if any, other than this chapter, governing the



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             1266
     internal affairs of an entity.
             1267          (18) "Organic rules" means the public organic document and private organic rules of an
             1268      entity.
             1269          (19) "Person" means an individual, corporation, estate, trust, partnership, limited
             1270      liability company, business or similar trust, association, joint venture, public corporation,
             1271      government or governmental subdivision, agency, or instrumentality, or any other legal or
             1272      commercial entity.
             1273          (20) "Private organic rules" mean the rules, whether or not in a record, that govern the
             1274      internal affairs of an entity, are binding on all of its interest holders, and are not part of its
             1275      public organic document, if any.
             1276          (21) "Public organic document" means the public record the filing of which creates an
             1277      entity, and any amendment to or restatement of that record.
             1278          (22) "Qualified foreign entity" means a foreign entity that is authorized to transact
             1279      business in this state pursuant to a filing with the division.
             1280          (23) "Record" means information that is inscribed on a tangible medium or that is
             1281      stored in an electronic or other medium and is retrievable in perceivable form.
             1282          (24) "Registered agent" means a commercial registered agent or a noncommercial
             1283      registered agent.
             1284          (25) "Registered agent filing" means:
             1285          (a) the public organic document of a domestic filing entity;
             1286          (b) a nonresident LLP statement;
             1287          (c) a foreign qualification document; or
             1288          (d) an appointment of agent.
             1289          (26) "Represented entity" means:
             1290          (a) a domestic filing entity;
             1291          (b) a domestic or qualified foreign limited liability partnership that does not have an
             1292      office in this state;
             1293          (c) a qualified foreign entity;
             1294          (d) a domestic or foreign unincorporated nonprofit association for which an
             1295      appointment of agent has been filed;
             1296          (e) a domestic entity that is not a filing entity for which an appointment of agent has



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             1297
     been filed; or
             1298          (f) a nonqualified foreign entity for which an appointment of agent has been filed.
             1299          (27) "Sign" means, with present intent to authenticate or adopt a record:
             1300          (a) to execute or adopt a tangible symbol; or
             1301          (b) to attach to or logically associate with the record an electronic sound, symbol, or
             1302      process.
             1303          (28) "Transferable interest" means the right under an entity's organic law to receive
             1304      distributions from the entity.
             1305          (29) "Type," with respect to an entity, means a generic form of entity:
             1306          (a) recognized at common law; or
             1307          (b) organized under an organic law, whether or not some entities organized under that
             1308      organic law are subject to provisions of that law that create different categories of the form of
             1309      entity.
             1310          Section 11. Section 31A-37a-102 is amended to read:
             1311           31A-37a-102. Definitions.
             1312          (1) For purposes of this chapter:
             1313          (a) "Ceding insurer" means an insurer that:
             1314          (i) is approved by the commissioner;
             1315          (ii) is licensed or otherwise authorized to transact the business of insurance or
             1316      reinsurance in the insurer's state or country of domicile; and
             1317          (iii) cedes risk to a special purpose financial captive insurance company pursuant to a
             1318      reinsurance contract.
             1319          (b) Notwithstanding Section 31A-27a-102 , "insolvency" or "insolvent" for purposes of
             1320      applying Chapter 27a, Insurer Receivership Act, to a special purpose financial captive
             1321      insurance company, means that a special purpose financial captive insurance company:
             1322          (i) is unable to pay an obligation when the obligation is due, unless the obligation is the
             1323      subject of a bona fide dispute; or
             1324          (ii) fails to meet the criteria and conditions for solvency of the special purpose financial
             1325      captive insurance company established by the commissioner by rule or order.
             1326          (c) (i) "Insurance securitization" means a transaction or a group of related transactions:
             1327          (A) that may include a capital market offering;



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             1328
         (B) that is effected through one or more related risk transfer instruments and
             1329      facilitating administrative agreements;
             1330          (C) where all or part of the result of the transaction or group of related transactions is
             1331      used to fund the special purpose financial captive insurance company's obligations under a
             1332      reinsurance contract with a ceding insurer;
             1333          (D) by which:
             1334          (I) proceeds are obtained by a special purpose financial captive insurance company,
             1335      directly or indirectly, through the issuance of one or more securities by the special purpose
             1336      financial captive insurance company or another person; or
             1337          (II) a person provides one or more letters of credit or other assets for the benefit of the
             1338      special purpose financial captive insurance company if the commissioner authorizes the special
             1339      purpose financial captive insurance company to treat the letter of credit or asset as an admitted
             1340      asset for purposes of the special purpose financial captive insurance company's annual report;
             1341      and
             1342          (E) if all or a part of the proceeds, a letter of credit, or asset described in this
             1343      Subsection (1)(c) is used to fund the special purpose financial captive insurance company's
             1344      obligations under a reinsurance contract with a ceding insurer.
             1345          (ii) "Insurance securitization" does not include the issuance of a letter of credit for the
             1346      benefit of the commissioner to satisfy all or part of the special purpose financial captive
             1347      insurance company's capital and surplus requirements under Section 31A-37a-302 .
             1348          (d) "Management" means:
             1349          (i) a board of directors of a special purpose financial captive insurance company;
             1350          (ii) a managing board of a special purpose financial captive insurance company; or
             1351          (iii) one or more individuals with the overall responsibility for the management of the
             1352      affairs of the special purpose financial captive insurance company, including:
             1353          (A) an officer elected or appointed to act on behalf of the special purpose financial
             1354      captive insurance company; or
             1355          (B) an agent elected or appointed to act on behalf of the special purpose financial
             1356      captive insurance company.
             1357          (e) "Organizational document" means:
             1358          (i) in the case of a special purpose financial captive insurance company formed as a



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             1359
     stock corporation, the special purpose financial captive insurance company's:
             1360          (A) articles of incorporation; and
             1361          (B) bylaws; and
             1362          (ii) in the case of a special purpose financial captive insurance company formed as a
             1363      limited liability company, the special purpose financial captive insurance company's:
             1364          (A) [articles] certificate of organization; and
             1365          (B) operating agreement.
             1366          (f) "Reinsurance contract" means a contract between a special purpose financial captive
             1367      insurance company and a ceding insurer pursuant to which the special purpose financial captive
             1368      insurance company agrees to provide reinsurance to the ceding insurer for risks associated with
             1369      the ceding insurer's insurance or reinsurance business.
             1370          (g) "Security" means:
             1371          (i) a security as defined in Section 31A-1-301 ; or
             1372          (ii) one or more of the following that the commissioner designates, by rule or order, as
             1373      a "security" for purposes of this chapter:
             1374          (A) a debt obligation;
             1375          (B) equity;
             1376          (C) a surplus certificate;
             1377          (D) a surplus note;
             1378          (E) a funding agreement;
             1379          (F) a derivative; or
             1380          (G) another financial instrument.
             1381          (h) "Special purpose financial captive insurance company" means a captive insurance
             1382      company has a certificate of authority under this chapter from the commissioner to operate as a
             1383      special purpose financial captive insurance company pursuant to this chapter.
             1384          (i) "Special purpose financial captive insurance company security" means:
             1385          (i) a security issued by a special purpose financial captive insurance company; or
             1386          (ii) a security issued by a third party, the proceeds of which are obtained directly or
             1387      indirectly by a special purpose financial captive insurance company.
             1388          (j) "Surplus note" means an unsecured subordinated debt obligation that has one or
             1389      more characteristics that are consistent with paragraph 3 of the National Association of



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             1390
     Insurance Commissioners Statement of Statutory Accounting Principals No. 41, as amended
             1391      from time to time and as modified or supplemented by rule or order of the commissioner.
             1392          (2) The terms defined in Section 31A-37-102 shall have the same meaning for
             1393      purposes of this chapter.
             1394          Section 12. Section 46-4-503 is amended to read:
             1395           46-4-503. Government products and services provided electronically.
             1396          (1) Notwithstanding Section 46-4-501 , a state governmental agency that administers
             1397      one or more of the following transactions shall allow those transactions to be conducted
             1398      electronically:
             1399          (a) an application for or renewal of a professional or occupational license issued under
             1400      Title 58, Occupations and Professions;
             1401          (b) the renewal of a drivers license;
             1402          (c) an application for a hunting or fishing license;
             1403          (d) the filing of:
             1404          (i) a return under Title 59, Chapter 10, Individual Income Tax Act or 12, Sales and Use
             1405      Tax Act;
             1406          (ii) a court document, as defined by the Judicial Council; or
             1407          (iii) a document under Title 70A, Uniform Commercial Code;
             1408          (e) a registration for:
             1409          (i) a product; or
             1410          (ii) a brand;
             1411          (f) a renewal of a registration of a motor vehicle;
             1412          (g) a registration under:
             1413          (i) Title 16, Corporations;
             1414          (ii) Title 42, Names; or
             1415          (iii) Title 48, [Partnership] Unincorporated Business Entities Act; or
             1416          (h) submission of an application for benefits:
             1417          (i) under Title 35A, Chapter 3, Employment Support Act;
             1418          (ii) under Title 35A, Chapter 4, Employment Security Act; or
             1419          (iii) related to accident and health insurance.
             1420          (2) The state system of public education, in coordination with the Utah Education



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             1421
     Network, shall make reasonable progress toward making the following services available
             1422      electronically:
             1423          (a) secure access by parents and students to student grades and progress reports;
             1424          (b) email communications with:
             1425          (i) teachers;
             1426          (ii) parent-teacher associations; and
             1427          (iii) school administrators;
             1428          (c) access to school calendars and schedules; and
             1429          (d) teaching resources that may include:
             1430          (i) teaching plans;
             1431          (ii) curriculum guides; and
             1432          (iii) media resources.
             1433          (3) A state governmental agency shall:
             1434          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
             1435      security and privacy of records that are private or controlled as defined by Title 63G, Chapter 2,
             1436      Government Records Access and Management Act;
             1437          (b) in addition to those transactions listed in Subsections (1) and (2), determine any
             1438      additional services that may be made available to the public through electronic means; and
             1439          (c) as part of the agency's information technology plan required by Section 63F-1-204 ,
             1440      report on the progress of compliance with Subsections (1) through (3).
             1441          (4) Notwithstanding the other provisions of this part, a state governmental agency is
             1442      not required by this part to conduct a transaction electronically if:
             1443          (a) conducting the transaction electronically is not required by federal law; and
             1444          (b) conducting the transaction electronically is:
             1445          (i) impractical;
             1446          (ii) unreasonable; or
             1447          (iii) not permitted by laws pertaining to privacy or security.
             1448          (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
             1449      access to diverse services and agencies at one location including virtual colocation.
             1450          (b) State agencies that provide services or offer direct assistance to the business
             1451      community shall participate in the establishment, maintenance, and enhancement of an



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             1452
     integrated Utah business web portal known as Business.utah.gov. The purpose of the business
             1453      web portal is to provide "one-stop shop" assistance to businesses.
             1454          (c) State agencies shall partner with other governmental and nonprofit agencies whose
             1455      primary mission is to provide services or offer direct assistance to the business community in
             1456      Utah in fulfilling the requirements of this section.
             1457          (d) The following state entities shall comply with the provisions of this Subsection (5):
             1458          (i) Governor's Office of Economic Development, which shall serve as the managing
             1459      partner for the website;
             1460          (ii) Department of Workforce Services;
             1461          (iii) Department of Commerce;
             1462          (iv) Tax Commission;
             1463          (v) Department of Administrative Services - Division of Purchasing and General
             1464      Services, including other state agencies operating under a grant of authority from the division
             1465      to procure goods and services in excess of $5,000;
             1466          (vi) Department of Agriculture;
             1467          (vii) Department of Natural Resources; and
             1468          (viii) other state agencies that provide services or offer direct assistance to the business
             1469      sector.
             1470          (e) The business services available on the business web portal may include:
             1471          (i) business life cycle information;
             1472          (ii) business searches;
             1473          (iii) employment needs and opportunities;
             1474          (iv) motor vehicle registration;
             1475          (v) permit applications and renewal;
             1476          (vi) tax information;
             1477          (vii) government procurement bid notifications;
             1478          (viii) general business information;
             1479          (ix) business directories; and
             1480          (x) business news.
             1481          Section 13. Section 48-1a-101 is enacted to read:
             1482     
TITLE 48. UNINCORPORATED BUSINESS ENTITIES ACT



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             1483
    
CHAPTER 1a. GENERAL PROVISIONS

             1484     
Part 1. General Provisions

             1485          48-1a-101. Title.
             1486          (1) This title is known as the "Unincorporated Business Entities Act."
             1487          (2) This chapter is known as "General Provisions."
             1488          Section 14. Section 48-1a-102 is enacted to read:
             1489          48-1a-102. Definitions.
             1490          As used in this title, "division" means the Division of Corporations and Commercial
             1491      Code within the Department of Commerce.
             1492          Section 15. Section 48-1b-101 is enacted to read:
             1493     
CHAPTER 1b. UTAH UNIFORM PARTNERSHIP ACT

             1494     
Part 1. General Provisions

             1495          48-1b-101. Title -- Definitions.
             1496          (1) This chapter may be cited as the "Utah Uniform Partnership Act."
             1497          (2) As used in this chapter:
             1498          (a) "Business" includes every trade, occupation, and profession.
             1499          (b) "Debtor in bankruptcy" means a person who is the subject of:
             1500          (i) an order for relief under United States Code, Title 11, or a comparable order under a
             1501      successor statute of general application; or
             1502          (ii) a comparable order under federal, state, or foreign law governing insolvency.
             1503          (c) "Distribution" means a transfer of money or other property from a partnership to a
             1504      partner in the partner's capacity as a partner or to the partner's transferee.
             1505          (d) "Foreign limited liability partnership" means a partnership that:
             1506          (i) is formed under laws other than the laws of this state; and
             1507          (ii) has the status of a limited liability partnership under those laws.
             1508          (e) "Limited liability partnership" means a partnership that has filed with the division a
             1509      statement of qualification under Section 48-1b-1001 and does not have a similar statement in
             1510      effect in any other jurisdiction.
             1511          (f) "Partnership" means an association of two or more persons to carry on as co-owners
             1512      a business for profit formed under Section 48-1b-202 , predecessor law, or comparable law of
             1513      another jurisdiction.



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             1514
         (g) "Partnership agreement" means the agreement, whether written, oral, or implied,
             1515      among the partners concerning the partnership, including amendments to the partnership
             1516      agreement.
             1517          (h) "Partnership at will" means a partnership in which the partners have not agreed to
             1518      remain partners until the expiration of a definite term or the completion of a particular
             1519      undertaking.
             1520          (i) "Partnership interest" or "partner's interest in the partnership" means all of a
             1521      partner's interests in the partnership, including the partner's transferable interest and all
             1522      management and other rights.
             1523          (j) "Person" means:
             1524          (i) an individual;
             1525          (ii) a corporation;
             1526          (iii) a business trust;
             1527          (iv) an estate;
             1528          (v) a trust;
             1529          (vi) a partnership;
             1530          (vii) an association;
             1531          (viii) a joint venture;
             1532          (ix) government;
             1533          (x) a governmental subdivision, agency, or instrumentality; or
             1534          (xi) any other legal or commercial entity.
             1535          (k) "Property" means all property, real, personal, or mixed, tangible or intangible, or
             1536      any interest therein.
             1537          (l) "State" means a state of the United States, the District of Columbia, the
             1538      Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction
             1539      of the United States.
             1540          (m) "Statement" means:
             1541          (i) a statement of partnership authority under Section 48-1b-303 ;
             1542          (ii) a statement of denial under Section 48-1b-304 ;
             1543          (iii) a statement of dissociation under Section 48-1b-704 ;
             1544          (iv) a statement of dissolution under Section 48-1b-805 ;



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             1545
         (v) articles of merger under Section 48-1b-904 ;
             1546          (vi) a statement of qualification under Section 48-1b-1001 ;
             1547          (vii) a statement of foreign qualification under Section 48-1b-1102 ; or
             1548          (viii) an amendment or cancellation of any of the foregoing.
             1549          (n) "Transfer" includes an assignment, conveyance, lease, mortgage, deed, and
             1550      encumbrance.
             1551          (o) "Tribe" means a tribe, band, nation, pueblo, or other organized group or community
             1552      of Indians, including an Alaska Native village, that is legally recognized as eligible for and is
             1553      consistent with a special program, service, or entitlement provided by the United States to
             1554      Indians because of their status as Indians.
             1555          (p) "Tribal limited liability partnership" means a limited liability partnership:
             1556          (i) formed under the law of a tribe; and
             1557          (ii) that is at least 51% owned or controlled by the tribe.
             1558          Section 16. Section 48-1b-102 is enacted to read:
             1559          48-1b-102. Knowledge and notice.
             1560          (1) A person knows a fact if the person has actual knowledge of it.
             1561          (2) A person has notice of a fact if the person:
             1562          (a) knows of it;
             1563          (b) has received a notification of it; or
             1564          (c) has reason to know it exists from all of the facts known to the person at the time in
             1565      question.
             1566          (3) A person notifies or gives a notification to another by taking steps reasonably
             1567      required to inform the other person in ordinary course, whether or not the other person learns of
             1568      it.
             1569          (4) A person receives a notification when the notification:
             1570          (a) comes to the person's attention; or
             1571          (b) is duly delivered at the person's place of business or at any other place held out by
             1572      the person as a place for receiving communications.
             1573          (5) Except as otherwise provided in Subsection (6), a person other than an individual
             1574      knows, has notice, or receives a notification of a fact for purposes of a particular transaction
             1575      when the individual conducting the transaction knows, has notice, or receives a notification of



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             1576
     the fact, or in any event when the fact would have been brought to the individual's attention if
             1577      the person had exercised reasonable diligence. The person exercises reasonable diligence if it
             1578      maintains reasonable routines for communicating significant information to the individual
             1579      conducting the transaction and there is reasonable compliance with the routines. Reasonable
             1580      diligence does not require an individual acting for the person to communicate information
             1581      unless the communication is part of the individual's regular duties or the individual has reason
             1582      to know of the transaction and that the transaction would be materially affected by the
             1583      information.
             1584          (6) A partner's knowledge, notice, or receipt of a notification of a fact relating to the
             1585      partnership is effective immediately as knowledge by, notice to, or receipt of a notification by
             1586      the partnership, except in the case of a fraud on the partnership committed by or with the
             1587      consent of that partner.
             1588          Section 17. Section 48-1b-103 is enacted to read:
             1589          48-1b-103. Effect of partnership agreement -- Nonwaivable provisions.
             1590          (1) Except as otherwise provided in Subsection (2), relations among the partners and
             1591      between the partners and the partnership are governed by the partnership agreement. To the
             1592      extent the partnership agreement does not otherwise provide, this chapter governs relations
             1593      among the partners and between the partners and the partnership.
             1594          (2) The partnership agreement may not:
             1595          (a) vary the rights and duties under Section 48-1b-105 except to eliminate the duty to
             1596      provide copies of statements to all of the partners;
             1597          (b) unreasonably restrict the right of access to books and records under Subsection
             1598      48-1b-403 (2);
             1599          (c) eliminate the duty of loyalty under Subsection 48-1b-404 (2) or 48-1b-603 (2)(c),
             1600      but:
             1601          (i) the partnership agreement may identify specific types or categories of activities that
             1602      do not violate the duty of loyalty, if not unconscionable or against public policy; or
             1603          (ii) all of the partners or a number or percentage specified in the partnership agreement
             1604      may authorize or ratify, after full disclosure of all material facts, a specific act or transaction
             1605      that otherwise would violate the duty of loyalty;
             1606          (d) unreasonably reduce the duty of care under Subsection 48-1b-404 (3) or



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             1607
     48-1b-603 (2)(c);
             1608          (e) eliminate the obligation of good faith and fair dealing under Subsection
             1609      48-1b-404 (4), but the partnership agreement may prescribe the standards by which the
             1610      performance of the obligation is to be measured, if the standards are not manifestly
             1611      unreasonable;
             1612          (f) vary the power to dissociate as a partner under Subsection 48-1b-602 (1), except to
             1613      require the notice under Subsection 48-1b-601 (1) to be in writing;
             1614          (g) vary the right of a court to expel a partner in the events specified in Subsection
             1615      48-1b-601 (5);
             1616          (h) vary the requirement to wind up the partnership business in cases specified in
             1617      Subsection 48-1b-801 (4), (5), or (6);
             1618          (i) vary the law applicable to a limited liability partnership under Subsection
             1619      48-1b-106 (2); or
             1620          (j) restrict rights of third parties under this chapter.
             1621          Section 18. Section 48-1b-104 is enacted to read:
             1622          48-1b-104. Supplemental principles of law.
             1623          (1) Unless displaced by particular provisions of this chapter, the principles of law and
             1624      equity supplement this chapter.
             1625          (2) If an obligation to pay interest arises under this chapter and the rate is not specified,
             1626      the rate is that specified in Section 15-1-1 .
             1627          Section 19. Section 48-1b-105 is enacted to read:
             1628          48-1b-105. Execution, filing, and recording of statements.
             1629          (1) A statement may be filed with the division. A certified copy of a statement that is
             1630      filed in an office in another state may be filed with the division. Either filing has the effect
             1631      provided in this chapter with respect to partnership property located in or transactions that
             1632      occur in this state.
             1633          (2) A certified copy of a statement that is filed with the division and recorded in the
             1634      office for recording transfers of real property has the effect provided for recorded statements in
             1635      this chapter. A recorded statement that is not a certified copy of a statement filed with the
             1636      division does not have the effect provided for recorded statements in this chapter.
             1637          (3) A statement filed with the division by a partnership must be executed by at least



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             1638
     two partners. Other statements must be executed by a partner or other person authorized by
             1639      this chapter. An individual who executes a statement as, or on behalf of, a partner or other
             1640      person named as a partner in a statement shall personally declare under penalty of perjury that
             1641      the contents of the statement are accurate.
             1642          (4) A person authorized by this chapter to file a statement with the division may amend
             1643      or cancel the statement by filing an amendment or cancellation that names the partnership,
             1644      identifies the statement, and states the substance of the amendment or cancellation.
             1645          (5) A person who files a statement with the division pursuant to this section shall
             1646      promptly send a copy of the statement to every nonfiling partner and to any other person named
             1647      as a partner in the statement. Failure to send a copy of a statement to a partner or other person
             1648      does not limit the effectiveness of the statement as to a person not a partner.
             1649          (6) The division may collect a fee, established in accordance with Section 63J-1-504 ,
             1650      for filing or providing a certified copy of a statement. The county recorder may in accordance
             1651      with Section 17-21-18.5 collect a fee for recording a statement.
             1652          (7) A statement filed with the division pursuant to this section and in accordance with
             1653      Section 48-1b-303 , is effective for a period of five years from the date of filing. At the
             1654      expiration of that period, if no new filing is made by or on behalf of the person who made the
             1655      original filing, the division shall send a notice by regular mail, postage prepaid, to the address
             1656      shown in the filing indicating that it has expired. If no new filing is made within 30 days after
             1657      the date of mailing the notice, the division shall remove the filing from the division's active
             1658      file.
             1659          Section 20. Section 48-1b-106 is enacted to read:
             1660          48-1b-106. Governing law.
             1661          (1) Except as otherwise provided in Subsection (2), the law of the jurisdiction in which
             1662      a partnership has its chief executive office governs relations among the partners and between
             1663      the partners and the partnership.
             1664          (2) The law of this state governs relations among the partners and between the partners
             1665      and the partnership and the liability of partners for an obligation of a limited liability
             1666      partnership.
             1667          Section 21. Section 48-1b-107 is enacted to read:
             1668          48-1b-107. Partnership subject to amendment or repeal of chapter.



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             1669
         A partnership governed by this chapter is subject to any amendment to or repeal of this
             1670      chapter.
             1671          Section 22. Section 48-1b-201 is enacted to read:
             1672     
Part 2. Nature of Partnership

             1673          48-1b-201. Partnership as entity.
             1674          (1) A partnership is an entity distinct from its partners.
             1675          (2) A limited liability partnership continues to be the same entity that existed before the
             1676      filing of a statement of qualification with the division under Section 48-1b-1001 .
             1677          Section 23. Section 48-1b-202 is enacted to read:
             1678          48-1b-202. Formation of partnership.
             1679          (1) Except as otherwise provided in Subsection (2), the association of two or more
             1680      persons to carry on as co-owners a business for profit forms a partnership, whether or not the
             1681      persons intend to form a partnership.
             1682          (2) An association formed under a statute other than this chapter, a predecessor statute,
             1683      or a comparable statute of another jurisdiction is not a partnership under this chapter.
             1684          (3) In determining whether a partnership is formed, the following rules apply:
             1685          (a) Joint tenancy, tenancy in common, tenancy by the entireties, joint property,
             1686      common property, or part ownership does not by itself establish a partnership, even if the
             1687      co-owners share profits made by the use of the property.
             1688          (b) The sharing of gross returns does not by itself establish a partnership, even if the
             1689      persons sharing them have a joint or common right or interest in property from which the
             1690      returns are derived.
             1691          (c) A person who receives a share of the profits of a business is presumed to be a
             1692      partner in the business, unless the profits were received in payment:
             1693          (i) of a debt by installments or otherwise;
             1694          (ii) for services as an independent contractor or of wages or other compensation to an
             1695      employee;
             1696          (iii) of rent;
             1697          (iv) of an annuity or other retirement or health benefit to a beneficiary, representative,
             1698      or designee of a deceased or retired partner;
             1699          (v) of interest or other charge on a loan, even if the amount of payment varies with the



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     profits of the business, including a direct or indirect present or future ownership of the
             1701      collateral, or rights to income, proceeds, or increase in value derived from the collateral; or
             1702          (vi) for the sale of the goodwill of a business or other property by installments or
             1703      otherwise.
             1704          Section 24. Section 48-1b-203 is enacted to read:
             1705          48-1b-203. Partnership property.
             1706          Property acquired by a partnership is property of the partnership and not of the partners
             1707      individually.
             1708          Section 25. Section 48-1b-204 is enacted to read:
             1709          48-1b-204. When property is partnership property.
             1710          (1) Property is partnership property if acquired in the name of:
             1711          (a) the partnership; or
             1712          (b) one or more partners with an indication in the instrument transferring title to the
             1713      property of the person's capacity as a partner or of the existence of a partnership but without an
             1714      indication of the name of the partnership.
             1715          (2) Property is acquired in the name of the partnership by a transfer to:
             1716          (a) the partnership in its name; or
             1717          (b) one or more partners in their capacity as partners in the partnership, if the name of
             1718      the partnership is indicated in the instrument transferring title to the property.
             1719          (3) Property is presumed to be partnership property if purchased with partnership
             1720      assets, even if not acquired in the name of the partnership or of one or more partners with an
             1721      indication in the instrument transferring title to the property of the person's capacity as a
             1722      partner or of the existence of a partnership.
             1723          (4) Property acquired in the name of one or more of the partners, without an indication
             1724      in the instrument transferring title to the property of the person's capacity as a partner or of the
             1725      existence of a partnership and without use of partnership assets, is presumed to be separate
             1726      property, even if used for partnership purposes.
             1727          Section 26. Section 48-1b-301 is enacted to read:
             1728     
Part 3. Relations of Partners to Persons Dealing with Partnership

             1729          48-1b-301. Partner agent of partnership.
             1730          Subject to the effect of a statement of partnership authority under Section 48-1b-303 :



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             1731
         (1) Each partner is an agent of the partnership for the purpose of its business. An act of
             1732      a partner, including the execution of an instrument in the partnership name, for apparently
             1733      carrying on in the ordinary course the partnership business or business of the kind carried on by
             1734      the partnership binds the partnership, unless the partner had no authority to act for the
             1735      partnership in the particular matter and the person with whom the partner was dealing knew or
             1736      had received a notification that the partner lacked authority.
             1737          (2) An act of a partner which is not apparently for carrying on in the ordinary course
             1738      the partnership business or business of the kind carried on by the partnership binds the
             1739      partnership only if the act was authorized by the other partners.
             1740          Section 27. Section 48-1b-302 is enacted to read:
             1741          48-1b-302. Transfer of partnership property.
             1742          (1) Partnership property may be transferred as follows:
             1743          (a) Subject to the effect of a statement of partnership authority under Section
             1744      48-1b-303 , partnership property held in the name of the partnership may be transferred by an
             1745      instrument of transfer executed by a partner in the partnership name.
             1746          (b) Partnership property held in the name of one or more partners with an indication in
             1747      the instrument transferring the property to them of their capacity as partners or of the existence
             1748      of a partnership, but without an indication of the name of the partnership, may be transferred by
             1749      an instrument of transfer executed by the persons in whose name the property is held.
             1750          (c) Partnership property held in the name of one or more persons other than the
             1751      partnership, without an indication in the instrument transferring the property to them of their
             1752      capacity as partners or of the existence of a partnership, may be transferred by an instrument of
             1753      transfer executed by the persons in whose name the property is held.
             1754          (2) A partnership may recover partnership property from a transferee only if it proves
             1755      that execution of the instrument of initial transfer did not bind the partnership under Section
             1756      48-1b-301 and:
             1757          (a) as to a subsequent transferee who gave value for property transferred under
             1758      Subsection (1)(a) and (b), proves that the subsequent transferee knew or had received a
             1759      notification that the person who executed the instrument of initial transfer lacked authority to
             1760      bind the partnership; or
             1761          (b) as to a transferee who gave value for property transferred under Subsection (1)(c),



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     proves that the transferee knew or had received a notification that the property was partnership
             1763      property and that the person who executed the instrument of initial transfer lacked authority to
             1764      bind the partnership.
             1765          (3) A partnership may not recover partnership property from a subsequent transferee if
             1766      the partnership would not have been entitled to recover the property, under Subsection (2),
             1767      from any earlier transferee of the property.
             1768          (4) If a person holds all of the partners' interests in the partnership, all of the
             1769      partnership property vests in that person. The person may execute a document in the name of
             1770      the partnership to evidence vesting of the property in that person and may file or record the
             1771      document.
             1772          Section 28. Section 48-1b-303 is enacted to read:
             1773          48-1b-303. Statement of partnership authority.
             1774          (1) A partnership may file with the division a statement of partnership authority,
             1775      which:
             1776          (a) must include:
             1777          (i) the name of the partnership;
             1778          (ii) the street address of its chief executive office and of one office in this state, if there
             1779      is one;
             1780          (iii) the names and mailing addresses of all of the partners or of an agent appointed and
             1781      maintained by the partnership for the purpose of Subsection (2); and
             1782          (iv) the names of the partners authorized to execute an instrument transferring real
             1783      property held in the name of the partnership; and
             1784          (b) may state the authority, or limitations on the authority, of some or all of the partners
             1785      to enter into other transactions on behalf of the partnership and any other matter.
             1786          (2) If a statement of partnership authority names an agent, the agent shall maintain a
             1787      list of the names and mailing addresses of all of the partners and make it available to any
             1788      person on request for good cause shown.
             1789          (3) If a filed statement of partnership authority is executed pursuant to Subsection
             1790      48-1b-105 (3) and states the name of the partnership but does not contain all of the other
             1791      information required by Subsection (1), the statement nevertheless operates with respect to a
             1792      person not a partner as provided in Subsections (4) and (5).



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         (4) Except as otherwise provided in Subsection (7), a filed statement of partnership
             1794      authority supplements the authority of a partner to enter into transactions on behalf of the
             1795      partnership as follows:
             1796          (a) Except for transfers of real property, a grant of authority contained in a filed
             1797      statement of partnership authority is conclusive in favor of a person who gives value without
             1798      knowledge to the contrary, so long as and to the extent that a limitation on that authority is not
             1799      then contained in another filed statement. A filed cancellation of a limitation on authority
             1800      revives the previous grant of authority.
             1801          (b) A grant of authority to transfer real property held in the name of the partnership
             1802      contained in a certified copy of a filed statement of partnership authority recorded in the office
             1803      for recording transfers of that real property is conclusive in favor of a person who gives value
             1804      without knowledge to the contrary, so long as and to the extent that a certified copy of a filed
             1805      statement containing a limitation on that authority is not then of record in the office for
             1806      recording transfers of that real property. The recording in the office for recording transfers of
             1807      that real property of a certified copy of a filed cancellation of a limitation on authority revives
             1808      the previous grant of authority.
             1809          (5) A person not a partner is deemed to know of a limitation on the authority of a
             1810      partner to transfer real property held in the name of the partnership if a certified copy of the
             1811      filed statement containing the limitation on authority is of record in the office for recording
             1812      transfers of that real property.
             1813          (6) Except as otherwise provided in Subsections (4) and (5) and Sections 48-1b-704
             1814      and 48-1b-805 , a person not a partner is not deemed to know of a limitation on the authority of
             1815      a partner merely because the limitation is contained in a filed statement.
             1816          (7) Unless earlier canceled and if not renewed, a filed statement of partnership
             1817      authority is canceled by operation of law five years after the date on which the statement, or the
             1818      most recent amendment, was filed with the division.
             1819          (8) (a) If a partnership files a statement of partnership authority with the division under
             1820      this section, the partnership is not required to file a certificate with the division under Title 42,
             1821      Chapter 2, Conducting Business Under Assumed Name.
             1822          (b) A filing with the division under Title 42, Chapter 2, Conducting Business Under
             1823      Assumed Name:



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         (i) is not subject to Subsection (7); and
             1825          (ii) is subject to Section 42-2-8 .
             1826          Section 29. Section 48-1b-304 is enacted to read:
             1827          48-1b-304. Statement of denial.
             1828          A partner or other person named as a partner in a filed statement of partnership
             1829      authority or in a list maintained by an agent pursuant to Subsection 48-1b-303 (2) may file a
             1830      statement of denial with the division stating the name of the partnership and the fact that is
             1831      being denied, which may include denial of a person's authority or status as a partner. A
             1832      statement of denial is a limitation on authority as provided in Subsections 48-1b-303 (4) and
             1833      (5).
             1834          Section 30. Section 48-1b-305 is enacted to read:
             1835          48-1b-305. Partnership liable for partner's actionable conduct.
             1836          (1) A partnership is liable for loss or injury caused to a person, or for a penalty
             1837      incurred, as a result of a wrongful act or omission, or other actionable conduct, of a partner
             1838      acting in the ordinary course of business of the partnership or with authority of the partnership.
             1839          (2) If, in the course of the partnership's business or while acting with authority of the
             1840      partnership, a partner receives or causes the partnership to receive money or property of a
             1841      person not a partner, and the money or property is misapplied by a partner, the partnership is
             1842      liable for the loss.
             1843          Section 31. Section 48-1b-306 is enacted to read:
             1844          48-1b-306. Partner's liability.
             1845          (1) Except as otherwise provided in Subsections (2) and (3), all partners are liable
             1846      jointly and severally for all obligations of the partnership unless otherwise agreed by the
             1847      claimant or provided by law.
             1848          (2) A person admitted as a partner into an existing partnership is not personally liable
             1849      for any partnership obligation incurred before the person's admission as a partner.
             1850          (3) (a) An obligation of a partnership incurred while the partnership is a limited
             1851      liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of
             1852      the partnership. A partner is not personally liable, directly or indirectly, by way of contribution
             1853      or otherwise, for such an obligation solely by reason of being or so acting as a partner.
             1854          (b) This Subsection (3) applies notwithstanding anything inconsistent in the



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             1855
     partnership agreement that existed immediately before the vote required to become a limited
             1856      liability partnership under Subsection 48-1b-1001 (2).
             1857          (c) This Subsection (3) and Part 10, Limited Liability Partnerships, do not alter any law
             1858      applicable to the relationship between a person providing a professional service and a person
             1859      receiving the professional service, including liability arising out of those professional services.
             1860      A person providing a professional service remains personally liable for a result of that person's
             1861      act or omission.
             1862          Section 32. Section 48-1b-307 is enacted to read:
             1863          48-1b-307. Actions by and against partnership and partners.
             1864          (1) A partnership may sue and be sued in the name of the partnership.
             1865          (2) An action may be brought against the partnership and, to the extent not inconsistent
             1866      with Section 48-1b-306 , any or all of the partners in the same action or in separate actions.
             1867          (3) A judgment against a partnership is not by itself a judgment against a partner. A
             1868      judgment against a partnership may not be satisfied from a partner's assets unless there is also a
             1869      judgment against the partner.
             1870          (4) A judgment creditor of a partner may not levy execution against the assets of the
             1871      partner to satisfy a judgment based on a claim against the partnership unless the partner is
             1872      personally liable for the claim under Section 48-1b-306 and:
             1873          (a) a judgment based on the same claim has been obtained against the partnership and a
             1874      writ of execution on the judgment has been returned unsatisfied in whole or in part;
             1875          (b) the partnership is a debtor in bankruptcy;
             1876          (c) the partner has agreed that the creditor need not exhaust partnership assets;
             1877          (d) a court grants permission to the judgment creditor to levy execution against the
             1878      assets of a partner based on a finding that partnership assets subject to execution are clearly
             1879      insufficient to satisfy the judgment, that exhaustion of partnership assets is excessively
             1880      burdensome, or that the grant of permission is an appropriate exercise of the court's equitable
             1881      powers; or
             1882          (e) liability is imposed on the partner by law or contract independent of the existence of
             1883      the partnership.
             1884          (5) This section applies to any partnership liability or obligation resulting from a
             1885      representation by a partner or purported partner under Section 48-1b-308 .



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             1886
         Section 33. Section 48-1b-308 is enacted to read:
             1887          48-1b-308. Liability of purported partner.
             1888          (1) If a person, by words or conduct, purports to be a partner, or consents to being
             1889      represented by another as a partner, in a partnership or with one or more persons not partners,
             1890      the purported partner is liable to a person to whom the representation is made, if that person,
             1891      relying on the representation, enters into a transaction with the actual or purported partnership.
             1892      If the representation, either by the purported partner or by a person with the purported partner's
             1893      consent, is made in a public manner, the purported partner is liable to a person who relies upon
             1894      the purported partnership even if the purported partner is not aware of being held out as a
             1895      partner to the claimant. If partnership liability results, the purported partner is liable with
             1896      respect to that liability as if the purported partner were a partner. If no partnership liability
             1897      results, the purported partner is liable with respect to that liability jointly and severally with any
             1898      other person consenting to the representation.
             1899          (2) If a person is thus represented to be a partner in an existing partnership, or with one
             1900      or more persons not partners, the purported partner is an agent of persons consenting to the
             1901      representation to bind them to the same extent and in the same manner as if the purported
             1902      partner were a partner, with respect to persons who enter into transactions in reliance upon the
             1903      representation. If all of the partners of the existing partnership consent to the representation, a
             1904      partnership act or obligation results. If fewer than all of the partners of the existing partnership
             1905      consent to the representation, the person acting and the partners consenting to the
             1906      representation are jointly and severally liable.
             1907          (3) A person is not liable as a partner merely because the person is named by another in
             1908      a statement of partnership authority.
             1909          (4) A person does not continue to be liable as a partner merely because of a failure to
             1910      file a statement of dissociation or to amend a statement of partnership authority with the
             1911      division to indicate the partner's dissociation from the partnership.
             1912          (5) Except as otherwise provided in Subsections (1) and (2), persons who are not
             1913      partners as to each other are not liable as partners to other persons.
             1914          Section 34. Section 48-1b-401 is enacted to read:
             1915     
Part 4. Relations of Partners to Each Other and to Partnership

             1916          48-1b-401. Partner's rights and duties.



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             1917
         (1) Each partner is deemed to have an account that is:
             1918          (a) credited with an amount equal to the money plus the value of any other property,
             1919      net of the amount of any liabilities, the partner contributes to the partnership and the partner's
             1920      share of the partnership profits; and
             1921          (b) charged with an amount equal to the money plus the value of any other property,
             1922      net of the amount of any liabilities, distributed by the partnership to the partner and the
             1923      partner's share of the partnership losses.
             1924          (2) Each partner is entitled to an equal share of the partnership profits and is chargeable
             1925      with a share of the partnership losses in proportion to the partner's share of the profits.
             1926          (3) A partnership shall reimburse a partner for payments made and indemnify a partner
             1927      for liabilities incurred by the partner in the ordinary course of the business of the partnership or
             1928      for the preservation of its business or property.
             1929          (4) A partnership shall reimburse a partner for an advance to the partnership beyond
             1930      the amount of capital the partner agreed to contribute.
             1931          (5) A payment or advance made by a partner which gives rise to a partnership
             1932      obligation under Subsection (3) or (4) constitutes a loan to the partnership which accrues
             1933      interest from the date of the payment or advance.
             1934          (6) Each partner has equal rights in the management and conduct of the partnership
             1935      business.
             1936          (7) A partner may use or possess partnership property only on behalf of the partnership.
             1937          (8) A partner is not entitled to remuneration for services performed for the partnership,
             1938      except for reasonable compensation for services rendered in winding up the business of the
             1939      partnership.
             1940          (9) A person may become a partner only with the consent of all of the partners.
             1941          (10) A difference arising as to a matter in the ordinary course of business of a
             1942      partnership may be decided by a majority of the partners. An act outside the ordinary course of
             1943      business of a partnership and an amendment to the partnership agreement may be undertaken
             1944      only with the consent of all of the partners.
             1945          (11) This section does not affect the obligations of a partnership to other persons under
             1946      Section 48-1b-301 .
             1947          Section 35. Section 48-1b-402 is enacted to read:



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             1948
         48-1b-402. Distributions in kind.
             1949          A partner has no right to receive, and may not be required to accept, a distribution in
             1950      kind.
             1951          Section 36. Section 48-1b-403 is enacted to read:
             1952          48-1b-403. Partner's rights and duties with respect to information.
             1953          (1) A partnership shall keep its books and records, if any, at its chief executive office.
             1954          (2) A partnership shall provide partners and their agents and attorneys access to its
             1955      books and records. It shall provide former partners and their agents and attorneys access to
             1956      books and records pertaining to the period during which they were partners. The right of
             1957      access provides the opportunity to inspect and copy books and records during ordinary business
             1958      hours. A partnership may impose a reasonable charge, covering the costs of labor and material,
             1959      for copies of documents furnished.
             1960          (3) Each partner and the partnership shall furnish to a partner, and to the legal
             1961      representative of a deceased partner or partner under legal disability:
             1962          (a) without demand, any information concerning the partnership's business and affairs
             1963      reasonably required for the proper exercise of the partner's rights and duties under the
             1964      partnership agreement or this chapter; and
             1965          (b) on demand, any other information concerning the partnership's business and affairs,
             1966      except to the extent the demand or the information demanded is unreasonable or otherwise
             1967      improper under the circumstances.
             1968          Section 37. Section 48-1b-404 is enacted to read:
             1969          48-1b-404. General standards of partner's conduct.
             1970          (1) The only fiduciary duties a partner owes to the partnership and the other partners
             1971      are the duty of loyalty and the duty of care set forth in Subsections (2) and (3).
             1972          (2) A partner's duty of loyalty to the partnership and the other partners is limited to the
             1973      following:
             1974          (a) to account to the partnership and hold as trustee for it any property, profit, or
             1975      benefit derived by the partner in the conduct and winding up of the partnership business or
             1976      derived from a use by the partner of partnership property, including the appropriation of a
             1977      partnership opportunity;
             1978          (b) to refrain from dealing with the partnership in the conduct or winding up of the



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             1979
     partnership business as or on behalf of a party having an interest adverse to the partnership; and
             1980          (c) to refrain from competing with the partnership in the conduct of the partnership
             1981      business before the dissolution of the partnership.
             1982          (3) A partner's duty of care to the partnership and the other partners in the conduct and
             1983      winding up of the partnership business is limited to refraining from engaging in grossly
             1984      negligent or reckless conduct, intentional misconduct, or a knowing violation of law.
             1985          (4) A partner shall discharge the duties to the partnership and the other partners under
             1986      this chapter or under the partnership agreement and exercise any rights consistently with the
             1987      obligation of good faith and fair dealing.
             1988          (5) A partner does not violate a duty or obligation under this chapter or under the
             1989      partnership agreement merely because the partner's conduct furthers the partner's own interest.
             1990          (6) A partner may lend money to and transact other business with the partnership, and
             1991      as to each loan or transaction the rights and obligations of the partner are the same as those of a
             1992      person who is not a partner, subject to other applicable law.
             1993          (7) This section applies to a person winding up the partnership business as the personal
             1994      or legal representative of the last surviving partner as if the person were a partner.
             1995          Section 38. Section 48-1b-405 is enacted to read:
             1996          48-1b-405. Actions by partnership and partners.
             1997          (1) A partnership may maintain an action against a partner for a breach of the
             1998      partnership agreement, or for the violation of a duty to the partnership, causing harm to the
             1999      partnership.
             2000          (2) A partner may maintain an action against the partnership or another partner for
             2001      legal or equitable relief, with or without an accounting as to partnership business, to:
             2002          (a) enforce the partner's rights under the partnership agreement;
             2003          (b) enforce the partner's rights under this chapter, including:
             2004          (i) the partner's rights under Section 48-1b-401 , 48-1b-403 , or 48-1b-404 ;
             2005          (ii) the partner's right on dissociation to have the partner's interest in the partnership
             2006      purchased pursuant to Section 48-1b-701 or enforce any other right under Part 6, Partner's
             2007      Dissociation, or Part 7, Partner's Dissociation When Business Not Wound Up; or
             2008          (iii) the partner's right to compel a dissolution and winding up of the partnership
             2009      business under Section 48-1b-801 or enforce any other right under Part 8, Winding Up



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             2010
     Partnership Business; or
             2011          (c) enforce the rights and otherwise protect the interests of the partner, including rights
             2012      and interests arising independently of the partnership relationship.
             2013          (3) The accrual of, and any time limitation on, a right of action for a remedy under this
             2014      section is governed by other law. A right to an accounting upon a dissolution and winding up
             2015      does not revive a claim barred by law.
             2016          Section 39. Section 48-1b-406 is enacted to read:
             2017          48-1b-406. Continuation of partnership beyond definite term or particular
             2018      undertaking.
             2019          (1) If a partnership for a definite term or particular undertaking is continued, without
             2020      an express agreement, after the expiration of the term or completion of the undertaking, the
             2021      rights and duties of the partners remain the same as they were at the expiration or completion,
             2022      so far as is consistent with a partnership at will.
             2023          (2) If the partners, or those of them who habitually acted in the business during the
             2024      term or undertaking, continue the business without any settlement or liquidation of the
             2025      partnership, they are presumed to have agreed that the partnership will continue.
             2026          Section 40. Section 48-1b-501 is enacted to read:
             2027     
Part 5. Transferees and Creditors of Partner

             2028          48-1b-501. Partner not co-owner of partnership property.
             2029          A partner is not a co-owner of partnership property and has no interest in partnership
             2030      property which can be transferred, either voluntarily or involuntarily.
             2031          Section 41. Section 48-1b-502 is enacted to read:
             2032          48-1b-502. Partner's transferable interest in partnership.
             2033          The only transferable interest of a partner in the partnership is the partner's share of the
             2034      profits and losses of the partnership and the partner's right to receive distributions. The interest
             2035      is personal property.
             2036          Section 42. Section 48-1b-503 is enacted to read:
             2037          48-1b-503. Transfer of partner's transferable interest.
             2038          (1) A transfer, in whole or in part, of a partner's transferable interest in the partnership:
             2039          (a) is permissible;
             2040          (b) does not by itself cause the partner's dissociation or a dissolution and winding up of



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             2041
     the partnership business; and
             2042          (c) does not, as against the other partners or the partnership, entitle the transferee,
             2043      during the continuance of the partnership, to participate in the management or conduct of the
             2044      partnership business, to require access to information concerning partnership transactions, or to
             2045      inspect or copy the partnership books or records.
             2046          (2) A transferee of a partner's transferable interest in the partnership has a right:
             2047          (a) to receive, in accordance with the transfer, distributions to which the transferor
             2048      would otherwise be entitled; and
             2049          (b) to receive upon the dissolution and winding up of the partnership business, in
             2050      accordance with the transfer, the net amount otherwise distributable to the transferor.
             2051          (3) In a dissolution and winding up, a transferee is entitled to an account of partnership
             2052      transactions only from the date of the latest account agreed to by all of the partners.
             2053          (4) Upon transfer, the transferor retains the rights and duties of a partner other than the
             2054      interest in distributions transferred.
             2055          (5) A partnership need not give effect to a transferee's rights under this section until it
             2056      has notice of the transfer.
             2057          (6) A transfer of a partner's transferable interest in the partnership in violation of a
             2058      restriction on transfer contained in the partnership agreement is ineffective as to a person
             2059      having notice of the restriction at the time of transfer.
             2060          Section 43. Section 48-1b-504 is enacted to read:
             2061          48-1b-504. Partner's transferable interest subject to charging order.
             2062          (1) On application by a judgment creditor of a partner or of a partner's transferee, a
             2063      court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy
             2064      the judgment. The court may appoint a receiver of the share of the distributions due or to
             2065      become due to the judgment debtor in respect of the partnership and make all other orders,
             2066      directions, accounts, and inquiries the judgment debtor might have made or which the
             2067      circumstances of the case may require.
             2068          (2) A charging order constitutes a lien on the judgment debtor's transferable interest in
             2069      the partnership. The court may order a foreclosure of the interest subject to the charging order
             2070      at any time. The purchaser at the foreclosure sale has the rights of a transferee.
             2071          (3) At any time before foreclosure, an interest charged may be redeemed:



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             2072
         (a) by the judgment debtor;
             2073          (b) with property other than partnership property, by one or more of the other partners;
             2074      or
             2075          (c) with partnership property, by one or more of the other partners with the consent of
             2076      all of the partners whose interests are not so charged.
             2077          (4) This chapter does not deprive a partner of a right under exemption laws with
             2078      respect to the partner's interest in the partnership.
             2079          (5) This section provides the exclusive remedy by which a judgment creditor of a
             2080      partner or partner's transferee may satisfy a judgment out of the judgment debtor's transferable
             2081      interest in the partnership.
             2082          Section 44. Section 48-1b-601 is enacted to read:
             2083     
Part 6. Partner's Dissociation

             2084          48-1b-601. Events causing partner's dissociation.
             2085          A partner is dissociated from a partnership upon the occurrence of any of the following
             2086      events:
             2087          (1) the partnership's having notice of the partner's express will to withdraw as a partner
             2088      or on a later date specified by the partner;
             2089          (2) an event agreed to in the partnership agreement as causing the partner's
             2090      dissociation;
             2091          (3) the partner's expulsion pursuant to the partnership agreement;
             2092          (4) the partner's expulsion by the unanimous vote of the other partners if:
             2093          (a) it is unlawful to carry on the partnership business with that partner;
             2094          (b) there has been a transfer of all or substantially all of that partner's transferable
             2095      interest in the partnership, other than a transfer for security purposes, or a court order charging
             2096      the partner's interest, which has not been foreclosed;
             2097          (c) within 90 days after the partnership notifies a corporate partner that it will be
             2098      expelled because it has filed a certificate of dissolution or the equivalent, its charter has been
             2099      revoked, or its right to conduct business has been suspended by the jurisdiction of its
             2100      incorporation, there is no revocation of the certificate of dissolution or no reinstatement of its
             2101      charter or its right to conduct business; or
             2102          (d) a partnership that is a partner has been dissolved and its business is being wound



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             2103
     up;
             2104          (5) on application by the partnership or another partner, the partner's expulsion by
             2105      judicial determination because:
             2106          (a) the partner engaged in wrongful conduct that adversely and materially affected the
             2107      partnership business;
             2108          (b) the partner willfully or persistently committed a material breach of the partnership
             2109      agreement or of a duty owed to the partnership or the other partners under Section 48-1b-404 ;
             2110      or
             2111          (c) the partner engaged in conduct relating to the partnership business which makes it
             2112      not reasonably practicable to carry on the business in partnership with the partner;
             2113          (6) the partner's:
             2114          (a) becoming a debtor in bankruptcy;
             2115          (b) executing an assignment for the benefit of creditors;
             2116          (c) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or
             2117      liquidator of that partner or of all or substantially all of that partner's property; or
             2118          (d) failing, within 90 days after the appointment, to have vacated or stayed the
             2119      appointment of a trustee, receiver, or liquidator of the partner or of all or substantially all of the
             2120      partner's property obtained without the partner's consent or acquiescence, or failing within 90
             2121      days after the expiration of a stay to have the appointment vacated;
             2122          (7) in the case of a partner who is an individual:
             2123          (a) the partner's death;
             2124          (b) the appointment of a guardian or general conservator for the partner; or
             2125          (c) a judicial determination that the partner has otherwise become incapable of
             2126      performing the partner's duties under the partnership agreement;
             2127          (8) in the case of a partner that is a trust or is acting as a partner by virtue of being a
             2128      trustee of a trust, distribution of the trust's entire transferable interest in the partnership, but not
             2129      merely by reason of the substitution of a successor trustee;
             2130          (9) in the case of a partner that is an estate or is acting as a partner by virtue of being a
             2131      personal representative of an estate, distribution of the estate's entire transferable interest in the
             2132      partnership, but not merely by reason of the substitution of a successor personal representative;
             2133      or



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             2134
         (10) termination of a partner who is not an individual, partnership, corporation, trust,
             2135      or estate.
             2136          Section 45. Section 48-1b-602 is enacted to read:
             2137          48-1b-602. Partner's power to dissociate -- Wrongful dissociation.
             2138          (1) A partner has the power to dissociate at any time, rightfully or wrongfully, by
             2139      express will pursuant to Subsection 48-1b-601 (1).
             2140          (2) A partner's dissociation is wrongful only if:
             2141          (a) it is in breach of an express provision of the partnership agreement; or
             2142          (b) in the case of a partnership for a definite term or particular undertaking, before the
             2143      expiration of the term or the completion of the undertaking:
             2144          (i) the partner withdraws by express will, unless the withdrawal follows within 90 days
             2145      after another partner's dissociation by death or otherwise under Subsection 48-1b-601 (6)
             2146      through (10) or wrongful dissociation under this Subsection (2);
             2147          (ii) the partner is expelled by judicial determination under Subsection 48-1b-601 (5);
             2148          (iii) the partner is dissociated by becoming a debtor in bankruptcy; or
             2149          (iv) in the case of a partner who is not an individual, trust other than a business trust, or
             2150      estate, the partner is expelled or otherwise dissociated because it willfully dissolved or
             2151      terminated.
             2152          (3) A partner who wrongfully dissociates is liable to the partnership and to the other
             2153      partners for damages caused by the dissociation. The liability is in addition to any other
             2154      obligation of the partner to the partnership or to the other partners.
             2155          Section 46. Section 48-1b-603 is enacted to read:
             2156          48-1b-603. Effect of partner's dissociation.
             2157          (1) (a) If a partner's dissociation results in a dissolution and winding up of the
             2158      partnership business, Part 8, Winding Up Partnership Business, applies.
             2159          (b) Except as provided in Subsection (1)(a), Part 7, Partner's Dissociation When
             2160      Business Not Wound Up, applies.
             2161          (2) Upon a partner's dissociation:
             2162          (a) the partner's right to participate in the management and conduct of the partnership
             2163      business terminates, except as otherwise provided in Section 48-1b-803 ;
             2164          (b) the partner's duty of loyalty under Subsection 48-1b-404 (2)(c) terminates; and



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             2165
         (c) the partner's duty of loyalty under Subsections 48-1b-404 (2)(a) and (b) and duty of
             2166      care under Subsection 48-1b-404 (3) continue only with regard to matters arising and events
             2167      occurring before the partner's dissociation, unless the partner participates in winding up the
             2168      partnership's business pursuant to Section 48-1b-803 .
             2169          Section 47. Section 48-1b-701 is enacted to read:
             2170     
Part 7. Partner's Dissociation When Business Not Wound Up

             2171          48-1b-701. Purchase of dissociated partner's interest.
             2172          (1) If a partner is dissociated from a partnership without resulting in a dissolution and
             2173      winding up of the partnership business under Section 48-1b-801 , the partnership shall cause the
             2174      dissociated partner's interest in the partnership to be purchased for a buyout price determined
             2175      pursuant to Subsection (2).
             2176          (2) The buyout price of a dissociated partner's interest is the amount that would have
             2177      been distributable to the dissociating partner under Subsection 48-1b-807 (2) if, on the date of
             2178      dissociation, the assets of the partnership were sold at a price equal to the greater of the
             2179      liquidation value or the value based on a sale of the entire business as a going concern without
             2180      the dissociated partner and the partnership were wound up as of that date. Interest must be paid
             2181      from the date of dissociation to the date of payment.
             2182          (3) Damages for wrongful dissociation under Subsection 48-1b-602 (2), and all other
             2183      amounts owing, whether or not presently due, from the dissociated partner to the partnership,
             2184      must be offset against the buyout price. Interest must be paid from the date the amount owed
             2185      becomes due to the date of payment.
             2186          (4) A partnership shall indemnify a dissociated partner whose interest is being
             2187      purchased against all partnership liabilities, whether incurred before or after the dissociation,
             2188      except liabilities incurred by an act of the dissociated partner under Section 48-1b-702 .
             2189          (5) If no agreement for the purchase of a dissociated partner's interest is reached within
             2190      120 days after a written demand for payment, the partnership shall pay, or cause to be paid, in
             2191      cash to the dissociated partner the amount the partnership estimates to be the buyout price and
             2192      accrued interest, reduced by any offsets and accrued interest under Subsection (3).
             2193          (6) If a deferred payment is authorized under Subsection (8), the partnership may
             2194      tender a written offer to pay the amount it estimates to be the buyout price and accrued interest,
             2195      reduced by any offsets under Subsection (3), stating the time of payment, the amount and type



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             2196
     of security for payment, and the other terms and conditions of the obligation.
             2197          (7) The payment or tender required by Subsection (5) or (6) must be accompanied by
             2198      the following:
             2199          (a) a statement of partnership assets and liabilities as of the date of dissociation;
             2200          (b) the latest available partnership balance sheet and income statement, if any;
             2201          (c) an explanation of how the estimated amount of the payment was calculated; and
             2202          (d) written notice that the payment is in full satisfaction of the obligation to purchase
             2203      unless, within 120 days after the written notice, the dissociated partner commences an action to
             2204      determine the buyout price, any offsets under Subsection (3), or other terms of the obligation to
             2205      purchase.
             2206          (8) A partner who wrongfully dissociates before the expiration of a definite term or the
             2207      completion of a particular undertaking is not entitled to payment of any portion of the buyout
             2208      price until the expiration of the term or completion of the undertaking, unless the partner
             2209      establishes to the satisfaction of the court that earlier payment will not cause undue hardship to
             2210      the business of the partnership. A deferred payment must be adequately secured and bear
             2211      interest.
             2212          (9) A dissociated partner may maintain an action against the partnership, pursuant to
             2213      Subsection 48-1b-405 (2)(b)(ii), to determine the buyout price of that partner's interest, any
             2214      offsets under Subsection (3), or other terms of the obligation to purchase. The action must be
             2215      commenced within 120 days after the partnership has tendered payment or an offer to pay or
             2216      within one year after written demand for payment if no payment or offer to pay is tendered.
             2217      The court shall determine the buyout price of the dissociated partner's interest, any offset due
             2218      under Subsection (3), and accrued interest, and enter judgment for any additional payment or
             2219      refund. If deferred payment is authorized under Subsection (8), the court shall also determine
             2220      the security for payment and other terms of the obligation to purchase. The court may assess
             2221      reasonable attorney fees and the fees and expenses of appraisers or other experts for a party to
             2222      the action, in amounts the court finds equitable, against a party that the court finds acted
             2223      arbitrarily, vexatiously, or not in good faith. The finding may be based on the partnership's
             2224      failure to tender payment or an offer to pay or to comply with Subsection (7).
             2225          Section 48. Section 48-1b-702 is enacted to read:
             2226          48-1b-702. Dissociated partner's power to bind and liability to partnership.



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             2227
         (1) For two years after a partner dissociates without resulting in a dissolution and
             2228      winding up of the partnership business, the partnership, including a surviving partnership under
             2229      Part 9, Merger, Conversion, and Domestication, is bound by an act of the dissociated partner
             2230      which would have bound the partnership under Section 48-1b-301 before dissociation only if at
             2231      the time of entering into the transaction the other party:
             2232          (a) reasonably believed that the dissociated partner was then a partner;
             2233          (b) did not have notice of the partner's dissociation; and
             2234          (c) is not deemed to have had knowledge under Subsection 48-1b-303 (5) or notice
             2235      under Subsection 48-1b-704 (3).
             2236          (2) A dissociated partner is liable to the partnership for any damage caused to the
             2237      partnership arising from an obligation incurred by the dissociated partner after dissociation for
             2238      which the partnership is liable under Subsection (1).
             2239          Section 49. Section 48-1b-703 is enacted to read:
             2240          48-1b-703. Dissociated partner's liability to other persons.
             2241          (1) A partner's dissociation does not of itself discharge the partner's liability for a
             2242      partnership obligation incurred before dissociation. A dissociated partner is not liable for a
             2243      partnership obligation incurred after dissociation, except as otherwise provided in Subsection
             2244      (2).
             2245          (2) A partner who dissociates without resulting in a dissolution and winding up of the
             2246      partnership business is liable as a partner to the other party in a transaction entered into by the
             2247      partnership, or a surviving partnership under Part 9, Merger, Conversion, and Domestication,
             2248      within two years after the partner's dissociation, only if the partner is liable for the obligation
             2249      under Section 48-1b-306 and at the time of entering into the transaction the other party:
             2250          (a) reasonably believed that the dissociated partner was then a partner;
             2251          (b) did not have notice of the partner's dissociation; and
             2252          (c) is not deemed to have had knowledge under Subsection 48-1b-303 (5) or notice
             2253      under Subsection 48-1b-704 (3).
             2254          (3) By agreement with the partnership creditor and the partners continuing the
             2255      business, a dissociated partner may be released from liability for a partnership obligation.
             2256          (4) A dissociated partner is released from liability for a partnership obligation if a
             2257      partnership creditor, with notice of the partner's dissociation but without the partner's consent,



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             2258
     agrees to a material alteration in the nature or time of payment of a partnership obligation.
             2259          Section 50. Section 48-1b-704 is enacted to read:
             2260          48-1b-704. Statement of dissociation.
             2261          (1) A dissociated partner or the partnership may file a statement of dissociation with
             2262      the division stating the name of the partnership and that the partner is dissociated from the
             2263      partnership.
             2264          (2) A statement of dissociation is a limitation on the authority of a dissociated partner
             2265      for the purposes of Subsections 48-1b-303 (4) and (5).
             2266          (3) For the purposes of Subsections 48-1b-702 (1)(c) and 48-1b-703 (2)(c), a person not
             2267      a partner is deemed to have notice of the dissociation 90 days after the statement of
             2268      dissociation is filed.
             2269          Section 51. Section 48-1b-705 is enacted to read:
             2270          48-1b-705. Continued use of partnership name.
             2271          Continued use of a partnership name, or a dissociated partner's name as part thereof, by
             2272      partners continuing the business does not of itself make the dissociated partner liable for an
             2273      obligation of the partners or the partnership continuing the business.
             2274          Section 52. Section 48-1b-801 is enacted to read:
             2275     
Part 8. Winding Up Partnership Business

             2276          48-1b-801. Events causing dissolution and winding up of partnership business.
             2277          A partnership is dissolved, and its business must be wound up, only upon the
             2278      occurrence of any of the following events:
             2279          (1) in a partnership at will, the partnership's having notice from a partner, other than a
             2280      partner who is dissociated under Subsections 48-1b-601 (2) through (10), of that partner's
             2281      express will to withdraw as a partner, or on a later date specified by the partner;
             2282          (2) in a partnership for a definite term or particular undertaking:
             2283          (a) within 90 days after a partner's dissociation by death or otherwise under
             2284      Subsections 48-1b-601 (6) through (10) or wrongful dissociation under Subsection
             2285      48-1b-602 (2), the express will of at least half of the remaining partners to wind up the
             2286      partnership business, for which purpose a partner's rightful dissociation pursuant to Subsection
             2287      48-1b-602 (2)(b)(i) constitutes the expression of that partner's will to wind up the partnership
             2288      business;



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             2289
         (b) the express will of all of the partners to wind up the partnership business; or
             2290          (c) the expiration of the term or the completion of the undertaking;
             2291          (3) an event agreed to in the partnership agreement resulting in the winding up of the
             2292      partnership business;
             2293          (4) an event that makes it unlawful for all or substantially all of the business of the
             2294      partnership to be continued, but a cure of illegality within 90 days after notice to the
             2295      partnership of the event is effective retroactively to the date of the event for purposes of this
             2296      section;
             2297          (5) on application by a partner, a judicial determination that:
             2298          (a) the economic purpose of the partnership is likely to be unreasonably frustrated;
             2299          (b) another partner has engaged in conduct relating to the partnership business which
             2300      makes it not reasonably practicable to carry on the business in partnership with that partner; or
             2301          (c) it is not otherwise reasonably practicable to carry on the partnership business in
             2302      conformity with the partnership agreement; or
             2303          (6) on application by a transferee of a partner's transferable interest, a judicial
             2304      determination that it is equitable to wind up the partnership business:
             2305          (a) after the expiration of the term or completion of the undertaking, if the partnership
             2306      was for a definite term or particular undertaking at the time of the transfer or entry of the
             2307      charging order that gave rise to the transfer; or
             2308          (b) at any time, if the partnership was a partnership at will at the time of the transfer or
             2309      entry of the charging order that gave rise to the transfer.
             2310          Section 53. Section 48-1b-802 is enacted to read:
             2311          48-1b-802. Partnership continues after dissolution.
             2312          (1) Subject to Subsection (2), a partnership continues after dissolution only for the
             2313      purpose of winding up its business. The partnership is terminated when the winding up of its
             2314      business is completed.
             2315          (2) At any time after the dissolution of a partnership and before the winding up of its
             2316      business is completed, all of the partners, including any dissociating partner other than a
             2317      wrongfully dissociating partner, may waive the right to have the partnership's business wound
             2318      up and the partnership terminated. In that event:
             2319          (a) the partnership resumes carrying on its business as if dissolution had never



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             2320
     occurred, and any liability incurred by the partnership or a partner after the dissolution and
             2321      before the waiver is determined as if dissolution had never occurred; and
             2322          (b) the rights of a third party accruing under Subsection 48-1b-804 (1) or arising out of
             2323      conduct in reliance on the dissolution before the third party knew or received a notification of
             2324      the waiver may not be adversely affected.
             2325          Section 54. Section 48-1b-803 is enacted to read:
             2326          48-1b-803. Right to wind up partnership business.
             2327          (1) After dissolution, a partner who has not wrongfully dissociated may participate in
             2328      winding up the partnership's business, but on application of any partner, partner's legal
             2329      representative, or transferee, the district court, for good cause shown, may order judicial
             2330      supervision of the winding up.
             2331          (2) The legal representative of the last surviving partner may wind up a partnership's
             2332      business.
             2333          (3) A person winding up a partnership's business may preserve the partnership business
             2334      or property as a going concern for a reasonable time, prosecute and defend actions and
             2335      proceedings, whether civil, criminal, or administrative, settle and close the partnership's
             2336      business, dispose of and transfer the partnership's property, discharge the partnership's
             2337      liabilities, distribute the assets of the partnership pursuant to Section 48-1b-807 , settle disputes
             2338      by mediation or arbitration, and perform other necessary acts.
             2339          Section 55. Section 48-1b-804 is enacted to read:
             2340          48-1b-804. Partner's power to bind partnership after dissolution.
             2341          Subject to Section 48-1b-805 , a partnership is bound by a partner's act after dissolution
             2342      that:
             2343          (1) is appropriate for winding up the partnership business; or
             2344          (2) would have bound the partnership under Section 48-1b-301 before dissolution, if
             2345      the other party to the transaction did not have notice of the dissolution.
             2346          Section 56. Section 48-1b-805 is enacted to read:
             2347          48-1b-805. Statement of dissolution.
             2348          (1) After dissolution, a partner who has not wrongfully dissociated may file a statement
             2349      of dissolution with the division stating the name of the partnership and that the partnership has
             2350      dissolved and is winding up its business.



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             2351
         (2) A statement of dissolution cancels a filed statement of partnership authority for the
             2352      purposes of Subsection 48-1b-303 (4) and is a limitation on authority for the purposes of
             2353      Subsection 48-1b-303 (5).
             2354          (3) For the purposes of Sections 48-1b-301 and 48-1b-804 , a person not a partner is
             2355      deemed to have notice of the dissolution and the limitation on the partner's authority as a result
             2356      of the statement of dissolution 90 days after it is filed.
             2357          (4) After filing and, if appropriate, recording a statement of dissolution, a dissolved
             2358      partnership may file and, if appropriate, record a statement of partnership authority which will
             2359      operate with respect to a person not a partner as provided in Subsections 48-1b-303 (4) and (5)
             2360      in any transaction, whether or not the transaction is appropriate for winding up the partnership
             2361      business.
             2362          Section 57. Section 48-1b-806 is enacted to read:
             2363          48-1b-806. Partner's liability to other partners after dissolution.
             2364          (1) Except as otherwise provided in Subsection (2) and Section 48-1b-306 , after
             2365      dissolution a partner is liable to the other partners for the partner's share of any partnership
             2366      liability incurred under Section 48-1b-804 .
             2367          (2) A partner who, with knowledge of the dissolution, incurs a partnership liability
             2368      under Subsection 48-1b-804 (2) by an act that is not appropriate for winding up the partnership
             2369      business is liable to the partnership for any damage caused to the partnership arising from the
             2370      liability.
             2371          Section 58. Section 48-1b-807 is enacted to read:
             2372          48-1b-807. Settlement of accounts and contributions among partners.
             2373          (1) In winding up a partnership's business, the assets of the partnership, including the
             2374      contributions of the partners required by this section, must be applied to discharge its
             2375      obligations to creditors, including, to the extent permitted by law, partners who are creditors.
             2376      Any surplus must be applied to pay in cash the net amount distributable to partners in
             2377      accordance with their right to distributions under Subsection (2).
             2378          (2) Each partner is entitled to a settlement of all partnership accounts upon winding up
             2379      the partnership business. In settling accounts among the partners, profits and losses that result
             2380      from the liquidation of the partnership assets must be credited and charged to the partners'
             2381      accounts. The partnership shall make a distribution to a partner in an amount equal to any



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             2382
     excess of the credits over the charges in the partner's account. A partner shall contribute to the
             2383      partnership an amount equal to any excess of the charges over the credits in the partner's
             2384      account but excluding from the calculation charges attributable to an obligation for which the
             2385      partner is not personally liable under Section 48-1b-306 .
             2386          (3) If a partner fails to contribute the full amount required under Subsection (2), all of
             2387      the other partners shall contribute, in the proportions in which those partners share partnership
             2388      losses, the additional amount necessary to satisfy the partnership obligations for which they are
             2389      personally liable under Section 48-1b-306 . A partner or partner's legal representative may
             2390      recover from the other partners any contributions the partner makes to the extent the amount
             2391      contributed exceeds that partner's share of the partnership obligations for which the partner is
             2392      personally liable under Section 48-1b-306 .
             2393          (4) After the settlement of accounts, each partner shall contribute, in the proportion in
             2394      which the partner shares partnership losses, the amount necessary to satisfy partnership
             2395      obligations that were not known at the time of the settlement and for which the partner is
             2396      personally liable under Section 48-1b-306 .
             2397          (5) The estate of a deceased partner is liable for the partner's obligation to contribute to
             2398      the partnership.
             2399          (6) An assignee for the benefit of creditors of a partnership or a partner, or a person
             2400      appointed by a court to represent creditors of a partnership or a partner, may enforce a partner's
             2401      obligation to contribute to the partnership.
             2402          Section 59. Section 48-1b-901 is enacted to read:
             2403     
Part 9. Merger, Conversion, and Domestication

             2404          48-1b-901. Definitions.
             2405          In this part:
             2406          (1) "Constituent organization" means an organization that is party to a merger.
             2407          (2) "Constituent partnership" means a constituent organization that is a partnership.
             2408          (3) "Converted organization" means the organization into which a converting
             2409      organization converts pursuant to Sections 48-1b-906 through 48-1b-909 .
             2410          (4) "Converting organization" means an organization that converts into another
             2411      organization pursuant to Section 48-1b-906 .
             2412          (5) "Converting partnership" means a converting organization that is a partnership.



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             2413
         (6) "Domesticated limited liability partnership" means a limited liability partnership
             2414      that exists after a domesticating foreign limited liability partnership or limited liability
             2415      partnership effects a domestication pursuant to Sections 48-1b-910 through 48-1b-913 .
             2416          (7) "Domesticating limited liability partnership" means a limited liability partnership
             2417      that effects a domestication pursuant to Sections 48-1b-910 through 48-1b-913 .
             2418          (8) "Foreign partnership" means a partnership that has:
             2419          (a) its chief executive office in a jurisdiction other than this state; or
             2420          (b) specified in its partnership agreement that relations among the partners and between
             2421      the partners and the partnership will be governed by the law of a jurisdiction other than this
             2422      state.
             2423          (9) "Governing statute" means the statute that governs an organization's internal affairs.
             2424          (10) (a) "Organization" means:
             2425          (i) a general partnership, including a limited liability partnership;
             2426          (ii) a limited partnership, including a limited liability limited partnership;
             2427          (iii) a limited liability company;
             2428          (iv) a business trust;
             2429          (v) a corporation; or
             2430          (vi) any other person having a governing statute.
             2431          (b) "Organization" includes a domestic or foreign organization regardless of whether
             2432      organized for profit.
             2433          (11) "Organizational documents" means:
             2434          (a) for a domestic or foreign general partnership, its partnership agreement;
             2435          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             2436      partnership and partnership agreement;
             2437          (c) for a domestic or foreign limited liability company, its certificate or articles of
             2438      organization and operating agreement, or comparable records as provided in its governing
             2439      statute;
             2440          (d) for a business trust, its agreement of trust and declaration of trust;
             2441          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             2442      and other agreements among its shareholders which are authorized by its governing statute, or
             2443      comparable records as provided in its governing statute; and



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             2444
         (f) for any other organization, the basic records that create the organization and
             2445      determine its internal governance and the relations among the persons that own it, have an
             2446      interest in it, or are members of it.
             2447          (12) "Personal liability" means liability for a debt, obligation, or other liability of an
             2448      organization which is imposed on a person that co-owns, has an interest in, or is a member of
             2449      the organization:
             2450          (a) by the governing statute solely by reason of the person co-owning, having an
             2451      interest in, or being a member of the organization; or
             2452          (b) by the organization's organizational documents under a provision of the governing
             2453      statute authorizing those documents to make one or more specified persons liable for all or
             2454      specified debts, obligations, or other liabilities of the organization solely by reason of the
             2455      person or persons co-owning, having an interest in, or being a member of the organization.
             2456          (13) "Surviving organization" means an organization into which one or more other
             2457      organizations are merged whether the organization preexisted the merger or was created by the
             2458      merger.
             2459          Section 60. Section 48-1b-902 is enacted to read:
             2460          48-1b-902. Merger.
             2461          (1) A partnership may merge with one or more other constituent organizations pursuant
             2462      to this section, Sections 48-1b-903 through 48-1b-905 , and a plan of merger, if:
             2463          (a) the governing statute of each of the other organizations authorizes the merger;
             2464          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the
             2465      governing statutes; and
             2466          (c) each of the other organizations complies with its governing statute in effecting the
             2467      merger.
             2468          (2) Unless each constituent organization and the surviving organization are
             2469      partnerships other than limited liability partnerships, a plan of merger must be in a record and
             2470      must include:
             2471          (a) the name and form of each constituent organization;
             2472          (b) the name and form of the surviving organization and, if the surviving organization
             2473      is to be created by the merger, a statement to that effect;
             2474          (c) the terms and conditions of the merger, including the manner and basis for



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             2475
     converting the interests in each constituent organization into any combination of money,
             2476      interests in the surviving organization, and other consideration;
             2477          (d) if the surviving organization is to be created by the merger, the surviving
             2478      organization's organizational documents that are proposed to be in a record; and
             2479          (e) if the surviving organization is not to be created by the merger, any amendments to
             2480      be made by the merger to the surviving organization's organizational documents that are, or are
             2481      proposed to be, in a record.
             2482          Section 61. Section 48-1b-903 is enacted to read:
             2483          48-1b-903. Action on plan of merger by constituent partnership.
             2484          (1) Subject to Section 48-1b-914 , a plan of merger must be consented to by all the
             2485      partners of a constituent partnership.
             2486          (2) Subject to Section 48-1b-914 and any contractual rights, after a merger is approved,
             2487      and at any time before articles of merger are delivered to the division for filing under Section
             2488      48-1b-904 , a constituent partnership may amend the plan or abandon the merger:
             2489          (a) as provided in the plan; or
             2490          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             2491      approve the plan.
             2492          Section 62. Section 48-1b-904 is enacted to read:
             2493          48-1b-904. Filings required and permitted for merger -- Effective date.
             2494          (1) After each constituent organization has approved a merger, articles of merger must
             2495      be signed on behalf of:
             2496          (a) each constituent partnership, as provided in Section 48-1b-105 , unless the merger is
             2497      only between or among general partnerships, none of which is a limited liability partnership,
             2498      and the surviving organization will be a general partnership other than a limited liability
             2499      partnership; and
             2500          (b) each other constituent organization, as provided in its governing statute.
             2501          (2) Articles of merger under this section must include:
             2502          (a) the name and form of each constituent organization and the jurisdiction of its
             2503      governing statute;
             2504          (b) the name and form of the surviving organization, the jurisdiction of its governing
             2505      statute, and, if the surviving organization is created by the merger, a statement to that effect;



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             2506
         (c) the date the merger is effective under the governing statute of the surviving
             2507      organization;
             2508          (d) if the surviving organization is to be created by the merger:
             2509          (i) if it will be a limited liability partnership, the limited liability partnership's
             2510      statement of qualification; or
             2511          (ii) if it will be an organization other than a limited liability partnership, the
             2512      organizational document that creates the organization that is in a public record;
             2513          (e) if the surviving organization preexists the merger, any amendments provided for in
             2514      the plan of merger for the organizational document that created the organization that are in a
             2515      public record;
             2516          (f) a statement as to each constituent organization that the merger was approved as
             2517      required by the organization's governing statute;
             2518          (g) if the surviving organization is a foreign organization not authorized to transact
             2519      business in this state, the street and mailing addresses of an office that may be used for service
             2520      of process under Section 48-1b-905 (2); and
             2521          (h) any additional information required by the governing statute of any constituent
             2522      organization.
             2523          (3) Each constituent partnership that is a limited liability partnership shall, and each
             2524      constituent partnership that is not a limited liability partnership may, deliver the articles of
             2525      merger for filing in the division.
             2526          (4) A merger becomes effective under this part:
             2527          (a) if the surviving organization is a partnership, upon the later of:
             2528          (i) compliance with Subsection (3); or
             2529          (ii) as specified in the articles of merger; or
             2530          (b) if the surviving organization is not a partnership, as provided by the governing
             2531      statute of the surviving organization.
             2532          Section 63. Section 48-1b-905 is enacted to read:
             2533          48-1b-905. Effect of merger.
             2534          (1) When a merger becomes effective:
             2535          (a) the surviving organization continues or comes into existence;
             2536          (b) each constituent organization that merges into the surviving organization ceases to



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             2537
     exist as a separate entity;
             2538          (c) all property owned by each constituent organization that ceases to exist vests in the
             2539      surviving organization;
             2540          (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             2541      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             2542          (e) an action or proceeding pending by or against any constituent organization that
             2543      ceases to exist may be continued as if the merger had not occurred;
             2544          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             2545      and purposes of each constituent organization that ceases to exist vest in the surviving
             2546      organization;
             2547          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             2548      plan of merger take effect; and
             2549          (h) except as otherwise agreed, if a constituent partnership ceases to exist, the merger
             2550      does not dissolve the partnership for the purposes of Part 8, Winding Up Partnership Business;
             2551          (i) if the surviving organization is created by the merger:
             2552          (i) if it is a partnership, the partnership is formed upon approval of and on the date
             2553      specified in the plan of merger;
             2554          (ii) if it is a limited liability partnership, the limited liability partnership is formed and
             2555      the statement of qualification takes effect on the later of:
             2556          (A) the day after the day on which the division has received for filing both the articles
             2557      of merger and the statement of qualification pursuant to Section 48-1b-1001 ; or
             2558          (B) the date provided in the statement of qualification; or
             2559          (iii) if it is an organization other than a partnership, the organizational document that
             2560      creates the organization becomes effective; and
             2561          (j) if the surviving organization preexisted the merger, any amendments provided for in
             2562      the articles of merger for the organizational document that created the organization become
             2563      effective.
             2564          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             2565      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             2566      organization, if before the merger the constituent organization was subject to suit in this state
             2567      on the debt, obligation, or other liability. A surviving organization that is a foreign



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             2568
     organization and not authorized to transact business in this state may be served with process at
             2569      the address required in the articles of merger under 48-1b-904 (2)(g).
             2570          Section 64. Section 48-1b-906 is enacted to read:
             2571          48-1b-906. Conversion.
             2572          (1) An organization other than a partnership or a foreign partnership may convert to a
             2573      partnership, and a partnership may convert to an organization other than a foreign partnership
             2574      pursuant to this section, Sections 48-1b-907 through 48-1b-909 , and a plan of conversion, if:
             2575          (a) the other organization's governing statute authorizes the conversion;
             2576          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other
             2577      organization's governing statute; and
             2578          (c) the other organization complies with its governing statute in effecting the
             2579      conversion.
             2580          (2) A plan of conversion must be in a record and must include:
             2581          (a) the name and form of the organization before conversion;
             2582          (b) the name and form of the organization after conversion;
             2583          (c) the terms and conditions of the conversion, including the manner and basis for
             2584      converting interests in the converting organization into any combination of money, interests in
             2585      the converted organization, and other consideration; and
             2586          (d) the organizational documents of the converted organization that are, or are
             2587      proposed to be, in a record.
             2588          Section 65. Section 48-1b-907 is enacted to read:
             2589          48-1b-907. Action on plan of conversion by converting partnership.
             2590          (1) Subject to Section 48-1b-914 , a plan of conversion must be consented to by all the
             2591      partners of a converting partnership.
             2592          (2) Subject to Section 48-1b-914 and any contractual rights, after a conversion is
             2593      approved, and at any time before articles of conversion are delivered to the division for filing
             2594      under Section 48-1b-908 , a converting partnership may amend the plan or abandon the
             2595      conversion:
             2596          (a) as provided in the plan; or
             2597          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             2598      approve the plan.



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             2599
         Section 66. Section 48-1b-908 is enacted to read:
             2600          48-1b-908. Filings required for conversion -- Effective date.
             2601          (1) After a plan of conversion is approved:
             2602          (a) a converting limited liability partnership shall deliver to the division for filing
             2603      articles of conversion, which must be signed as provided in Section 48-1b-105 and must
             2604      include:
             2605          (i) a statement that the limited liability partnership has been converted into another
             2606      organization;
             2607          (ii) the name and form of the converted organization and the jurisdiction of its
             2608      governing statute;
             2609          (iii) the date the conversion is effective under the governing statute of the converted
             2610      organization;
             2611          (iv) a statement that the conversion was approved as required by this chapter;
             2612          (v) a statement that the conversion is authorized by the governing statute of the
             2613      converted organization; and
             2614          (vi) if the converted organization is a foreign organization not authorized to transact
             2615      business in this state, the street and mailing addresses of an office that may be used for
             2616      purposes of Subsection 48-1b-909 (3); and
             2617          (b) if the converting organization is not a converting partnership or limited liability
             2618      partnership, the converting organization shall deliver to the division for filing articles of
             2619      conversion, which must include:
             2620          (i) a statement that the converted organization was converted from another
             2621      organization, and whether the converted organization is a partnership or a limited liability
             2622      partnership;
             2623          (ii) the name and form of that converting organization and the jurisdiction of its
             2624      governing statute; and
             2625          (iii) a statement that the conversion was approved in a manner that complied with the
             2626      converting organization's governing statute.
             2627          (2) A conversion becomes effective:
             2628          (a) if the converted organization is a partnership, as provided in the plan or articles of
             2629      conversion;



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             2630
         (b) if the converted organization is a limited liability partnership, the later of:
             2631          (i) the day after the day on which the division has received for filing both the articles of
             2632      conversion and the statement of qualification pursuant to Section 48-1b-1001 ; or
             2633          (ii) the date provided in the statement of qualification; or
             2634          (c) if the converted organization is not a partnership or limited liability partnership, as
             2635      provided by the governing statute of the converted organization.
             2636          Section 67. Section 48-1b-909 is enacted to read:
             2637          48-1b-909. Effect of conversion.
             2638          (1) An organization that has been converted pursuant to this part is for all purposes the
             2639      same entity that existed before the conversion.
             2640          (2) When a conversion takes effect:
             2641          (a) all property owned by the converting organization remains vested in the converted
             2642      organization;
             2643          (b) all debts, obligations, or other liabilities of the converting organization continue as
             2644      debts, obligations, or other liabilities of the converted organization;
             2645          (c) an action or proceeding pending by or against the converting organization may be
             2646      continued as if the conversion had not occurred;
             2647          (d) except as prohibited by law other than this chapter, all of the rights, privileges,
             2648      immunities, powers, and purposes of the converting organization remain vested in the
             2649      converted organization;
             2650          (e) except as otherwise provided in the plan of conversion, the terms and conditions of
             2651      the plan of conversion take effect; and
             2652          (f) except as otherwise agreed, the conversion does not dissolve a converting
             2653      partnership for the purposes of Part 8, Winding Up Partnership Business.
             2654          (3) A converted organization that is a foreign organization consents to the jurisdiction
             2655      of the courts of this state to enforce any debt, obligation, or other liability for which the
             2656      converting partnership or limited liability partnership is liable if, before the conversion, the
             2657      converting partnership or limited liability partnership was subject to suit in this state on the
             2658      debt, obligation, or other liability. A converted organization that is a foreign organization and
             2659      not authorized to transact business in this state may be served with process at the address
             2660      required in the articles of conversion under Subsection 48-1b-908 (1)(a)(vi).



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             2661
         Section 68. Section 48-1b-910 is enacted to read:
             2662          48-1b-910. Domestication.
             2663          (1) A foreign limited liability partnership may become a limited liability partnership
             2664      pursuant to this section, Sections 48-1b-911 through 48-1b-913 , and a plan of domestication,
             2665      if:
             2666          (a) the foreign limited liability partnership's governing statute authorizes the
             2667      domestication;
             2668          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             2669      governing statute; and
             2670          (c) the foreign limited liability partnership complies with its governing statute in
             2671      effecting the domestication.
             2672          (2) A limited liability partnership may become a foreign limited liability partnership
             2673      pursuant to this section, Sections 48-1b-911 through 48-1b-913 , and a plan of domestication,
             2674      if:
             2675          (a) the foreign limited liability partnership's governing statute authorizes the
             2676      domestication;
             2677          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             2678      governing statute; and
             2679          (c) the foreign limited liability partnership complies with its governing statute in
             2680      effecting the domestication.
             2681          (3) A plan of domestication must be in a record and must include:
             2682          (a) the name of the domesticating limited liability partnership before domestication and
             2683      the jurisdiction of its governing statute;
             2684          (b) the name of the domesticated limited liability partnership after domestication and
             2685      the jurisdiction of its governing statute;
             2686          (c) the terms and conditions of the domestication, including the manner and basis for
             2687      converting interests in the domesticating limited liability partnership into any combination of
             2688      money, interests in the domesticated limited liability partnership, and other consideration; and
             2689          (d) the organizational documents of the domesticated limited liability partnership that
             2690      are, or are proposed to be, in a record.
             2691          Section 69. Section 48-1b-911 is enacted to read:



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             2692
         48-1b-911. Action on plan of domestication by domesticating partnership.
             2693          (1) A plan of domestication must be consented to:
             2694          (a) by all the partners, subject to Section 48-1b-914 , if the domesticating limited
             2695      liability partnership is a limited liability partnership; and
             2696          (b) as provided in the domesticating limited liability partnership's governing statute, if
             2697      the limited liability partnership is a foreign limited liability partnership.
             2698          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             2699      before articles of domestication are delivered to the division for filing under Section
             2700      48-1b-912 , a domesticating limited liability partnership may amend the plan or abandon the
             2701      domestication:
             2702          (a) as provided in the plan; or
             2703          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             2704      approve the plan.
             2705          Section 70. Section 48-1b-912 is enacted to read:
             2706          48-1b-912. Filings required for domestication -- Effective date.
             2707          (1) After a plan of domestication is approved, a domesticating limited liability
             2708      partnership shall deliver to the division for filing articles of domestication, which must include:
             2709          (a) a statement, as the case may be, that the limited liability partnership has been
             2710      domesticated from or into another jurisdiction;
             2711          (b) the name of the domesticating limited liability partnership and the jurisdiction of its
             2712      governing statute;
             2713          (c) the name of the domesticated limited liability partnership and the jurisdiction of its
             2714      governing statute;
             2715          (d) the date the domestication is effective under the governing statute of the
             2716      domesticated limited liability partnership;
             2717          (e) if the domesticating limited liability partnership was a limited liability partnership,
             2718      a statement that the domestication was approved as required by this chapter;
             2719          (f) if the domesticating limited liability partnership was a foreign limited liability
             2720      partnership, a statement that the domestication was approved as required by the governing
             2721      statute of the other jurisdiction; and
             2722          (g) if the domesticated limited liability partnership is a foreign limited liability



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             2723
     partnership not authorized to transact business in this state, the street and mailing addresses of
             2724      an office that the division may use for the purposes of Subsection 48-1b-913 (2).
             2725          (2) A domestication becomes effective:
             2726          (a) if the domesticated limited liability partnership is a limited liability partnership, the
             2727      later of:
             2728          (i) the day after the day on which the division has received for filing both the articles of
             2729      domestication and the statement of qualification pursuant to Section 48-1b-1001 ; and
             2730          (ii) the date provided in the statement of qualification; or
             2731          (b) if it is a foreign limited liability partnership, according to the governing statute of
             2732      the domesticated limited liability partnership.
             2733          Section 71. Section 48-1b-913 is enacted to read:
             2734          48-1b-913. Effect of domestication.
             2735          (1) When a domestication takes effect:
             2736          (a) the domesticated limited liability partnership is for all purposes the limited liability
             2737      partnership that existed before the domestication;
             2738          (b) all property owned by the domesticating limited liability partnership remains vested
             2739      in the domesticated limited liability partnership;
             2740          (c) all debts, obligations, or other liabilities of the domesticating limited liability
             2741      partnership continue as debts, obligations, or other liabilities of the domesticated limited
             2742      liability partnership;
             2743          (d) an action or proceeding pending by or against a domesticating limited liability
             2744      partnership may be continued as if the domestication had not occurred;
             2745          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             2746      and purposes of the domesticating limited liability partnership remain vested in the
             2747      domesticated limited liability partnership;
             2748          (f) except as otherwise provided in the plan of domestication, the terms and conditions
             2749      of the plan of domestication take effect; and
             2750          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             2751      limited liability partnership for the purposes of Part 8, Winding Up Partnership Business.
             2752          (2) A domesticated limited liability partnership that is a foreign limited liability
             2753      partnership consents to the jurisdiction of the courts of this state to enforce any debt,



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             2754
     obligation, or other liability owed by the domesticating limited liability partnership, if, before
             2755      the domestication, the domesticating limited liability partnership was subject to suit in this
             2756      state on the debt, obligation, or other liability. A domesticated limited liability partnership that
             2757      is a foreign limited liability partnership and not authorized to transact business in this state may
             2758      be served with process at the address required in the articles of domestication under Subsection
             2759      48-1b-912 (1)(g).
             2760          (3) If a limited liability partnership has adopted and approved a plan of domestication
             2761      under Section 48-1b-910 providing for the limited liability partnership to be domesticated in a
             2762      foreign jurisdiction, a statement pursuant to Subsection 48-1b-1001 (4) cancelling the limited
             2763      liability partnership's statement of qualification must be delivered to the division for filing
             2764      setting forth:
             2765          (a) the name of the limited liability partnership;
             2766          (b) a statement that the limited liability partnership's statement of qualification is being
             2767      cancelled in connection with the domestication of the limited liability partnership in a foreign
             2768      jurisdiction;
             2769          (c) a statement the domestication was approved as required by this chapter; and
             2770          (d) the jurisdiction of formation of the domesticated foreign limited liability
             2771      partnership.
             2772          Section 72. Section 48-1b-914 is enacted to read:
             2773          48-1b-914. Restrictions on approval of mergers, conversions, and domestications.
             2774          (1) If a partner of a constituent or converting partnership, or a partner of a
             2775      domesticating limited liability partnership will have personal liability with respect to a
             2776      surviving, converted, or domesticated organization, approval or amendment of a plan of
             2777      merger, conversion, or domestication are ineffective without the consent of the partner, unless:
             2778          (a) the partnership's partnership agreement provides for approval of a merger,
             2779      conversion, or domestication with the consent of fewer than all the partners; and
             2780          (b) the partner has consented to the provision of the partnership agreement.
             2781          (2) A partner does not give the consent required by Subsection (1) merely by
             2782      consenting to a provision of the partnership agreement that permits the partnership agreement
             2783      to be amended with the consent of fewer than all the partners.
             2784          Section 73. Section 48-1b-915 is enacted to read:



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             2785
         48-1b-915. Part not exclusive.
             2786          This part does not preclude an entity from being merged, converted, or domesticated
             2787      under law other than this chapter.
             2788          Section 74. Section 48-1b-1001 is enacted to read:
             2789     
Part 10. Limited Liability Partnership

             2790          48-1b-1001. Statement of qualification.
             2791          (1) A partnership may become a limited liability partnership pursuant to this section.
             2792          (2) The terms and conditions on which a partnership becomes a limited liability
             2793      partnership must be approved by the vote necessary to amend the partnership agreement
             2794      except, in the case of a partnership agreement that expressly considers obligations to contribute
             2795      to the partnership, the vote necessary to amend those provisions.
             2796          (3) After the approval required by Subsection (2), a partnership may become a limited
             2797      liability partnership by filing a statement of qualification with the division. The statement must
             2798      contain:
             2799          (a) the name of the partnership;
             2800          (b) the street address of the partnership's chief executive office and, if different, the
             2801      street address of an office in this state, if any;
             2802          (c) if the partnership does not have an office in this state, the information required by
             2803      Subsection 16-17-203 (1);
             2804          (d) a statement that the partnership elects to be a limited liability partnership; and
             2805          (e) a deferred effective date, if any.
             2806          (4) The status of a partnership as a limited liability partnership is effective on the later
             2807      of the filing of the statement or a date specified in the statement. The status remains effective,
             2808      regardless of changes in the partnership, until it is canceled pursuant to Subsection
             2809      48-1b-105 (4) or revoked pursuant to Section 48-1b-1003 .
             2810          (5) The status of a partnership as a limited liability partnership and the liability of its
             2811      partners is not affected by errors or later changes in the information required to be contained in
             2812      the statement of qualification under Subsection (3).
             2813          (6) The filing of a statement of qualification establishes that a partnership has satisfied
             2814      all conditions precedent to the qualification of the partnership as a limited liability partnership.
             2815          (7) An amendment or cancellation of a statement of qualification is effective when it is



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             2816
     filed or on a deferred effective date specified in the amendment or cancellation.
             2817          Section 75. Section 48-1b-1002 is enacted to read:
             2818          48-1b-1002. Name.
             2819          (1) The name of a limited liability partnership must end with "Registered Limited
             2820      Liability Partnership," "Limited Liability Partnership," "R.L.L.P.," "L.L.P.," "RLLP," or "LLP".
             2821          (2) The name of a limited liability partnership may not contain:
             2822          (a) without the written consent of the United States Olympic Committee, the words:
             2823          (i) "Olympic";
             2824          (ii) "Olympiad"; or
             2825          (iii) "Citius Altius Fortius"; and
             2826          (b) without the written consent of the Division of Consumer Protection issued in
             2827      accordance with Section 13-34-114 , the words:
             2828          (i) "university";
             2829          (ii) "college"; or
             2830          (iii) "institute" or "institution".
             2831          (3) Unless authorized by Subsection (4), the name of a limited liability partnership
             2832      must be distinguishable in the records of the division from:
             2833          (a) the name of each person other than an individual incorporated, organized, or
             2834      authorized to transact business in this state; and
             2835          (b) each name reserved under:
             2836          (i) Section 16-6a-401 or 16-6a-402 ;
             2837          (ii) Section 16-10a-401 or 16-10a-402 ;
             2838          (iii) Section 16-11-16 ;
             2839          (iv) Section 42-2-6.6 ;
             2840          (v) Section 48-2d-108 or 48-2d-109 ; or
             2841          (vi) Section 48-3-108 or 48-3-109 .
             2842          (4) A limited liability partnership may apply to the division for authorization to use a
             2843      name that does not comply with Subsection (3). The division shall authorize use of the name
             2844      applied for if, as to each conflicting name:
             2845          (a) the present user, registrant, or owner of the conflicting name consents in a signed
             2846      record to the use and submits an undertaking in a form satisfactory to the division to change the



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             2847
     conflicting name to a name that complies with Subsection (3) and is distinguishable in the
             2848      records of the division from the name applied for;
             2849          (b) the applicant delivers to the division a certified copy of the final judgment of a
             2850      district court establishing the applicant's right to use in this state the name applied for; or
             2851          (c) the applicant delivers to the division proof satisfactory to the division that the
             2852      present user, registrant, or owner of the conflicting name:
             2853          (i) has merged into the applicant;
             2854          (ii) has been converted into the applicant; or
             2855          (iii) has transferred substantially all of its assets, including the conflicting name, to the
             2856      applicant.
             2857          (5) Subject to Section 48-1b-1102.1 , this section applies to any foreign limited
             2858      partnership transacting business in this state, having a certificate of authority to transact
             2859      business in this state, or applying for a certificate of authority.
             2860          (6) The division may not approve for filing a name that implies that a limited liability
             2861      partnership is an agency of this state or any of its political subdivisions, if it is not actually such
             2862      a legally established agency or subdivision.
             2863          (7) The authorization to file a certificate under or to reserve or register a limited
             2864      liability partnership name as granted by the division does not:
             2865          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             2866          (b) derogate from the common law, the principles of equity, or the statutes of this state
             2867      or of the United States with respect to the right to acquire and protect names and trademarks; or
             2868          (c) create an exclusive right in geographic or generic terms contained within a name.
             2869          Section 76. Section 48-1b-1003 is enacted to read:
             2870          48-1b-1003. Annual report.
             2871          (1) A limited liability partnership, and a foreign limited liability partnership authorized
             2872      to transact business in this state, shall file an annual report with the division which contains:
             2873          (a) the name of the limited liability partnership and the state or other jurisdiction under
             2874      whose laws the foreign limited liability partnership is formed;
             2875          (b) the street address of the partnership's chief executive office and, if different, the
             2876      street address of an office of the partnership in this state, if any; and
             2877          (c) if the partnership does not have an office in this state, the information required by



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             2878
     Subsection 16-17-203 (1).
             2879          (2) Following the calendar year in which a partnership files a statement of qualification
             2880      or a foreign partnership becomes authorized to transact business in this state, the partnership
             2881      shall file an annual report:
             2882          (a) during the month of its anniversary date of formation, in the case of a domestic
             2883      partnership; or
             2884          (b) during the month of the anniversary date of being granted authority to transact
             2885      business in this state, in the case of a foreign partnership authorized to transact business in this
             2886      state.
             2887          (3) (a) The division may revoke the statement of qualification of a partnership that fails
             2888      to:
             2889          (i) file an annual report when due; or
             2890          (ii) pay the required filing fee, established in accordance with Section 63J-1-504 .
             2891          (b) To take an action under this Subsection (3), the division shall provide the
             2892      partnership at least 60 days' written notice of intent to revoke the statement. The notice must
             2893      be mailed to the partnership at its chief executive office set forth in the last filed statement of
             2894      qualification or annual report. The notice must specify the annual report that has not been
             2895      filed, the fee that has not been paid, and the effective date of the revocation. The revocation is
             2896      not effective if the annual report is filed and the fee is paid before the effective date of the
             2897      revocation.
             2898          (4) A revocation under Subsection (3) only affects a partnership's status as a limited
             2899      liability partnership and is not an event of dissolution of the partnership.
             2900          (5) A partnership whose statement of qualification has been revoked may apply to the
             2901      division for reinstatement within two years after the effective date of the revocation. The
             2902      application must state:
             2903          (a) the name of the partnership and the effective date of the revocation; and
             2904          (b) that the ground for revocation either did not exist or has been corrected.
             2905          (6) A reinstatement under Subsection (5) relates back to and takes effect as of the
             2906      effective date of the revocation, and the partnership's status as a limited liability partnership
             2907      continues as if the revocation had never occurred.
             2908          Section 77. Section 48-1b-1004 is enacted to read:



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             2909
         48-1b-1004. Limited liability partnership providing professional services.
             2910          (1) A limited liability partnership organized under this part to provide a professional
             2911      service:
             2912          (a) may provide:
             2913          (i) only one specific type of professional service; and
             2914          (ii) services ancillary to the professional service described in Subsection (1)(a)(i); and
             2915          (b) may not engage in a business other than providing the professional service that it is
             2916      organized to provide and services ancillary to the professional service.
             2917          (2) A limited liability partnership organized to provide a professional service:
             2918          (a) may include a partner or employee authorized under the laws of the jurisdiction
             2919      where the partner or employee reside to provide similar professional service;
             2920          (b) may include a partner who is not licensed or registered by the state to provide the
             2921      professional service to the extent allowed by the applicable licensing act relating to the
             2922      professional service; and
             2923          (c) may render a professional service in Utah only through a partner or employee who
             2924      is licensed or registered by the state to render the professional service.
             2925          (3) A limited liability partnership organized to provide a professional service has the
             2926      powers provided a limited liability partnership under this chapter.
             2927          (4) (a) This part does not restrict or limit the authority or duty of a regulatory entity to
             2928      license an individual who provides a professional service or practices the profession that is
             2929      within the jurisdiction of the regulatory entity, notwithstanding that the individual:
             2930          (i) is a partner or employee of a limited liability partnership; or
             2931          (ii) provides a professional service or engaging in the practice of the profession through
             2932      a limited liability partnership.
             2933          (b) A limited liability partnership may not do anything an individual licensed to
             2934      practice the profession that the limited liability partnership is organized to provide may not do.
             2935          Section 78. Section 48-1b-1101 is enacted to read:
             2936     
Part 11. Foreign Limited Liability Partnership

             2937          48-1b-1101. Law governing foreign limited liability partnership.
             2938          (1) The law under which a foreign limited liability partnership is formed governs
             2939      relations among the partners and between the partners and the partnership and the liability of



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             2940
     partners for obligations of the partnership.
             2941          (2) A foreign limited liability partnership may not be denied a statement of foreign
             2942      qualification by reason of any difference between the law under which the partnership was
             2943      formed and the law of this state.
             2944          (3) A statement of foreign qualification does not authorize a foreign limited liability
             2945      partnership to engage in any business or exercise any power that a partnership may not engage
             2946      in or exercise in this state as a limited liability partnership.
             2947          (4) (a) The division may permit a tribal limited liability partnership to register with the
             2948      division in the same manner as a foreign limited liability partnership formed in another state.
             2949          (b) If a tribal limited liability partnership elects to register with the division, for
             2950      purposes of this chapter, the tribal limited liability partnership shall be treated in the same
             2951      manner as a foreign limited liability partnership formed under the laws of another state.
             2952          Section 79. Section 48-1b-1102 is enacted to read:
             2953         &nbs