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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          48-1b-1102. Statement of foreign qualification.
             2954          (1) Before transacting business in this state, a foreign limited liability partnership must
             2955      file a statement of foreign qualification with the division. The statement must contain:
             2956          (a) the name of the foreign limited liability partnership which satisfies the requirements
             2957      of the state or other jurisdiction under whose law it is formed;
             2958          (b) the street address of the partnership's chief executive office;
             2959          (c) the information required by Subsection 16-17-203 (1); and
             2960          (d) a deferred effective date, if any.
             2961          (2) The status of a partnership as a foreign limited liability partnership is effective on
             2962      the later of the filing of the statement of foreign qualification or a date specified in the
             2963      statement. The status remains effective, regardless of changes in the partnership, until it is
             2964      canceled pursuant to Subsection 48-1b-105 (4) or revoked pursuant to Section 48-1b-1003 .
             2965          (3) An amendment or cancellation of a statement of foreign qualification is effective
             2966      when it is filed or on a deferred effective date specified in the amendment or cancellation.
             2967          Section 80. Section 48-1b-1102.1 is enacted to read:
             2968          48-1b-1102.1. Noncomplying name of foreign limited liability partnership.
             2969          (1) A foreign limited liability partnership whose name does not comply with Section
             2970      48-1b-1002 may not obtain a certificate of authority until it adopts, for the purpose of



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             2971
     transacting business in this state, an alternate name that complies with Section 48-1b-1002 . A
             2972      foreign limited liability partnership that adopts an alternate name under this Subsection (1) and
             2973      then obtains a certificate of authority with the name need not comply with Title 42, Chapter 2,
             2974      Conducting Business Under Assumed Name. After obtaining a certificate of authority with an
             2975      alternate name, a foreign limited liability partnership shall transact business in this state under
             2976      the name unless the foreign limited liability partnership is authorized under Title 42, Chapter 2,
             2977      Conducting Business Under Assumed Name, to transact business in this state under another
             2978      name.
             2979          (2) If a foreign limited liability partnership authorized to transact business in this state
             2980      changes its name to one that does not comply with Section 48-1b-1002 , it may not thereafter
             2981      transact business in this state until it complies with Subsection (1) and obtains an amended
             2982      certificate of authority.
             2983          Section 81. Section 48-1b-1103 is enacted to read:
             2984          48-1b-1103. Effect of failure to qualify.
             2985          (1) A foreign limited liability partnership transacting business in this state may not
             2986      maintain an action or proceeding in this state unless it has in effect a statement of foreign
             2987      qualification.
             2988          (2) The failure of a foreign limited liability partnership to have in effect a statement of
             2989      foreign qualification does not impair the validity of a contract or act of the foreign limited
             2990      liability partnership or preclude it from defending an action or proceeding in this state.
             2991          (3) A limitation on personal liability of a partner is not waived solely by transacting
             2992      business in this state without a statement of foreign qualification.
             2993          (4) If a foreign limited liability partnership transacts business in this state without a
             2994      statement of foreign qualification, service of process with respect to a right of action arising out
             2995      of the transaction of business in this state shall be served in accordance with Section
             2996      16-17-301 .
             2997          Section 82. Section 48-1b-1104 is enacted to read:
             2998          48-1b-1104. Activities not constituting transacting business.
             2999          (1) Activities of a foreign limited liability partnership which do not constitute
             3000      transacting business for the purpose of this part include:
             3001          (a) maintaining, defending, or settling an action or proceeding;



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             3002
         (b) holding meetings of its partners or carrying on any other activity concerning its
             3003      internal affairs;
             3004          (c) maintaining bank accounts;
             3005          (d) maintaining offices or agencies for the transfer, exchange, and registration of the
             3006      partnership's own securities or maintaining trustees or depositories with respect to those
             3007      securities;
             3008          (e) selling through independent contractors;
             3009          (f) soliciting or obtaining orders, whether by mail or through employees or agents or
             3010      otherwise, if the orders require acceptance outside this state before they become contracts;
             3011          (g) creating or acquiring indebtedness, with or without a mortgage, or other security
             3012      interest in property;
             3013          (h) collecting debts or foreclosing mortgages or other security interests in property
             3014      securing the debts, and holding, protecting, and maintaining property so acquired;
             3015          (i) conducting an isolated transaction that is completed within 30 days and is not one in
             3016      the course of similar transactions; and
             3017          (j) transacting business in interstate commerce.
             3018          (2) For purposes of this part, the ownership in this state of income-producing real
             3019      property or tangible personal property, other than property excluded under Subsection (1),
             3020      constitutes transacting business in this state.
             3021          (3) This section does not apply in determining the contacts or activities that may
             3022      subject a foreign limited liability partnership to service of process, taxation, or regulation under
             3023      any other law of this state.
             3024          Section 83. Section 48-1b-1105 is enacted to read:
             3025          48-1b-1105. Action by attorney general.
             3026          The attorney general may maintain an action to restrain a foreign limited liability
             3027      partnership from transacting business in this state in violation of this part.
             3028          Section 84. Section 48-1b-1201 is enacted to read:
             3029     
Part 12. Miscellaneous Provisions

             3030          48-1b-1201. Uniformity of application and construction.
             3031          This chapter shall be applied and construed to effectuate its general purpose to make
             3032      uniform the law with respect to the subject of this chapter among states enacting it.



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             3033
         Section 85. Section 48-1b-1202 is enacted to read:
             3034          48-1b-1202. Relation to electronic signatures in global and national commerce act.
             3035          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             3036      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             3037      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             3038      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             3039          Section 86. Section 48-1b-1203 is enacted to read:
             3040          48-1b-1203. Severability clause.
             3041          If any provision of this chapter or its application to any person or circumstance is held
             3042      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             3043      be given effect without the invalid provision or application, and to this end the provisions of
             3044      this chapter are severable.
             3045          Section 87. Section 48-1b-1204 is enacted to read:
             3046          48-1b-1204. Savings clause.
             3047          This chapter does not affect an action or proceeding commenced or right accrued before
             3048      July 1, 2012.
             3049          Section 88. Section 48-1b-1205 is enacted to read:
             3050          48-1b-1205. Applicability.
             3051          (1) Before January 1, 2014, this chapter governs only a partnership formed:
             3052          (a) after July 1, 2012, except a partnership that is continuing the business of a dissolved
             3053      partnership; and
             3054          (b) before July 1, 2012, that elects, as provided by Subsection (3), to be governed by
             3055      this chapter.
             3056          (2) On and after January 1, 2014, this chapter governs all partnerships.
             3057          (3) Before January 1, 2014, a partnership voluntarily may elect, in the manner provided
             3058      in its partnership agreement or by law for amending the partnership agreement, to be governed
             3059      by this chapter. The provisions of this chapter relating to the liability of the partnership's
             3060      partners to third parties apply to limit those partners' liability to a third party who had done
             3061      business with the partnership within one year before the partnership's election to be governed
             3062      by this chapter only if the third party knows or has received a notification of the partnership's
             3063      election to be governed by this chapter.



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             3064
         Section 89. Section 48-2d-101 is enacted to read:
             3065     
CHAPTER 2d. UTAH UNIFORM LIMITED PARTNERSHIP ACT

             3066     
Part 1. General Provisions

             3067          48-2d-101. Title.
             3068          This chapter is known as the "Utah Uniform Limited Partnership Act."
             3069          Section 90. Section 48-2d-102 is enacted to read:
             3070          48-2d-102. Definitions.
             3071          As used in this chapter:
             3072          (1) (a) "Certificate of limited partnership" means the certificate required by Section
             3073      48-2d-201 .
             3074          (b) "Certificate of limited partnership" includes the certificate as amended or restated.
             3075          (2) "Contribution," except in the phrase "right of contribution," means any benefit
             3076      provided by a person to a limited partnership in order to become a partner or in the person's
             3077      capacity as a partner.
             3078          (3) "Debtor in bankruptcy" means a person that is the subject of:
             3079          (a) an order for relief under United States Code, Title 11, or a comparable order under
             3080      a successor statute of general application; or
             3081          (b) a comparable order under federal, state, or foreign law governing insolvency.
             3082          (4) "Distribution" means a transfer of money or other property from a limited
             3083      partnership to a partner in the partner's capacity as a partner or to a transferee on account of a
             3084      transferable interest owned by the transferee.
             3085          (5) "Foreign limited liability limited partnership" means a foreign limited partnership
             3086      whose general partners have limited liability for the obligations of the foreign limited
             3087      partnership under a provision similar to Subsection 48-2d-404 (3).
             3088          (6) (a) "Foreign limited partnership" means a partnership formed under the laws of a
             3089      jurisdiction other than this state and required by those laws to have one or more general
             3090      partners and one or more limited partners.
             3091          (b) "Foreign limited partnership" includes a foreign limited liability limited
             3092      partnership.
             3093          (7) "General partner" means:
             3094          (a) with respect to a limited partnership, a person that:



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             3095
         (i) becomes a general partner under Section 48-2d-401 ; or
             3096          (ii) was a general partner in a limited partnership when the limited partnership became
             3097      subject to this chapter under Subsection 48-2d-1205 (1) or (2); and
             3098          (b) with respect to a foreign limited partnership, a person that has rights, powers, and
             3099      obligations similar to those of a general partner in a limited partnership.
             3100          (8) "Limited liability limited partnership," except in the phrase "foreign limited liability
             3101      limited partnership," means a limited partnership whose certificate of limited partnership states
             3102      that the limited partnership is a limited liability limited partnership.
             3103          (9) "Limited partner" means:
             3104          (a) with respect to a limited partnership, a person that:
             3105          (i) becomes a limited partner under Section 48-2d-301 ; or
             3106          (ii) was a limited partner in a limited partnership when the limited partnership became
             3107      subject to this chapter under Subsection 48-2d-1205 (1) or (2); and
             3108          (b) with respect to a foreign limited partnership, a person that has rights, powers, and
             3109      obligations similar to those of a limited partner in a limited partnership.
             3110          (10) (a) "Limited partnership," except in the phrases "foreign limited partnership" and
             3111      "foreign limited liability limited partnership," means an entity, having one or more general
             3112      partners and one or more limited partners, which is formed under this chapter by two or more
             3113      persons or becomes subject to this chapter under Part 11, Merger, Conversion, and
             3114      Domestication, or Subsection 48-2d-1205 (1) or (2).
             3115          (b) "Limited partnership" includes a limited liability limited partnership.
             3116          (11) "Partner" means a limited partner or general partner.
             3117          (12) (a) "Partnership agreement" means the partners' agreement, whether oral, implied,
             3118      in a record, or in any combination, concerning the limited partnership.
             3119          (b) "Partnership agreement" includes the agreement as amended.
             3120          (13) "Person" means:
             3121          (a) an individual;
             3122          (b) a corporation;
             3123          (c) a business trust;
             3124          (d) an estate;
             3125          (e) a trust;



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             3126
         (f) a partnership;
             3127          (g) a limited liability company;
             3128          (h) an association;
             3129          (i) a joint venture;
             3130          (j) government;
             3131          (k) a governmental subdivision, agency, or instrumentality;
             3132          (l) a public corporation; or
             3133          (m) any other legal or commercial entity.
             3134          (14) "Person dissociated as a general partner" means a person dissociated as a general
             3135      partner of a limited partnership.
             3136          (15) "Principal office" means the office where the principal executive office of a
             3137      limited partnership or foreign limited partnership is located, whether or not the office is located
             3138      in this state.
             3139          (16) "Record" means information that is inscribed on a tangible medium or that is
             3140      stored in an electronic or other medium and is retrievable in perceivable form.
             3141          (17) "Required information" means the information that a limited partnership is
             3142      required to maintain under Section 48-2d-111 .
             3143          (18) "Sign" means:
             3144          (a) to execute or adopt a tangible symbol with the present intent to authenticate a
             3145      record; or
             3146          (b) to attach or logically associate an electronic symbol, sound, or process to or with a
             3147      record with the present intent to authenticate the record.
             3148          (19) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             3149      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             3150      of the United States.
             3151          (20) "Transfer" includes an assignment, conveyance, deed, bill of sale, lease, mortgage,
             3152      security interest, encumbrance, gift, and transfer by operation of law.
             3153          (21) "Transferable interest" means a partner's right to receive distributions.
             3154          (22) "Transferee" means a person to which all or part of a transferable interest has been
             3155      transferred, whether or not the transferor is a partner.
             3156          (23) "Tribal limited partnership" means a limited partnership:



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             3157
         (a) formed under the law of a tribe; and
             3158          (b) that is at least 51% owned or controlled by the tribe.
             3159          (24) "Tribe" means a tribe, band, nation, pueblo, or other organized group or
             3160      community of Indians, including an Alaska Native village, that is legally recognized as eligible
             3161      for and is consistent with a special program, service, or entitlement provided by the United
             3162      States to Indians because of their status as Indians.
             3163          Section 91. Section 48-2d-103 is enacted to read:
             3164          48-2d-103. Knowledge and notice.
             3165          (1) A person knows a fact if the person has actual knowledge of it.
             3166          (2) A person has notice of a fact if the person:
             3167          (a) knows of it;
             3168          (b) has received a notification of it;
             3169          (c) has reason to know it exists from all of the facts known to the person at the time in
             3170      question; or
             3171          (d) has notice of it under Subsection (3) or (4).
             3172          (3) A certificate of limited partnership on file in the division is notice that the
             3173      partnership is a limited partnership and the persons designated in the certificate as general
             3174      partners are general partners. Except as otherwise provided in Subsection (4), the certificate is
             3175      not notice of any other fact.
             3176          (4) A person has notice of:
             3177          (a) another person's dissociation as a general partner, 90 days after the effective date of
             3178      an amendment to the certificate of limited partnership which states that the other person has
             3179      dissociated or 90 days after the effective date of a statement of dissociation pertaining to the
             3180      other person, whichever occurs first;
             3181          (b) a limited partnership's dissolution, 90 days after the effective date of an amendment
             3182      to the certificate of limited partnership stating that the limited partnership is dissolved;
             3183          (c) a limited partnership's termination, 90 days after the effective date of a statement of
             3184      termination;
             3185          (d) a limited partnership's conversion under Part 11, Merger, Conversion, and
             3186      Domestication, 90 days after the effective date of the articles of conversion; or
             3187          (e) a merger under Part 11, Merger, Conversion, and Domestication, 90 days after the



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             3188
     effective date of the articles of merger.
             3189          (5) A person notifies or gives a notification to another person by taking steps
             3190      reasonably required to inform the other person in ordinary course, whether or not the other
             3191      person learns of it.
             3192          (6) A person receives a notification when the notification:
             3193          (a) comes to the person's attention; or
             3194          (b) is delivered at the person's place of business or at any other place held out by the
             3195      person as a place for receiving communications.
             3196          (7) (a) Except as otherwise provided in Subsection (8), a person other than an
             3197      individual knows, has notice, or receives a notification of a fact for purposes of a particular
             3198      transaction when the individual conducting the transaction for the person knows, has notice, or
             3199      receives a notification of the fact, or in any event when the fact would have been brought to the
             3200      individual's attention if the person had exercised reasonable diligence.
             3201          (b) A person other than an individual exercises reasonable diligence if it maintains
             3202      reasonable routines for communicating significant information to the individual conducting the
             3203      transaction for the person and there is reasonable compliance with the routines. Reasonable
             3204      diligence does not require an individual acting for the person to communicate information
             3205      unless the communication is part of the individual's regular duties or the individual has reason
             3206      to know of the transaction and that the transaction would be materially affected by the
             3207      information.
             3208          (8) A general partner's knowledge, notice, or receipt of a notification of a fact relating
             3209      to the limited partnership is effective immediately as knowledge of, notice to, or receipt of a
             3210      notification by the limited partnership, except in the case of a fraud on the limited partnership
             3211      committed by or with the consent of the general partner. A limited partner's knowledge, notice,
             3212      or receipt of a notification of a fact relating to the limited partnership is not effective as
             3213      knowledge of, notice to, or receipt of a notification by the limited partnership.
             3214          Section 92. Section 48-2d-104 is enacted to read:
             3215          48-2d-104. Nature, purpose, and duration of entity.
             3216          (1) (a) A limited partnership is an entity distinct from its partners.
             3217          (b) A limited partnership is the same entity regardless of whether its certificate states
             3218      that the limited partnership is a limited liability limited partnership.



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             3219
         (2) A limited partnership may be organized under this chapter for any lawful purpose.
             3220          (3) A limited partnership has a perpetual duration.
             3221          Section 93. Section 48-2d-105 is enacted to read:
             3222          48-2d-105. Powers.
             3223          A limited partnership has the powers to do all things necessary or convenient to carry
             3224      on its activities, including the power to sue, be sued, and defend in its own name and to
             3225      maintain an action against a partner for harm caused to the limited partnership by a breach of
             3226      the partnership agreement or violation of a duty to the partnership.
             3227          Section 94. Section 48-2d-106 is enacted to read:
             3228          48-2d-106. Governing law.
             3229          The law of this state governs relations among the partners of a limited partnership and
             3230      between the partners and the limited partnership and the liability of partners as partners for an
             3231      obligation of the limited partnership.
             3232          Section 95. Section 48-2d-107 is enacted to read:
             3233          48-2d-107. Supplemental principles of law-- Rate of interest.
             3234          (1) Unless displaced by particular provisions of this chapter, the principles of law and
             3235      equity supplement this chapter.
             3236          (2) If an obligation to pay interest arises under this chapter and the rate is not specified,
             3237      the rate is that specified in Section 15-1-1 .
             3238          Section 96. Section 48-2d-108 is enacted to read:
             3239          48-2d-108. Name.
             3240          (1) The name of a limited partnership may contain the name of any partner.
             3241          (2) (a) The name of a limited partnership that is not a limited liability limited
             3242      partnership must contain the phrase "limited partnership" or the abbreviation "L.P." or "LP".
             3243          (b) The name of a limited partnership that is not a limited liability partnership may not
             3244      contain the phrase "limited liability limited partnership" or the abbreviation "LLLP" or
             3245      "L.L.L.P.".
             3246          (c) The name of a limited partnership may not contain:
             3247          (i) without the written consent of the United States Olympic Committee, the words:
             3248          (A) "Olympic";
             3249          (B) "Olympiad"; or



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             3250
         (C) "Citius Altius Fortius"; and
             3251          (ii) without the written consent of the Division of Consumer Protection issued in
             3252      accordance with Section 13-34-114 , the words:
             3253          (A) "university";
             3254          (B) "college"; or
             3255          (C) "institute" or "institution".
             3256          (3) (a) The name of a limited liability limited partnership must contain the phrase
             3257      "limited liability limited partnership" or the abbreviation "LLLP" or "L.L.L.P."
             3258          (b) The name of a limited liability limited partnership may not contain the abbreviation
             3259      "L.P." or "LP".
             3260          (4) Unless authorized by Subsection (5), the name of a limited partnership must be
             3261      distinguishable in the records of the division from:
             3262          (a) the name of each person other than an individual incorporated, organized, or
             3263      authorized to transact business in this state; and
             3264          (b) each name reserved under:
             3265          (i) Section 16-6a-401 or 16-6a-402 ;
             3266          (ii) Section 16-10a-401 or 16-10a-402 ;
             3267          (iii) Section 16-11-16 ;
             3268          (iv) Section 42-2-6.6 ;
             3269          (v) Section 48-1b-1002 ; or
             3270          (vi) Section 48-3-108 or 48-3-109 .
             3271          (5) A limited partnership may apply to the division for authorization to use a name that
             3272      does not comply with Subsection (4). The division shall authorize use of the name applied for
             3273      if, as to each conflicting name:
             3274          (a) the present user, registrant, or owner of the conflicting name consents in a signed
             3275      record to the use and submits an undertaking in a form satisfactory to the division to change the
             3276      conflicting name to a name that complies with Subsection (4) and is distinguishable in the
             3277      records of the division from the name applied for;
             3278          (b) the applicant delivers to the division a certified copy of the final judgment of a
             3279      district court establishing the applicant's right to use in this state the name applied for; or
             3280          (c) the applicant delivers to the division proof satisfactory to the division that the



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             3281
     present user, registrant, or owner of the conflicting name:
             3282          (i) has merged into the applicant;
             3283          (ii) has been converted into the applicant; or
             3284          (iii) has transferred substantially all of its assets, including the conflicting name, to the
             3285      applicant.
             3286          (6) Subject to Section 48-2d-905 , this section applies to any foreign limited partnership
             3287      transacting business in this state, having a certificate of authority to transact business in this
             3288      state, or applying for a certificate of authority.
             3289          (7) The division may not approve for filing a name that implies that a limited
             3290      partnership is an agency of this state or any of its political subdivisions, if it is not actually such
             3291      a legally established agency or subdivision.
             3292          (8) The authorization to file a certificate under or to reserve or register a limited
             3293      partnership name as granted by the division does not:
             3294          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             3295          (b) derogate from the common law, the principles of equity, or the statutes of this state
             3296      or of the United States with respect to the right to acquire and protect names and trademarks; or
             3297          (c) create an exclusive right in geographic or generic terms contained within a name.
             3298          Section 97. Section 48-2d-109 is enacted to read:
             3299          48-2d-109. Reservation of name.
             3300          (1) The exclusive right to the use of a name that complies with Section 48-2d-108 may
             3301      be reserved by:
             3302          (a) a person intending to organize a limited partnership under this chapter and to adopt
             3303      the name;
             3304          (b) a limited partnership or a foreign limited partnership authorized to transact business
             3305      in this state intending to adopt the name;
             3306          (c) a foreign limited partnership intending to obtain a certificate of authority to transact
             3307      business in this state and adopt the name;
             3308          (d) a person intending to organize a foreign limited partnership and intending to have it
             3309      obtain a certificate of authority to transact business in this state and adopt the name;
             3310          (e) a foreign limited partnership formed under the name; or
             3311          (f) a foreign limited partnership formed under a name that does not comply with



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             3312
     Subsection 48-2d-108 (2) or (3), but the name reserved under this Subsection (1)(f) may differ
             3313      from the foreign limited partnership's name only to the extent necessary to comply with
             3314      Subsections 48-2d-108 (2) and (3).
             3315          (2) (a) A person may apply to reserve a name under Subsection (1) by delivering to the
             3316      division for filing an application that states the name to be reserved and the provision of
             3317      Subsection (1) which applies.
             3318          (b) If the division finds that the name is available for use by the applicant, the division
             3319      shall file a statement of name reservation and thereby reserve the name for the exclusive use of
             3320      the applicant for 120 days.
             3321          (3) An applicant that has reserved a name pursuant to Subsection (2) may reserve the
             3322      same name for additional 120-day periods. A person having a current reservation for a name
             3323      may not apply for another 120-day period for the same name until 90 days have elapsed in the
             3324      current reservation.
             3325          (4) A person that has reserved a name under this section may deliver to the division for
             3326      filing a notice of transfer that states the reserved name, the name, and street and mailing
             3327      address of some other person to which the reservation is to be transferred, and the provision of
             3328      Subsection (1) which applies to the other person. Subject to Subsection 48-2d-206 (3), the
             3329      transfer is effective when the division files the notice of transfer.
             3330          Section 98. Section 48-2d-110 is enacted to read:
             3331          48-2d-110. Effect of partnership agreement -- Nonwaivable provisions.
             3332          (1) Except as otherwise provided in Subsection (2), the partnership agreement governs
             3333      relations among the partners and between the partners and the partnership. To the extent the
             3334      partnership agreement does not otherwise provide, this chapter governs relations among the
             3335      partners and between the partners and the partnership.
             3336          (2) A partnership agreement may not:
             3337          (a) vary a limited partnership's power under Section 48-2d-105 to sue, be sued, and
             3338      defend in its own name;
             3339          (b) vary the law applicable to a limited partnership under Section 48-2d-106 ;
             3340          (c) vary the requirements of Section 48-2d-204 ;
             3341          (d) vary the information required under Section 48-2d-111 or unreasonably restrict the
             3342      right to information under Section 48-2d-304 or 48-2d-407 , but the partnership agreement may



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             3343
     impose reasonable restrictions on the availability and use of information obtained under those
             3344      sections and may define appropriate remedies, including liquidated damages, for a breach of
             3345      any reasonable restriction on use;
             3346          (e) eliminate the duty of loyalty under Section 48-2d-408 , but the partnership
             3347      agreement may:
             3348          (i) identify specific types or categories of activities that do not violate the duty of
             3349      loyalty, if not unconscionable or against public policy; and
             3350          (ii) specify the number or percentage of partners which may authorize or ratify, after
             3351      full disclosure to all partners of all material facts, a specific act or transaction that otherwise
             3352      would violate the duty of loyalty;
             3353          (f) unreasonably reduce the duty of care under Subsection 48-2d-408 (3);
             3354          (g) eliminate the obligation of good faith and fair dealing under Subsections
             3355      48-2d-305 (2) and 48-2d-408 (4), but the partnership agreement may prescribe the standards by
             3356      which the performance of the obligation is to be measured, if the standards are not manifestly
             3357      unreasonable;
             3358          (h) vary the power of a person to dissociate as a general partner under Subsection
             3359      48-2d-604 (1) except to require that the notice under Subsection 48-2d-603 (1) be in a record;
             3360          (i) vary the power of a court to decree dissolution in the circumstances specified in
             3361      Section 48-2d-802 ;
             3362          (j) vary the requirement to wind up the partnership's business as specified in Section
             3363      48-2d-803 ;
             3364          (k) unreasonably restrict the right to maintain an action under Part 10, Actions by
             3365      Partners;
             3366          (l) restrict the right of a partner under Subsection 48-2d-1114 (1) to approve a
             3367      conversion or merger or the right of a general partner under Subsection 48-2d-1114 (2) to
             3368      consent to an amendment to the certificate of limited partnership which deletes a statement that
             3369      the limited partnership is a limited liability limited partnership; or
             3370          (m) restrict rights under this chapter of a person other than a partner or a transferee.
             3371          Section 99. Section 48-2d-111 is enacted to read:
             3372          48-2d-111. Required information.
             3373          A limited partnership shall maintain at its designated office the following information:



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             3374
         (1) a current list showing the full name and last known street and mailing address of
             3375      each partner, separately identifying the general partners, in alphabetical order, and the limited
             3376      partners, in alphabetical order;
             3377          (2) a copy of the initial certificate of limited partnership and all amendments to and
             3378      restatements of the certificate, together with signed copies of any powers of attorney under
             3379      which any certificate, amendment, or restatement has been signed;
             3380          (3) a copy of any filed articles of conversion or merger;
             3381          (4) a copy of the limited partnership's federal, state, and local income tax returns and
             3382      reports, if any, for the three most recent years;
             3383          (5) a copy of any partnership agreement made in a record and any amendment made in
             3384      a record to any partnership agreement;
             3385          (6) a copy of any financial statement of the limited partnership for the three most recent
             3386      years;
             3387          (7) a copy of the three most recent annual reports delivered by the limited partnership
             3388      to the division pursuant to Section 48-2d-210 ;
             3389          (8) a copy of any record made by the limited partnership during the past three years of
             3390      any consent given by or vote taken of any partner pursuant to this chapter or the partnership
             3391      agreement; and
             3392          (9) unless contained in a partnership agreement made in a record, a record stating:
             3393          (a) the amount of cash, and a description and statement of the agreed value of the other
             3394      benefits, contributed and agreed to be contributed by each partner;
             3395          (b) the times at which, or events on the happening of which, any additional
             3396      contributions agreed to be made by each partner are to be made;
             3397          (c) for any person that is both a general partner and a limited partner, a specification of
             3398      what transferable interest the person owns in each capacity; and
             3399          (d) any events upon the happening of which the limited partnership is to be dissolved
             3400      and its activities wound up.
             3401          Section 100. Section 48-2d-112 is enacted to read:
             3402          48-2d-112. Business transactions of partner with partnership.
             3403          A partner may lend money to and transact other business with the limited partnership
             3404      and has the same rights and obligations with respect to the loan or other transaction as a person



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             3405
     that is not a partner.
             3406          Section 101. Section 48-2d-113 is enacted to read:
             3407          48-2d-113. Dual capacity.
             3408          (1) A person may be both a general partner and a limited partner.
             3409          (2) A person that is both a general and limited partner has the rights, powers, duties,
             3410      and obligations provided by this chapter and the partnership agreement in each of those
             3411      capacities. When the person acts as a general partner, the person is subject to the obligations,
             3412      duties, and restrictions under this chapter and the partnership agreement for general partners.
             3413      When the person acts as a limited partner, the person is subject to the obligations, duties, and
             3414      restrictions under this chapter and the partnership agreement for limited partners.
             3415          Section 102. Section 48-2d-114 is enacted to read:
             3416          48-2d-114. Consent and proxies of partners.
             3417          Action requiring the consent of partners under this chapter may be taken without a
             3418      meeting, and a partner may appoint a proxy to consent or otherwise act for the partner by
             3419      signing an appointment record, either personally or by the partner's attorney-in-fact.
             3420          Section 103. Section 48-2d-201 is enacted to read:
             3421     
Part 2. Formation and Certificate of Limited Partnership and Other Filings

             3422          48-2d-201. Formation of limited partnership -- Certificate of limited partnership.
             3423          (1) In order for a limited partnership to be formed, a certificate of limited partnership
             3424      must be delivered to the division for filing. The certificate must state:
             3425          (a) the name of the limited partnership, which must comply with Section 48-2d-108 ;
             3426          (b) the information required by Subsection 16-17-203 (1);
             3427          (c) the name and the street and mailing address of each general partner;
             3428          (d) whether the limited partnership is a limited liability limited partnership; and
             3429          (e) any additional information required by Part 11, Merger, Conversion, and
             3430      Domestication.
             3431          (2) A certificate of limited partnership may also contain any other matters but may not
             3432      vary or otherwise affect the provisions specified in Subsection 48-2d-110 (2) in a manner
             3433      inconsistent with that section.
             3434          (3) If there has been substantial compliance with Subsection (1), subject to Subsection
             3435      48-2d-206 (3) a limited partnership is formed when the division files the certificate of limited



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             3436
     partnership.
             3437          (4) Subject to Subsection (2), if any provision of a partnership agreement is
             3438      inconsistent with the filed certificate of limited partnership or with a filed statement of
             3439      dissociation, termination, or change or filed articles of conversion or merger:
             3440          (a) the partnership agreement prevails as to partners and transferees; and
             3441          (b) the filed certificate of limited partnership, statement of dissociation, termination, or
             3442      change, or articles of conversion or merger prevail as to persons, other than partners and
             3443      transferees, that reasonably rely on the filed record to their detriment.
             3444          Section 104. Section 48-2d-202 is enacted to read:
             3445          48-2d-202. Amendment or restatement of certificate.
             3446          (1) To amend its certificate of limited partnership, a limited partnership must deliver to
             3447      the division for filing an amendment or, pursuant to Part 11, Merger, Conversion, and
             3448      Domestication, articles of merger stating:
             3449          (a) the name of the limited partnership;
             3450          (b) the date of filing of its initial certificate; and
             3451          (c) the changes the amendment makes to the certificate as most recently amended or
             3452      restated.
             3453          (2) By no later than 60 days from the day on which one of the following occurs, a
             3454      limited partnership shall deliver to the division for filing an amendment to a certificate of
             3455      limited partnership to reflect:
             3456          (a) the admission of a new general partner;
             3457          (b) the dissociation of a person as a general partner; or
             3458          (c) the appointment of a person to wind up the limited partnership's activities under
             3459      Subsection 48-2d-803 (3) or (4).
             3460          (3) A general partner that knows that any information in a filed certificate of limited
             3461      partnership was false when the certificate was filed or has become false due to changed
             3462      circumstances shall promptly:
             3463          (a) cause the certificate to be amended; or
             3464          (b) if appropriate, deliver to the division for filing a statement of change pursuant to
             3465      Section 16-17-206 or a statement of correction pursuant to Section 16-17-206 or 48-2d-207 .
             3466          (4) A certificate of limited partnership may be amended at any time for any other



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             3467
     proper purpose as determined by the limited partnership.
             3468          (5) A restated certificate of limited partnership may be delivered to the division for
             3469      filing in the same manner as an amendment.
             3470          (6) Subject to Subsection 48-2d-206 (3), an amendment or restated certificate is
             3471      effective when filed by the division.
             3472          Section 105. Section 48-2d-203 is enacted to read:
             3473          48-2d-203. Statement of termination.
             3474          A dissolved limited partnership that has completed winding up may deliver to the
             3475      division for filing a statement of termination that states:
             3476          (1) the name of the limited partnership;
             3477          (2) the date of filing of its initial certificate of limited partnership; and
             3478          (3) any other information as determined by the general partners filing the statement or
             3479      by a person appointed pursuant to Subsection 48-2d-803 (3) or (4).
             3480          Section 106. Section 48-2d-204 is enacted to read:
             3481          48-2d-204. Signing of records.
             3482          (1) Each record delivered to the division for filing pursuant to this chapter must be
             3483      signed in the following manner:
             3484          (a) An initial certificate of limited partnership must be signed by all general partners
             3485      listed in the certificate.
             3486          (b) An amendment adding or deleting a statement that the limited partnership is a
             3487      limited liability limited partnership must be signed by all general partners listed in the
             3488      certificate.
             3489          (c) An amendment designating as general partner a person admitted under Subsection
             3490      48-2d-801 (3)(b) following the dissociation of a limited partnership's last general partner must
             3491      be signed by that person.
             3492          (d) An amendment required by Subsection 48-2d-803 (3) following the appointment of
             3493      a person to wind up the dissolved limited partnership's activities must be signed by that person.
             3494          (e) Any other amendment must be signed by:
             3495          (i) at least one general partner listed in the certificate;
             3496          (ii) each other person designated in the amendment as a new general partner; and
             3497          (iii) each person that the amendment indicates has dissociated as a general partner,



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             3498
     unless:
             3499          (A) the person is deceased or a guardian or a general conservator has been appointed
             3500      for the person and the amendment so states; or
             3501          (B) the person has previously delivered to the division for filing a statement of
             3502      dissociation.
             3503          (f) A restated certificate of limited partnership must be signed by at least one general
             3504      partner listed in the certificate, and, to the extent the restated certificate effects a change under
             3505      any other subsection of this Subsection (1), the certificate must be signed in a manner that
             3506      satisfies that subsection.
             3507          (g) A statement of termination must be signed by all general partners listed in the
             3508      certificate or, if the certificate of a dissolved limited partnership lists no general partners, by the
             3509      person appointed pursuant to Subsection 48-2d-803 (3) or (4) to wind up the dissolved limited
             3510      partnership's activities.
             3511          (h) Articles of conversion must be signed by each general partner listed in the
             3512      certificate of limited partnership.
             3513          (i) Articles of merger must be signed as provided in Subsection 48-2d-1108 (1).
             3514          (j) Any other record delivered on behalf of a limited partnership to the division for
             3515      filing must be signed by at least one general partner listed in the certificate.
             3516          (k) A statement by a person pursuant to Subsection 48-2d-605 (1)(d) stating that the
             3517      person has dissociated as a general partner must be signed by that person.
             3518          (l) A statement of withdrawal by a person pursuant to Section 48-2d-306 must be
             3519      signed by that person.
             3520          (m) A record delivered on behalf of a foreign limited partnership to the division for
             3521      filing must be signed by at least one general partner of the foreign limited partnership.
             3522          (n) Any other record delivered on behalf of any person to the division for filing must
             3523      be signed by that person.
             3524          (2) Any person may sign by an attorney-in-fact any record to be filed pursuant to this
             3525      chapter.
             3526          Section 107. Section 48-2d-205 is enacted to read:
             3527          48-2d-205. Signing and filing pursuant to judicial order.
             3528          (1) If a person required by this chapter to sign a record or deliver a record to the



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             3529
     division for filing does not do so, any other person that is aggrieved may petition a district
             3530      court to order:
             3531          (a) the person to sign the record;
             3532          (b) the person to deliver the record to the division for filing; or
             3533          (c) the division to file the record unsigned, which will have the same effect as if signed
             3534      by the person required by this chapter to sign the record.
             3535          (2) If the person aggrieved under Subsection (1) is not the limited partnership or
             3536      foreign limited partnership to which the record pertains, the aggrieved person shall make the
             3537      limited partnership or foreign limited partnership a party to the action. A person aggrieved
             3538      under Subsection (1) may seek the remedies provided in Subsection (1) in the same action in
             3539      combination or in the alternative.
             3540          (3) A record filed unsigned pursuant to this section is effective without being signed.
             3541          Section 108. Section 48-2d-206 is enacted to read:
             3542          48-2d-206. Delivery to and filing of records by division -- Effective time and date.
             3543          (1) A record authorized or required to be delivered to the division for filing under this
             3544      chapter must be captioned to describe the record's purpose, be in a medium permitted by the
             3545      division, and be delivered to the division. Unless the division determines that a record does not
             3546      comply with the filing requirements of this chapter, and if all filing fees have been paid, the
             3547      division shall file the record and:
             3548          (a) for a statement of dissociation, send:
             3549          (i) a copy of the filed statement and a receipt for the fees to the person which the
             3550      statement indicates has dissociated as a general partner; and
             3551          (ii) a copy of the filed statement and receipt to the limited partnership;
             3552          (b) for a statement of withdrawal, send:
             3553          (i) a copy of the filed statement and a receipt for the fees to the person on whose behalf
             3554      the record was filed; and
             3555          (ii) if the statement refers to an existing limited partnership, a copy of the filed
             3556      statement and receipt to the limited partnership; and
             3557          (c) for all other records, send a copy of the filed record and a receipt for the fees to the
             3558      person on whose behalf the record was filed.
             3559          (2) Upon request and payment of a fee, established in accordance with Section



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             3560
     63J-1-504 , the division shall send to the requester a certified copy of the requested record.
             3561          (3) Except as otherwise provided in Section 48-2d-207 , a record delivered to the
             3562      division for filing under this chapter may specify an effective time and a delayed effective date.
             3563      Except as otherwise provided in this chapter, a record filed by the division is effective:
             3564          (a) if the record does not specify an effective time and does not specify a delayed
             3565      effective date, on the date and at the time the record is filed as evidenced by the division's
             3566      endorsement of the date and time on the record;
             3567          (b) if the record specifies an effective time but not a delayed effective date, on the date
             3568      the record is filed at the time specified in the record;
             3569          (c) if the record specifies a delayed effective date but not an effective time, at 12:01
             3570      a.m. on the earlier of:
             3571          (i) the specified date; or
             3572          (ii) the 90th day after the record is filed; or
             3573          (d) if the record specifies an effective time and a delayed effective date, at the specified
             3574      time on the earlier of:
             3575          (i) the specified date; or
             3576          (ii) the 90th day after the record is filed.
             3577          Section 109. Section 48-2d-207 is enacted to read:
             3578          48-2d-207. Correcting filed record.
             3579          (1) A limited partnership or foreign limited partnership may deliver to the division for
             3580      filing a statement of correction to correct a record previously delivered by the limited
             3581      partnership or foreign limited partnership to the division and filed by the division, if at the time
             3582      of filing the record contained false or erroneous information or was defectively signed.
             3583          (2) A statement of correction may not state a delayed effective date and must:
             3584          (a) describe the record to be corrected, including its filing date, or attach a copy of the
             3585      record as filed;
             3586          (b) specify the incorrect information and the reason it is incorrect or the manner in
             3587      which the signing was defective; and
             3588          (c) correct the incorrect information or defective signature.
             3589          (3) When filed by the division, a statement of correction is effective retroactively as of
             3590      the effective date of the record the statement corrects, but the statement is effective when filed:



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             3591
         (a) for the purposes of Subsections 48-2d-103 (3) and (4); and
             3592          (b) as to persons relying on the uncorrected record and adversely affected by the
             3593      correction.
             3594          Section 110. Section 48-2d-208 is enacted to read:
             3595          48-2d-208. Liability for false information in filed record.
             3596          (1) If a record delivered to the division for filing under this chapter and filed by the
             3597      division contains false information, a person that suffers loss by reliance on the information
             3598      may recover damages for the loss from:
             3599          (a) a person that signed the record, or caused another to sign it on the person's behalf,
             3600      and knew the information to be false at the time the record was signed; and
             3601          (b) a general partner that has notice that the information was false when the record was
             3602      filed or has become false because of changed circumstances, if the general partner has notice
             3603      for a reasonably sufficient time before the information is relied upon to enable the general
             3604      partner to effect an amendment under Section 48-2d-202 , file a petition pursuant to Section
             3605      48-2d-205 , or deliver to the division for filing a statement of change pursuant to Section
             3606      16-17-206 or a statement of correction pursuant to Section 48-2d-207 .
             3607          (2) Signing a record authorized or required to be filed under this chapter constitutes an
             3608      affirmation under the penalties of perjury that the facts stated in the record are true.
             3609          Section 111. Section 48-2d-209 is enacted to read:
             3610          48-2d-209. Certificate of existence or authorization.
             3611          (1) The division, upon request and payment of the requisite fee, shall furnish a
             3612      certificate of existence for a limited partnership if the records filed in the division show that the
             3613      division has filed a certificate of limited partnership and has not filed a statement of
             3614      termination. A certificate of existence must state:
             3615          (a) the limited partnership's name;
             3616          (b) that it was duly formed under the laws of this state and the date of formation;
             3617          (c) whether all fees, taxes, and penalties due to the division under this chapter or other
             3618      law have been paid;
             3619          (d) whether the limited partnership's most recent annual report required by Section
             3620      48-2d-210 has been filed by the division;
             3621          (e) whether the division has administratively dissolved the limited partnership;



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             3622
         (f) whether the limited partnership's certificate of limited partnership has been
             3623      amended to state that the limited partnership is dissolved;
             3624          (g) that a statement of termination has not been filed by the division; and
             3625          (h) other facts of record in the division which may be requested by the applicant.
             3626          (2) The division, upon request and payment of the requisite fee, shall furnish a
             3627      certificate of authorization for a foreign limited partnership if the records filed in the division
             3628      show that the division has filed a certificate of authority, has not revoked the certificate of
             3629      authority, and has not filed a notice of cancellation. A certificate of authorization must state:
             3630          (a) the foreign limited partnership's name and any alternate name adopted under
             3631      Subsection 48-2d-905 (1) for use in this state;
             3632          (b) that it is authorized to transact business in this state;
             3633          (c) whether all fees, taxes, and penalties due to the division under this chapter or other
             3634      law have been paid;
             3635          (d) whether the foreign limited partnership's most recent annual report required by
             3636      Section 48-2d-210 has been filed by the division;
             3637          (e) that the division has not revoked its certificate of authority and has not filed a notice
             3638      of cancellation; and
             3639          (f) other facts of record in the division which may be requested by the applicant.
             3640          (3) Subject to any qualification stated in the certificate, a certificate of existence or
             3641      authorization issued by the division may be relied upon as conclusive evidence that the limited
             3642      partnership or foreign limited partnership is in existence or is authorized to transact business in
             3643      this state.
             3644          Section 112. Section 48-2d-210 is enacted to read:
             3645          48-2d-210. Annual report for division.
             3646          (1) A limited partnership or a foreign limited partnership authorized to transact
             3647      business in this state shall deliver to the division for filing an annual report that states:
             3648          (a) the name of the limited partnership or foreign limited partnership;
             3649          (b) the information required by Section 16-17-203 (1);
             3650          (c) in the case of a limited partnership, the street and mailing address of its principal
             3651      office; and
             3652          (d) in the case of a foreign limited partnership, the state or other jurisdiction under



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             3653
     whose law the foreign limited partnership is formed and any alternate name adopted under
             3654      Subsection 48-2d-905 (1).
             3655          (2) Information in an annual report must be current as of the date the annual report is
             3656      delivered to the division for filing.
             3657          (3) An annual report must be delivered to the division:
             3658          (a) during the month of its anniversary date of formation, in the case of domestic
             3659      limited partnerships; or
             3660          (b) during the month of the anniversary date of being granted authority to transact
             3661      business in this state, in the case of foreign limited partnerships authorized to transact business
             3662      in this state.
             3663          (4) If an annual report does not contain the information required in Subsection (1), the
             3664      division shall promptly notify the reporting limited partnership or foreign limited partnership
             3665      and return the report to it for correction. If the report is corrected to contain the information
             3666      required in Subsection (1) and delivered to the division within 30 days after the effective date
             3667      of the notice, it is timely delivered.
             3668          (5) If a filed annual report contains information provided under Subsection (1)(b)
             3669      which differs from the information shown in the records of the division immediately before the
             3670      filing, the differing information in the annual report is considered a statement of change under
             3671      Section 16-17-206 .
             3672          Section 113. Section 48-2d-301 is enacted to read:
             3673     
Part 3. Limited Partners

             3674          48-2d-301. Becoming limited partner.
             3675          A person becomes a limited partner:
             3676          (1) as provided in the partnership agreement;
             3677          (2) as the result of a conversion or merger under Part 11, Merger, Conversion, and
             3678      Domestication; or
             3679          (3) with the consent of all the partners.
             3680          Section 114. Section 48-2d-302 is enacted to read:
             3681          48-2d-302. No right or power as limited partner to bind limited partnership.
             3682          A limited partner does not have the right or the power as a limited partner to act for or
             3683      bind the limited partnership.



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             3684
         Section 115. Section 48-2d-303 is enacted to read:
             3685          48-2d-303. No liability as limited partner for limited partnership obligations.
             3686          (1) An obligation of a limited partnership, whether arising in contract, tort, or
             3687      otherwise, is not the obligation of a limited partner.
             3688          (2) A limited partner is not personally liable, directly or indirectly, by way of
             3689      contribution or otherwise, for an obligation of the limited partnership solely by reason of being
             3690      a limited partner, even if the limited partner participates in the management and control of the
             3691      limited partnership.
             3692          Section 116. Section 48-2d-304 is enacted to read:
             3693          48-2d-304. Right of limited partner and former limited partner to information.
             3694          (1) On 10 days' demand, made in a record received by the limited partnership, a limited
             3695      partner may inspect and copy required information during regular business hours in the limited
             3696      partnership's principal office. The limited partner need not have any particular purpose for
             3697      seeking the information.
             3698          (2) During regular business hours and at a reasonable location specified by the limited
             3699      partnership, a limited partner may obtain from the limited partnership and inspect and copy true
             3700      and full information regarding the state of the activities and financial condition of the limited
             3701      partnership and other information regarding the activities of the limited partnership as is just
             3702      and reasonable if:
             3703          (a) the limited partner seeks the information for a purpose reasonably related to the
             3704      partner's interest as a limited partner;
             3705          (b) the limited partner makes a demand in a record received by the limited partnership,
             3706      describing with reasonable particularity the information sought and the purpose for seeking the
             3707      information; and
             3708          (c) the information sought is directly connected to the limited partner's purpose.
             3709          (3) Within 10 days after receiving a demand pursuant to Subsection (2), the limited
             3710      partnership in a record shall inform the limited partner that made the demand:
             3711          (a) what information the limited partnership will provide in response to the demand;
             3712          (b) when and where the limited partnership will provide the information; and
             3713          (c) if the limited partnership declines to provide any demanded information, the limited
             3714      partnership's reasons for declining.



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             3715
         (4) Subject to Subsection (6), a person dissociated as a limited partner may inspect and
             3716      copy required information during regular business hours in the limited partnership's principle
             3717      office if:
             3718          (a) the information pertains to the period during which the person was a limited
             3719      partner;
             3720          (b) the person seeks the information in good faith; and
             3721          (c) the person meets the requirements of Subsection (2).
             3722          (5) The limited partnership shall respond to a demand made pursuant to Subsection (4)
             3723      in the same manner as provided in Subsection (3).
             3724          (6) If a limited partner dies, Section 48-2d-704 applies.
             3725          (7) The limited partnership may impose reasonable restrictions on the use of
             3726      information obtained under this section. In a dispute concerning the reasonableness of a
             3727      restriction under this Subsection (7), the limited partnership has the burden of proving
             3728      reasonableness.
             3729          (8) A limited partnership may charge a person that makes a demand under this section
             3730      reasonable costs of copying, limited to the costs of labor and material.
             3731          (9) Whenever this chapter or a partnership agreement provides for a limited partner to
             3732      give or withhold consent to a matter, before the consent is given or withheld, the limited
             3733      partnership shall, without demand, provide the limited partner with all information material to
             3734      the limited partner's decision that the limited partnership knows.
             3735          (10) A limited partner or person dissociated as a limited partner may exercise the rights
             3736      under this section through an attorney or other agent. Any restriction imposed under
             3737      Subsection (7) or by the partnership agreement applies both to the attorney or other agent and
             3738      to the limited partner or person dissociated as a limited partner.
             3739          (11) The rights stated in this section do not extend to a person as transferee, but may be
             3740      exercised by the legal representative of an individual under legal disability who is a limited
             3741      partner or person dissociated as a limited partner.
             3742          Section 117. Section 48-2d-305 is enacted to read:
             3743          48-2d-305. Limited duties of limited partners.
             3744          (1) (a) A limited partner does not have any fiduciary duty to the limited partnership or
             3745      to any other partner solely by reason of being a limited partner.



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             3746
         (b) Notwithstanding Subsection (1)(a), a limited partner has a duty of loyalty to the
             3747      limited partnership and the other partners to refrain from competing with the limited
             3748      partnership in the conduct or winding up of the limited partnership's activities.
             3749          (2) A limited partner shall discharge the duties to the partnership and the other partners
             3750      under this chapter or under the partnership agreement and exercise any rights consistently with
             3751      the obligation of good faith and fair dealing.
             3752          (3) A limited partner does not violate a duty or obligation under this chapter or under
             3753      the partnership agreement merely because the limited partner's conduct furthers the limited
             3754      partner's own interest.
             3755          Section 118. Section 48-2d-306 is enacted to read:
             3756          48-2d-306. Person erroneously believing self to be limited partner.
             3757          (1) Except as otherwise provided in Subsection (2), a person that makes an investment
             3758      in a business enterprise and erroneously but in good faith believes that the person has become a
             3759      limited partner in the enterprise is not liable for the enterprise's obligations by reason of making
             3760      the investment, receiving distributions from the enterprise, or exercising any rights of or
             3761      appropriate to a limited partner, if, on ascertaining the mistake, the person:
             3762          (a) causes an appropriate certificate of limited partnership, amendment, or statement of
             3763      correction to be signed and delivered to the division for filing; or
             3764          (b) withdraws from future participation as an owner in the enterprise by signing and
             3765      delivering to the division for filing a statement of withdrawal under this section.
             3766          (2) A person that makes an investment described in Subsection (1) is liable to the same
             3767      extent as a general partner to any third party that enters into a transaction with the enterprise,
             3768      believing in good faith that the person is a general partner, before the division files a statement
             3769      of withdrawal, certificate of limited partnership, amendment, or statement of correction to
             3770      show that the person is not a general partner.
             3771          (3) If a person makes a diligent effort in good faith to comply with Subsection (1)(a)
             3772      and is unable to cause the appropriate certificate of limited partnership, amendment, or
             3773      statement of correction to be signed and delivered to the division for filing, the person has the
             3774      right to withdraw from the enterprise pursuant to Subsection (1)(b) even if the withdrawal
             3775      would otherwise breach an agreement with others that are or have agreed to become co-owners
             3776      of the enterprise.



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             3777
         Section 119. Section 48-2d-401 is enacted to read:
             3778     
Part 4. General Partners

             3779          48-2d-401. Becoming general partner.
             3780          A person becomes a general partner:
             3781          (1) as provided in the partnership agreement;
             3782          (2) under Subsection 48-2d-801 (3)(b) following the dissociation of a limited
             3783      partnership's last general partner;
             3784          (3) as the result of a conversion or merger under Part 11, Merger, Conversion, and
             3785      Domestication; or
             3786          (4) with the consent of all the partners.
             3787          Section 120. Section 48-2d-402 is enacted to read:
             3788          48-2d-402. General partner agent of limited partnership.
             3789          (1) (a) Each general partner is an agent of the limited partnership for the purposes of its
             3790      activities.
             3791          (b) An act of a general partner, including the signing of a record in the partnership's
             3792      name, for apparently carrying on in the ordinary course the limited partnership's activities or
             3793      activities of the kind carried on by the limited partnership binds the limited partnership, unless
             3794      the general partner did not have authority to act for the limited partnership in the particular
             3795      matter and the person with which the general partner was dealing knew, had received a
             3796      notification, or had notice under Subsection 48-2d-103 (4) that the general partner lacked
             3797      authority.
             3798          (2) An act of a general partner which is not apparently for carrying on in the ordinary
             3799      course the limited partnership's activities or activities of the kind carried on by the limited
             3800      partnership binds the limited partnership only if the act was actually authorized by all the other
             3801      partners.
             3802          Section 121. Section 48-2d-403 is enacted to read:
             3803          48-2d-403. Limited partnership liable for general partner's actionable conduct.
             3804          (1) A limited partnership is liable for loss or injury caused to a person, or for a penalty
             3805      incurred, as a result of a wrongful act or omission, or other actionable conduct, of a general
             3806      partner acting in the ordinary course of activities of the limited partnership or with authority of
             3807      the limited partnership.



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             3808
         (2) If, in the course of the limited partnership's activities or while acting with authority
             3809      of the limited partnership, a general partner receives or causes the limited partnership to receive
             3810      money or property of a person not a partner, and the money or property is misapplied by a
             3811      general partner, the limited partnership is liable for the loss.
             3812          Section 122. Section 48-2d-404 is enacted to read:
             3813          48-2d-404. General partner's liability.
             3814          (1) Except as otherwise provided in Subsections (2) and (3), all general partners are
             3815      liable jointly and severally for all obligations of the limited partnership unless otherwise agreed
             3816      by the claimant or provided by law.
             3817          (2) A person that becomes a general partner of an existing limited partnership is not
             3818      personally liable for an obligation of a limited partnership incurred before the person became a
             3819      general partner.
             3820          (3) (a) An obligation of a limited partnership incurred while the limited partnership is a
             3821      limited liability limited partnership, whether arising in contract, tort, or otherwise, is solely the
             3822      obligation of the limited partnership.
             3823          (b) A general partner is not personally liable, directly or indirectly, by way of
             3824      contribution or otherwise, for such an obligation solely by reason of being or acting as a
             3825      general partner.
             3826          (c) This Subsection (3) applies despite anything inconsistent in the partnership
             3827      agreement that existed immediately before the consent required to become a limited liability
             3828      limited partnership under Subsection 48-2d-406 (2)(b).
             3829          Section 123. Section 48-2d-405 is enacted to read:
             3830          48-2d-405. Actions by and against partnership and partners.
             3831          (1) To the extent not inconsistent with Section 48-2d-404 , a general partner may be
             3832      joined in an action against the limited partnership or named in a separate action.
             3833          (2) A judgment against a limited partnership is not by itself a judgment against a
             3834      general partner. A judgment against a limited partnership may not be satisfied from a general
             3835      partner's assets unless there is also a judgment against the general partner.
             3836          (3) A judgment creditor of a general partner may not levy execution against the assets
             3837      of the general partner to satisfy a judgment based on a claim against the limited partnership,
             3838      unless the partner is personally liable for the claim under Section 48-2d-404 and:



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             3839
         (a) a judgment based on the same claim has been obtained against the limited
             3840      partnership and a writ of execution on the judgment has been returned unsatisfied in whole or
             3841      in part;
             3842          (b) the limited partnership is a debtor in bankruptcy;
             3843          (c) the general partner has agreed that the creditor need not exhaust limited partnership
             3844      assets;
             3845          (d) a court grants permission to the judgment creditor to levy execution against the
             3846      assets of a general partner based on a finding that limited partnership assets subject to
             3847      execution are clearly insufficient to satisfy the judgment, that exhaustion of limited partnership
             3848      assets is excessively burdensome, or that the grant of permission is an appropriate exercise of
             3849      the court's equitable powers; or
             3850          (e) liability is imposed on the general partner by law or contract independent of the
             3851      existence of the limited partnership.
             3852          Section 124. Section 48-2d-406 is enacted to read:
             3853          48-2d-406. Management rights of general partner.
             3854          (1) Each general partner has equal rights in the management and conduct of the limited
             3855      partnership's activities. Except as expressly provided in this chapter, any matter relating to the
             3856      activities of the limited partnership may be exclusively decided by the general partner or, if
             3857      there is more than one general partner, by a majority of the general partners.
             3858          (2) The consent of each partner is necessary to:
             3859          (a) amend the partnership agreement;
             3860          (b) amend the certificate of limited partnership to add or, subject to Section
             3861      48-2d-1114 , delete a statement that the limited partnership is a limited liability limited
             3862      partnership; and
             3863          (c) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the limited
             3864      partnership's property, with or without the good will, other than in the usual and regular course
             3865      of the limited partnership's activities.
             3866          (3) A limited partnership shall reimburse a general partner for payments made and
             3867      indemnify a general partner for liabilities incurred by the general partner in the ordinary course
             3868      of the activities of the partnership or for the preservation of its activities or property.
             3869          (4) A limited partnership shall reimburse a general partner for an advance to the limited



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             3870
     partnership beyond the amount of capital the general partner agreed to contribute.
             3871          (5) A payment or advance made by a general partner which gives rise to an obligation
             3872      of the limited partnership under Subsection (3) or (4) constitutes a loan to the limited
             3873      partnership which accrues interest from the date of the payment or advance.
             3874          (6) A general partner is not entitled to remuneration for services performed for the
             3875      partnership.
             3876          Section 125. Section 48-2d-407 is enacted to read:
             3877          48-2d-407. Right of general partner and former general partner to information.
             3878          (1) A general partner, without having any particular purpose for seeking the
             3879      information, may inspect and copy during regular business hours:
             3880          (a) in the limited partnership's principal office, required information; and
             3881          (b) at a reasonable location specified by the limited partnership, any other records
             3882      maintained by the limited partnership regarding the limited partnership's activities and financial
             3883      condition.
             3884          (2) Each general partner and the limited partnership shall furnish to a general partner:
             3885          (a) without demand, any information concerning the limited partnership's activities and
             3886      activities reasonably required for the proper exercise of the general partner's rights and duties
             3887      under the partnership agreement or this chapter; and
             3888          (b) on demand, any other information concerning the limited partnership's activities,
             3889      except to the extent the demand or the information demanded is unreasonable or otherwise
             3890      improper under the circumstances.
             3891          (3) Subject to Subsection (5), on 10 days' demand made in a record received by the
             3892      limited partnership, a person dissociated as a general partner may have access to the
             3893      information and records described in Subsection (1) at the location specified in Subsection (1)
             3894      if:
             3895          (a) the information or record pertains to the period during which the person was a
             3896      general partner;
             3897          (b) the person seeks the information or record in good faith; and
             3898          (c) the person satisfies the requirements imposed on a limited partner by Subsection
             3899      48-2d-304 (2).
             3900          (4) The limited partnership shall respond to a demand made pursuant to Subsection (3)



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             3901
     in the same manner as provided in Subsection 48-2d-304 (3).
             3902          (5) If a general partner dies, Section 48-2d-704 applies.
             3903          (6) The limited partnership may impose reasonable restrictions on the use of
             3904      information under this section. In any dispute concerning the reasonableness of a restriction
             3905      under this Subsection (6), the limited partnership has the burden of proving reasonableness.
             3906          (7) A limited partnership may charge a person dissociated as a general partner that
             3907      makes a demand under this section reasonable costs of copying, limited to the costs of labor
             3908      and material.
             3909          (8) A general partner or person dissociated as a general partner may exercise the rights
             3910      under this section through an attorney or other agent. Any restriction imposed under
             3911      Subsection (6) or by the partnership agreement applies both to the attorney or other agent and
             3912      to the general partner or person dissociated as a general partner.
             3913          (9) The rights under this section do not extend to a person as transferee, but the rights
             3914      under Subsection (3) of a person dissociated as a general may be exercised by the legal
             3915      representative of an individual who dissociated as a general partner under Subsection
             3916      48-2d-603 (7)(b) or (c).
             3917          Section 126. Section 48-2d-408 is enacted to read:
             3918          48-2d-408. General standards of general partner's conduct.
             3919          (1) The only fiduciary duties that a general partner has to the limited partnership and
             3920      the other partners are the duties of loyalty and care under Subsections (2) and (3).
             3921          (2) A general partner's duty of loyalty to the limited partnership and the other partners
             3922      is limited to the following:
             3923          (a) to account to the limited partnership and hold as trustee for it any property, profit,
             3924      or benefit derived by the general partner in the conduct and winding up of the limited
             3925      partnership's activities or derived from a use by the general partner of limited partnership
             3926      property, including the appropriation of a limited partnership opportunity;
             3927          (b) to refrain from dealing with the limited partnership in the conduct or winding up of
             3928      the limited partnership's activities as or on behalf of a party having an interest adverse to the
             3929      limited partnership; and
             3930          (c) to refrain from competing with the limited partnership in the conduct or winding up
             3931      of the limited partnership's activities.



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             3932
         (3) The duty of care of a general partner to the limited partnership and the other
             3933      partners in the conduct and winding up of the limited partnership's activities is to refrain from
             3934      conduct or inaction that constitutes:
             3935          (a) gross negligence;
             3936          (b) intentional misconduct; or
             3937          (c) an intentional violation of law.
             3938          (4) A general partner shall discharge the duties to the partnership and the other partners
             3939      under this chapter or under the partnership agreement and exercise any rights consistently with
             3940      the obligation of good faith and fair dealing.
             3941          (5) A general partner does not violate a duty or obligation under this chapter or under
             3942      the partnership agreement merely because the general partner's conduct furthers the general
             3943      partner's own interest.
             3944          Section 127. Section 48-2d-501 is enacted to read:
             3945     
Part 5. Contributions and Distributions

             3946          48-2d-501. Form of contribution.
             3947          A contribution of a partner may consist of tangible or intangible property or other
             3948      benefit to the limited partnership, including money, services performed, promissory notes,
             3949      other agreements to contribute cash or property, and contracts for services to be performed.
             3950          Section 128. Section 48-2d-502 is enacted to read:
             3951          48-2d-502. Liability for contribution.
             3952          (1) (a) A partner's obligation to contribute money or other property or other benefit to,
             3953      or to perform services for, a limited partnership is not excused by the partner's death, disability,
             3954      or other inability to perform personally.
             3955          (b) Notwithstanding Subsection (1)(a), a limited partnership's partnership agreement
             3956      may provide for a partner's obligation to contribute to be excused by the death of the partner.
             3957          (2) If a partner does not make a promised non-monetary contribution, the partner is
             3958      obligated at the option of the limited partnership to contribute money equal to that portion of
             3959      the value, as stated in the required information, of the stated contribution which has not been
             3960      made.
             3961          (3) The obligation of a partner to make a contribution or return money or other
             3962      property paid or distributed in violation of this chapter may be compromised only by consent of



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             3963
     all partners. A creditor of a limited partnership which extends credit or otherwise acts in
             3964      reliance on an obligation described in Subsection (2), without notice of any compromise under
             3965      this Subsection (3), may enforce the original obligation.
             3966          Section 129. Section 48-2d-503 is enacted to read:
             3967          48-2d-503. Sharing of distributions.
             3968          A distribution by a limited partnership must be shared among the partners on the basis
             3969      of the value, as stated in the required records when the limited partnership decides to make the
             3970      distribution, of the contributions the limited partnership has received from each partner.
             3971          Section 130. Section 48-2d-504 is enacted to read:
             3972          48-2d-504. Interim distributions.
             3973          A partner does not have a right to any distribution before the dissolution and winding
             3974      up of the limited partnership unless the limited partnership decides to make an interim
             3975      distribution.
             3976          Section 131. Section 48-2d-505 is enacted to read:
             3977          48-2d-505. No distribution on account of dissociation.
             3978          A person does not have a right to receive a distribution on account of dissociation.
             3979          Section 132. Section 48-2d-506 is enacted to read:
             3980          48-2d-506. Distribution in kind.
             3981          A partner does not have a right to demand or receive any distribution from a limited
             3982      partnership in any form other than cash. Subject to Subsection 48-2d-812 (2), a limited
             3983      partnership may distribute an asset in kind to the extent each partner receives a percentage of
             3984      the asset equal to the partner's share of distributions.
             3985          Section 133. Section 48-2d-507 is enacted to read:
             3986          48-2d-507. Right to distribution.
             3987          When a partner or transferee becomes entitled to receive a distribution, the partner or
             3988      transferee has the status of, and is entitled to all remedies available to, a creditor of the limited
             3989      partnership with respect to the distribution. However, the limited partnership's obligation to
             3990      make a distribution is subject to offset for any amount owed to the limited partnership by the
             3991      partner or dissociated partner on whose account the distribution is made.
             3992          Section 134. Section 48-2d-508 is enacted to read:
             3993          48-2d-508. Limitations on distribution.



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             3994
         (1) A limited partnership may not make a distribution in violation of the partnership
             3995      agreement.
             3996          (2) A limited partnership may not make a distribution if after the distribution:
             3997          (a) the limited partnership would not be able to pay its debts as they become due in the
             3998      ordinary course of the limited partnership's activities; or
             3999          (b) the limited partnership's total assets would be less than the sum of its total liabilities
             4000      plus the amount that would be needed, if the limited partnership were to be dissolved, wound
             4001      up, and terminated at the time of the distribution, to satisfy the preferential rights upon
             4002      dissolution, winding up, and termination of partners whose preferential rights are superior to
             4003      those of persons receiving the distribution.
             4004          (3) A limited partnership may base a determination that a distribution is not prohibited
             4005      under Subsection (2) on financial statements prepared on the basis of accounting practices and
             4006      principles that are reasonable in the circumstances or on a fair valuation or other method that is
             4007      reasonable in the circumstances.
             4008          (4) Except as otherwise provided in Subsection (7), the effect of a distribution under
             4009      Subsection (2) is measured:
             4010          (a) in the case of distribution by purchase, redemption, or other acquisition of a
             4011      transferable interest in the limited partnership, as of the date money or other property is
             4012      transferred or debt incurred by the limited partnership; and
             4013          (b) in all other cases, as of the date:
             4014          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             4015      or
             4016          (ii) the payment is made, if payment occurs more than 120 days after the distribution is
             4017      authorized.
             4018          (5) A limited partnership's indebtedness to a partner incurred by reason of a
             4019      distribution made in accordance with this section is at parity with the limited partnership's
             4020      indebtedness to its general, unsecured creditors.
             4021          (6) A limited partnership's indebtedness, including indebtedness issued in connection
             4022      with or as part of a distribution, is not considered a liability for purposes of Subsection (2) if
             4023      the terms of the indebtedness provide that payment of principal and interest are made only to
             4024      the extent that a distribution could then be made to partners under this section.



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             4025
         (7) If indebtedness is issued as a distribution, each payment of principal or interest on
             4026      the indebtedness is treated as a distribution, the effect of which is measured on the date the
             4027      payment is made.
             4028          Section 135. Section 48-2d-509 is enacted to read:
             4029          48-2d-509. Liability for improper distributions.
             4030          (1) A general partner that consents to a distribution made in violation of Section
             4031      48-2d-508 is personally liable to the limited partnership for the amount of the distribution
             4032      which exceeds the amount that could have been distributed without the violation if it is
             4033      established that in consenting to the distribution the general partner failed to comply with
             4034      Section 48-2d-408 .
             4035          (2) A partner or transferee that received a distribution knowing that the distribution to
             4036      that partner or transferee was made in violation of Section 48-2d-508 is personally liable to the
             4037      limited partnership but only to the extent that the distribution received by the partner or
             4038      transferee exceeded the amount that could have been properly paid under Section 48-2d-508 .
             4039          (3) A general partner against which an action is commenced under Subsection (1) may:
             4040          (a) implead in the action any other person that is liable under Subsection (1) and
             4041      compel contribution from the person; and
             4042          (b) implead in the action any person that received a distribution in violation of
             4043      Subsection (2) and compel contribution from the person in the amount the person received in
             4044      violation of Subsection (2).
             4045          (4) An action under this section is barred if it is not commenced within two years after
             4046      the distribution.
             4047          Section 136. Section 48-2d-601 is enacted to read:
             4048     
Part 6. Dissociation

             4049          48-2d-601. Dissociation as limited partner.
             4050          (1) A person does not have a right to dissociate as a limited partner before the
             4051      termination of the limited partnership.
             4052          (2) A person is dissociated from a limited partnership as a limited partner upon the
             4053      occurrence of any of the following events:
             4054          (a) the limited partnership's having notice of the person's express will to withdraw as a
             4055      limited partner or on a later date specified by the person;



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             4056
         (b) an event agreed to in the partnership agreement as causing the person's dissociation
             4057      as a limited partner;
             4058          (c) the person's expulsion as a limited partner pursuant to the partnership agreement;
             4059          (d) the person's expulsion as a limited partner by the unanimous consent of the other
             4060      partners if:
             4061          (i) it is unlawful to carry on the limited partnership's activities with the person as a
             4062      limited partner;
             4063          (ii) there has been a transfer of all of the person's transferable interest in the limited
             4064      partnership, other than a transfer for security purposes, or a court order charging the person's
             4065      interest, which has not been foreclosed;
             4066          (iii) the person is a corporation and, within 90 days after the limited partnership
             4067      notifies the person that it will be expelled as a limited partner because it has filed a certificate
             4068      of dissolution or the equivalent, its charter has been revoked, or its right to conduct business
             4069      has been suspended by the jurisdiction of its incorporation, there is no revocation of the
             4070      certificate of dissolution or no reinstatement of its charter or its right to conduct business; or
             4071          (iv) the person is a limited liability company or partnership that has been dissolved and
             4072      whose business is being wound up;
             4073          (e) on application by the limited partnership, the person's expulsion as a limited partner
             4074      by judicial order because:
             4075          (i) the person engaged in wrongful conduct that adversely and materially affected the
             4076      limited partnership's activities;
             4077          (ii) the person willfully or persistently committed a material breach of the partnership
             4078      agreement or of the obligation of good faith and fair dealing under Subsection 48-2d-305 (2); or
             4079          (iii) the person engaged in conduct relating to the limited partnership's activities which
             4080      makes it not reasonably practicable to carry on the activities with the person as limited partner;
             4081          (f) in the case of a person who is an individual, the person's death;
             4082          (g) in the case of a person that is a trust or is acting as a limited partner by virtue of
             4083      being a trustee of a trust, distribution of the trust's entire transferable interest in the limited
             4084      partnership, but not merely by reason of the substitution of a successor trustee;
             4085          (h) in the case of a person that is an estate or is acting as a limited partner by virtue of
             4086      being a personal representative of an estate, distribution of the estate's entire transferable



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             4087
     interest in the limited partnership, but not merely by reason of the substitution of a successor
             4088      personal representative;
             4089          (i) termination of a limited partner that is not an individual, partnership, limited
             4090      liability company, corporation, trust, or estate;
             4091          (j) the limited partnership's participation in a conversion or merger under Part 11,
             4092      Merger, Conversion, and Domestication, if the limited partnership:
             4093          (i) is not the converted or surviving entity; or
             4094          (ii) is the converted or surviving entity but, as a result of the conversion or merger, the
             4095      person ceases to be a limited partner.
             4096          Section 137. Section 48-2d-602 is enacted to read:
             4097          48-2d-602. Effect of dissociation as limited partner.
             4098          (1) Upon a person's dissociation as a limited partner:
             4099          (a) subject to Section 48-2d-704 , the person does not have further rights as a limited
             4100      partner;
             4101          (b) the person's obligation of good faith and fair dealing as a limited partner under
             4102      Subsection 48-2d-305 (2) continues only as to matters arising and events occurring before the
             4103      dissociation; and
             4104          (c) subject to Section 48-2d-704 and Part 11, Merger, Conversion, and Domestication,
             4105      any transferable interest owned by the person in the person's capacity as a limited partner
             4106      immediately before dissociation is owned by the person as a mere transferee.
             4107          (2) A person's dissociation as a limited partner does not of itself discharge the person
             4108      from any obligation to the limited partnership or the other partners which the person incurred
             4109      while a limited partner.
             4110          Section 138. Section 48-2d-603 is enacted to read:
             4111          48-2d-603. Dissociation as general partner.
             4112          A person is dissociated from a limited partnership as a general partner upon the
             4113      occurrence of any of the following events:
             4114          (1) the limited partnership's having notice of the person's express will to withdraw as a
             4115      general partner or on a later date specified by the person;
             4116          (2) an event agreed to in the partnership agreement as causing the person's dissociation
             4117      as a general partner;



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             4118
         (3) the person's expulsion as a general partner pursuant to the partnership agreement;
             4119          (4) the person's expulsion as a general partner by the unanimous consent of the other
             4120      partners if:
             4121          (a) it is unlawful to carry on the limited partnership's activities with the person as a
             4122      general partner;
             4123          (b) there has been a transfer of all or substantially all of the person's transferable
             4124      interest in the limited partnership, other than a transfer for security purposes, or a court order
             4125      charging the person's interest, which has not been foreclosed;
             4126          (c) the person is a corporation and, within 90 days after the limited partnership notifies
             4127      the person that it will be expelled as a general partner because it has filed a certificate of
             4128      dissolution or the equivalent, its charter has been revoked, or its right to conduct business has
             4129      been suspended by the jurisdiction of its incorporation, there is no revocation of the certificate
             4130      of dissolution or no reinstatement of its charter or its right to conduct business; or
             4131          (d) the person is a limited liability company or partnership that has been dissolved and
             4132      whose business is being wound up;
             4133          (5) on application by the limited partnership, the person's expulsion as a general partner
             4134      by judicial determination because:
             4135          (a) the person engaged in wrongful conduct that adversely and materially affected the
             4136      limited partnership activities;
             4137          (b) the person willfully or persistently committed a material breach of the partnership
             4138      agreement or of a duty owed to the partnership or the other partners under Section 48-2d-408 ;
             4139      or
             4140          (c) the person engaged in conduct relating to the limited partnership's activities which
             4141      makes it not reasonably practicable to carry on the activities of the limited partnership with the
             4142      person as a general partner;
             4143          (6) the person's:
             4144          (a) becoming a debtor in bankruptcy;
             4145          (b) execution of an assignment for the benefit of creditors;
             4146          (c) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or
             4147      liquidator of the person or of all or substantially all of the person's property; or
             4148          (d) failure, within 90 days after the appointment, to have vacated or stayed the



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             4149
     appointment of a trustee, receiver, or liquidator of the general partner or of all or substantially
             4150      all of the person's property obtained without the person's consent or acquiescence, or failing
             4151      within 90 days after the expiration of a stay to have the appointment vacated;
             4152          (7) in the case of a person who is an individual:
             4153          (a) the person's death;
             4154          (b) the appointment of a guardian or general conservator for the person; or
             4155          (c) a judicial determination that the person has otherwise become incapable of
             4156      performing the person's duties as a general partner under the partnership agreement;
             4157          (8) in the case of a person that is a trust or is acting as a general partner by virtue of
             4158      being a trustee of a trust, distribution of the trust's entire transferable interest in the limited
             4159      partnership, but not merely by reason of the substitution of a successor trustee;
             4160          (9) in the case of a person that is an estate or is acting as a general partner by virtue of
             4161      being a personal representative of an estate, distribution of the estate's entire transferable
             4162      interest in the limited partnership, but not merely by reason of the substitution of a successor
             4163      personal representative;
             4164          (10) termination of a general partner that is not an individual, partnership, limited
             4165      liability company, corporation, trust, or estate; or
             4166          (11) the limited partnership's participation in a conversion or merger under Part 11,
             4167      Merger, Conversion, and Domestication, if the limited partnership:
             4168          (a) is not the converted or surviving entity; or
             4169          (b) is the converted or surviving entity but, as a result of the conversion or merger, the
             4170      person ceases to be a general partner.
             4171          Section 139. Section 48-2d-604 is enacted to read:
             4172          48-2d-604. Person's power to dissociate as general partner -- Wrongful
             4173      dissociation.
             4174          (1) A person has the power to dissociate as a general partner at any time, rightfully or
             4175      wrongfully, by express will pursuant to Subsection 48-2d-603 (1).
             4176          (2) A person's dissociation as a general partner is wrongful only if:
             4177          (a) it is in breach of an express provision of the partnership agreement; or
             4178          (b) it occurs before the termination of the limited partnership, and:
             4179          (i) the person withdraws as a general partner by express will;



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             4180
         (ii) the person is expelled as a general partner by judicial determination under
             4181      Subsection 48-2d-603 (5);
             4182          (iii) the person is dissociated as a general partner by becoming a debtor in bankruptcy;
             4183      or
             4184          (iv) in the case of a person that is not an individual, trust other than a business trust, or
             4185      estate, the person is expelled or otherwise dissociated as a general partner because it willfully
             4186      dissolved or terminated.
             4187          (3) A person that wrongfully dissociates as a general partner is liable to the limited
             4188      partnership and, subject to Section 48-2d-1001 , to the other partners for damages caused by the
             4189      dissociation. The liability is in addition to any other obligation of the general partner to the
             4190      limited partnership or to the other partners.
             4191          Section 140. Section 48-2d-605 is enacted to read:
             4192          48-2d-605. Effect of dissociation as general partner.
             4193          (1) Upon a person's dissociation as a general partner:
             4194          (a) the person's right to participate as a general partner in the management and conduct
             4195      of the partnership's activities terminates;
             4196          (b) the person's duty of loyalty as a general partner under Subsection 48-2d-408 (2)(c)
             4197      terminates;
             4198          (c) the person's duty of loyalty as a general partner under Subsections 48-2d-408 (2)(a)
             4199      and (b) and duty of care under Subsection 48-2d-408 (3) continue only with regard to matters
             4200      arising and events occurring before the person's dissociation as a general partner;
             4201          (d) the person may sign and deliver to the division for filing a statement of dissociation
             4202      pertaining to the person and, at the request of the limited partnership, shall sign an amendment
             4203      to the certificate of limited partnership which states that the person has dissociated; and
             4204          (e) subject to Section 48-2d-704 and Part 11, Merger, Conversion, and Domestication,
             4205      any transferable interest owned by the person immediately before dissociation in the person's
             4206      capacity as a general partner is owned by the person as a mere transferee.
             4207          (2) A person's dissociation as a general partner does not of itself discharge the person
             4208      from any obligation to the limited partnership or the other partners which the person incurred
             4209      while a general partner.
             4210          Section 141. Section 48-2d-606 is enacted to read:



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             4211
         48-2d-606. Power to bind and liability to limited partnership before dissolution of
             4212      partnership of person dissociated as general partner.
             4213          (1) After a person is dissociated as a general partner and before the limited partnership
             4214      is dissolved, converted under Part 11, Merger, Conversion, and Domestication, or merged out
             4215      of existence under Part 11, the limited partnership is bound by an act of the person only if:
             4216          (a) the act would have bound the limited partnership under Section 48-2d-402 before
             4217      the dissociation; and
             4218          (b) at the time the other party enters into the transaction:
             4219          (i) less than two years have passed since the dissociation; and
             4220          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4221      the person is a general partner.
             4222          (2) If a limited partnership is bound under Subsection (1), the person dissociated as a
             4223      general partner which caused the limited partnership to be bound is liable:
             4224          (a) to the limited partnership for any damage caused to the limited partnership arising
             4225      from the obligation incurred under Subsection (1); and
             4226          (b) if a general partner or another person dissociated as a general partner is liable for
             4227      the obligation, to the general partner or other person for any damage caused to the general
             4228      partner or other person arising from the liability.
             4229          Section 142. Section 48-2d-607 is enacted to read:
             4230          48-2d-607. Liability to other persons of person dissociated as general partner.
             4231          (1) A person's dissociation as a general partner does not of itself discharge the person's
             4232      liability as a general partner for an obligation of the limited partnership incurred before
             4233      dissociation. Except as otherwise provided in Subsections (2) and (3), the person is not liable
             4234      for a limited partnership's obligation incurred after dissociation.
             4235          (2) A person whose dissociation as a general partner resulted in a dissolution and
             4236      winding up of the limited partnership's activities is liable to the same extent as a general partner
             4237      under Section 48-2d-404 on an obligation incurred by the limited partnership under Section
             4238      48-2d-804 .
             4239          (3) A person that has dissociated as a general partner but whose dissociation did not
             4240      result in a dissolution and winding up of the limited partnership's activities is liable on a
             4241      transaction entered into by the limited partnership after the dissociation only if:



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             4242
         (a) a general partner would be liable on the transaction; and
             4243          (b) at the time the other party enters into the transaction:
             4244          (i) less than two years have passed since the dissociation; and
             4245          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4246      the person is a general partner.
             4247          (4) By agreement with a creditor of a limited partnership and the limited partnership, a
             4248      person dissociated as a general partner may be released from liability for an obligation of the
             4249      limited partnership.
             4250          (5) A person dissociated as a general partner is released from liability for an obligation
             4251      of the limited partnership if the limited partnership's creditor, with notice of the person's
             4252      dissociation as a general partner but without the person's consent, agrees to a material alteration
             4253      in the nature or time of payment of the obligation.
             4254          Section 143. Section 48-2d-701 is enacted to read:
             4255     
Part 7. Transferable Interests and Rights of Transferees and Creditors

             4256          48-2d-701. Partner's transferable interest.
             4257          The only interest of a partner which is transferable is the partner's transferable interest.
             4258      A transferable interest is personal property.
             4259          Section 144. Section 48-2d-702 is enacted to read:
             4260          48-2d-702. Transfer of partner's transferable interest.
             4261          (1) A transfer, in whole or in part, of a partner's transferable interest:
             4262          (a) is permissible;
             4263          (b) does not by itself cause the partner's dissociation or a dissolution and winding up of
             4264      the limited partnership's activities; and
             4265          (c) does not, as against the other partners or the limited partnership, entitle the
             4266      transferee to participate in the management or conduct of the limited partnership's activities, to
             4267      require access to information concerning the limited partnership's transactions except as
             4268      otherwise provided in Subsection (3), or to inspect or copy the required information or the
             4269      limited partnership's other records.
             4270          (2) A transferee has a right to receive, in accordance with the transfer:
             4271          (a) distributions to which the transferor would otherwise be entitled; and
             4272          (b) upon the dissolution and winding up of the limited partnership's activities the net



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             4273
     amount otherwise distributable to the transferor.
             4274          (3) In a dissolution and winding up, a transferee is entitled to an account of the limited
             4275      partnership's transactions only from the date of dissolution.
             4276          (4) Upon transfer, the transferor retains the rights of a partner other than the interest in
             4277      distributions transferred and retains all duties and obligations of a partner.
             4278          (5) A limited partnership need not give effect to a transferee's rights under this section
             4279      until the limited partnership has notice of the transfer.
             4280          (6) A transfer of a partner's transferable interest in the limited partnership in violation
             4281      of a restriction on transfer contained in the partnership agreement is ineffective as to a person
             4282      having notice of the restriction at the time of transfer.
             4283          (7) A transferee that becomes a partner with respect to a transferable interest is liable
             4284      for the transferor's obligations under Sections 48-2d-502 and 48-2d-509 . However, the
             4285      transferee is not obligated for liabilities unknown to the transferee at the time the transferee
             4286      became a partner.
             4287          Section 145. Section 48-2d-703 is enacted to read:
             4288          48-2d-703. Rights of creditor of partner or transferee.
             4289          (1) (a) On application to a district court by any judgment creditor of a partner or
             4290      transferee, the court may charge the transferable interest of the judgment debtor with payment
             4291      of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment
             4292      creditor has only the rights of a transferee.
             4293          (b) The court may appoint a receiver of the share of the distributions due or to become
             4294      due to the judgment debtor in respect of the partnership and make all other orders, directions,
             4295      accounts, and inquiries the judgment debtor might have made or which the circumstances of
             4296      the case may require to give effect to the charging order.
             4297          (2) A charging order constitutes a lien on the judgment debtor's transferable interest.
             4298      The court may order a foreclosure upon the interest subject to the charging order at any time.
             4299      The purchaser at the foreclosure sale has the rights of a transferee.
             4300          (3) At any time before foreclosure, an interest charged may be redeemed:
             4301          (a) by the judgment debtor;
             4302          (b) with property other than limited partnership property, by one or more of the other
             4303      partners; or



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             4304
         (c) with limited partnership property, by the limited partnership with the consent of all
             4305      partners whose interests are not so charged.
             4306          (4) This chapter does not deprive any partner or transferee of the benefit of any
             4307      exemption laws applicable to the partner's or transferee's transferable interest.
             4308          (5) This section provides the exclusive remedy by which a judgment creditor of a
             4309      partner or transferee may satisfy a judgment out of the judgment debtor's transferable interest.
             4310          Section 146. Section 48-2d-704 is enacted to read:
             4311          48-2d-704. Power of estate of deceased partner.
             4312          If a partner dies, the deceased partner's personal representative or other legal
             4313      representative may exercise the rights of a transferee as provided in Section 48-2d-702 and, for
             4314      the purposes of settling the estate, may exercise the rights of a current limited partner under
             4315      Section 48-2d-304 .
             4316          Section 147. Section 48-2d-801 is enacted to read:
             4317     
Part 8. Dissolution

             4318          48-2d-801. Nonjudicial dissolution.
             4319          Except as otherwise provided in Section 48-2d-802 , a limited partnership is dissolved,
             4320      and its activities must be wound up, only upon the occurrence of any of the following:
             4321          (1) the happening of an event specified in the partnership agreement;
             4322          (2) the consent of all general partners and of limited partners owning a majority of the
             4323      rights to receive distributions as limited partners at the time the consent is to be effective;
             4324          (3) after the dissociation of a person as a general partner:
             4325          (a) if the limited partnership has at least one remaining general partner, the consent to
             4326      dissolve the limited partnership given within 90 days after the dissociation by partners owning
             4327      a majority of the rights to receive distributions as partners at the time the consent is to be
             4328      effective; or
             4329          (b) if the limited partnership does not have a remaining general partner, the passage of
             4330      90 days after the dissociation, unless before the end of the period:
             4331          (i) consent to continue the activities of the limited partnership and admit at least one
             4332      general partner is given by limited partners owning a majority of the rights to receive
             4333      distributions as limited partners at the time the consent is to be effective; and
             4334          (ii) at least one person is admitted as a general partner in accordance with the consent



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             4335
     effective as of the last date the last person to have been a general partner ceases to be a general
             4336      partner;
             4337          (4) the passage of 90 days after the dissociation of the limited partnership's last limited
             4338      partner, unless before the end of the period the limited partnership admits at least one limited
             4339      partner; or
             4340          (5) the signing and filing of a declaration of dissolution by the division under
             4341      Subsection 48-2d-809 (3).
             4342          Section 148. Section 48-2d-802 is enacted to read:
             4343          48-2d-802. Judicial dissolution.
             4344          On application by a partner the court of appropriate jurisdiction may order dissolution
             4345      of a limited partnership if it is not reasonably practicable to carry on the activities of the limited
             4346      partnership in conformity with the partnership agreement.
             4347          Section 149. Section 48-2d-803 is enacted to read:
             4348          48-2d-803. Winding up.
             4349          (1) A limited partnership continues after dissolution only for the purpose of winding up
             4350      its activities.
             4351          (2) In winding up its activities, the limited partnership:
             4352          (a) may amend its certificate of limited partnership to state that the limited partnership
             4353      is dissolved, preserve the limited partnership business or property as a going concern for a
             4354      reasonable time, prosecute and defend actions and proceedings, whether civil, criminal, or
             4355      administrative, transfer the limited partnership's property, settle disputes by mediation or
             4356      arbitration, file a statement of termination as provided in Section 48-2d-203 , and perform other
             4357      necessary acts; and
             4358          (b) shall discharge the limited partnership's liabilities, settle and close the limited
             4359      partnership's activities, and marshal and distribute the assets of the partnership.
             4360          (3) If a dissolved limited partnership does not have a general partner, a person to wind
             4361      up the dissolved limited partnership's activities may be appointed by the consent of limited
             4362      partners owning a majority of the rights to receive distributions as limited partners at the time
             4363      the consent is to be effective. A person appointed under this Subsection (3):
             4364          (a) has the powers of a general partner under Section 48-2d-804 ; and
             4365          (b) shall promptly amend the certificate of limited partnership to state:



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             4366
         (i) that the limited partnership does not have a general partner;
             4367          (ii) the name of the person that has been appointed to wind up the limited partnership;
             4368      and
             4369          (iii) the street and mailing address of the person.
             4370          (4) On the application of any partner, a district court may order judicial supervision of
             4371      the winding up, including the appointment of a person to wind up the dissolved limited
             4372      partnership's activities, if:
             4373          (a) a limited partnership does not have a general partner and within a reasonable time
             4374      following the dissolution no person has been appointed pursuant to Subsection (3); or
             4375          (b) the applicant establishes other good cause.
             4376          Section 150. Section 48-2d-804 is enacted to read:
             4377          48-2d-804. Power of general partner and person dissociated as general partner to
             4378      bind partnership after dissolution.
             4379          (1) A limited partnership is bound by a general partner's act after dissolution which:
             4380          (a) is appropriate for winding up the limited partnership's activities; or
             4381          (b) would have bound the limited partnership under Section 48-2d-402 before
             4382      dissolution, if, at the time the other party enters into the transaction, the other party does not
             4383      have notice of the dissolution.
             4384          (2) A person dissociated as a general partner binds a limited partnership through an act
             4385      occurring after dissolution if:
             4386          (a) at the time the other party enters into the transaction:
             4387          (i) less than two years have passed since the dissociation; and
             4388          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4389      the person is a general partner; and
             4390          (b) the act:
             4391          (i) is appropriate for winding up the limited partnership's activities; or
             4392          (ii) would have bound the limited partnership under Section 48-2d-402 before
             4393      dissolution and at the time the other party enters into the transaction the other party does not
             4394      have notice of the dissolution.
             4395          Section 151. Section 48-2d-805 is enacted to read:
             4396          48-2d-805. Liability after dissolution of general partner and person dissociated as



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             4397
     general partner to limited partnership, other general partners, and persons dissociated as
             4398      general partner.
             4399          (1) If a general partner having knowledge of the dissolution causes a limited
             4400      partnership to incur an obligation under Subsection 48-2d-804 (1) by an act that is not
             4401      appropriate for winding up the partnership's activities, the general partner is liable:
             4402          (a) to the limited partnership for any damage caused to the limited partnership arising
             4403      from the obligation; and
             4404          (b) if another general partner or a person dissociated as a general partner is liable for
             4405      the obligation, to that other general partner or person for any damage caused to that other
             4406      general partner or person arising from the liability.
             4407          (2) If a person dissociated as a general partner causes a limited partnership to incur an
             4408      obligation under Subsection 48-2d-804 (2), the person is liable:
             4409          (a) to the limited partnership for any damage caused to the limited partnership arising
             4410      from the obligation; and
             4411          (b) if a general partner or another person dissociated as a general partner is liable for
             4412      the obligation, to the general partner or other person for any damage caused to the general
             4413      partner or other person arising from the liability.
             4414          Section 152. Section 48-2d-806 is enacted to read:
             4415          48-2d-806. Known claims against dissolved limited partnership.
             4416          (1) A dissolved limited partnership in winding up may dispose of the known claims
             4417      against it by following the procedures described in this section.
             4418          (2) A limited partnership in winding up that elects to dispose of known claims pursuant
             4419      to this section may give written notice of the limited partnership 's dissolution to known
             4420      claimants at any time after the effective date of the dissolution. The written notice must:
             4421          (a) describe the information that must be included in a claim;
             4422          (b) provide an address to which written notice of any claim must be given to the
             4423      limited partnership;
             4424          (c) state the deadline, which may not be fewer than 120 days after the effective date of
             4425      the notice, by which the dissolved limited partnership must receive the claim; and
             4426          (d) state that, unless sooner barred by another state statute limiting actions, the claim
             4427      will be barred if not received by the deadline.



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             4428
         (3) Unless sooner barred by another statute limiting actions, a claim against the
             4429      dissolved limited partnership is barred if:
             4430          (a) a claimant was given notice under Subsection (2) and the claim is not received by
             4431      the dissolved limited partnership by the deadline; or
             4432          (b) the dissolved limited partnership delivers to the claimant written notice of rejection
             4433      of the claim within 90 days after receipt of the claim and the claimant whose claim was
             4434      rejected by the dissolved limited partnership does not commence a proceeding to enforce the
             4435      claim within 90 days after the effective date of the rejection notice.
             4436          (4) Claims that are not rejected by the dissolved limited partnership in writing within
             4437      90 days after receipt of the claim by the dissolved limited partnership are considered approved.
             4438          (5) The failure of the dissolved limited partnership to give notice to any known
             4439      claimant pursuant to Subsection (2) does not affect the disposition under this section of any
             4440      claim held by any other known claimant.
             4441          (6) This section does not apply to a claim based on an event occurring after the
             4442      effective date of dissolution or a liability that is contingent on that date.
             4443          Section 153. Section 48-2d-807 is enacted to read:
             4444          48-2d-807. Other claims against dissolved limited partnership.
             4445          (1) A dissolved limited partnership may publish notice of its dissolution and request
             4446      persons having claims against the limited partnership to present them in accordance with the
             4447      notice.
             4448          (2) The notice must:
             4449          (a) be published:
             4450          (i) at least once in a newspaper of general circulation in the county in which the
             4451      dissolved limited partnership's principal office is located or, if it has none in this state, in Salt
             4452      Lake County; and
             4453          (ii) in accordance with Section 45-1-101 ;
             4454          (b) describe the information required to be contained in a claim and provide a mailing
             4455      address to which the claim is to be sent;
             4456          (c) state that a claim against the limited partnership is barred unless an action to
             4457      enforce the claim is commenced within five years after publication of the notice; and
             4458          (d) unless the limited partnership has been throughout its existence a limited liability



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             4459
     limited partnership, state that the barring of a claim against the limited partnership will also bar
             4460      any corresponding claim against any general partner or person dissociated as a general partner
             4461      which is based on Section 48-2d-404 .
             4462          (3) If a dissolved limited partnership publishes a notice in accordance with Subsection
             4463      (2), the claim of each of the following claimants is barred unless the claimant commences an
             4464      action to enforce the claim against the dissolved limited partnership within five years after the
             4465      publication date of the notice:
             4466          (a) a claimant that did not receive notice in a record under Section 48-2d-806 ;
             4467          (b) a claimant whose claim was timely sent to the dissolved limited partnership but not
             4468      acted on; and
             4469          (c) a claimant whose claim is contingent or based on an event occurring after the
             4470      effective date of dissolution.
             4471          (4) A claim not barred under this section may be enforced:
             4472          (a) against the dissolved limited partnership, to the extent of its undistributed assets;
             4473          (b) if the assets have been distributed in liquidation, against a partner or transferee to
             4474      the extent of that person's proportionate share of the claim or the limited partnership's assets
             4475      distributed to the partner or transferee in liquidation, whichever is less, but a person's total
             4476      liability for all claims under this Subsection (4)(b) does not exceed the total amount of assets
             4477      distributed to the person as part of the winding up of the dissolved limited partnership; or
             4478          (c) against any person liable on the claim under Section 48-2d-404 .
             4479          Section 154. Section 48-2d-808 is enacted to read:
             4480          48-2d-808. Liability of general partner and person dissociated as general partner
             4481      when claim against limited partnership barred.
             4482          If a claim against a dissolved limited partnership is barred under Section 48-2d-806 or
             4483      48-2d-807 , any corresponding claim under Section 48-2d-404 is also barred.
             4484          Section 155. Section 48-2d-809 is enacted to read:
             4485          48-2d-809. Administrative dissolution.
             4486          (1) The division may dissolve a limited partnership administratively if the limited
             4487      partnership does not, within 60 days after the due date:
             4488          (a) pay any fee, tax, or penalty due to the division under this chapter or other law; or
             4489          (b) deliver its annual report to the division.



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             4490
         (2) If the division determines that a ground exists for administratively dissolving a
             4491      limited partnership, the division shall file a record of the determination and serve the limited
             4492      partnership with a copy of the filed record.
             4493          (3) If within 60 days after service of the copy the limited partnership does not correct
             4494      each ground for dissolution or demonstrate to the reasonable satisfaction of the division that
             4495      each ground determined by the division does not exist, the division shall administratively
             4496      dissolve the limited partnership by preparing, signing, and filing a declaration of dissolution
             4497      that states the grounds for dissolution. The division shall serve the limited partnership with a
             4498      copy of the filed declaration.
             4499          (4) A limited partnership administratively dissolved continues its existence but may
             4500      carry on only activities necessary to wind up its activities and liquidate its assets under Sections
             4501      48-2d-803 and 48-2d-812 and to notify claimants under Sections 48-2d-806 and 48-2d-807 .
             4502          (5) The administrative dissolution of a limited partnership does not terminate the
             4503      authority of its agent for service of process.
             4504          Section 156. Section 48-2d-810 is enacted to read:
             4505          48-2d-810. Reinstatement following administrative dissolution.
             4506          (1) A limited partnership that has been administratively dissolved may apply to the
             4507      division for reinstatement within two years after the effective date of dissolution. The
             4508      application must be delivered to the division for filing and state:
             4509          (a) the name of the limited partnership and the effective date of its administrative
             4510      dissolution;
             4511          (b) that the grounds for dissolution either did not exist or have been eliminated; and
             4512          (c) that the limited partnership's name satisfies the requirements of Section 48-2d-108 .
             4513          (2) If the division determines that an application contains the information required by
             4514      Subsection (1) and that the information is correct, the division shall prepare a declaration of
             4515      reinstatement that states this determination, sign and file the original of the declaration of
             4516      reinstatement, and serve the limited partnership with a copy.
             4517          (3) When reinstatement becomes effective, it relates back to and takes effect as of the
             4518      effective date of the administrative dissolution and the limited partnership may resume its
             4519      activities as if the administrative dissolution had never occurred.
             4520          Section 157. Section 48-2d-811 is enacted to read:



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             4521
         48-2d-811. Appeal from denial of reinstatement.
             4522          (1) If the division denies a limited partnership's application for reinstatement following
             4523      administrative dissolution, the division shall prepare, sign and file a notice that explains the
             4524      reason or reasons for denial and serve the limited partnership with a copy of the notice.
             4525          (2) Within 30 days after service of the notice of denial, the limited partnership may
             4526      appeal from the denial of reinstatement by petitioning a district court to set aside the
             4527      dissolution. The petition must be served on the division and contain a copy of the division's
             4528      declaration of dissolution, the limited partnership's application for reinstatement, and the
             4529      division's notice of denial.
             4530          (3) The court may summarily order the division to reinstate the dissolved limited
             4531      partnership or may take other action the court considers appropriate.
             4532          Section 158. Section 48-2d-812 is enacted to read:
             4533          48-2d-812. Disposition of assets -- When contributions required.
             4534          (1) In winding up a limited partnership's activities, the assets of the limited partnership,
             4535      including the contributions required by this section, must be applied to satisfy the limited
             4536      partnership's obligations to creditors, including, to the extent permitted by law, partners that are
             4537      creditors.
             4538          (2) Any surplus remaining after the limited partnership complies with Subsection (1)
             4539      must be paid in cash as a distribution.
             4540          (3) If a limited partnership's assets are insufficient to satisfy all of its obligations under
             4541      Subsection (1), with respect to each unsatisfied obligation incurred when the limited
             4542      partnership was not a limited liability limited partnership, the following rules apply:
             4543          (a) Each person that was a general partner when the obligation was incurred and that
             4544      has not been released from the obligation under Section 48-2d-607 shall contribute to the
             4545      limited partnership for the purpose of enabling the limited partnership to satisfy the obligation.
             4546      The contribution due from each of those persons is in proportion to the right to receive
             4547      distributions in the capacity of general partner in effect for each of those persons when the
             4548      obligation was incurred.
             4549          (b) If a person does not contribute the full amount required under Subsection (3)(a)
             4550      with respect to an unsatisfied obligation of the limited partnership, the other persons required
             4551      to contribute by Subsection (3)(a) on account of the obligation shall contribute the additional



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             4552
     amount necessary to discharge the obligation. The additional contribution due from each of
             4553      those other persons is in proportion to the right to receive distributions in the capacity of
             4554      general partner in effect for each of those other persons when the obligation was incurred.
             4555          (c) If a person does not make the additional contribution required by Subsection (3)(b),
             4556      further additional contributions are determined and due in the same manner as provided in
             4557      Subsection (3)(b).
             4558          (4) A person that makes an additional contribution under Subsection (3)(b) or (c) may
             4559      recover from any person whose failure to contribute under Subsection (3)(a) or (b) necessitated
             4560      the additional contribution. A person may not recover under this Subsection (4) more than the
             4561      amount additionally contributed. A person's liability under this Subsection (4) may not exceed
             4562      the amount the person failed to contribute.
             4563          (5) The estate of a deceased individual is liable for the person's obligations under this
             4564      section.
             4565          (6) An assignee for the benefit of creditors of a limited partnership or a partner, or a
             4566      person appointed by a court to represent creditors of a limited partnership or a partner, may
             4567      enforce a person's obligation to contribute under Subsection (3).
             4568          Section 159. Section 48-2d-901 is enacted to read:
             4569     
Part 9. Foreign Limited Partnerships

             4570          48-2d-901. Governing law.
             4571          (1) The laws of the state or other jurisdiction under which a foreign limited partnership
             4572      is organized govern relations among the partners of the foreign limited partnership and between
             4573      the partners and the foreign limited partnership and the liability of partners as partners for an
             4574      obligation of the foreign limited partnership.
             4575          (2) A foreign limited partnership may not be denied a certificate of authority by reason
             4576      of any difference between the laws of the jurisdiction under which the foreign limited
             4577      partnership is organized and the laws of this state.
             4578          (3) A certificate of authority does not authorize a foreign limited partnership to engage
             4579      in any business or exercise any power that a limited partnership may not engage in or exercise
             4580      in this state.
             4581          (4) (a) The division may permit a tribal limited partnership to register with the division
             4582      in the same manner as a foreign limited partnership formed in another state.



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             4583
         (b) If a tribal limited partnership elects to register with the division, for purposes of this
             4584      chapter, the tribal limited partnership shall be treated in the same manner as a foreign limited
             4585      partnership formed under the laws of another state.
             4586          Section 160. Section 48-2d-902 is enacted to read:
             4587          48-2d-902. Application for certificate of authority.
             4588          (1) A foreign limited partnership may apply for a certificate of authority to transact
             4589      business in this state by delivering an application to the division for filing. The application
             4590      must state:
             4591          (a) the name of the foreign limited partnership and, if the name does not comply with
             4592      Section 48-2d-108 , an alternate name adopted pursuant to Subsection 48-2d-905 (1).
             4593          (b) the name of the state or other jurisdiction under whose law the foreign limited
             4594      partnership is organized;
             4595          (c) the street and mailing address of the foreign limited partnership's principal office
             4596      and, if the laws of the jurisdiction under which the foreign limited partnership is organized
             4597      require the foreign limited partnership to maintain an office in that jurisdiction, the street and
             4598      mailing address of the required office;
             4599          (d) the information required by Subsection 16-17-203 (1);
             4600          (e) the name and street and mailing address of each of the foreign limited partnership's
             4601      general partners; and
             4602          (f) whether the foreign limited partnership is a foreign limited liability limited
             4603      partnership.
             4604          (2) A foreign limited partnership shall deliver with the completed application a
             4605      certificate of existence or a record of similar import signed by the division or other official
             4606      having custody of the foreign limited partnership's publicly filed records in the state or other
             4607      jurisdiction under whose law the foreign limited partnership is organized.
             4608          Section 161. Section 48-2d-903 is enacted to read:
             4609          48-2d-903. Activities not constituting transacting business.
             4610          (1) Activities of a foreign limited partnership which do not constitute transacting
             4611      business in this state within the meaning of this part include:
             4612          (a) maintaining, defending, and settling an action or proceeding;
             4613          (b) holding meetings of its partners or carrying on any other activity concerning its



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             4614
     internal affairs;
             4615          (c) maintaining accounts in financial institutions;
             4616          (d) maintaining offices or agencies for the transfer, exchange, and registration of the
             4617      foreign limited partnership's own securities or maintaining trustees or depositories with respect
             4618      to those securities;
             4619          (e) selling through independent contractors;
             4620          (f) soliciting or obtaining orders, whether by mail or electronic means or through
             4621      employees or agents or otherwise, if the orders require acceptance outside this state before they
             4622      become contracts;
             4623          (g) creating or acquiring indebtedness, mortgages, or security interests in real or
             4624      personal property;
             4625          (h) securing or collecting debts or enforcing mortgages or other security interests in
             4626      property securing the debts, and holding, protecting, and maintaining property so acquired;
             4627          (i) conducting an isolated transaction that is completed within 30 days and is not one in
             4628      the course of similar transactions of a like manner; and
             4629          (j) transacting business in interstate commerce.
             4630          (2) For purposes of this part, the ownership in this state of income-producing real
             4631      property or tangible personal property, other than property excluded under Subsection (1),
             4632      constitutes transacting business in this state.
             4633          (3) This section does not apply in determining the contacts or activities that may
             4634      subject a foreign limited partnership to service of process, taxation, or regulation under any
             4635      other law of this state.
             4636          Section 162. Section 48-2d-904 is enacted to read:
             4637          48-2d-904. Filing of certificate of authority.
             4638          Unless the division determines that an application for a certificate of authority does not
             4639      comply with the filing requirements of this chapter, the division, upon payment of all filing
             4640      fees, shall file the application, prepare, sign and file a certificate of authority to transact
             4641      business in this state, and send a copy of the filed certificate, together with a receipt for the
             4642      fees, to the foreign limited partnership or its representative.
             4643          Section 163. Section 48-2d-905 is enacted to read:
             4644          48-2d-905. Noncomplying name of foreign limited partnership.



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             4645
         (1) A foreign limited partnership whose name does not comply with Section 48-2d-108
             4646      may not obtain a certificate of authority until it adopts, for the purpose of transacting business
             4647      in this state, an alternate name that complies with Section 48-2d-108 . A foreign limited
             4648      partnership that adopts an alternate name under this Subsection (1) and then obtains a
             4649      certificate of authority with the name need not comply with Title 42, Chapter 2, Conducting
             4650      Business Under Assumed Name. After obtaining a certificate of authority with an alternate
             4651      name, a foreign limited partnership shall transact business in this state under the name unless
             4652      the foreign limited partnership is authorized under Title 42, Chapter 2, Conducting Business
             4653      Under Assumed Name, to transact business in this state under another name.
             4654          (2) If a foreign limited partnership authorized to transact business in this state changes
             4655      its name to one that does not comply with Section 48-2d-108 , it may not thereafter transact
             4656      business in this state until it complies with Subsection (1) and obtains an amended certificate of
             4657      authority.
             4658          Section 164. Section 48-2d-906 is enacted to read:
             4659          48-2d-906. Revocation of certificate of authority.
             4660          (1) A certificate of authority of a foreign limited partnership to transact business in this
             4661      state may be revoked by the division in the manner provided in Subsections (2) and (3) if the
             4662      foreign limited partnership does not:
             4663          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             4664      under this chapter or other law;
             4665          (b) deliver to the division, within 60 days after the due date, its annual report required
             4666      under Section 48-2d-210 ;
             4667          (c) appoint and maintain an agent for service of process as required by Subsection
             4668      16-17-203 (1); or
             4669          (d) deliver to the division for filing a statement of a change under Section 16-17-206
             4670      within 30 days after a change has occurred in the name or address of the agent.
             4671          (2) To revoke a certificate of authority, the division must prepare, sign, and file a
             4672      notice of revocation and send a copy to the foreign limited partnership's agent for service of
             4673      process in this state, or if the foreign limited partnership does not appoint and maintain a
             4674      proper agent in this state, to the foreign limited partnership's principal office. The notice must
             4675      state:



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             4676
         (a) the revocation's effective date, which must be at least 60 days after the date the
             4677      division sends the copy; and
             4678          (b) the foreign limited partnership's failures to comply with Subsection (1) which are
             4679      the reason for the revocation.
             4680          (3) The authority of the foreign limited partnership to transact business in this state
             4681      ceases on the effective date of the notice of revocation unless before that date the foreign
             4682      limited partnership cures each failure to comply with Subsection (1) stated in the notice. If the
             4683      foreign limited partnership cures the failures, the division shall so indicate on the filed notice.
             4684          Section 165. Section 48-2d-907 is enacted to read:
             4685          48-2d-907. Cancellation of certificate of authority -- Effect of failure to have
             4686      certificate.
             4687          (1) In order to cancel its certificate of authority to transact business in this state, a
             4688      foreign limited partnership must deliver to the division for filing a notice of cancellation. The
             4689      certificate is canceled when the notice becomes effective under Section 48-2d-206 .
             4690          (2) A foreign limited partnership transacting business in this state may not maintain an
             4691      action or proceeding in this state unless it has a certificate of authority to transact business in
             4692      this state.
             4693          (3) The failure of a foreign limited partnership to have a certificate of authority to
             4694      transact business in this state does not impair the validity of a contract or act of the foreign
             4695      limited partnership or prevent the foreign limited partnership from defending an action or
             4696      proceeding in this state.
             4697          (4) A partner of a foreign limited partnership is not liable for the obligations of the
             4698      foreign limited partnership solely by reason of the foreign limited partnership's having
             4699      transacted business in this state without a certificate of authority.
             4700          (5) If a foreign limited partnership transacts business in this state without a certificate
             4701      of authority or cancels its certificate of authority, service of process for rights of action arising
             4702      out of the transaction of business in this state shall be served in accordance with Section
             4703      16-17-301 .
             4704          Section 166. Section 48-2d-908 is enacted to read:
             4705          48-2d-908. Action by attorney general.
             4706          The attorney general may maintain an action to restrain a foreign limited partnership



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             4707
     from transacting business in this state in violation of this part.
             4708          Section 167. Section 48-2d-1001 is enacted to read:
             4709     
Part 10. Actions by Partners

             4710          48-2d-1001. Direct action by partner.
             4711          (1) Subject to Subsection (2), a partner may maintain a direct action against the limited
             4712      partnership or another partner for legal or equitable relief, with or without an accounting as to
             4713      the partnership's activities, to enforce the rights and otherwise protect the interests of the
             4714      partner, including rights and interests under the partnership agreement or this chapter or arising
             4715      independently of the partnership relationship.
             4716          (2) A partner commencing a direct action under this section is required to plead and
             4717      prove an actual or threatened injury that is not solely the result of an injury suffered or
             4718      threatened to be suffered by the limited partnership.
             4719          (3) The accrual of, and any time limitation on, a right of action for a remedy under this
             4720      section is governed by other law. A right to an accounting upon a dissolution and winding up
             4721      does not revive a claim barred by law.
             4722          Section 168. Section 48-2d-1002 is enacted to read:
             4723          48-2d-1002. Derivative action.
             4724          A partner may maintain a derivative action to enforce a right of a limited partnership if:
             4725          (1) the partner first makes a demand on the general partners, requesting that they cause
             4726      the limited partnership to bring an action to enforce the right, and the general partners do not
             4727      bring the action within a reasonable time; or
             4728          (2) a demand would be futile.
             4729          Section 169. Section 48-2d-1003 is enacted to read:
             4730          48-2d-1003. Proper plaintiff.
             4731          A derivative action may be maintained only by a person that is a partner at the time the
             4732      action is commenced and:
             4733          (1) that was a partner when the conduct giving rise to the action occurred; or
             4734          (2) whose status as a partner devolved upon the person by operation of law or pursuant
             4735      to the terms of the partnership agreement from a person that was a partner at the time of the
             4736      conduct.
             4737          Section 170. Section 48-2d-1004 is enacted to read:



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             4738
         48-2d-1004. Pleading.
             4739          In a derivative action, the complaint must state with particularity:
             4740          (1) the date and content of plaintiff's demand and the general partners' response to the
             4741      demand; or
             4742          (2) why demand should be excused as futile.
             4743          Section 171. Section 48-2d-1005 is enacted to read:
             4744          48-2d-1005. Proceeds and expenses.
             4745          (1) Except as otherwise provided in Subsection (2):
             4746          (a) any proceeds or other benefits of a derivative action, whether by judgment,
             4747      compromise, or settlement, belong to the limited partnership and not to the derivative plaintiff;
             4748      and
             4749          (b) if the derivative plaintiff receives any proceeds, the derivative plaintiff shall
             4750      immediately remit them to the limited partnership.
             4751          (2) If a derivative action is successful in whole or in part, the court may award the
             4752      plaintiff reasonable expenses, including reasonable attorney fees, from the recovery of the
             4753      limited partnership.
             4754          Section 172. Section 48-2d-1101 is enacted to read:
             4755     
Part 11. Merger, Conversion, and Domestication

             4756          48-2d-1101. Definitions.
             4757          In this part:
             4758          (1) "Constituent limited partnership" means a constituent organization that is a limited
             4759      partnership.
             4760          (2) "Constituent organization" means an organization that is party to a merger.
             4761          (3) "Converted organization" means the organization into which a converting
             4762      organization converts pursuant to Sections 48-2d-1106 through 48-2d-1109 .
             4763          (4) "Converting limited partnership" means a converting organization that is a limited
             4764      partnership.
             4765          (5) "Converting organization" means an organization that converts into another
             4766      organization pursuant to Section 48-2d-1106 .
             4767          (6) "Domesticated limited partnership" means a limited partnership that exists after a
             4768      domesticating foreign limited partnership or limited partnership effects a domestication



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             4769
     pursuant to Sections 48-2d-1110 through 48-2d-1113 .
             4770          (7) "Domesticating limited partnership" means a limited partnership that effects a
             4771      domestication pursuant to Sections 48-2d-1110 through 48-2d-1113 .
             4772          (8) "Foreign limited partnership" means a limited partnership that:
             4773          (a) has its chief executive office in a jurisdiction other than this state; or
             4774          (b) specified in its partnership agreement that relations among the partners and between
             4775      the partners and the limited partnership will be governed by the law of a jurisdiction other than
             4776      this state.
             4777          (9) "Governing statute" means the statute that governs an organization's internal affairs.
             4778          (10) (a) "Organization" means:
             4779          (i) a general partnership, including a limited liability partnership;
             4780          (ii) a limited partnership, including a limited liability limited partnership;
             4781          (iii) a limited liability company;
             4782          (iv) a business trust;
             4783          (v) a corporation; or
             4784          (vi) any other person having a governing statute.
             4785          (b) "Organization" includes a domestic or foreign organization regardless of whether
             4786      organized for profit.
             4787          (11) "Organizational documents" means:
             4788          (a) for a domestic or foreign general partnership, its partnership agreement;
             4789          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             4790      partnership and partnership agreement;
             4791          (c) for a domestic or foreign limited liability company, its certificate or articles of
             4792      organization and operating agreement, or comparable records as provided in its governing
             4793      statute;
             4794          (d) for a business trust, its agreement of trust and declaration of trust;
             4795          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             4796      and other agreements among its shareholders which are authorized by its governing statute, or
             4797      comparable records as provided in its governing statute; and
             4798          (f) for any other organization, the basic records that create the organization and
             4799      determine its internal governance and the relations among the persons that own it, have an



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             4800
     interest in it, or are members of it.
             4801          (12) "Personal liability" means liability for a debt, obligation, or other liability of an
             4802      organization which is imposed on a person that co-owns, has an interest in, or is a member of
             4803      the organization:
             4804          (a) by the governing statute solely by reason of the person co-owning, having an
             4805      interest in, or being a member of the organization; or
             4806          (b) by the organization's organizational documents under a provision of the governing
             4807      statute authorizing those documents to make one or more specified persons liable for all or
             4808      specified debts, obligations, or other liabilities of the organization solely by reason of the
             4809      person or persons co-owning, having an interest in, or being a member of the organization.
             4810          (13) "Surviving organization" means an organization into which one or more other
             4811      organizations are merged whether the organization preexisted the merger or was created by the
             4812      merger.
             4813          Section 173. Section 48-2d-1102 is enacted to read:
             4814          48-2d-1102. Merger.
             4815          (1) A limited partnership may merge with one or more other constituent organizations
             4816      pursuant to this section, Sections 48-2d-1103 through 48-2d-1105 , and a plan of merger, if:
             4817          (a) the governing statute of each of the other organizations authorizes the merger;
             4818          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the
             4819      governing statutes; and
             4820          (c) each of the other organizations complies with its governing statute in effecting the
             4821      merger.
             4822          (2) A plan of merger must be in a record and must include:
             4823          (a) the name and form of each constituent organization;
             4824          (b) the name and form of the surviving organization and, if the surviving organization
             4825      is to be created by the merger, a statement to that effect;
             4826          (c) the terms and conditions of the merger, including the manner and basis for
             4827      converting the interests in each constituent organization into any combination of money,
             4828      interests in the surviving organization, and other consideration;
             4829          (d) if the surviving organization is to be created by the merger, the surviving
             4830      organization's organizational documents that are proposed to be in a record; and



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             4831
         (e) if the surviving organization is not to be created by the merger, any amendments to
             4832      be made by the merger to the surviving organization's organizational documents that are, or are
             4833      proposed to be, in a record.
             4834          Section 174. Section 48-2d-1103 is enacted to read:
             4835          48-2d-1103. Action on plan of merger by constituent partnership.
             4836          (1) Subject to Section 48-2d-1114 , a plan of merger must be consented to by all the
             4837      partners of a constituent limited partnership.
             4838          (2) Subject to Section 48-2d-1114 and any contractual rights, after a merger is
             4839      approved, and at any time before articles of merger are delivered to the division for filing under
             4840      Section 48-2d-1104 , a constituent limited partnership may amend the plan or abandon the
             4841      merger:
             4842          (a) as provided in the plan; or
             4843          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             4844      approve the plan.
             4845          Section 175. Section 48-2d-1104 is enacted to read:
             4846          48-2d-1104. Filings required and permitted for merger -- Effective date.
             4847          (1) After each constituent organization has approved a merger, articles of merger must
             4848      be signed on behalf of:
             4849          (a) each constituent limited partnership, by each general partner listed in the certificate
             4850      of limited partnership; and
             4851          (b) each other constituent organization, as provided in its governing statute.
             4852          (2) Articles of merger under this section must include:
             4853          (a) the name and form of each constituent organization and the jurisdiction of its
             4854      governing statute;
             4855          (b) the name and form of the surviving organization, the jurisdiction of its governing
             4856      statute, and, if the surviving organization is created by the merger, a statement to that effect;
             4857          (c) the date the merger is effective under the governing statute of the surviving
             4858      organization;
             4859          (d) if the surviving organization is to be created by the merger:
             4860          (i) if it will be a limited partnership, the limited partnership's certificate of limited
             4861      partnership; or



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             4862
         (ii) if it will be an organization other than a limited partnership, the organizational
             4863      document that creates the organization that is in a public record;
             4864          (e) if the surviving organization preexists the merger, any amendments provided for in
             4865      the plan of merger for the organizational document that created the organization that are in a
             4866      public record;
             4867          (f) a statement as to each constituent organization that the merger was approved as
             4868      required by the organization's governing statute;
             4869          (g) if the surviving organization is a foreign organization not authorized to transact
             4870      business in this state, the street and mailing addresses of an office that may be used for service
             4871      of process under Section 48-2d-1105 (2); and
             4872          (h) any additional information required by the governing statute of any constituent
             4873      organization.
             4874          (3) Each constituent limited partnership shall deliver the articles of merger for filing in
             4875      the division.
             4876          (4) A merger becomes effective under this part:
             4877          (a) if the surviving organization is a limited partnership, upon the later of:
             4878          (i) compliance with Subsection (3); or
             4879          (ii) subject to Subsection 48-2d-206 (3), as specified in the articles of merger; or
             4880          (b) if the surviving organization is not a limited partnership, as provided by the
             4881      governing statute of the surviving organization.
             4882          Section 176. Section 48-2d-1105 is enacted to read:
             4883          48-2d-1105. Effect of merger.
             4884          (1) When a merger becomes effective:
             4885          (a) the surviving organization continues or comes into existence;
             4886          (b) each constituent organization that merges into the surviving organization ceases to
             4887      exist as a separate entity;
             4888          (c) all property owned by each constituent organization that ceases to exist vests in the
             4889      surviving organization;
             4890          (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             4891      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             4892          (e) an action or proceeding pending by or against any constituent organization that



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             4893
     ceases to exist may be continued as if the merger had not occurred;
             4894          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             4895      and purposes of each constituent organization that ceases to exist vest in the surviving
             4896      organization;
             4897          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             4898      plan of merger take effect; and
             4899          (h) except as otherwise agreed, if a constituent limited partnership ceases to exist, the
             4900      merger does not dissolve the limited partnership for the purposes of Part 8, Dissolution;
             4901          (i) if the surviving organization is created by the merger:
             4902          (i) if it is a limited partnership, the certificate of limited partnership becomes effective;
             4903      or
             4904          (ii) if it is an organization other than a limited partnership, the organizational document
             4905      that creates the organization becomes effective; and
             4906          (j) if the surviving organization preexisted the merger, any amendments provided for in
             4907      the articles of merger for the organizational document that created the organization become
             4908      effective.
             4909          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             4910      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             4911      organization, if before the merger the constituent organization was subject to suit in this state
             4912      on the debt, obligation, or other liability. A surviving organization that is a foreign
             4913      organization and not authorized to transact business in this state may be served with process at
             4914      the address required in the articles of merger under 48-2d-1104 (2)(g).
             4915          Section 177. Section 48-2d-1106 is enacted to read:
             4916          48-2d-1106. Conversion.
             4917          (1) An organization other than a partnership or a foreign partnership may convert to a
             4918      limited partnership, and a limited partnership may convert to an organization other than a
             4919      foreign partnership pursuant to this section, Sections 48-2d-1107 through 48-2d-1109 , and a
             4920      plan of conversion, if:
             4921          (a) the other organization's governing statute authorizes the conversion;
             4922          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other
             4923      organization's governing statute; and



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             4924
         (c) the other organization complies with its governing statute in effecting the
             4925      conversion.
             4926          (2) A plan of conversion must be in a record and must include:
             4927          (a) the name and form of the organization before conversion;
             4928          (b) the name and form of the organization after conversion;
             4929          (c) the terms and conditions of the conversion, including the manner and basis for
             4930      converting interests in the converting organization into any combination of money, interests in
             4931      the converted organization, and other consideration; and
             4932          (d) the organizational documents of the converted organization that are, or are
             4933      proposed to be, in a record.
             4934          Section 178. Section 48-2d-1107 is enacted to read:
             4935          48-2d-1107. Action on plan of conversion by converting partnership.
             4936          (1) Subject to Section 48-2d-1114 , a plan of conversion must be consented to by all the
             4937      partners of a converting limited partnership.
             4938          (2) Subject to Section 48-2d-1114 and any contractual rights, after a conversion is
             4939      approved, and at any time before articles of conversion are delivered to the division for filing
             4940      under Section 48-2d-1108 , a converting limited partnership may amend the plan or abandon the
             4941      conversion:
             4942          (a) as provided in the plan; or
             4943          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             4944      approve the plan.
             4945          Section 179. Section 48-2d-1108 is enacted to read:
             4946          48-2d-1108. Filings required for conversion -- Effective date.
             4947          (1) After a plan of conversion is approved:
             4948          (a) a converting limited partnership shall deliver to the division for filing articles of
             4949      conversion and must include:
             4950          (i) a statement that the limited partnership has been converted into another
             4951      organization;
             4952          (ii) the name and form of the converted organization and the jurisdiction of its
             4953      governing statute;
             4954          (iii) the date the conversion is effective under the governing statute of the converted



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             4955
     organization;
             4956          (iv) a statement that the conversion was approved as required by this chapter;
             4957          (v) a statement that the conversion is authorized by the governing statute of the
             4958      converted organization; and
             4959          (vi) if the converted organization is a foreign organization not authorized to transact
             4960      business in this state, the street and mailing addresses of an office that may be used for
             4961      purposes of Subsection 48-2d-1109 (3); and
             4962          (b) if the converting organization is not a converting limited partnership, the converting
             4963      organization shall deliver to the division for filing articles of conversion, which must include:
             4964          (i) a statement that the converted organization was converted from another
             4965      organization, and whether the converted organization is a partnership or a limited liability
             4966      partnership;
             4967          (ii) the name and form of that converting organization and the jurisdiction of its
             4968      governing statute; and
             4969          (iii) a statement that the conversion was approved in a manner that complied with the
             4970      converting organization's governing statute.
             4971          (2) A conversion becomes effective:
             4972          (a) if the converted organization is a limited partnership, when the certificate of limited
             4973      partnership takes effect; or
             4974          (b) if the converted organization is not a limited partnership, as provided by the
             4975      governing statute of the converted organization.
             4976          Section 180. Section 48-2d-1109 is enacted to read:
             4977          48-2d-1109. Effect of conversion.
             4978          (1) An organization that has been converted pursuant to this part is for all purposes the
             4979      same entity that existed before the conversion.
             4980          (2) When a conversion takes effect:
             4981          (a) all property owned by the converting organization remains vested in the converted
             4982      organization;
             4983          (b) all debts, obligations, or other liabilities of the converting organization continue as
             4984      debts, obligations, or other liabilities of the converted organization;
             4985          (c) an action or proceeding pending by or against the converting organization may be



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             4986
     continued as if the conversion had not occurred;
             4987          (d) except as prohibited by law other than this chapter, all of the rights, privileges,
             4988      immunities, powers, and purposes of the converting organization remain vested in the
             4989      converted organization;
             4990          (e) except as otherwise provided in the plan of conversion, the terms and conditions of
             4991      the plan of conversion take effect; and
             4992          (f) except as otherwise agreed, the conversion does not dissolve a converting limited
             4993      partnership for the purposes of Part 8, Dissolution.
             4994          (3) A converted organization that is a foreign organization consents to the jurisdiction
             4995      of the courts of this state to enforce any debt, obligation, or other liability for which the
             4996      converting limited partnership is liable if, before the conversion, the converting limited
             4997      partnership was subject to suit in this state on the debt, obligation, or other liability. A
             4998      converted organization that is a foreign organization and not authorized to transact business in
             4999      this state may be served with process at the address required in the articles of conversion under
             5000      Subsection 48-2d-1108 (1)(a)(vi).
             5001          Section 181. Section 48-2d-1110 is enacted to read:
             5002          48-2d-1110. Domestication.
             5003          (1) A foreign limited partnership may become a limited partnership pursuant to this
             5004      section, Sections 48-2d-1111 through 48-2d-1113 , and a plan of domestication, if:
             5005          (a) the foreign limited partnership's governing statute authorizes the domestication;
             5006          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             5007      governing statute; and
             5008          (c) the foreign limited partnership complies with its governing statute in effecting the
             5009      domestication.
             5010          (2) A limited partnership may become a foreign limited partnership pursuant to this
             5011      section, Sections 48-2d-1111 through 48-2d-1113 , and a plan of domestication, if:
             5012          (a) the foreign limited partnership's governing statute authorizes the domestication;
             5013          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             5014      governing statute; and
             5015          (c) the foreign limited partnership complies with its governing statute in effecting the
             5016      domestication.



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             5017
         (3) A plan of domestication must be in a record and must include:
             5018          (a) the name of the domesticating limited partnership before domestication and the
             5019      jurisdiction of its governing statute;
             5020          (b) the name of the domesticated limited partnership after domestication and the
             5021      jurisdiction of its governing statute;
             5022          (c) the terms and conditions of the domestication, including the manner and basis for
             5023      converting interests in the domesticating limited partnership into any combination of money,
             5024      interests in the domesticated limited partnership, and other consideration; and
             5025          (d) the organizational documents of the domesticated limited partnership that are, or
             5026      are proposed to be, in a record.
             5027          Section 182. Section 48-2d-1111 is enacted to read:
             5028          48-2d-1111. Action on plan of domestication by domesticating partnership.
             5029          (1) A plan of domestication must be consented to:
             5030          (a) by all the partners, subject to Section 48-2d-1114 , if the domesticating limited
             5031      partnership is a limited partnership; and
             5032          (b) as provided in the domesticating limited partnership's governing statute, if the
             5033      limited partnership is a foreign limited partnership.
             5034          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             5035      before articles of domestication are delivered to the division for filing under Section
             5036      48-2d-1112 , a domesticating limited partnership may amend the plan or abandon the
             5037      domestication:
             5038          (a) as provided in the plan; or
             5039          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             5040      approve the plan.
             5041          Section 183. Section 48-2d-1112 is enacted to read:
             5042          48-2d-1112. Filings required for domestication -- Effective date.
             5043          (1) After a plan of domestication is approved, a domesticating limited partnership shall
             5044      deliver to the division for filing articles of domestication, which must include:
             5045          (a) a statement, as the case may be, that the limited partnership has been domesticated
             5046      from or into another jurisdiction;
             5047          (b) the name of the domesticating limited partnership and the jurisdiction of its



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             5048
     governing statute;
             5049          (c) the name of the domesticated limited partnership and the jurisdiction of its
             5050      governing statute;
             5051          (d) the date the domestication is effective under the governing statute of the
             5052      domesticated limited partnership;
             5053          (e) if the domesticating limited partnership was a limited partnership, a statement that
             5054      the domestication was approved as required by this chapter;
             5055          (f) if the domesticating limited partnership was a foreign limited partnership, a
             5056      statement that the domestication was approved as required by the governing statute of the other
             5057      jurisdiction; and
             5058          (g) if the domesticated limited partnership is a foreign limited partnership not
             5059      authorized to transact business in this state, the street and mailing addresses of an office that
             5060      the division may use for the purposes of Subsection 48-2d-1113 (2).
             5061          (2) A domestication becomes effective:
             5062          (a) upon the filing of the statement of qualification pursuant to Section 48-2d-1001 or
             5063      on the date provided therein, whichever is later, if the domesticated limited partnership is a
             5064      limited partnership; and
             5065          (b) according to the governing statute of the domesticated limited partnership, if it is a
             5066      foreign limited partnership.
             5067          Section 184. Section 48-2d-1113 is enacted to read:
             5068          48-2d-1113. Effect of domestication.
             5069          (1) When a domestication takes effect:
             5070          (a) the domesticated limited partnership is for all purposes the limited partnership that
             5071      existed before the domestication;
             5072          (b) all property owned by the domesticating limited partnership remains vested in the
             5073      domesticated limited partnership;
             5074          (c) all debts, obligations, or other liabilities of the domesticating limited partnership
             5075      continue as debts, obligations, or other liabilities of the domesticated limited partnership;
             5076          (d) an action or proceeding pending by or against a domesticating limited partnership
             5077      may be continued as if the domestication had not occurred;
             5078          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,



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             5079
     and purposes of the domesticating limited partnership remain vested in the domesticated
             5080      limited partnership;
             5081          (f) except as otherwise provided in the plan of domestication, the terms and conditions
             5082      of the plan of domestication take effect; and
             5083          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             5084      limited partnership for the purposes of Part 8, Dissolution.
             5085          (2) A domesticated limited partnership that is a foreign limited partnership consents to
             5086      the jurisdiction of the courts of this state to enforce any debt, obligation, or other liability owed
             5087      by the domesticating limited partnership, if, before the domestication, the domesticating
             5088      limited partnership was subject to suit in this state on the debt, obligation, or other liability. A
             5089      domesticated limited partnership that is a foreign limited partnership and not authorized to
             5090      transact business in this state may be served with process at the address required in the articles
             5091      of domestication under Subsection 48-2d-1112 (1)(g).
             5092          (3) If a limited partnership has adopted and approved a plan of domestication under
             5093      Section 48-2d-1110 providing for the limited partnership to be domesticated in a foreign
             5094      jurisdiction, a statement pursuant to Subsection 48-2d-907 cancelling the limited partnership's
             5095      certificate of authority must be delivered to the division for filing setting forth:
             5096          (a) the name of the limited partnership;
             5097          (b) a statement that the limited partnership's certificate of authority is being cancelled
             5098      in connection with the domestication of the limited partnership in a foreign jurisdiction;
             5099          (c) a statement the domestication was approved as required by this chapter; and
             5100          (d) the jurisdiction of formation of the domesticated foreign limited partnership.
             5101          Section 185. Section 48-2d-1114 is enacted to read:
             5102          48-2d-1114. Restrictions on approval of mergers, conversions, and domestications
             5103      -- Relinquishing limited liability partnership status.
             5104          (1) If a partner of a constituent, converting, or domesticating limited partnership will
             5105      have personal liability with respect to a surviving, converted, or domesticated organization,
             5106      approval or amendment of a plan of merger, conversion, or domestication is ineffective without
             5107      the consent of the partner, unless:
             5108          (a) the limited partnership's partnership agreement provides for approval of a merger,
             5109      conversion, or domestication with the consent of fewer than all the partners; and



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             5110
         (b) the partner has consented to the provision of the partnership agreement.
             5111          (2) An amendment to a certificate of limited partnership which deletes a statement that
             5112      the limited partnership is a limited liability limited partnership is ineffective without the
             5113      consent of each general partner unless:
             5114          (a) the limited partnership's partnership agreement provides for the amendment with
             5115      the consent of less than all the general partners; and
             5116          (b) each general partner that does not consent to the amendment has consented to the
             5117      provision of the partnership agreement.
             5118          (3) A partner does not give the consent required by Subsection (1) or (2) merely by
             5119      consenting to a provision of the partnership agreement that permits the partnership agreement
             5120      to be amended with the consent of fewer than all the partners.
             5121          Section 186. Section 48-2d-1115 is enacted to read:
             5122          48-2d-1115. Liability of general partner after conversion or merger.
             5123          (1) A conversion or merger under this part does not discharge any liability under
             5124      Sections 48-2d-404 and 48-2d-607 of a person that was a general partner in or dissociated as a
             5125      general partner from a converting or constituent limited partnership, but:
             5126          (a) the provisions of this chapter pertaining to the collection or discharge of the liability
             5127      continue to apply to the liability;
             5128          (b) for the purposes of applying those provisions, the converted or surviving
             5129      organization is deemed to be the converting or constituent limited partnership; and
             5130          (c) if a person is required to pay any amount under this Subsection (1):
             5131          (i) the person has a right of contribution from each other person that was liable as a
             5132      general partner under Section 48-2d-404 when the obligation was incurred and has not been
             5133      released from the obligation under Section 48-2d-607 ; and
             5134          (ii) the contribution due from each of those persons is in proportion to the right to
             5135      receive distributions in the capacity of general partner in effect for each of those persons when
             5136      the obligation was incurred.
             5137          (2) In addition to any other liability provided by law:
             5138          (a) a person that immediately before a conversion or merger became effective was a
             5139      general partner in a converting or constituent limited partnership that was not a limited liability
             5140      limited partnership is personally liable for each obligation of the converted or surviving



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             5141
     organization arising from a transaction with a third party after the conversion or merger
             5142      becomes effective, if, at the time the third party enters into the transaction, the third party:
             5143          (i) does not have notice of the conversion or merger; and
             5144          (ii) reasonably believes that:
             5145          (A) the converted or surviving business is the converting or constituent limited
             5146      partnership;
             5147          (B) the converting or constituent limited partnership is not a limited liability limited
             5148      partnership; and
             5149          (C) the person is a general partner in the converting or constituent limited partnership;
             5150      and
             5151          (b) a person that was dissociated as a general partner from a converting or constituent
             5152      limited partnership before the conversion or merger became effective is personally liable for
             5153      each obligation of the converted or surviving organization arising from a transaction with a
             5154      third party after the conversion or merger becomes effective, if:
             5155          (i) immediately before the conversion or merger became effective the converting or
             5156      surviving limited partnership was a not a limited liability limited partnership; and
             5157          (ii) at the time the third party enters into the transaction less than two years have passed
             5158      since the person dissociated as a general partner and the third party:
             5159          (A) does not have notice of the dissociation;
             5160          (B) does not have notice of the conversion or merger; and
             5161          (C) reasonably believes that the converted or surviving organization is the converting
             5162      or constituent limited partnership, the converting or constituent limited partnership is not a
             5163      limited liability limited partnership, and the person is a general partner in the converting or
             5164      constituent limited partnership.
             5165          Section 187. Section 48-2d-1116 is enacted to read:
             5166          48-2d-1116. Power of general partners and persons dissociated as general
             5167      partners to bind organization after conversion or merger.
             5168          (1) An act of a person that immediately before a conversion or merger became effective
             5169      was a general partner in a converting or constituent limited partnership binds the converted or
             5170      surviving organization after the conversion or merger becomes effective, if:
             5171          (a) before the conversion or merger became effective, the act would have bound the



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             5172
     converting or constituent limited partnership under Section 48-2d-402 ; and
             5173          (b) at the time the third party enters into the transaction, the third party:
             5174          (i) does not have notice of the conversion or merger; and
             5175          (ii) reasonably believes that the converted or surviving business is the converting or
             5176      constituent limited partnership and that the person is a general partner in the converting or
             5177      constituent limited partnership.
             5178          (2) An act of a person that before a conversion or merger became effective was
             5179      dissociated as a general partner from a converting or constituent limited partnership binds the
             5180      converted or surviving organization after the conversion or merger becomes effective, if:
             5181          (a) before the conversion or merger became effective, the act would have bound the
             5182      converting or constituent limited partnership under Section 48-2d-402 if the person had been a
             5183      general partner; and
             5184          (b) at the time the third party enters into the transaction, less than two years have
             5185      passed since the person dissociated as a general partner and the third party:
             5186          (i) does not have notice of the dissociation;
             5187          (ii) does not have notice of the conversion or merger; and
             5188          (iii) reasonably believes that the converted or surviving organization is the converting
             5189      or constituent limited partnership and that the person is a general partner in the converting or
             5190      constituent limited partnership.
             5191          (3) If a person having knowledge of the conversion or merger causes a converted or
             5192      surviving organization to incur an obligation under Subsection (1) or (2), the person is liable:
             5193          (a) to the converted or surviving organization for any damage caused to the
             5194      organization arising from the obligation; and
             5195          (b) if another person is liable for the obligation, to that other person for any damage
             5196      caused to that other person arising from the liability.
             5197          Section 188. Section 48-2d-1117 is enacted to read:
             5198          48-2d-1117. Part not exclusive.
             5199          This part does not preclude an entity from being merged, converted, or domesticated
             5200      under law other than this chapter.
             5201          Section 189. Section 48-2d-1201 is enacted to read:
             5202     
Part 12. Miscellaneous Provisions



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             5203
         48-2d-1201. Uniformity of application and construction.
             5204          In applying and construing this chapter, consideration must be given to the need to
             5205      promote uniformity of the law with respect to its subject matter among states that enact this
             5206      uniform act.
             5207          Section 190. Section 48-2d-1202 is enacted to read:
             5208          48-2d-1202. Relation to electronic signatures in global and national commerce act.
             5209          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             5210      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             5211      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             5212      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             5213          Section 191. Section 48-2d-1203 is enacted to read:
             5214          48-2d-1203. Severability clause.
             5215          If any provision of this chapter or its application to any person or circumstance is held
             5216      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             5217      be given effect without the invalid provision or application, and to this end the provisions of
             5218      this chapter are severable.
             5219          Section 192. Section 48-2d-1204 is enacted to read:
             5220          48-2d-1204. Savings clause.
             5221          This chapter does not affect an action commenced, proceeding brought, or right accrued
             5222      before July 1, 2012.
             5223          Section 193. Section 48-2d-1205 is enacted to read:
             5224          48-2d-1205. Application to existing relationships.
             5225          (1) Before January 1, 2014, this chapter governs only:
             5226          (a) a limited partnership formed on or after July 1, 2012; and
             5227          (b) subject to Subsections (3) and (4), a limited partnership formed before July 1, 2012,
             5228      which elects, in the manner provided in its partnership agreement or by law for amending the
             5229      partnership agreement, to be subject to this chapter.
             5230          (2) Subject to Subsection (3), on and after January 1, 2014, this chapter governs all
             5231      limited partnerships.
             5232          (3) With respect to a limited partnership formed before July 1, 2012, the following
             5233      rules apply except as the partners otherwise elect in the manner provided in the partnership



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             5234
     agreement or by law for amending the partnership agreement:
             5235          (a) Subsection 48-2d-104 (3) does not apply and the limited partnership has whatever
             5236      duration it had under the law applicable immediately before July 1, 2012.
             5237          (b) The limited partnership is not required to amend its certificate of limited
             5238      partnership to comply with Subsection 48-2d-201 (1)(d).
             5239          (c) Sections 48-2d-601 and 48-2d-602 do not apply and a limited partner has the same
             5240      right and power to dissociate from the limited partnership, with the same consequences, as
             5241      existed immediately before July 1, 2012.
             5242          (d) Subsection 48-2d-603 (4) does not apply.
             5243          (e) Subsection 48-2d-603 (5) does not apply and a court has the same power to expel a
             5244      general partner as the court had immediately before July 1, 2012.
             5245          (f) Subsection 48-2d-801 (3) does not apply and the connection between a person's
             5246      dissociation as a general partner and the dissolution of the limited partnership is the same as
             5247      existed immediately before July 1, 2012.
             5248          (4) With respect to a limited partnership that elects pursuant to Subsection (1)(b) to be
             5249      subject to this chapter, after the election takes effect the provisions of this chapter relating to
             5250      the liability of the limited partnership's general partners to third parties apply:
             5251          (a) before July 1, 2012, to:
             5252          (i) a third party that had not done business with the limited partnership in the year
             5253      before the election took effect; and
             5254          (ii) a third party that had done business with the limited partnership in the year before
             5255      the election took effect only if the third party knows or has received a notification of the
             5256      election; and
             5257          (b) on and after July 1, 2012, to all third parties, but those provisions remain
             5258      inapplicable to any obligation incurred while those provisions were inapplicable under
             5259      Subsection (4)(a)(ii).
             5260          Section 194. Section 48-3-101 is enacted to read:
             5261     
CHAPTER 3. UTAH REVISED UNIFORM LIMITED LIABILITY

             5262     
COMPANY ACT

             5263     
Part 1. General Provisions

             5264          48-3-101. Title.



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             5265
         This chapter may be cited as the "Utah Revised Uniform Limited Liability Company
             5266      Act."
             5267          Section 195. Section 48-3-102 is enacted to read:
             5268          48-3-102. Definitions.
             5269          As used in this chapter:
             5270          (1) (a) "Certificate of organization" means the certificate required by Section 48-3-201 .
             5271          (b) "Certificate of organization" includes the certificate as amended or restated.
             5272          (2) "Contribution" means any benefit provided by a person to a limited liability
             5273      company:
             5274          (a) in order to become a member upon formation of the limited liability company and
             5275      in accordance with an agreement between or among the persons that have agreed to become the
             5276      initial members of the limited liability company;
             5277          (b) in order to become a member after formation of the limited liability company and in
             5278      accordance with an agreement between the person and the limited liability company; or
             5279          (c) in the person's capacity as a member and in accordance with the operating
             5280      agreement or an agreement between the member and the limited liability company.
             5281          (3) "Debtor in bankruptcy" means a person that is the subject of:
             5282          (a) an order for relief under United States Code, Title 11, or a successor statute of
             5283      general application; or
             5284          (b) a comparable order under federal, state, or foreign law governing insolvency.
             5285          (4) "Distribution," except as otherwise provided in Subsection 48-3-405 (7), means a
             5286      transfer of money or other property from a limited liability company to another person on
             5287      account of a transferable interest.
             5288          (5) "Effective," with respect to a record required or permitted to be delivered to the
             5289      division for filing under this chapter, means effective under Subsection 48-3-205 (3).
             5290          (6) "Foreign limited liability company" means an unincorporated entity formed under
             5291      the law of a jurisdiction other than this state and denominated by that law as a limited liability
             5292      company, including a low-profit limited liability company.
             5293          (7) "Limited liability company," except in the phrase "foreign limited liability
             5294      company," means an entity formed under this chapter, including a low-profit limited liability
             5295      company formed under this chapter.



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             5296
         (8) "Low-profit limited liability company" means a limited liability company meeting
             5297      the requirements of Part 13, Low-profit Limited Liability Companies.
             5298          (9) "Manager" means a person that under the operating agreement of a
             5299      manager-managed limited liability company is responsible, alone or in concert with others, for
             5300      performing the management functions stated in Subsection 48-3-407 (3).
             5301          (10) "Manager-managed limited liability company" means a limited liability company
             5302      that qualifies under Subsection 48-3-407 (1).
             5303          (11) "Member" means a person that has become a member of a limited liability
             5304      company under Section 48-3-401 and has not dissociated under Section 48-3-602 .
             5305          (12) "Member-managed limited liability company" means a limited liability company
             5306      that is not a manager-managed limited liability company.
             5307          (13) (a) "Operating agreement" means the agreement, whether or not referred to as an
             5308      operating agreement and whether oral, in a record, implied, or in any combination thereof, of
             5309      all the members of a limited liability company, including a sole member, concerning the
             5310      matters described in Subsection 48-3-110 (1).
             5311          (b) "Operating agreement" includes the agreement as amended or restated.
             5312          (14) "Organizer" means a person that acts under Section 48-3-201 to form a limited
             5313      liability company.
             5314          (15) "Person" means:
             5315          (a) an individual;
             5316          (b) a corporation;
             5317          (c) a business trust;
             5318          (d) an estate;
             5319          (e) a trust;
             5320          (f) a partnership;
             5321          (g) a limited liability company;
             5322          (h) an association;
             5323          (i) a joint venture;
             5324          (j) a public corporation;
             5325          (k) government;
             5326          (l) a governmental subdivision, agency, or instrumentality; or



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             5327
         (m) any other legal or commercial entity.
             5328          (16) "Principal office" means the principal executive office of a limited liability
             5329      company or foreign limited liability company, whether or not the office is located in this state.
             5330          (17) "Professional services company" means a limited liability company meeting the
             5331      requirements of Part 11, Professional Services Companies.
             5332          (18) "Record" means information that is inscribed on a tangible medium or that is
             5333      stored in an electronic or other medium and is retrievable in perceivable form.
             5334          (19) "Series" means a series created in accordance with Part 12, Series Limited
             5335      Liability Companies.
             5336          (20) "Sign" means, with the present intent to authenticate or adopt a record:
             5337          (a) to execute or adopt a tangible symbol; or
             5338          (b) to attach to or logically associate with the record an electronic symbol, sound, or
             5339      process.
             5340          (21) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             5341      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             5342      of the United States.
             5343          (22) "Transfer" includes an assignment, conveyance, deed, bill of sale, lease, mortgage,
             5344      security interest, encumbrance, gift, and transfer by operation of law.
             5345          (23) "Transferable interest" means the right, as originally associated with a person's
             5346      capacity as a member, to receive distributions from a limited liability company in accordance
             5347      with the operating agreement, whether or not the person remains a member or continues to own
             5348      any part of the right.
             5349          (24) "Transferee" means a person to which all or part of a transferable interest has been
             5350      transferred, whether or not the transferor is a member.
             5351          (25) "Tribal limited liability company" means a limited liability company:
             5352          (a) formed under the law of a tribe; and
             5353          (b) that is at least 51% owned or controlled by the tribe.
             5354          (26) "Tribe" means a tribe, band, nation, pueblo, or other organized group or
             5355      community of Indians, including an Alaska Native village, that is legally recognized as eligible
             5356      for and is consistent with a special program, service, or entitlement provided by the United
             5357      States to Indians because of their status as Indians.



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             5358
         Section 196. Section 48-3-103 is enacted to read:
             5359          48-3-103. Knowledge -- Notice.
             5360          (1) A person knows a fact when the person:
             5361          (a) has actual knowledge of it; or
             5362          (b) is deemed to know it under Subsection (4)(a) or law other than this chapter.
             5363          (2) A person has notice of a fact when the person:
             5364          (a) has reason to know the fact from all of the facts known to the person at the time in
             5365      question; or
             5366          (b) is deemed to have notice of the fact under Subsection (4)(b).
             5367          (3) A person notifies another of a fact by taking steps reasonably required to inform the
             5368      other person in ordinary course, whether or not the other person knows the fact.
             5369          (4) A person that is not a member is deemed:
             5370          (a) to know of a limitation on authority to transfer real property as provided in
             5371      Subsection 48-3-302 (7);
             5372          (b) to have notice of a limited liability company's:
             5373          (i) dissolution, 90 days after a statement of dissolution under Subsection
             5374      48-3-703 (2)(b)(i) becomes effective;
             5375          (ii) termination, 90 days after a statement of termination Subsection 48-3-703 (2)(b)(vi)
             5376      becomes effective; and
             5377          (iii) merger, conversion, or domestication, 90 days after articles of merger, conversion,
             5378      or domestication under Part 10, Merger, Conversion, and Domestication, become effective; and
             5379          (c) for a filing not described in Subsection (4)(b), to have constructive notice of an
             5380      action taken by a filing that is filed with the division.
             5381          Section 197. Section 48-3-104 is enacted to read:
             5382          48-3-104. Nature, purpose, and duration of limited liability company.
             5383          (1) A limited liability company is an entity distinct from its members.
             5384          (2) A limited liability company may have any lawful purpose, regardless of whether for
             5385      profit.
             5386          (3) A limited liability company has perpetual duration.
             5387          Section 198. Section 48-3-105 is enacted to read:
             5388          48-3-105. Powers.



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             5389
         A limited liability company has the capacity to sue and be sued in its own name and the
             5390      power to do all things necessary or convenient to carry on its activities.
             5391          Section 199. Section 48-3-106 is enacted to read:
             5392          48-3-106. Governing law.
             5393          The law of this state governs:
             5394          (1) the internal affairs of a limited liability company; and
             5395          (2) the liability of a member as member and a manager as manager for the debts,
             5396      obligations, or other liabilities of a limited liability company.
             5397          Section 200. Section 48-3-107 is enacted to read:
             5398          48-3-107. Supplemental principles of law.
             5399          Unless displaced by particular provisions of this chapter, the principles of law and
             5400      equity supplement this chapter.
             5401          Section 201. Section 48-3-108 is enacted to read:
             5402          48-3-108. Name.
             5403          (1) (a) Except as provided in Section 48-3-1104 or 48-3-1302 , the name of a limited
             5404      liability company must contain the words "limited liability company" or "limited company" or
             5405      the abbreviation "L.L.C.," "LLC," "L.C.," or "LC".
             5406          (b) "Company" may be abbreviated as "Co.".
             5407          (c) The name of a limited liability company may not contain:
             5408          (i) without the written consent of the United States Olympic Committee, the words:
             5409          (A) "Olympic";
             5410          (B) "Olympiad"; or
             5411          (C) "Citius Altius Fortius"; and
             5412          (ii) without the written consent of the Division of Consumer Protection issued in
             5413      accordance with Section 13-34-114 , the words:
             5414          (A) "university";
             5415          (B) "college"; or
             5416          (C) "institute" or "institution".
             5417          (2) Unless authorized by Subsection (3), the name of a limited liability company must
             5418      be distinguishable in the records of the division from:
             5419          (a) the name of each person that is not an individual and that is incorporated,



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             5420
     organized, or authorized to transact business in this state; and
             5421          (b) each name reserved under Section 48-3-109 and:
             5422          (i) Section 16-6a-401 or 16-6a-402 ;
             5423          (ii) Section 16-10a-401 or 16-10a-402 ;
             5424          (iii) Section 16-11-16 ;
             5425          (iv) Section 42-2-6.6 ;
             5426          (v) Section 48-1b-1002 ; or
             5427          (vi) Section 48-2d-108 or 48-2d-109 .
             5428          (3) A limited liability company may apply to the division for authorization to use a
             5429      name that does not comply with Subsection (2). The division shall authorize use of the name
             5430      applied for if, as to each noncomplying name:
             5431          (a) the present user, registrant, or owner of the noncomplying name consents in a
             5432      signed record to the use and submits an undertaking in a form satisfactory to the division to
             5433      change the noncomplying name to a name that complies with Subsection (2) and is
             5434      distinguishable in the records of the division from the name applied for; or
             5435          (b) the applicant delivers to the division a certified copy of the final judgment of a
             5436      court establishing the applicant's right to use in this state the name applied for.
             5437          (4) Subject to Section 48-3-805 , this section applies to a foreign limited liability
             5438      company transacting business in this state which has a certificate of authority to transact
             5439      business in this state or which has applied for a certificate of authority.
             5440          (5) The division may not approve for filing a name that implies that a limited liability
             5441      company is an agency of this state or any of its political subdivisions, if it is not actually such a
             5442      legally established agency or subdivision.
             5443          (6) The authorization to file a certificate under or to reserve or register a limited
             5444      liability company name as granted by the division does not:
             5445          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             5446          (b) derogate from the common law, the principles of equity, or the statutes of this state
             5447      or of the United States with respect to the right to acquire and protect names and trademarks; or
             5448          (c) create an exclusive right in geographic or generic terms contained within a name.
             5449          Section 202. Section 48-3-109 is enacted to read:
             5450          48-3-109. Reservation of name.



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             5451
         (1) A person may reserve the exclusive use of the name of a limited liability company,
             5452      including a fictitious or assumed name for a foreign limited liability company whose name is
             5453      not available, by delivering an application to the division for filing. The application must state
             5454      the name and address of the applicant and the name proposed to be reserved. If the division
             5455      finds that the name applied for is available, it must be reserved for the applicant's exclusive use
             5456      for a 120-day period.
             5457          (2) The owner of a name reserved for a limited liability company may transfer the
             5458      reservation to another person by delivering to the division for filing a signed notice of the
             5459      transfer which states the name and address of the transferee.
             5460          Section 203. Section 48-3-110 is enacted to read:
             5461          48-3-110. Operating agreement -- Scope, function, and limitations.
             5462          (1) Except as otherwise provided in Subsections (2) and (3), the operating agreement
             5463      governs:
             5464          (a) relations among the members as members and between the members and the
             5465      limited liability company;
             5466          (b) the rights and duties under this chapter of a person in the capacity of manager;
             5467          (c) the activities of the limited liability company and the conduct of those activities;
             5468      and
             5469          (d) the means and conditions for amending the operating agreement.
             5470          (2) To the extent the operating agreement does not otherwise provide for a matter
             5471      described in Subsection (1), this chapter governs the matter.
             5472          (3) An operating agreement may not:
             5473          (a) vary a limited liability company's capacity under Section 48-3-105 to sue and be
             5474      sued in its own name;
             5475          (b) vary the law applicable under Section 48-3-106 ;
             5476          (c) vary the power of the court under Section 48-3-204 ;
             5477          (d) subject to Subsections (4) through (7), eliminate the duty of loyalty, the duty of
             5478      care, or any other fiduciary duty;
             5479          (e) subject to Subsections (4) through (7), eliminate the contractual obligation of good
             5480      faith and fair dealing under Subsection 48-3-409 (4);
             5481          (f) unreasonably restrict the duties and rights stated in Section 48-3-410 ;



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             5482
         (g) vary the power of a court to decree dissolution in the circumstances specified in
             5483      Subsections 48-3-701 (4) and (5);
             5484          (h) vary the requirement to wind up a limited liability company's business as specified
             5485      in Subsections 48-3-703 (1) and (2)(a);
             5486          (i) unreasonably restrict the right of a member to maintain an action under Part 9,
             5487      Actions By Members;
             5488          (j) restrict the right to approve a merger, conversion, or domestication under Section
             5489      48-3-1014 to a member that will have personal liability with respect to a surviving, converted,
             5490      or domesticated organization; or
             5491          (k) except as otherwise provided in Subsection 48-3-112 (2), restrict the rights under
             5492      this chapter of a person other than a member or manager.
             5493          (4) If not unconscionable or against public policy, the operating agreement may:
             5494          (a) restrict or eliminate the duty:
             5495          (i) as required in Subsections 48-3-409 (2)(a) and (7), to account to the limited liability
             5496      company and to hold as trustee for it any property, profit, or benefit derived by the member in
             5497      the conduct or winding up of the limited liability company's business, from a use by the
             5498      member of the limited liability company's property, or from the appropriation of a limited
             5499      liability company opportunity;
             5500          (ii) as required in Subsections 48-3-409 (2)(b) and (7), to refrain from dealing with the
             5501      limited liability company in the conduct or winding up of the limited liability company's
             5502      business as or on behalf of a party having an interest adverse to the limited liability company;
             5503      and
             5504          (iii) as required by Subsections 48-3-409 (2)(c) and (7), to refrain from competing with
             5505      the limited liability company in the conduct of the limited liability company's business before
             5506      the dissolution of the limited liability company;
             5507          (b) identify specific types or categories of activities that do not violate the duty of
             5508      loyalty;
             5509          (c) alter the duty of care, except to authorize intentional misconduct or knowing
             5510      violation of law;
             5511          (d) alter or eliminate any other fiduciary duty; and
             5512          (e) prescribe the standards by which to measure the performance of the contractual



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             5513
     obligation of good faith and fair dealing under Subsection 48-3-409 (4), if the standards are not
             5514      manifestly unreasonable.
             5515          (5) The operating agreement may specify the method by which a specific act or
             5516      transaction that would otherwise violate the duty of loyalty may be authorized or ratified by one
             5517      or more disinterested and independent persons after full disclosure of all material facts.
             5518          (6) To the extent the operating agreement of a member-managed limited liability
             5519      company expressly relieves a member of a responsibility that the member would otherwise
             5520      have under this chapter and imposes the responsibility on one or more other members, the
             5521      operating agreement may, to the benefit of the member that the operating agreement relieves of
             5522      the responsibility, also eliminate or limit any fiduciary duty that would have pertained to the
             5523      responsibility.
             5524          (7) The operating agreement may alter or eliminate the indemnification for a member
             5525      or manager provided by Subsection 48-3-408 (1) and may eliminate or limit a member or
             5526      manager's liability to the limited liability company and members for money damages, except
             5527      for:
             5528          (a) breach of the duty of loyalty;
             5529          (b) a financial benefit received by the member or manager to which the member or
             5530      manager is not entitled;
             5531          (c) a breach of a duty under Section 48-3-406 ; or
             5532          (d) an intentional violation of criminal law.
             5533          (8) The court shall decide any claim under Subsection (4) that a term of an operating
             5534      agreement is unconscionable or against public policy. The court:
             5535          (a) shall make its determination as of the time the challenged term became part of the
             5536      operating agreement and by considering only circumstances existing at that time; and
             5537          (b) may invalidate the term only if, in light of the purposes and activities of the limited
             5538      liability company, it is readily apparent that:
             5539          (i) the objective of the term is unconscionable or against public policy; or
             5540          (ii) the means to achieve the term's objective is unconscionable or against public
             5541      policy.
             5542          Section 204. Section 48-3-111 is enacted to read:
             5543          48-3-111. Operating agreement -- Effect on limited liability company and persons



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             5544
     becoming members -- Preformation agreement.
             5545          (1) A limited liability company is bound by and may enforce the operating agreement,
             5546      whether or not the limited liability company has itself manifested assent to the operating
             5547      agreement.
             5548          (2) A person that becomes a member of a limited liability company is deemed to assent
             5549      to the operating agreement.
             5550          (3) Two or more persons intending to become the initial members of a limited liability
             5551      company may make an agreement providing that upon the formation of the limited liability
             5552      company the agreement will become the operating agreement. One person intending to
             5553      become the initial member of a limited liability company may assent to terms providing that
             5554      upon the formation of the limited liability company the terms will become the operating
             5555      agreement.
             5556          Section 205. Section 48-3-112 is enacted to read:
             5557          48-3-112. Operating agreement -- Effect on third parties and relationship to
             5558      records effective on behalf of limited liability company.
             5559          (1) An operating agreement may specify that its amendment requires the approval of a
             5560      person that is not a party to the operating agreement or the satisfaction of a condition. An
             5561      amendment is ineffective if its adoption does not include the required approval or satisfy the
             5562      specified condition.
             5563          (2) The obligations of a limited liability company and its members to a person in the
             5564      person's capacity as a transferee or dissociated member are governed by the operating
             5565      agreement. Subject only to any court order issued under Subsection 48-3-503 (2)(b) to
             5566      effectuate a charging order, an amendment to the operating agreement made after a person
             5567      becomes a transferee or dissociated member is effective with regard to any debt, obligation, or
             5568      other liability of the limited liability company or its members to the person in the person's
             5569      capacity as a transferee or dissociated member.
             5570          (3) If a record that has been delivered by a limited liability company to the division for
             5571      filing and has become effective under this chapter contains a provision that would be
             5572      ineffective under Subsection 48-3-110 (3) if contained in the operating agreement, the provision
             5573      is likewise ineffective in the record.
             5574          (4) Subject to Subsection (3), if a record that has been delivered by a limited liability



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             5575
     company to the division for filing and has become effective under this chapter conflicts with a
             5576      provision of the operating agreement:
             5577          (a) the operating agreement prevails as to members, dissociated members, transferees,
             5578      and managers; and
             5579          (b) the record prevails as to other persons to the extent they reasonably rely on the
             5580      record.
             5581          Section 206. Section 48-3-201 is enacted to read:
             5582     
Part 2. Formation - Certificate of Organization and Other Filings

             5583          48-3-201. Formation of limited liability company -- Certificate of organization.
             5584          (1) One or more persons may act as organizers to form a limited liability company by
             5585      signing and delivering to the division for filing a certificate of organization.
             5586          (2) A certificate of organization must state:
             5587          (a) the name of the limited liability company, which must comply with Section
             5588      48-3-108 ;
             5589          (b) the information required by Subsection 16-17-203 (1); and
             5590          (c) (i) if the limited liability company is a low-profit limited liability company, that the
             5591      limited liability company is a low-profit limited liability company; and
             5592          (ii) if the limited liability company is a professional services company, the information
             5593      required by Section 48-3-1103 .
             5594          (3) (a) Subject to Subsection 48-3-112 (3), a certificate of organization may also
             5595      contain statements as to matters other than those required by Subsection (2). However, a
             5596      statement in a certificate of organization is not effective as a statement of authority.
             5597          (b) A certificate of organization may also contain a notice of a series in accordance
             5598      with Section 48-3-1203 .
             5599          (4) (a) A limited liability company is formed when the division has filed the certificate
             5600      of organization, unless the certificate states a delayed effective date pursuant to Subsection
             5601      48-3-205 (3).
             5602          (b) If the certificate states a delayed effective date, a limited liability company is not
             5603      formed if, before the certificate takes effect, a statement of cancellation is signed and delivered
             5604      to the division for filing and the division files the certificate.
             5605          (c) Subject to any delayed effective date and except in a proceeding by this state to



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             5606
     dissolve a limited liability company, the filing of the certificate of organization by the division
             5607      is conclusive proof that the organizer satisfied all conditions to the formation of a limited
             5608      liability company.
             5609          Section 207. Section 48-3-202 is enacted to read:
             5610          48-3-202. Amendment or restatement of certificate of organization.
             5611          (1) A certificate of organization may be amended or restated at any time, except that in
             5612      accordance with Section 48-3-1303 , a low-profit limited liability company shall amend its
             5613      certificate of organization if the limited liability company ceases to be a low-profit limited
             5614      liability company.
             5615          (2) To amend its certificate of organization, a limited liability company must deliver to
             5616      the division for filing an amendment stating:
             5617          (a) the name of the limited liability company;
             5618          (b) the date of filing of its certificate of organization; and
             5619          (c) the changes the amendment makes to the certificate as most recently amended or
             5620      restated.
             5621          (3) To restate its certificate of organization, a limited liability company must deliver to
             5622      the division for filing a restatement, designated as such in its heading, stating:
             5623          (a) in the heading or an introductory paragraph, the limited liability company's present
             5624      name and the date of the filing of the limited liability company's initial certificate of
             5625      organization;
             5626          (b) if the limited liability company's name has been changed at any time since the
             5627      limited liability company's formation, each of the limited liability company's former names;
             5628      and
             5629          (c) the changes the restatement makes to the certificate as most recently amended or
             5630      restated.
             5631          (4) Subject to Subsections 48-3-112 (3) and 48-3-205 (3), an amendment to or
             5632      restatement of a certificate of organization is effective when filed by the division.
             5633          (5) If a member of a member-managed limited liability company, or a manager of a
             5634      manager-managed limited liability company, knows that any information in a filed certificate
             5635      of organization was inaccurate when the certificate was filed or has become inaccurate owing
             5636      to changed circumstances, the member or manager shall promptly:



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             5637
         (a) cause the certificate to be amended; or
             5638          (b) if appropriate, deliver to the division for filing a statement of change under Section
             5639      16-17-206 or a statement of correction under Section 48-3-206 .
             5640          Section 208. Section 48-3-203 is enacted to read:
             5641          48-3-203. Signing of records to be delivered for filing to division.
             5642          (1) A record delivered to the division for filing pursuant to this chapter must be signed
             5643      as follows:
             5644          (a) Except as otherwise provided in Subsections (1)(b) through (d), a record signed on
             5645      behalf of a limited liability company must be signed by a person authorized by the limited
             5646      liability company.
             5647          (b) A limited liability company's initial certificate of organization must be signed by at
             5648      least one person acting as an organizer.
             5649          (c) A record filed on behalf of a dissolved limited liability company that has no
             5650      members must be signed by the person winding up the limited liability company's activities
             5651      under Subsection 48-3-703 (3) or a person appointed under Subsection 48-3-703 (4) to wind up
             5652      those activities.
             5653          (d) A statement of cancellation under Subsection 48-3-201 (4)(b) must be signed by
             5654      each organizer that signed the initial certificate of organization, but a personal representative of
             5655      a deceased or incompetent organizer may sign in the place of the decedent or incompetent.
             5656          (e) A statement of denial by a person under Section 48-3-303 must be signed by that
             5657      person.
             5658          (f) Any other record must be signed by the person on whose behalf the record is
             5659      delivered to the division.
             5660          (2) Any record filed under this chapter may be signed by an agent.
             5661          Section 209. Section 48-3-204 is enacted to read:
             5662          48-3-204. Signing and filing pursuant to judicial order.
             5663          (1) If a person required by this chapter to sign a record or deliver a record to the
             5664      division for filing under this chapter does not do so, any other person that is aggrieved may
             5665      petition a district court to order:
             5666          (a) the person to sign the record;
             5667          (b) the person to deliver the record to the division for filing; or



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             5668
         (c) the division to file the record unsigned, which will have the same effect as if signed
             5669      by the person required by this chapter to sign the record.
             5670          (2) If a petitioner under Subsection (1) is not the limited liability company or foreign
             5671      limited liability company to which the record pertains, the petitioner shall make the limited
             5672      liability company a party to the action.
             5673          Section 210. Section 48-3-205 is enacted to read:
             5674          48-3-205. Delivery to and filing of records by division -- Effective time and date.
             5675          (1) A record authorized or required to be delivered to the division for filing under this
             5676      chapter must be captioned to describe the record's purpose, be in a medium permitted by the
             5677      division, and be delivered to the division. If the filing fees have been paid, unless the division
             5678      determines that a record does not comply with the filing requirements of this chapter, the
             5679      division shall file the record and:
             5680          (a) for a statement of denial under Section 48-3-303 , send a copy of the filed statement
             5681      and a receipt for the fees to the person on whose behalf the statement was delivered for filing
             5682      and to the limited liability company; and
             5683          (b) for all other records, send a copy of the filed record and a receipt for the fees to the
             5684      person on whose behalf the record was filed.
             5685          (2) Upon request and payment of the requisite fee, the division shall send to the
             5686      requester a certified copy of a requested record.
             5687          (3) Except as otherwise provided in Section 48-3-206 , a record delivered to the
             5688      division for filing under this chapter may specify an effective time and a delayed effective date.
             5689      Subject to Subsection 48-3-201 (4)(a) and Section 48-3-206 , a record filed by the division is
             5690      effective:
             5691          (a) if the record does not specify either an effective time or a delayed effective date, on
             5692      the date and at the time the record is filed as evidenced by the division's endorsement of the
             5693      date and time on the record;
             5694          (b) if the record specifies an effective time but not a delayed effective date, on the date
             5695      the record is filed at the time specified in the record;
             5696          (c) if the record specifies a delayed effective date but not an effective time, at 12:01
             5697      a.m. on the earlier of:
             5698          (i) the specified date; or



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             5699
         (ii) the 90th day after the record is filed; or
             5700          (d) if the record specifies an effective time and a delayed effective date, at the specified
             5701      time on the earlier of:
             5702          (i) the specified date; or
             5703          (ii) the 90th day after the record is filed.
             5704          Section 211. Section 48-3-206 is enacted to read:
             5705          48-3-206. Correcting filed record.
             5706          (1) A limited liability company or foreign limited liability company may deliver to the
             5707      division for filing a statement of correction to correct a record previously delivered by the
             5708      limited liability company to the division and filed by the division, if at the time of filing the
             5709      record contained inaccurate information or was defectively signed.
             5710          (2) A statement of correction under Subsection (1) may not state a delayed effective
             5711      date and must:
             5712          (a) describe the record to be corrected, including its filing date, or attach a copy of the
             5713      record as filed;
             5714          (b) specify the inaccurate information and the reason it is inaccurate or the manner in
             5715      which the signing was defective; and
             5716          (c) correct the defective signature or inaccurate information.
             5717          (3) When filed by the division, a statement of correction under Subsection (1) is
             5718      effective retroactively as of the effective date of the record the statement corrects, but the
             5719      statement is effective when filed:
             5720          (a) for the purposes of Subsection 48-3-103 (4); and
             5721          (b) as to persons that previously relied on the uncorrected record and would be
             5722      adversely affected by the retroactive effect.
             5723          Section 212. Section 48-3-207 is enacted to read:
             5724          48-3-207. Liability for inaccurate information in filed record.
             5725          (1) If a record delivered to the division for filing under this chapter and filed by the
             5726      division contains inaccurate information, a person that suffers a loss by reliance on the
             5727      information may recover damages for the loss from:
             5728          (a) a person that signed the record, or caused another to sign it on the person's behalf,
             5729      and knew the information to be inaccurate at the time the record was signed; and



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             5730
         (b) subject to Subsection (2), a member of a member-managed limited liability
             5731      company or the manager of a manager-managed limited liability company, if:
             5732          (i) the record was delivered for filing on behalf of the limited liability company; and
             5733          (ii) the member or manager had notice of the inaccuracy for a reasonably sufficient
             5734      time before the information was relied upon so that, before the reliance, the member or
             5735      manager reasonably could have:
             5736          (A) effected an amendment under Section 48-3-202 ;
             5737          (B) filed a petition under Section 48-3-204 ; or
             5738          (C) delivered to the division for filing a statement of change pursuant to Section
             5739      16-17-206 or a statement of correction under Section 48-3-206 .
             5740          (2) To the extent that the operating agreement of a member-managed limited liability
             5741      company expressly relieves a member of responsibility for maintaining the accuracy of
             5742      information contained in records delivered on behalf of the limited liability company to the
             5743      division for filing under this chapter and imposes that responsibility on one or more other
             5744      members, the liability stated in Subsection (1)(b) applies to those other members and not to the
             5745      member that the operating agreement relieves of the responsibility.
             5746          (3) An individual who signs a record authorized or required to be filed under this
             5747      chapter affirms under penalty of perjury that the information stated in the record is accurate.
             5748          Section 213. Section 48-3-208 is enacted to read:
             5749          48-3-208. Certificate of existence or authorization.
             5750          (1) The division, upon request and payment of the requisite fee, shall furnish to any
             5751      person a certificate of existence for a limited liability company if the records filed in the
             5752      division show that the limited liability company has been formed under Section 48-3-201 and
             5753      the division has not filed a statement of termination pertaining to the limited liability company.
             5754      A certificate of existence must state:
             5755          (a) the limited liability company's name;
             5756          (b) that the limited liability company was duly formed under the laws of this state and
             5757      the date of formation;
             5758          (c) whether all fees, taxes, and penalties due under this chapter or other law to the
             5759      division have been paid;
             5760          (d) whether the limited liability company's most recent annual report required by



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             5761
     Section 48-3-209 has been filed by the division;
             5762          (e) whether the division has administratively dissolved the limited liability company;
             5763          (f) whether the limited liability company has delivered to the division for filing a
             5764      statement of dissolution;
             5765          (g) that a statement of termination has not been filed by the division; and
             5766          (h) other facts of record in the division which are specified by the person requesting the
             5767      certificate.
             5768          (2) The division, upon request and payment of the requisite fee, shall furnish to any
             5769      person a certificate of authorization for a foreign limited liability company if the records filed
             5770      in the division show that the division has filed a certificate of authority, has not revoked the
             5771      certificate of authority, and has not filed a notice of cancellation. A certificate of authorization
             5772      must state:
             5773          (a) the limited liability company's name and any alternate name adopted under
             5774      Subsection 48-3-805 (1) for use in this state;
             5775          (b) that the limited liability company is authorized to transact business in this state;
             5776          (c) whether all fees, taxes, and penalties due under this chapter or other law to the
             5777      division have been paid;
             5778          (d) whether the limited liability company's most recent annual report required by
             5779      Section 48-3-209 has been filed by the division;
             5780          (e) that the division has not revoked the limited liability company's certificate of
             5781      authority and has not filed a notice of cancellation; and
             5782          (f) other facts of record in the division which are specified by the person requesting the
             5783      certificate.
             5784          (3) Subject to any qualification stated in the certificate, a certificate of existence or
             5785      certificate of authorization issued by the division is conclusive evidence that the limited
             5786      liability company is in existence or the foreign limited liability company is authorized to
             5787      transact business in this state.
             5788          Section 214. Section 48-3-209 is enacted to read:
             5789          48-3-209. Annual report for division.
             5790          (1) Each year, a limited liability company or a foreign limited liability company
             5791      authorized to transact business in this state shall deliver to the division for filing a report that



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             5792
     states:
             5793          (a) the name of the limited liability company;
             5794          (b) the information required by Subsection 16-17-203 (1);
             5795          (c) the street and mailing addresses of its principal office; and
             5796          (d) in the case of a foreign limited liability company, the state or other jurisdiction
             5797      under whose law the limited liability company is formed and any alternate name adopted under
             5798      Subsection 48-3-805 (1).
             5799          (2) Information in an annual report under this section must be current as of the date the
             5800      report is delivered to the division for filing.
             5801          (3) A report must be delivered to the division:
             5802          (a) during the month of its anniversary date of formation, in the case of a domestic
             5803      limited liability company; or
             5804          (b) during the month of the anniversary date of being granted authority to transact
             5805      business in this state, in the case of a foreign limited liability company authorized to transact
             5806      business in this state.
             5807          (4) If an annual report under this section does not contain the information required in
             5808      Subsection (1), the division shall promptly notify the reporting limited liability company or
             5809      foreign limited liability company and return the report to it for correction. If the report is
             5810      corrected to contain the information required in Subsection (1) and delivered to the division
             5811      within 30 days after the effective date of the notice, it is timely delivered.
             5812          (5) If an annual report under this section contains information provided under
             5813      Subsection (1)(b) that differs from the information shown in the records of the division
             5814      immediately before the annual report becomes effective, the differing information in the annual
             5815      report is considered a statement of change under Section 16-17-206 .
             5816          Section 215. Section 48-3-301 is enacted to read:
             5817     
Part 3. Relations of Members and Managers to Persons Dealing with Limited Liability

             5818     
Company

             5819          48-3-301. No agency power of member as member.
             5820          (1) A member is not an agent of a limited liability company solely by reason of being a
             5821      member.
             5822          (2) A person's status as a member does not prevent or restrict law other than this



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             5823
     chapter from imposing liability on a limited liability company because of the person's conduct.
             5824          Section 216. Section 48-3-302 is enacted to read:
             5825          48-3-302. Statement of authority.
             5826          (1) A limited liability company may deliver to the division for filing a statement of
             5827      authority. The statement:
             5828          (a) must include the name of the limited liability company and the street and mailing
             5829      addresses of its principal office;
             5830          (b) with respect to any position that exists in or with respect to the limited liability
             5831      company, may state the authority, or limitations on the authority, of all persons holding the
             5832      position to:
             5833          (i) execute an instrument transferring real property held in the name of the limited
             5834      liability company; or
             5835          (ii) enter into other transactions on behalf of, or otherwise act for or bind, the limited
             5836      liability company; and
             5837          (c) may state the authority, or limitations on the authority, of a specific person to:
             5838          (i) execute an instrument transferring real property held in the name of the limited
             5839      liability company; or
             5840          (ii) enter into other transactions on behalf of, or otherwise act for or bind, the limited
             5841      liability company.
             5842          (2) To amend or cancel a statement of authority filed by the division under Subsection
             5843      48-3-205 (1), a limited liability company must deliver to the division for filing an amendment
             5844      or cancellation stating:
             5845          (a) the name of the limited liability company;
             5846          (b) the street and mailing addresses of the limited liability company's principal office;
             5847          (c) the caption of the statement being amended or canceled and the date the statement
             5848      being affected became effective; and
             5849          (d) the contents of the amendment or a declaration that the statement being affected is
             5850      canceled.
             5851          (3) A statement of authority affects only the power of a person to bind a limited
             5852      liability company to persons that are not members.
             5853          (4) Subject to Subsection (3) and Subsection 48-3-103 (4) and except as otherwise



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             5854
     provided in Subsections (6), (7), and (8), a limitation on the authority of a person or a position
             5855      contained in an effective statement of authority is not by itself evidence of knowledge or notice
             5856      of the limitation by any person.
             5857          (5) Subject to Subsection (3), a grant of authority not pertaining to transfers of real
             5858      property and contained in an effective statement of authority is conclusive in favor of a person
             5859      that gives value in reliance on the grant, except to the extent that when the person gives value:
             5860          (a) the person has knowledge to the contrary;
             5861          (b) the statement has been canceled or restrictively amended under Subsection (2); or
             5862          (c) a limitation on the grant is contained in another statement of authority that became
             5863      effective after the statement containing the grant became effective.
             5864          (6) Subject to Subsection (3), an effective statement of authority that grants authority to
             5865      transfer real property held in the name of the limited liability company and that is recorded by
             5866      certified copy in the office for recording transfers of the real property is conclusive in favor of a
             5867      person that gives value in reliance on the grant without knowledge to the contrary, except to the
             5868      extent that when the person gives value:
             5869          (a) the statement has been canceled or restrictively amended under Subsection (2) and a
             5870      certified copy of the cancellation or restrictive amendment has been recorded in the office for
             5871      recording transfers of the real property; or
             5872          (b) a limitation on the grant is contained in another statement of authority that became
             5873      effective after the statement containing the grant became effective and a certified copy of the
             5874      later-effective statement is recorded in the office for recording transfers of the real property.
             5875          (7) Subject to Subsection (3), if a certified copy of an effective statement containing a
             5876      limitation on the authority to transfer real property held in the name of a limited liability
             5877      company is recorded in the office for recording transfers of that real property, all persons are
             5878      deemed to know of the limitation.
             5879          (8) Subject to Subsection (9), an effective statement of dissolution or termination is a
             5880      cancellation of any filed statement of authority for the purposes of Subsection (6) and is a
             5881      limitation on authority for the purposes of Subsection (7).
             5882          (9) After a statement of dissolution becomes effective, a limited liability company may
             5883      deliver to the division for filing and, if appropriate, may record a statement of authority that is
             5884      designated as a post-dissolution statement of authority. The statement operates as provided in



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             5885
     Subsections (6) and (7).
             5886          (10) Unless earlier canceled, an effective statement of authority is canceled by
             5887      operation of law five years after the date on which the statement, or its most recent amendment,
             5888      becomes effective. This cancellation operates without need for any recording under Subsection
             5889      (6) or (7).
             5890          (11) An effective statement of denial operates as a restrictive amendment under this
             5891      section and may be recorded by certified copy for the purposes of Subsection (6)(a).
             5892          Section 217. Section 48-3-303 is enacted to read:
             5893          48-3-303. Statement of denial.
             5894          A person named in a filed statement of authority granting that person authority may
             5895      deliver to the division for filing a statement of denial that:
             5896          (1) provides the name of the limited liability company and the caption of the statement
             5897      of authority to which the statement of denial pertains; and
             5898          (2) denies the grant of authority.
             5899          Section 218. Section 48-3-304 is enacted to read:
             5900          48-3-304. Liability of members and managers.
             5901          (1) The debts, obligations, or other liabilities of a limited liability company, whether
             5902      arising in contract, tort, or otherwise:
             5903          (a) are solely the debts, obligations, or other liabilities of the limited liability company;
             5904      and
             5905          (b) do not become the debts, obligations, or other liabilities of a member or manager
             5906      solely by reason of the member acting as a member or manager acting as a manager.
             5907          (2) The failure of a limited liability company to observe any particular formalities
             5908      relating to the exercise of its powers or management of its activities is not a ground for
             5909      imposing liability on the members or managers for the debts, obligations, or other liabilities of
             5910      the limited liability company.
             5911          Section 219. Section 48-3-401 is enacted to read:
             5912     
Part 4. Relations of Members to Each Other and to Limited Liability Company

             5913          48-3-401. Becoming member.
             5914          (1) If a limited liability company is to have only one member upon formation, the
             5915      person becomes a member as agreed by that person and the organizer of the limited liability



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             5916
     company. That person and the organizer may be, but need not be, different persons. If
             5917      different, the organizer acts on behalf of the initial member.
             5918          (2) If a limited liability company is to have more than one member upon formation,
             5919      those persons become members as agreed by the persons before the formation of the limited
             5920      liability company. The organizer acts on behalf of the persons in forming the limited liability
             5921      company and may be, but need not be, one of the persons.
             5922          (3) After formation of a limited liability company, a person becomes a member:
             5923          (a) as provided in the operating agreement;
             5924          (b) as the result of a transaction effective under Part 10, Merger, Conversion, and
             5925      Domestication;
             5926          (c) with the consent of all the members; or
             5927          (d) if, within 90 consecutive days after the limited liability company ceases to have any
             5928      members:
             5929          (i) the last person to have been a member, or the legal representative of that person,
             5930      designates a person to become a member; and
             5931          (ii) the designated person consents to become a member effective as of the date the last
             5932      person to have been a member ceased to be a member.
             5933          (4) A person may become a member without acquiring a transferable interest and
             5934      without making or being obligated to make a contribution to the limited liability company.
             5935          Section 220. Section 48-3-402 is enacted to read:
             5936          48-3-402. Form of contribution.
             5937          A contribution may consist of tangible or intangible property or other benefit to a
             5938      limited liability company, including money, services performed, promissory notes, other
             5939      agreements to contribute money or property, and contracts for services to be performed.
             5940          Section 221. Section 48-3-403 is enacted to read:
             5941          48-3-403. Liability for contributions.
             5942          (1) (a) A person's obligation to make a contribution to a limited liability company is
             5943      not excused by the person's death, disability, or other inability to perform personally.
             5944          (b) If a person does not make a required contribution, the person or the person's estate
             5945      is obligated to contribute money equal to the value of the part of the contribution which has not
             5946      been made, at the option of the limited liability company.



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             5947
         (c) Notwithstanding the other provisions of this Subsection (1), the operating
             5948      agreement of a limited liability company may allow a person's obligation to make a
             5949      contribution to be excused by the person's death.
             5950          (2) A creditor of a limited liability company which extends credit or otherwise acts in
             5951      reliance on an obligation described in Subsection (1) may enforce the obligation.
             5952          Section 222. Section 48-3-404 is enacted to read:
             5953          48-3-404. Sharing of and right to distributions before dissolution.
             5954          (1) Except as otherwise provided in the operating agreement, any distributions made by
             5955      a limited liability company before its dissolution and winding up must be in equal shares
             5956      among members and dissociated members, except to the extent necessary to comply with any
             5957      transfer effective under Section 48-3-502 and any charging order in effect under Section
             5958      48-3-503 .
             5959          (2) A person has a right to a distribution before the dissolution and winding up of a
             5960      limited liability company only if the limited liability company decides to make an interim
             5961      distribution. A person's dissociation does not entitle the person to a distribution.
             5962          (3) A person does not have a right to demand or receive a distribution from a limited
             5963      liability company in any form other than money. Except as otherwise provided in Subsection
             5964      48-3-709 (3), a limited liability company may distribute an asset in kind if each part of the asset
             5965      is fungible with each other part and each person receives a percentage of the asset equal in
             5966      value to the person's share of distributions.
             5967          (4) If a member or transferee becomes entitled to receive a distribution, the member or
             5968      transferee has the status of, and is entitled to all remedies available to, a creditor of the limited
             5969      liability company with respect to the distribution.
             5970          Section 223. Section 48-3-405 is enacted to read:
             5971          48-3-405. Limitations on distribution.
             5972          (1) A limited liability company may not make a distribution if after the distribution:
             5973          (a) the limited liability company would not be able to pay its debts as they become due
             5974      in the ordinary course of the limited liability company's activities; or
             5975          (b) the limited liability company's total assets would be less than the sum of its total
             5976      liabilities plus the amount that would be needed, if the limited liability company were to be
             5977      dissolved, wound up, and terminated at the time of the distribution, to satisfy the preferential



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             5978
     rights upon dissolution, winding up, and termination of members whose preferential rights are
             5979      superior to those of persons receiving the distribution.
             5980          (2) A limited liability company may base a determination that a distribution is not
             5981      prohibited under Subsection (1) on financial statements prepared on the basis of accounting
             5982      practices and principles that are reasonable in the circumstances or on a fair valuation or other
             5983      method that is reasonable under the circumstances.
             5984          (3) Except as otherwise provided in Subsection (6), the effect of a distribution under
             5985      Subsection (1) is measured:
             5986          (a) in the case of a distribution by purchase, redemption, or other acquisition of a
             5987      transferable interest in the limited liability company, as of the date money or other property is
             5988      transferred or debt incurred by the limited liability company; and
             5989          (b) in all other cases, as of the date:
             5990          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             5991      or
             5992          (ii) the payment is made, if the payment occurs more than 120 days after the
             5993      distribution is authorized.
             5994          (4) A limited liability company's indebtedness to a member incurred by reason of a
             5995      distribution made in accordance with this section is at parity with the limited liability
             5996      company's indebtedness to its general, unsecured creditors.
             5997          (5) A limited liability company's indebtedness, including indebtedness issued in
             5998      connection with or as part of a distribution, is not a liability for purposes of Subsection (1) if
             5999      the terms of the indebtedness provide that payment of principal and interest are made only to
             6000      the extent that a distribution could be made to members under this section.
             6001          (6) If indebtedness is issued as a distribution, each payment of principal or interest on
             6002      the indebtedness is treated as a distribution, the effect of which is measured on the date the
             6003      payment is made.
             6004          (7) In Subsection (1), "distribution" does not include amounts constituting reasonable
             6005      compensation for present or past services or reasonable payments made in the ordinary course
             6006      of business under a bona fide retirement plan or other benefits program.
             6007          Section 224. Section 48-3-406 is enacted to read:
             6008          48-3-406. Liability for improper distributions.



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             6009
         (1) Except as otherwise provided in Subsection (2), if a member of a member-managed
             6010      limited liability company or manager of a manager-managed limited liability company consents
             6011      to a distribution made in violation of Section 48-3-405 and in consenting to the distribution
             6012      fails to comply with Section 48-3-409 , the member or manager is personally liable to the
             6013      limited liability company for the amount of the distribution that exceeds the amount that could
             6014      have been distributed without the violation of Section 48-3-405 .
             6015          (2) To the extent the operating agreement of a member-managed limited liability
             6016      company expressly relieves a member of the authority and responsibility to consent to
             6017      distributions and imposes that authority and responsibility on one or more other members, the
             6018      liability stated in Subsection (1) applies to the other members and not the member that the
             6019      operating agreement relieves of authority and responsibility.
             6020          (3) A person that receives a distribution knowing that the distribution to that person
             6021      was made in violation of Section 48-3-405 is personally liable to the limited liability company
             6022      but only to the extent that the distribution received by the person exceeded the amount that
             6023      could have been properly paid under Section 48-3-405 .
             6024          (4) A person against which an action is commenced because the person is liable under
             6025      Subsection (1) may:
             6026          (a) implead any other person that is subject to liability under Subsection (1) and seek to
             6027      compel contribution from the person; and
             6028          (b) implead any person that received a distribution in violation of Subsection (3) and
             6029      seek to compel contribution from the person in the amount the person received in violation of
             6030      Subsection (3).
             6031          (5) An action under this section is barred if not commenced within two years after the
             6032      distribution.
             6033          Section 225. Section 48-3-407 is enacted to read:
             6034          48-3-407. Management of limited liability company.
             6035          (1) A limited liability company is a member-managed limited liability company unless
             6036      the operating agreement:
             6037          (a) expressly provides that:
             6038          (i) the limited liability company is or will be "manager-managed";
             6039          (ii) the limited liability company is or will be "managed by managers"; or



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             6040
         (iii) management of the limited liability company is or will be "vested in managers"; or
             6041          (b) includes words of similar import.
             6042          (2) In a member-managed limited liability company, the following rules apply:
             6043          (a) The management and conduct of the limited liability company are vested in the
             6044      members.
             6045          (b) Each member has equal rights in the management and conduct of the limited
             6046      liability company's activities.
             6047          (c) A difference arising among members as to a matter in the ordinary course of the
             6048      activities of the limited liability company shall be decided by a majority of the members.
             6049          (d) An act outside the ordinary course of the activities of the limited liability company
             6050      may be undertaken only with the consent of all members.
             6051          (e) The operating agreement may be amended only with the consent of all members.
             6052          (3) In a manager-managed limited liability company, the following rules apply:
             6053          (a) Except as otherwise expressly provided in this chapter, any matter relating to the
             6054      activities of the limited liability company is decided exclusively by the managers.
             6055          (b) Each manager has equal rights in the management and conduct of the activities of
             6056      the limited liability company.
             6057          (c) A difference arising among managers as to a matter in the ordinary course of the
             6058      activities of the limited liability company shall be decided by a majority of the managers.
             6059          (d) The consent of all members is required to:
             6060          (i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the limited
             6061      liability company's property, with or without the good will, outside the ordinary course of the
             6062      limited liability company's activities;
             6063          (ii) approve a merger, conversion, or domestication under Part 10, Merger, Conversion,
             6064      and Domestication;
             6065          (iii) undertake any other act outside the ordinary course of the limited liability
             6066      company's activities; and
             6067          (iv) amend the operating agreement.
             6068          (e) A manager may be chosen at any time by the consent of a majority of the members
             6069      and remains a manager until a successor has been chosen, unless the manager at an earlier time
             6070      resigns, is removed, or dies, or, in the case of a manager that is not an individual, terminates.



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             6071
     A manager may be removed at any time by the consent of a majority of the members without
             6072      notice or cause.
             6073          (f) A person need not be a member to be a manager, but the dissociation of a member
             6074      that is also a manager removes the person as a manager. If a person that is both a manager and
             6075      a member ceases to be a manager, that cessation does not by itself dissociate the person as a
             6076      member.
             6077          (g) A person's ceasing to be a manager does not discharge any debt, obligation, or other
             6078      liability to the limited liability company or members which the person incurred while a
             6079      manager.
             6080          (4) An action requiring the consent of members under this chapter may be taken
             6081      without a meeting, and a member may appoint a proxy or other agent to consent or otherwise
             6082      act for the member by signing an appointing record, personally or by the member's agent.
             6083          (5) The dissolution of a limited liability company does not affect the applicability of
             6084      this section. However, a person that wrongfully causes dissolution of the limited liability
             6085      company loses the right to participate in management as a member and a manager.
             6086          (6) This chapter does not entitle a member to remuneration for services performed for a
             6087      member-managed limited liability company, except for reasonable compensation for services
             6088      rendered in winding up the activities of the limited liability company.
             6089          Section 226. Section 48-3-408 is enacted to read:
             6090          48-3-408. Indemnification and insurance.
             6091          (1) A limited liability company shall reimburse for any payment made and indemnify
             6092      for any debt, obligation, or other liability incurred by a member of a member-managed
             6093      company or the manager of a manager-managed company in the course of the member's or
             6094      manager's activities on behalf of the limited liability company, if, in making the payment or
             6095      incurring the debt, obligation, or other liability, the member or manager complied with the
             6096      duties stated in Sections 48-3-405 and 48-3-409 .
             6097          (2) A limited liability company may purchase and maintain insurance on behalf of a
             6098      member or manager of the limited liability company against liability asserted against or
             6099      incurred by the member or manager in that capacity or arising from that status even if, under
             6100      Subsection 48-3-110 (7), the operating agreement could not eliminate or limit the person's
             6101      liability to the limited liability company for the conduct giving rise to the liability.



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             6102
         Section 227. Section 48-3-409 is enacted to read:
             6103          48-3-409. Standards of conduct for members and managers.
             6104          (1) A member of a member-managed limited liability company owes to the limited
             6105      liability company and, subject to Subsection 48-3-901 (2), the other members the fiduciary
             6106      duties of loyalty and care stated in Subsections (2) and (3).
             6107          (2) The duty of loyalty of a member in a member-managed limited liability company
             6108      includes the duties:
             6109          (a) to account to the limited liability company and to hold as trustee for it any property,
             6110      profit, or benefit derived by the member:
             6111          (i) in the conduct or winding up of the limited liability company's activities;
             6112          (ii) from a use by the member of the limited liability company's property; or
             6113          (iii) from the appropriation of a limited liability company opportunity;
             6114          (b) to refrain from dealing with the limited liability company in the conduct or winding
             6115      up of the limited liability company's activities as or on behalf of a person having an interest
             6116      adverse to the limited liability company; and
             6117          (c) to refrain from competing with the limited liability company in the conduct of the
             6118      limited liability company's activities before the dissolution of the limited liability company.
             6119          (3) The duty of care of a member in a member-managed limited liability company in
             6120      the conduct and winding up of the limited liability company's activities is to refrain from
             6121      conduct or inaction that constitutes:
             6122          (a) gross negligence;
             6123          (b) intentional misconduct; or
             6124          (c) an intentional violation of law.
             6125          (4) A member in a member-managed limited liability company or a manager-managed
             6126      limited liability company shall discharge the duties under this chapter or under the operating
             6127      agreement and exercise any rights consistently with the contractual obligation of good faith and
             6128      fair dealing.
             6129          (5) It is a defense to a claim under Subsection (2)(b) and any comparable claim in
             6130      equity or at common law that the transaction was fair to the limited liability company.
             6131          (6) All of the members of a member-managed limited liability company or a
             6132      manager-managed limited liability company may authorize or ratify, after full disclosure of all



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             6133
     material facts, a specific act or transaction that otherwise would violate the duty of loyalty.
             6134          (7) In a manager-managed limited liability company, the following rules apply:
             6135          (a) Subsections (1), (2), (3), and (5) apply to the manager or managers and not the
             6136      members, except that the operating agreement of a limited liability company may apply the
             6137      duty stated in Subsection (2)(c) to a member.
             6138          (b) The duty stated under Subsection (2)(c) continues until winding up is completed.
             6139          (c) Subsection (4) applies to the members and managers.
             6140          (d) Subsection (6) applies only to the members.
             6141          (e) A member does not have any fiduciary duty to the limited liability company or to
             6142      any other member solely by reason of being a member.
             6143          Section 228. Section 48-3-410 is enacted to read:
             6144          48-3-410. Right of members, managers, and dissociated members to information.
             6145          (1) In a member-managed limited liability company, the following rules apply:
             6146          (a) On reasonable notice, a member may inspect and copy during regular business
             6147      hours, at a reasonable location specified by the limited liability company, any record
             6148      maintained by the limited liability company regarding the limited liability company's activities,
             6149      financial condition, and other circumstances, to the extent the information is material to the
             6150      member's rights and duties under the operating agreement or this chapter.
             6151          (b) The limited liability company shall furnish to each member:
             6152          (i) without demand, any information concerning the limited liability company's
             6153      activities, financial condition, and other circumstances which the limited liability company
             6154      knows and is material to the proper exercise of the member's rights and duties under the
             6155      operating agreement or this chapter, except to the extent the limited liability company can
             6156      establish that it reasonably believes the member already knows the information; and
             6157          (ii) on demand, any other information concerning the limited liability company's
             6158      activities, financial condition, and other circumstances, except to the extent the demand or
             6159      information demanded is unreasonable or otherwise improper under the circumstances.
             6160          (c) The duty to furnish information under Subsection (1)(b) also applies to each
             6161      member to the extent the member knows any of the information described in Subsection (1)(b).
             6162          (2) In a manager-managed limited liability company, the following rules apply:
             6163          (a) The informational rights stated in Subsection (1) and the duty stated in Subsection



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             6164
     (1)(c) apply to the managers and not the members.
             6165          (b) During regular business hours and at a reasonable location specified by the limited
             6166      liability company, a member may obtain from the limited liability company and inspect and
             6167      copy full information regarding the activities, financial condition, and other circumstances of
             6168      the limited liability company as is just and reasonable if:
             6169          (i) the member seeks the information for a purpose material to the member's interest as
             6170      a member;
             6171          (ii) the member makes a demand in a record received by the limited liability company,
             6172      describing with reasonable particularity the information sought and the purpose for seeking the
             6173      information; and
             6174          (iii) the information sought is directly connected to the member's purpose.
             6175          (c) Within 10 days after receiving a demand pursuant to Subsection (2)(b)(ii), the
             6176      limited liability company shall in a record inform the member that made the demand:
             6177          (i) of the information that the limited liability company will provide in response to the
             6178      demand and when and where the limited liability company will provide the information; and
             6179          (ii) if the limited liability company declines to provide any demanded information, the
             6180      limited liability company's reasons for declining.
             6181          (d) Whenever this chapter or an operating agreement provides for a member to give or
             6182      withhold consent to a matter, before the consent is given or withheld, the limited liability
             6183      company shall, without demand, provide the member with all information that is known to the
             6184      limited liability company and is material to the member's decision.
             6185          (3) On 10 days' demand made in a record received by a limited liability company, a
             6186      dissociated member may have access to information to which the person was entitled while a
             6187      member if the information pertains to the period during which the person was a member, the
             6188      person seeks the information in good faith, and the person satisfies the requirements imposed
             6189      on a member by Subsection (2)(b). The limited liability company shall respond to a demand
             6190      made pursuant to this Subsection (3) in the manner provided in Subsection (2)(c).
             6191          (4) A limited liability company may charge a person that makes a demand under this
             6192      section the reasonable costs of copying, limited to the costs of labor and material.
             6193          (5) A member or dissociated member may exercise rights under this section through an
             6194      agent or, in the case of an individual under legal disability, a legal representative. Any



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             6195
     restriction or condition imposed by the operating agreement or under Subsection (7) applies
             6196      both to the agent or legal representative and the member or dissociated member.
             6197          (6) The rights under this section do not extend to a person as transferee.
             6198          (7) In addition to any restriction or condition stated in its operating agreement, a
             6199      limited liability company, as a matter within the ordinary course of its activities, may impose
             6200      reasonable restrictions and conditions on access to and use of information to be furnished under
             6201      this section, including designating information confidential and imposing nondisclosure and
             6202      safeguarding obligations on the recipient. In a dispute concerning the reasonableness of a
             6203      restriction under this Subsection (7), the limited liability company has the burden of proving
             6204      reasonableness.
             6205          Section 229. Section 48-3-501 is enacted to read:
             6206     
Part 5. Transferable Interests and Rights of Transferees and Creditors

             6207          48-3-501. Nature of transferable interest.
             6208          A transferable interest is personal property.
             6209          Section 230. Section 48-3-502 is enacted to read:
             6210          48-3-502. Transfer of transferable interest.
             6211          (1) A transfer, in whole or in part, of a transferable interest:
             6212          (a) is permissible;
             6213          (b) does not by itself cause a member's dissociation or a dissolution and winding up of
             6214      the limited liability company's activities; and
             6215          (c) subject to Section 48-3-504 , does not entitle the transferee to:
             6216          (i) participate in the management or conduct of the limited liability company's
             6217      activities; or
             6218          (ii) except as otherwise provided in Subsection (3), have access to records or other
             6219      information concerning the limited liability company's activities.
             6220          (2) A transferee has the right to receive, in accordance with the transfer, distributions to
             6221      which the transferor would otherwise be entitled.
             6222          (3) In a dissolution and winding up of a limited liability company, a transferee is
             6223      entitled to an account of the limited liability company's transactions only from the date of
             6224      dissolution.
             6225          (4) A transferable interest may be evidenced by a certificate of the interest issued by



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             6226
     the limited liability company in a record, and, subject to this section, the interest represented by
             6227      the certificate may be transferred by a transfer of the certificate.
             6228          (5) A limited liability company need not give effect to a transferee's rights under this
             6229      section until the limited liability company has notice of the transfer.
             6230          (6) A transfer of a transferable interest in violation of a restriction on transfer contained
             6231      in the operating agreement is ineffective as to a person having notice of the restriction at the
             6232      time of transfer.
             6233          (7) Except as otherwise provided in Subsection 48-3-602 (4)(b), when a member
             6234      transfers a transferable interest, the transferor retains the rights of a member other than the
             6235      interest in distributions transferred and retains all duties and obligations of a member.
             6236          (8) When a member transfers a transferable interest to a person that becomes a member
             6237      with respect to the transferred interest, the transferee is liable for the member's obligations
             6238      under Section 48-3-403 and Subsection 48-3-406 (3) known to the transferee when the
             6239      transferee becomes a member.
             6240          Section 231. Section 48-3-503 is enacted to read:
             6241          48-3-503. Charging order.
             6242          (1) On application by a judgment creditor of a member or transferee, a court may enter
             6243      a charging order against the transferable interest of the judgment debtor for the unsatisfied
             6244      amount of the judgment. A charging order constitutes a lien on a judgment debtor's
             6245      transferable interest and, after the limited liability company has been served with the charging
             6246      order, requires the limited liability company to pay over to the person to which the charging
             6247      order was issued any distribution that would otherwise be paid to the judgment debtor.
             6248          (2) To the extent necessary to effectuate the collection of distributions pursuant to a
             6249      charging order in effect under Subsection (1), the court may:
             6250          (a) appoint a receiver of the distributions subject to the charging order, with the power
             6251      to make all inquiries the judgment debtor might have made; and
             6252          (b) make all other orders necessary to give effect to the charging order.
             6253          (3) Upon a showing that distributions under a charging order will not pay the judgment
             6254      debt within a reasonable time, the court may foreclose the lien and order the sale of the
             6255      transferable interest. The purchaser at the foreclosure sale only obtains the transferable
             6256      interest, does not thereby become a member, and is subject to Section 48-3-502 .



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             6257
         (4) Notwithstanding Subsection (3), if the member whose interest is charged under this
             6258      section is the sole member of the company when the charging order is entered:
             6259          (a) the purchaser at a foreclosure sale acquires all rights of the member, including
             6260      voting rights; and
             6261          (b) the member is considered to have consented to the admission of the purchaser as a
             6262      member of the company.
             6263          (5) At any time before foreclosure under Subsection (3), the member or transferee
             6264      whose transferable interest is subject to a charging order under Subsection (1) may extinguish
             6265      the charging order by satisfying the judgment and filing a certified copy of the satisfaction with
             6266      the court that issued the charging order.
             6267          (6) At any time before foreclosure under Subsection (3), a limited liability company or
             6268      one or more members whose transferable interests are not subject to the charging order may
             6269      pay to the judgment creditor the full amount due under the judgment and thereby succeed to the
             6270      rights of the judgment creditor, including the charging order.
             6271          (7) This chapter does not deprive any member or transferee of the benefit of any
             6272      exemption laws applicable to the member's or transferee's transferable interest.
             6273          (8) This section provides the exclusive remedy by which a person seeking to enforce a
             6274      judgment against a member or transferee may, in the capacity of judgment creditor, satisfy the
             6275      judgment from the judgment debtor's transferable interest.
             6276          Section 232. Section 48-3-504 is enacted to read:
             6277          48-3-504. Power of personal representative of deceased member.
             6278          If a member dies, the deceased member's personal representative or other legal
             6279      representative may exercise the rights of a transferee provided in Subsection 48-3-502 (3) and,
             6280      for the purposes of settling the estate, the rights of a current member under Section 48-3-410 .
             6281          Section 233. Section 48-3-601 is enacted to read:
             6282     
Part 6. Member's Dissociation

             6283          48-3-601. Member's power to dissociate -- Wrongful dissociation.
             6284          (1) A person has the power to dissociate as a member at any time, rightfully or
             6285      wrongfully, by withdrawing as a member by express will under Subsection 48-3-602 (1).
             6286          (2) A person's dissociation from a limited liability company is wrongful only if the
             6287      dissociation:



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             6288
         (a) is in breach of an express provision of the operating agreement; or
             6289          (b) occurs before the termination of the limited liability company and:
             6290          (i) the person withdraws as a member by express will;
             6291          (ii) the person is expelled as a member by judicial order under Subsection 48-3-602 (5);
             6292          (iii) the person is dissociated under Subsection 48-3-602 (7)(a) by becoming a debtor in
             6293      bankruptcy; or
             6294          (iv) in the case of a person that is not a trust other than a business trust, an estate, or an
             6295      individual, the person is expelled or otherwise dissociated as a member because it willfully
             6296      dissolved or terminated.
             6297          (3) A person that wrongfully dissociates as a member is liable to the limited liability
             6298      company and, subject to Section 48-3-901 , to the other members for damages caused by the
             6299      dissociation. The liability is in addition to any other debt, obligation, or other liability of the
             6300      member to the limited liability company or the other members.
             6301          Section 234. Section 48-3-602 is enacted to read:
             6302          48-3-602. Events causing dissociation.
             6303          A person is dissociated as a member from a limited liability company when:
             6304          (1) the limited liability company has notice of the person's express will to withdraw as
             6305      a member, but, if the person specified a withdrawal date later than the date the limited liability
             6306      company had notice, on that later date;
             6307          (2) an event stated in the operating agreement as causing the person's dissociation
             6308      occurs;
             6309          (3) the person is expelled as a member pursuant to the operating agreement;
             6310          (4) the person is expelled as a member by the unanimous consent of the other members
             6311      if:
             6312          (a) it is unlawful to carry on the limited liability company's activities with the person as
             6313      a member;
             6314          (b) there has been a transfer of all of the person's transferable interest in the limited
             6315      liability company, other than:
             6316          (i) a transfer for security purposes; or
             6317          (ii) a charging order in effect under Section 48-3-503 which has not been foreclosed;
             6318          (c) the person is a corporation and, within 90 days after the limited liability company



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             6319
     notifies the person that it will be expelled as a member because the person has filed a
             6320      certificate of dissolution or the equivalent, its charter has been revoked, or its right to conduct
             6321      business has been suspended by the jurisdiction of its incorporation, the certificate of
             6322      dissolution has not been revoked or its charter or right to conduct business has not been
             6323      reinstated; or
             6324          (d) the person is a limited liability company or partnership that has been dissolved and
             6325      whose business is being wound up;
             6326          (5) on application by the limited liability company, the person is expelled as a member
             6327      by judicial order because the person:
             6328          (a) has engaged, or is engaging, in wrongful conduct that has adversely and materially
             6329      affected, or will adversely and materially affect, the limited liability company's activities;
             6330          (b) has willfully or persistently committed, or is willfully and persistently committing,
             6331      a material breach of the operating agreement or the person's duties or obligations under Section
             6332      48-3-409 ; or
             6333          (c) has engaged in, or is engaging, in conduct relating to the limited liability company's
             6334      activities which makes it not reasonably practicable to carry on the activities with the person as
             6335      a member;
             6336          (6) in the case of a person who is an individual:
             6337          (a) the person dies; or
             6338          (b) in a member-managed limited liability company:
             6339          (i) a guardian or general conservator for the person is appointed; or
             6340          (ii) there is a judicial order that the person has otherwise become incapable of
             6341      performing the person's duties as a member under this chapter or the operating agreement;
             6342          (7) in a member-managed limited liability company, the person:
             6343          (a) becomes a debtor in bankruptcy;
             6344          (b) executes an assignment for the benefit of creditors; or
             6345          (c) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or
             6346      liquidator of the person or of all or substantially all of the person's property;
             6347          (8) in the case of a person that is a trust or is acting as a member by virtue of being a
             6348      trustee of a trust, the trust's entire transferable interest in the limited liability company is
             6349      distributed;



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             6350
         (9) in the case of a person that is an estate or is acting as a member by virtue of being a
             6351      personal representative of an estate, the estate's entire transferable interest in the limited
             6352      liability company is distributed;
             6353          (10) in the case of a member that is not an individual, partnership, limited liability
             6354      company, corporation, trust, or estate, the termination of the member;
             6355          (11) the limited liability company participates in a merger under Part 10, Merger,
             6356      Conversion, and Domestication, if:
             6357          (a) the limited liability company is not the surviving entity; or
             6358          (b) otherwise as a result of the merger, the person ceases to be a member;
             6359          (12) the limited liability company participates in a conversion under Part 10, Merger,
             6360      Conversion, and Domestication;
             6361          (13) the limited liability company participates in a domestication under Part 10,
             6362      Merger, Conversion, and Domestication, if, as a result of the domestication, the person ceases
             6363      to be a member; or
             6364          (14) the limited liability company terminates.
             6365          Section 235. Section 48-3-603 is enacted to read:
             6366          48-3-603. Effect of person's dissociation as member.
             6367          (1) When a person is dissociated as a member of a limited liability company:
             6368          (a) the person's right to participate as a member in the management and conduct of the
             6369      limited liability company's activities terminates;
             6370          (b) if the limited liability company is member-managed, the person's fiduciary duties as
             6371      a member end with regard to matters arising and events occurring after the person's
             6372      dissociation; and
             6373          (c) subject to Section 48-3-504 and Part 10, Merger, Conversion, and Domestication,
             6374      any transferable interest owned by the person immediately before dissociation in the person's
             6375      capacity as a member is owned by the person solely as a transferee.
             6376          (2) A person's dissociation as a member of a limited liability company does not of itself
             6377      discharge the person from any debt, obligation, or other liability to the limited liability
             6378      company or the other members which the person incurred while a member.
             6379          Section 236. Section 48-3-701 is enacted to read:
             6380     
Part 7. Dissolution and Winding Up



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             6381
         48-3-701. Events causing dissolution.
             6382          A limited liability company is dissolved, and its activities must be wound up, upon the
             6383      occurrence of any of the following:
             6384          (1) an event or circumstance that the operating agreement states causes dissolution;
             6385          (2) the consent of all the members;
             6386          (3) the passage of 90 consecutive days during which the limited liability company has
             6387      no members;
             6388          (4) on application by a member, the entry by a district court of an order dissolving the
             6389      limited liability company on the grounds that:
             6390          (a) the conduct of all or substantially all of the limited liability company's activities is
             6391      unlawful; or
             6392          (b) it is not reasonably practicable to carry on the limited liability company's activities
             6393      in conformity with the certificate of organization and the operating agreement; or
             6394          (5) on application by a member, the entry by a district court of an order dissolving the
             6395      limited liability company on the grounds that the managers or those in control of the limited
             6396      liability company have acted, are acting, or will act in a manner that is illegal, oppressive, or
             6397      fraudulent.
             6398          Section 237. Section 48-3-702 is enacted to read:
             6399          48-3-702. Election to purchase in lieu of dissolution.
             6400          (1) In a proceeding under Subsection 48-3-701 (5) to dissolve a limited liability
             6401      company, the limited liability company may elect, or if it fails to elect, one or more members
             6402      may elect to purchase the interest in the limited liability company owned by the petitioning
             6403      member at the fair market value of the interest, determined as provided in this section. An
             6404      election pursuant to this section is irrevocable unless the court determines that it is equitable to
             6405      set aside or modify the election.
             6406          (2) (a) An election to purchase pursuant to this section may be filed with the court at
             6407      any time within 90 days after the filing of the petition in a proceeding under Subsection
             6408      48-3-701 (5) or at any later time as the court in its discretion may allow. If the limited liability
             6409      company files an election with the court within the 90-day period, or at any later time allowed
             6410      by the court, to purchase the interest in the limited liability company owned by the petitioning
             6411      member, the limited liability company shall purchase the interest in the manner provided in this



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             6412
     section.
             6413          (b) If the limited liability company does not file an election with the court within the
             6414      time period, but an election to purchase the interest in the limited liability company owned by
             6415      the petitioning member is filed by one or more members within the time period, the limited
             6416      liability company shall, within 10 days after the later of the end of the time period allowed for
             6417      the filing of elections to purchase under this section or notification from the court of an election
             6418      by members to purchase the interest in the limited liability company owned by the petitioning
             6419      member as provided in this section, give written notice of the election to purchase to all
             6420      members of the limited liability company, other than the petitioning member. The notice shall
             6421      state the name and the percentage interest in the limited liability company owned by the
             6422      petitioning member and the name and the percentage interest in the limited liability company
             6423      owned by each electing member. The notice shall advise any recipients who have not
             6424      participated in the election of their right to join in the election to purchase the interest in the
             6425      limited liability company in accordance with this section, and of the date by which any notice
             6426      of intent to participate must be filed with the court.
             6427          (c) Members who wish to participate in the purchase of the interest in the limited
             6428      liability company of the petitioning member must file notice of their intention to join in the
             6429      purchase by electing members, no later than 30 days after the effective date of the limited
             6430      liability company's notice of their right to join in the election to purchase.
             6431          (d) All members who have filed with the court an election or notice of their intention to
             6432      participate in the election to purchase the interest in the limited liability company of the
             6433      petitioning member thereby become irrevocably obligated to participate in the purchase of the
             6434      interest from the petitioning member upon the terms and conditions of this section, unless the
             6435      court otherwise directs.
             6436          (e) After an election has been filed by the limited liability company or one or more
             6437      members, the proceedings under Subsection 48-3-701 (5) may not be discontinued or settled,
             6438      nor may the petitioning member sell or otherwise dispose of the petitioning member's interest
             6439      in the limited liability company, unless the court determines that it would be equitable to the
             6440      limited liability company and the members, other than the petitioning member, to permit any
             6441      discontinuance, settlement, sale, or other disposition.
             6442          (3) If, within 60 days after the earlier of the limited liability company filing of an



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             6443
     election to purchase the interest in the limited liability company of the petitioning member or
             6444      the limited liability company's mailing of a notice to its members of the filing of an election by
             6445      the members to purchase the interest in the limited liability company of the petitioning
             6446      member, the petitioning member and electing limited liability company or members reach
             6447      agreement as to the fair market value and terms of the purchase of the petitioning member's
             6448      interest, the court shall enter an order directing the purchase of the petitioning member's
             6449      interest, upon the terms and conditions agreed to by the parties.
             6450          (4) If the parties are unable to reach an agreement as provided for in Subsection (3),
             6451      upon application of any party, the court shall stay the proceedings under Subsection
             6452      48-3-701 (5) and determine the fair market value of the petitioning member's interest in the
             6453      limited liability company as of the day before the date on which the petition under Subsection
             6454      48-3-701 (5) was filed or as of any other date the court determines to be appropriate under the
             6455      circumstances and based on the factors the court determines to be appropriate.
             6456          (5) (a) Upon determining the fair market value of the interest in the limited liability
             6457      company of the petitioning member, the court shall enter an order directing the purchase of the
             6458      interest in the limited liability company upon terms and conditions the court determines to be
             6459      appropriate. The terms and conditions may include payment of the purchase price in
             6460      installments, where necessary in the interest of equity, provision for security to assure payment
             6461      of the purchase price and any additional costs, fees, and expenses awarded by the court, and an
             6462      allocation of the interest in the limited liability company among members if the interest in the
             6463      limited liability company is to be purchased by members.
             6464          (b) In allocating the petitioning member's interest in the limited liability company
             6465      among holders of different classes of members, the court shall attempt to preserve the existing
             6466      distribution of voting rights among member classes to the extent practicable. The court may
             6467      direct that holders of a specific class or classes may not participate in the purchase. The court
             6468      may not require any electing member to purchase more of the interest in the limited liability
             6469      company owned by the petitioning member than the percentage interest that the purchasing
             6470      member may have set forth in the purchasing member's election or notice of intent to
             6471      participate filed with the court.
             6472          (c) Interest may be allowed at the rate and from the date determined by the court to be
             6473      equitable. However, if the court finds that the refusal of the petitioning member to accept an



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             6474
     offer of payment was arbitrary or otherwise not in good faith, interest may not be allowed.
             6475          (d) If the court finds that the petitioning member had probable ground for relief under
             6476      Subsection 48-3-701 (5), the court may award to the petitioning member reasonable fees and
             6477      expenses of counsel and experts employed by the petitioning member.
             6478          (6) Upon entry of an order under Subsection (3) or (5), the court shall dismiss the
             6479      petition to dissolve the limited liability company under Subsection 48-3-701 (5) and the
             6480      petitioning member shall no longer have any rights or status as a member of the limited liability
             6481      company, except the right to receive the amounts awarded to him by the court. The award is
             6482      enforceable in the same manner as any other judgment.
             6483          (7) (a) The purchase ordered pursuant to Subsection (5) shall be made within 10 days
             6484      after the date the order becomes final, unless before that time the limited liability company files
             6485      with the court a notice of its intention to file a certificate of dissolution. The certificate of
             6486      dissolution must then be adopted and filed within 60 days after notice.
             6487          (b) Upon filing of articles of dissolution, the limited liability company is dissolved and
             6488      shall be wound up pursuant to Section 48-3-703 , and the order entered pursuant to Subsection
             6489      (5) is no longer of any force or effect. However, the court may award the petitioning member
             6490      reasonable fees and expenses in accordance with Subsection (5)(d). The petitioning member
             6491      may continue to pursue any claims previously asserted on behalf of the limited liability
             6492      company.
             6493          (8) Any payment by the limited liability company pursuant to an order under
             6494      Subsection (3) or (5), other than an award of fees and expenses pursuant to Subsection (5)(d),
             6495      is subject to the provisions of Sections 48-3-405 and 48-3-406 .
             6496          Section 238. Section 48-3-703 is enacted to read:
             6497          48-3-703. Winding up.
             6498          (1) A dissolved limited liability company shall wind up its activities, and the limited
             6499      liability company continues after dissolution only for the purpose of winding up.
             6500          (2) In winding up its activities, a limited liability company:
             6501          (a) shall discharge the limited liability company's debts, obligations, or other liabilities,
             6502      settle and close the limited liability company's activities, and marshal and distribute the assets
             6503      of the limited liability company; and
             6504          (b) may:



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             6505
         (i) deliver to the division for filing a statement of dissolution stating the name of the
             6506      limited liability company and that the limited liability company is dissolved;
             6507          (ii) preserve the limited liability company activities and property as a going concern for
             6508      a reasonable time;
             6509          (iii) prosecute and defend actions and proceedings, whether civil, criminal, or
             6510      administrative;
             6511          (iv) transfer the limited liability company's property;
             6512          (v) settle disputes by mediation or arbitration;
             6513          (vi) deliver to the division for filing a statement of termination stating the name of the
             6514      limited liability company and that the limited liability company is terminated; and
             6515          (vii) perform other acts necessary or appropriate to the winding up.
             6516          (3) If a dissolved limited liability company has no members, the legal representative of
             6517      the last person to have been a member may wind up the activities of the limited liability
             6518      company. If the person does so, the person has the powers of a sole manager under Subsection
             6519      48-3-407 (3) and is deemed to be a manager for the purposes of Subsection 48-3-304 (1)(b).
             6520          (4) If the legal representative under Subsection (3) declines or fails to wind up the
             6521      limited liability company's activities, a person may be appointed to do so by the consent of
             6522      transferees owning a majority of the rights to receive distributions as transferees at the time the
             6523      consent is to be effective. A person appointed under this Subsection (4):
             6524          (a) has the powers of a sole manager under Subsection 48-3-407 (3) and is deemed to
             6525      be a manager for the purposes of Subsection 48-3-304 (1)(b); and
             6526          (b) shall promptly deliver to the division for filing an amendment to the limited
             6527      liability company's certificate of organization to:
             6528          (i) state that the limited liability company has no members;
             6529          (ii) state that the person has been appointed pursuant to this Subsection (4) to wind up
             6530      the limited liability company; and
             6531          (c) provide the street and mailing addresses of the person.
             6532          (5) A district court may order judicial supervision of the winding up of a dissolved
             6533      limited liability company, including the appointment of a person to wind up the limited liability
             6534      company's activities:
             6535          (a) on application of a member, if the applicant establishes good cause;



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             6536
         (b) on the application of a transferee, if:
             6537          (i) the limited liability company does not have any members;
             6538          (ii) the legal representative of the last person to have been a member declines or fails to
             6539      wind up the limited liability company's activities; and
             6540          (iii) within a reasonable time following the dissolution a person has not been appointed
             6541      pursuant to Subsection (4); or
             6542          (c) in connection with a proceeding under Subsection 48-3-701 (4) or (5).
             6543          Section 239. Section 48-3-704 is enacted to read:
             6544          48-3-704. Known claims against dissolved limited liability company.
             6545          (1) A dissolved limited liability company in winding up may dispose of the known
             6546      claims against it by following the procedures described in this section.
             6547          (2) A limited liability company in winding up electing to dispose of known claims
             6548      pursuant to this section may give written notice of the limited liability company 's dissolution
             6549      to known claimants at any time after the effective date of the dissolution. The written notice
             6550      must:
             6551          (a) describe the information that must be included in a claim;
             6552          (b) provide an address to which written notice of any claim must be given to the
             6553      limited liability company;
             6554          (c) state the deadline, which may not be fewer than 120 days after the effective date of
             6555      the notice, by which the dissolved limited liability company must receive the claim; and
             6556          (d) state that, unless sooner barred by another state statute limiting actions, the claim
             6557      will be barred if not received by the deadline.
             6558          (3) Unless sooner barred by another statute limiting actions, a claim against the
             6559      dissolved limited liability company is barred if:
             6560          (a) a claimant was given notice under Subsection (2) and the claim is not received by
             6561      the dissolved limited liability company by the deadline; or
             6562          (b) the dissolved limited liability company delivers to the claimant written notice of
             6563      rejection of the claim within 90 days after receipt of the claim and the claimant whose claim
             6564      was rejected by the dissolved limited liability company does not commence a proceeding to
             6565      enforce the claim within 90 days after the effective date of the rejection notice.
             6566          (4) Claims which are not rejected by the dissolved limited liability company in writing



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             6567
     within 90 days after receipt of the claim by the dissolved limited liability company shall be
             6568      considered approved.
             6569          (5) The failure of the dissolved limited liability company to give notice to any known
             6570      claimant pursuant to Subsection (2) does not affect the disposition under this section of any
             6571      claim held by any other known claimant.
             6572          (6) This section does not apply to a claim based on an event occurring after the
             6573      effective date of dissolution or a liability that on that date is contingent.
             6574          Section 240. Section 48-3-705 is enacted to read:
             6575          48-3-705. Other claims against dissolved limited liability company.
             6576          (1) A dissolved limited liability company may publish notice of its dissolution and
             6577      request persons having claims against the limited liability company to present them in
             6578      accordance with the notice.
             6579          (2) The notice authorized by Subsection (1) must:
             6580          (a) be published:
             6581          (i) at least once in a newspaper of general circulation in the county in this state in
             6582      which the dissolved limited liability company's principal office is located or, if it has none in
             6583      this state, in Salt Lake County; and
             6584          (ii) in accordance with Section 45-1-101 ;
             6585          (b) describe the information required to be contained in a claim and provide a mailing
             6586      address to which the claim is to be sent; and
             6587          (c) state that a claim against the limited liability company is barred unless an action to
             6588      enforce the claim is commenced within five years after publication of the notice.
             6589          (3) If a dissolved limited liability company publishes a notice in accordance with
             6590      Subsection (2), unless the claimant commences an action to enforce the claim against the
             6591      limited liability company within five years after the publication date of the notice, the claim of
             6592      each of the following claimants is barred:
             6593          (a) a claimant that did not receive notice in a record under Section 48-3-704 ;
             6594          (b) a claimant whose claim was timely sent to the limited liability company but not
             6595      acted on; and
             6596          (c) a claimant whose claim is contingent at, or based on an event occurring after, the
             6597      effective date of dissolution.



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             6598
         (4) A claim not barred under this section may be enforced:
             6599          (a) against a dissolved limited liability company, to the extent of its undistributed
             6600      assets; and
             6601          (b) if assets of the limited liability company have been distributed after dissolution,
             6602      against a member or transferee to the extent of that person's proportionate share of the claim or
             6603      of the assets distributed to the member or transferee after dissolution, whichever is less, but a
             6604      person's total liability for all claims under this Subsection (4)(b) does not exceed the total
             6605      amount of assets distributed to the person after dissolution.
             6606          Section 241. Section 48-3-706 is enacted to read:
             6607          48-3-706. Administrative dissolution.
             6608          (1) The division may dissolve a limited liability company administratively if the
             6609      limited liability company does not:
             6610          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             6611      under this chapter or law other than this chapter; or
             6612          (b) deliver, within 60 days after the due date, its annual report to the division.
             6613          (2) If the division determines that a ground exists for administratively dissolving a
             6614      limited liability company, the division shall file a record of the determination and serve the
             6615      limited liability company with a copy of the filed record.
             6616          (3) If within 60 days after service of the copy pursuant to Subsection (2) a limited
             6617      liability company does not correct each ground for dissolution or demonstrate to the reasonable
             6618      satisfaction of the division that each ground determined by the division does not exist, the
             6619      division shall dissolve the limited liability company administratively by preparing, signing, and
             6620      filing a declaration of dissolution that states the grounds for dissolution. The division shall
             6621      serve the limited liability company with a copy of the filed declaration.
             6622          (4) A limited liability company that has been administratively dissolved continues in
             6623      existence but, subject to Section 48-3-707 , may carry on only activities necessary to wind up its
             6624      activities and liquidate its assets under Sections 48-3-703 and 48-3-709 and to notify claimants
             6625      under Sections 48-3-704 and 48-3-705 .
             6626          (5) The administrative dissolution of a limited liability company does not terminate the
             6627      authority of its agent for service of process.
             6628          Section 242. Section 48-3-707 is enacted to read:



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             6629
         48-3-707. Reinstatement following administrative dissolution.
             6630          (1) A limited liability company that has been administratively dissolved may apply to
             6631      the division for reinstatement within two years after the effective date of dissolution. The
             6632      application must be delivered to the division for filing and state:
             6633          (a) the name of the limited liability company and the effective date of its dissolution;
             6634          (b) that the grounds for dissolution did not exist or have been eliminated; and
             6635          (c) that the limited liability company's name satisfies the requirements of Section
             6636      48-3-108 .
             6637          (2) If the division determines that an application under Subsection (1) contains the
             6638      required information and that the information is correct, the division shall prepare a declaration
             6639      of reinstatement that states this determination, sign and file the original of the declaration of
             6640      reinstatement, and serve the limited liability company with a copy.
             6641          (3) When a reinstatement becomes effective, it relates back to and takes effect as of the
             6642      effective date of the administrative dissolution and the limited liability company may resume
             6643      its activities as if the dissolution had not occurred.
             6644          Section 243. Section 48-3-708 is enacted to read:
             6645          48-3-708. Appeal from rejection of reinstatement.
             6646          (1) If the division rejects a limited liability company's application for reinstatement
             6647      following administrative dissolution, the division shall prepare, sign, and file a notice that
             6648      explains the reason for rejection and serve the limited liability company with a copy of the
             6649      notice.
             6650          (2) Within 30 days after service of a notice of rejection of reinstatement under
             6651      Subsection (1), a limited liability company may appeal from the rejection by petitioning a court
             6652      of appropriate jurisdiction to set aside the dissolution. The petition must be served on the
             6653      division and contain a copy of the division's declaration of dissolution, the limited liability
             6654      company's application for reinstatement, and the division's notice of rejection.
             6655          (3) The court may order the division to reinstate a dissolved limited liability company
             6656      or take other action the court considers appropriate.
             6657          Section 244. Section 48-3-709 is enacted to read:
             6658          48-3-709. Distribution of assets in winding up limited liability company's
             6659      activities.



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             6660
         (1) In winding up its activities, a limited liability company must apply its assets to
             6661      discharge its obligations to creditors, including members that are creditors.
             6662          (2) After a limited liability company complies with Subsection (1), any surplus must be
             6663      distributed in the following order, subject to any charging order in effect under Section
             6664      48-3-503 :
             6665          (a) to each person owning a transferable interest that reflects contributions made by a
             6666      member and not previously returned, an amount equal to the value of the unreturned
             6667      contributions; and
             6668          (b) in equal shares among members and dissociated members, except to the extent
             6669      necessary to comply with any transfer effective under Section 48-3-502 .
             6670          (3) If a limited liability company does not have sufficient surplus to comply with
             6671      Subsection (2)(a), any surplus must be distributed among the owners of transferable interests in
             6672      proportion to the value of their respective unreturned contributions.
             6673          (4) All distributions made under Subsections (2) and (3) must be paid in money.
             6674          Section 245. Section 48-3-801 is enacted to read:
             6675     
Part 8. Foreign Limited Liability Companies

             6676          48-3-801. Governing law.
             6677          (1) The law of the state or other jurisdiction under which a foreign limited liability
             6678      company is formed governs:
             6679          (a) the internal affairs of the limited liability company; and
             6680          (b) the liability of a member as member and a manager as manager for the debts,
             6681      obligations, or other liabilities of the limited liability company.
             6682          (2) A foreign limited liability company may not be denied a certificate of authority by
             6683      reason of any difference between the law of the jurisdiction under which the limited liability
             6684      company is formed and the law of this state.
             6685          (3) A certificate of authority does not authorize a foreign limited liability company to
             6686      engage in any business or exercise any power that a limited liability company may not engage
             6687      in or exercise in this state.
             6688          (4) (a) The division may permit a tribal limited liability company to apply for authority
             6689      to transact business in the state in the same manner as a foreign company formed in another
             6690      state.



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             6691
         (b) If a tribal limited liability company elects to apply for authority to transact business
             6692      in the state, for purposes of this chapter, the tribal limited liability company shall be treated in
             6693      the same manner as a foreign company formed under the laws of another state.
             6694          Section 246. Section 48-3-802 is enacted to read:
             6695          48-3-802. Application for certificate of authority.
             6696          (1) A foreign limited liability company may apply for a certificate of authority to
             6697      transact business in this state by delivering an application to the division for filing. The
             6698      application must state:
             6699          (a) the name of the limited liability company and, if the name does not comply with
             6700      Section 48-3-108 , an alternate name adopted pursuant to Subsection 48-3-805 (1);
             6701          (b) the name of the state or other jurisdiction under whose law the limited liability
             6702      company is formed;
             6703          (c) the street and mailing addresses of the limited liability company's principal office
             6704      and, if the law of the jurisdiction under which the limited liability company is formed requires
             6705      the limited liability company to maintain an office in that jurisdiction, the street and mailing
             6706      addresses of the required office; and
             6707          (d) the information required by Subsection 16-17-203 (1).
             6708          (2) A foreign limited liability company shall deliver with a completed application
             6709      under Subsection (1) a certificate of existence or a record of similar import signed by the
             6710      division or other official having custody of the limited liability company's publicly filed records
             6711      in the state or other jurisdiction under whose law the limited liability company is formed.
             6712          Section 247. Section 48-3-803 is enacted to read:
             6713          48-3-803. Activities not constituting transacting business.
             6714          (1) Activities of a foreign limited liability company which do not constitute transacting
             6715      business in this state within the meaning of this part include:
             6716          (a) maintaining, defending, or settling an action or proceeding;
             6717          (b) carrying on any activity concerning its internal affairs, including holding meetings
             6718      of its members or managers;
             6719          (c) maintaining accounts in financial institutions;
             6720          (d) maintaining offices or agencies for the transfer, exchange, and registration of the
             6721      limited liability company's own securities or maintaining trustees or depositories with respect



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             6722
     to those securities;
             6723          (e) selling through independent contractors;
             6724          (f) soliciting or obtaining orders, whether by mail or electronic means or through
             6725      employees or agents or otherwise, if the orders require acceptance outside this state before they
             6726      become contracts;
             6727          (g) creating or acquiring indebtedness, mortgages, or security interests in real or
             6728      personal property;
             6729          (h) securing or collecting debts or enforcing mortgages or other security interests in
             6730      property securing the debts and holding, protecting, or maintaining property so acquired;
             6731          (i) conducting an isolated transaction that is completed within 30 days and is not in the
             6732      course of similar transactions; and
             6733          (j) transacting business in interstate commerce.
             6734          (2) For purposes of this part, the ownership in this state of income-producing real
             6735      property or tangible personal property, other than property excluded under Subsection (1),
             6736      constitutes transacting business in this state.
             6737          (3) This section does not apply in determining the contacts or activities that may
             6738      subject a foreign limited liability company to service of process, taxation, or regulation under
             6739      law of this state other than this chapter.
             6740          Section 248. Section 48-3-804 is enacted to read:
             6741          48-3-804. Filing of certificate of authority.
             6742          Unless the division determines that an application for a certificate of authority does not
             6743      comply with the filing requirements of this chapter, the division, upon payment of all filing
             6744      fees, shall file the application of a foreign limited liability company, prepare, sign, and file a
             6745      certificate of authority to transact business in this state, and send a copy of the filed certificate,
             6746      together with a receipt for the fees, to the limited liability company or its representative.
             6747          Section 249. Section 48-3-805 is enacted to read:
             6748          48-3-805. Noncomplying name of foreign limited liability company.
             6749          (1) A foreign limited liability company whose name does not comply with Section
             6750      48-3-108 may not obtain a certificate of authority until it adopts, for the purpose of transacting
             6751      business in this state, an alternate name that complies with Section 48-3-108 . A foreign limited
             6752      liability company that adopts an alternate name under this Subsection (1) and obtains a



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             6753
     certificate of authority with the alternate name need not comply with Title 42, Chapter 2,
             6754      Conducting Business Under Assumed Name. After obtaining a certificate of authority with an
             6755      alternate name, a foreign limited liability company shall transact business in this state under the
             6756      alternate name unless the limited liability company is authorized under Title 42, Chapter 2,
             6757      Conducting Business Under Assumed Name, to transact business in this state under another
             6758      name.
             6759          (2) If a foreign limited liability company authorized to transact business in this state
             6760      changes its name to one that does not comply with Section 48-3-108 , it may not thereafter
             6761      transact business in this state until it complies with Subsection (1) and obtains an amended
             6762      certificate of authority.
             6763          Section 250. Section 48-3-806 is enacted to read:
             6764          48-3-806. Revocation of certificate of authority.
             6765          (1) A certificate of authority of a foreign limited liability company to transact business
             6766      in this state may be revoked by the division in the manner provided in Subsections (2) and (3)
             6767      if the limited liability company does not:
             6768          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             6769      under this chapter or law other than this chapter;
             6770          (b) deliver, within 60 days after the due date, its annual report required under Section
             6771      48-3-209 ;
             6772          (c) appoint and maintain an agent for service of process as required by Subsection
             6773      16-17-203 (1); or
             6774          (d) deliver for filing a statement of a change under Section 16-17-206 within 30 days
             6775      after a change has occurred in the name or address of the agent.
             6776          (2) To revoke a certificate of authority of a foreign limited liability company, the
             6777      division must prepare, sign, and file a notice of revocation and send a copy to the limited
             6778      liability company's agent for service of process in this state, or if the limited liability company
             6779      does not appoint and maintain a proper agent in this state, to the limited liability company's
             6780      principal office. The notice must state:
             6781          (a) the revocation's effective date, which must be at least 60 days after the date the
             6782      division sends the copy; and
             6783          (b) the grounds for revocation under Subsection (1).



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             6784
         (3) The authority of a foreign limited liability company to transact business in this state
             6785      ceases on the effective date of the notice of revocation unless before that date the limited
             6786      liability company cures each ground for revocation stated in the notice filed under Subsection
             6787      (2). If the limited liability company cures each ground, the division shall file a record so
             6788      stating.
             6789          Section 251. Section 48-3-807 is enacted to read:
             6790          48-3-807. Cancellation of certificate of authority.
             6791          To cancel its certificate of authority to transact business in this state, a foreign limited
             6792      liability company must deliver to the division for filing a notice of cancellation stating the
             6793      name of the limited liability company and that the limited liability company desires to cancel
             6794      its certificate of authority. The certificate is canceled when the notice becomes effective.
             6795          Section 252. Section 48-3-808 is enacted to read:
             6796          48-3-808. Effect of failure to have certificate of authority.
             6797          (1) A foreign limited liability company transacting business in this state may not
             6798      maintain an action or proceeding in this state unless it has a certificate of authority to transact
             6799      business in this state.
             6800          (2) The failure of a foreign limited liability company to have a certificate of authority
             6801      to transact business in this state does not impair the validity of a contract or act of the limited
             6802      liability company or prevent the limited liability company from defending an action or
             6803      proceeding in this state.
             6804          (3) A member or manager of a foreign limited liability company is not liable for the
             6805      debts, obligations, or other liabilities of the limited liability company solely because the limited
             6806      liability company transacted business in this state without a certificate of authority.
             6807          (4) If a foreign limited liability company transacts business in this state without a
             6808      certificate of authority or cancels its certificate of authority, service of process for rights of
             6809      action arising out of the transaction of business in this state shall be served in accordance with
             6810      Section 16-17-301 .
             6811          Section 253. Section 48-3-809 is enacted to read:
             6812          48-3-809. Action by attorney general.
             6813          The attorney general may maintain an action to enjoin a foreign limited liability
             6814      company from transacting business in this state in violation of this part.



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             6815
         Section 254. Section 48-3-901 is enacted to read:
             6816     
Part 9. Actions by Members

             6817          48-3-901. Direct action by member.
             6818          (1) Subject to Subsection (2), a member may maintain a direct action against another
             6819      member, a manager, or the limited liability company to enforce the member's rights and
             6820      otherwise protect the member's interests, including rights and interests under the operating
             6821      agreement or this chapter or arising independently of the membership relationship.
             6822          (2) A member maintaining a direct action under this section must plead and prove an
             6823      actual or threatened injury that is not solely the result of an injury suffered or threatened to be
             6824      suffered by the limited liability company.
             6825          Section 255. Section 48-3-902 is enacted to read:
             6826          48-3-902. Derivative action.
             6827          A member may maintain a derivative action to enforce a right of a limited liability
             6828      company if:
             6829          (1) the member first makes a demand on the other members in a member-managed
             6830      limited liability company, or the managers of a manager-managed limited liability company,
             6831      requesting that they cause the limited liability company to bring an action to enforce the right,
             6832      and the managers or other members do not bring the action within a reasonable time; or
             6833          (2) a demand under Subsection (1) would be futile.
             6834          Section 256. Section 48-3-903 is enacted to read:
             6835          48-3-903. Proper plaintiff.
             6836          (1) Except as otherwise provided in Subsection (2), a derivative action under Section
             6837      48-3-902 may be maintained only by a person that is a member at the time the action is
             6838      commenced and remains a member while the action continues.
             6839          (2) If the sole plaintiff in a derivative action dies while the action is pending, the court
             6840      may permit another member of the limited liability company to be substituted as plaintiff.
             6841          Section 257. Section 48-3-904 is enacted to read:
             6842          48-3-904. Pleading.
             6843          In a derivative action under Section 48-3-902 , the complaint must state with
             6844      particularity:
             6845          (1) the date and content of plaintiff's demand and the response to the demand by the



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             6846
     managers or other members; or
             6847          (2) if a demand has not been made, the reasons a demand under Subsection
             6848      48-3-902 (1) would be futile.
             6849          Section 258. Section 48-3-905 is enacted to read:
             6850          48-3-905. Special litigation committee.
             6851          (1) If a limited liability company is named as or made a party in a derivative
             6852      proceeding, the limited liability company may appoint a special litigation committee to
             6853      investigate the claims asserted in the proceeding and determine whether pursuing the action is
             6854      in the best interests of the limited liability company. If the limited liability company appoints a
             6855      special litigation committee, on motion by the committee made in the name of the limited
             6856      liability company, except for good cause shown, the court shall stay discovery for the time
             6857      reasonably necessary to permit the committee to make its investigation. This Subsection (1)
             6858      does not prevent the court from enforcing a person's right to information under Section
             6859      48-3-410 or, for good cause shown, granting extraordinary relief in the form of a temporary
             6860      restraining order or preliminary injunction.
             6861          (2) A special litigation committee may be composed of one or more disinterested and
             6862      independent individuals, who may be members.
             6863          (3) A special litigation committee may be appointed:
             6864          (a) in a member-managed limited liability company:
             6865          (i) by the consent of a majority of the members not named as defendants or plaintiffs in
             6866      the proceeding; and
             6867          (ii) if all members are named as defendants or plaintiffs in the proceeding, by a
             6868      majority of the members named as defendants; or
             6869          (b) in a manager-managed limited liability company:
             6870          (i) by a majority of the managers not named as defendants or plaintiffs in the
             6871      proceeding; and
             6872          (ii) if all managers are named as defendants or plaintiffs in the proceeding, by a
             6873      majority of the managers named as defendants.
             6874          (4) After appropriate investigation, a special litigation committee may determine that it
             6875      is in the best interests of the limited liability company that the proceeding:
             6876          (a) continue under the control of the plaintiff;



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             6877
         (b) continue under the control of the committee;
             6878          (c) be settled on terms approved by the committee; or
             6879          (d) be dismissed.
             6880          (5) After making a determination under Subsection (4), a special litigation committee
             6881      shall file with the court a statement of its determination and its report supporting its
             6882      determination, giving notice to the plaintiff. The court shall determine whether the members of
             6883      the committee were disinterested and independent and whether the committee conducted its
             6884      investigation and made its recommendation in good faith, independently, and with reasonable
             6885      care, with the committee having the burden of proof. If the court finds that the members of the
             6886      committee were disinterested and independent and that the committee acted in good faith,
             6887      independently, and with reasonable care, the court shall enforce the determination of the
             6888      committee. Otherwise, the court shall dissolve the stay of discovery entered under Subsection
             6889      (1) and allow the action to proceed under the direction of the plaintiff.
             6890          Section 259. Section 48-3-906 is enacted to read:
             6891          48-3-906. Proceeds and expenses.
             6892          (1) Except as otherwise provided in Subsection (2):
             6893          (a) any proceeds or other benefits of a derivative action under Section 48-3-902 ,
             6894      whether by judgment, compromise, or settlement, belong to the limited liability company and
             6895      not to the plaintiff; and
             6896          (b) if the plaintiff receives any proceeds, the plaintiff shall remit them immediately to
             6897      the limited liability company.
             6898          (2) If a derivative action under Section 48-3-902 is successful in whole or in part, the
             6899      court may award the plaintiff reasonable expenses, including reasonable attorney fees and
             6900      costs, from the recovery of the limited liability company.
             6901          Section 260. Section 48-3-1001 is enacted to read:
             6902     
Part 10. Merger, Conversion, and Domestication

             6903          48-3-1001. Definitions.
             6904          As used in this part:
             6905          (1) "Constituent limited liability company" means a constituent organization that is a
             6906      limited liability company.
             6907          (2) "Constituent organization" means an organization that is party to a merger.



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             6908
         (3) "Converted organization" means the organization into which a converting
             6909      organization converts pursuant to Sections 48-3-1006 through 48-3-1009 .
             6910          (4) "Converting limited liability company" means a converting organization that is a
             6911      limited liability company.
             6912          (5) "Converting organization" means an organization that converts into another
             6913      organization pursuant to Section 48-3-1006 .
             6914          (6) "Domesticated company" means the limited liability company that exists after a
             6915      domesticating foreign limited liability company or limited liability company effects a
             6916      domestication pursuant to Sections 48-3-1010 through 48-3-1013 .
             6917          (7) "Domesticating company" means the limited liability company that effects a
             6918      domestication pursuant to Sections 48-3-1010 through 48-3-1013 .
             6919          (8) "Governing statute" means the statute that governs an organization's internal affairs.
             6920          (9) (a) "Organization" means:
             6921          (i) a general partnership, including a limited liability partnership;
             6922          (ii) a limited partnership, including a limited liability limited partnership;
             6923          (iii) a limited liability company;
             6924          (iv) a business trust;
             6925          (v) a corporation; or
             6926          (vi) any other person having a governing statute.
             6927          (b) "Organization" includes a domestic or foreign organization regardless of whether
             6928      organized for profit.
             6929          (10) "Organizational documents" means:
             6930          (a) for a domestic or foreign general partnership, its partnership agreement;
             6931          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             6932      partnership and partnership agreement;
             6933          (c) for a domestic or foreign limited liability company, its certificate or articles of
             6934      organization and operating agreement, or comparable records as provided in its governing
             6935      statute;
             6936          (d) for a business trust, its agreement of trust and declaration of trust;
             6937          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             6938      and other agreements among its shareholders which are authorized by its governing statute, or



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             6939
     comparable records as provided in its governing statute; and
             6940          (f) for any other organization, the basic records that create the organization and
             6941      determine its internal governance and the relations among the persons that own it, have an
             6942      interest in it, or are members of it.
             6943          (11) "Personal liability" means liability for a debt, obligation, or other liability of an
             6944      organization which is imposed on a person that co-owns, has an interest in, or is a member of
             6945      the organization:
             6946          (a) by the governing statute solely by reason of the person co-owning, having an
             6947      interest in, or being a member of the organization; or
             6948          (b) by the organization's organizational documents under a provision of the governing
             6949      statute authorizing those documents to make one or more specified persons liable for all or
             6950      specified debts, obligations, or other liabilities of the organization solely by reason of the
             6951      person or persons co-owning, having an interest in, or being a member of the organization.
             6952          (12) "Surviving organization" means an organization into which one or more other
             6953      organizations are merged whether the organization preexisted the merger or was created by the
             6954      merger.
             6955          Section 261. Section 48-3-1002 is enacted to read:
             6956          48-3-1002. Merger.
             6957          (1) A limited liability company may merge with one or more other constituent
             6958      organizations pursuant to this section, Sections 48-3-1003 through 48-3-1005 , and a plan of
             6959      merger, if:
             6960          (a) the governing statute of each of the other organizations authorizes the merger;
             6961          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the
             6962      governing statutes; and
             6963          (c) each of the other organizations complies with its governing statute in effecting the
             6964      merger.
             6965          (2) A plan of merger must be in a record and must include:
             6966          (a) the name and form of each constituent organization;
             6967          (b) the name and form of the surviving organization and, if the surviving organization
             6968      is to be created by the merger, a statement to that effect;
             6969          (c) the terms and conditions of the merger, including the manner and basis for



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             6970
     converting the interests in each constituent organization into any combination of money,
             6971      interests in the surviving organization, and other consideration;
             6972          (d) if the surviving organization is to be created by the merger, the surviving
             6973      organization's organizational documents that are proposed to be in a record; and
             6974          (e) if the surviving organization is not to be created by the merger, any amendments to
             6975      be made by the merger to the surviving organization's organizational documents that are, or are
             6976      proposed to be, in a record.
             6977          Section 262. Section 48-3-1003 is enacted to read:
             6978          48-3-1003. Action on plan of merger by constituent limited liability company.
             6979          (1) Subject to Section 48-3-1014 , a plan of merger must be consented to by all the
             6980      members of a constituent limited liability company.
             6981          (2) Subject to Section 48-3-1014 and any contractual rights, after a merger is approved,
             6982      and at any time before articles of merger are delivered to the division for filing under Section
             6983      48-3-1004 , a constituent limited liability company may amend the plan or abandon the merger:
             6984          (a) as provided in the plan; or
             6985          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             6986      approve the plan.
             6987          Section 263. Section 48-3-1004 is enacted to read:
             6988          48-3-1004. Filings required for merger -- Effective date.
             6989          (1) After each constituent organization has approved a merger, articles of merger must
             6990      be signed on behalf of:
             6991          (a) each constituent limited liability company, as provided in Subsection 48-3-203 (1);
             6992      and
             6993          (b) each other constituent organization, as provided in its governing statute.
             6994          (2) Articles of merger under this section must include:
             6995          (a) the name and form of each constituent organization and the jurisdiction of its
             6996      governing statute;
             6997          (b) the name and form of the surviving organization, the jurisdiction of its governing
             6998      statute, and, if the surviving organization is created by the merger, a statement to that effect;
             6999          (c) the date the merger is effective under the governing statute of the surviving
             7000      organization;



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             7001
         (d) if the surviving organization is to be created by the merger:
             7002          (i) if it will be a limited liability company, the limited liability company's certificate of
             7003      organization; or
             7004          (ii) if it will be an organization other than a limited liability company, the
             7005      organizational document that creates the organization that is in a public record;
             7006          (e) if the surviving organization preexists the merger, any amendments provided for in
             7007      the plan of merger for the organizational document that created the organization that are in a
             7008      public record;
             7009          (f) a statement as to each constituent organization that the merger was approved as
             7010      required by the organization's governing statute;
             7011          (g) if the surviving organization is a foreign organization not authorized to transact
             7012      business in this state, the street and mailing addresses of an office that may be used for service
             7013      of process under Subsection 48-3-1005 (2); and
             7014          (h) any additional information required by the governing statute of any constituent
             7015      organization.
             7016          (3) Each constituent limited liability company shall deliver the articles of merger for
             7017      filing in the division.
             7018          (4) A merger becomes effective under this part:
             7019          (a) if the surviving organization is a limited liability company, upon the later of:
             7020          (i) compliance with Subsection (3); or
             7021          (ii) subject to Subsection 48-3-205 (3), as specified in the articles of merger; or
             7022          (b) if the surviving organization is not a limited liability company, as provided by the
             7023      governing statute of the surviving organization.
             7024          Section 264. Section 48-3-1005 is enacted to read:
             7025          48-3-1005. Effect of merger.
             7026          (1) When a merger becomes effective:
             7027          (a) the surviving organization continues or comes into existence;
             7028          (b) each constituent organization that merges into the surviving organization ceases to
             7029      exist as a separate entity;
             7030          (c) all property owned by each constituent organization that ceases to exist vests in the
             7031      surviving organization;



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             7032
         (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             7033      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             7034          (e) an action or proceeding pending by or against any constituent organization that
             7035      ceases to exist may be continued as if the merger had not occurred;
             7036          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             7037      and purposes of each constituent organization that ceases to exist vest in the surviving
             7038      organization;
             7039          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             7040      plan of merger take effect; and
             7041          (h) except as otherwise agreed, if a constituent limited liability company ceases to
             7042      exist, the merger does not dissolve the limited liability company for the purposes of Part 7,
             7043      Dissolution and Winding Up;
             7044          (i) if the surviving organization is created by the merger:
             7045          (A) if it is a limited liability company, the certificate of organization becomes
             7046      effective; or
             7047          (B) if it is an organization other than a limited liability company, the organizational
             7048      document that creates the organization becomes effective; and
             7049          (j) if the surviving organization preexisted the merger, any amendments provided for in
             7050      the articles of merger for the organizational document that created the organization become
             7051      effective.
             7052          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             7053      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             7054      organization, if before the merger the constituent organization was subject to suit in this state
             7055      on the debt, obligation, or other liability. A surviving organization that is a foreign
             7056      organization and not authorized to transact business in this state may be served with process at
             7057      the address required in the articles of merger under Subsection 48-3-1004 (2)(g).
             7058          Section 265. Section 48-3-1006 is enacted to read:
             7059          48-3-1006. Conversion.
             7060          (1) An organization other than a limited liability company or a foreign limited liability
             7061      company may convert to a limited liability company, and a limited liability company may
             7062      convert to an organization other than a foreign limited liability company pursuant to this



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             7063
     section, Sections 48-3-1007 through 48-3-1009 , and a plan of conversion, if:
             7064          (a) the other organization's governing statute authorizes the conversion;
             7065          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other
             7066      organization's governing statute; and
             7067          (c) the other organization complies with its governing statute in effecting the
             7068      conversion.
             7069          (2) A plan of conversion must be in a record and must include:
             7070          (a) the name and form of the organization before conversion;
             7071          (b) the name and form of the organization after conversion;
             7072          (c) the terms and conditions of the conversion, including the manner and basis for
             7073      converting interests in the converting organization into any combination of money, interests in
             7074      the converted organization, and other consideration; and
             7075          (d) the organizational documents of the converted organization that are, or are
             7076      proposed to be, in a record.
             7077          Section 266. Section 48-3-1007 is enacted to read:
             7078          48-3-1007. Action on plan of conversion by converting limited liability company.
             7079          (1) Subject to Section 48-3-1014 , a plan of conversion must be consented to by all the
             7080      members of a converting limited liability company.
             7081          (2) Subject to Section 48-3-1014 and any contractual rights, after a conversion is
             7082      approved, and at any time before articles of conversion are delivered to the division for filing
             7083      under Section 48-3-1008 , a converting limited liability company may amend the plan or
             7084      abandon the conversion:
             7085          (a) as provided in the plan; or
             7086          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             7087      approve the plan.
             7088          Section 267. Section 48-3-1008 is enacted to read:
             7089          48-3-1008. Filings required for conversion -- Effective date.
             7090          (1) After a plan of conversion is approved:
             7091          (a) a converting limited liability company shall deliver to the division for filing articles
             7092      of conversion, which must be signed as provided in Subsection 48-3-203 (1) and must include:
             7093          (i) a statement that the limited liability company has been converted into another



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             7094
     organization;
             7095          (ii) the name and form of the organization and the jurisdiction of its governing statute;
             7096          (iii) the date the conversion is effective under the governing statute of the converted
             7097      organization;
             7098          (iv) a statement that the conversion was approved as required by this chapter;
             7099          (v) a statement that the conversion was approved as required by the governing statute
             7100      of the converted organization; and
             7101          (vi) if the converted organization is a foreign organization not authorized to transact
             7102      business in this state, the street and mailing addresses of an office that may be used for service
             7103      of process under Subsection 48-3-1009 (3); and
             7104          (b) if the converting organization is not a converting limited liability company, the
             7105      converting organization shall deliver to the division for filing a certificate of organization,
             7106      which must include, in addition to the information required by Subsection 48-3-201 (2):
             7107          (i) a statement that the converted organization was converted from another
             7108      organization;
             7109          (ii) the name and form of that converting organization and the jurisdiction of its
             7110      governing statute; and
             7111          (iii) a statement that the conversion was approved in a manner that complied with the
             7112      converting organization's governing statute.
             7113          (2) A conversion becomes effective:
             7114          (a) if the converted organization is a limited liability company, when the certificate of
             7115      organization takes effect; and
             7116          (b) if the converted organization is not a limited liability company, as provided by the
             7117      governing statute of the converted organization.
             7118          Section 268. Section 48-3-1009 is enacted to read:
             7119          48-3-1009. Effect of conversion.
             7120          (1) An organization that has been converted pursuant to this part is for all purposes the
             7121      same entity that existed before the conversion.
             7122          (2) When a conversion takes effect:
             7123          (a) all property owned by the converting organization remains vested in the converted
             7124      organization;



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             7125
         (b) all debts, obligations, or other liabilities of the converting organization continue as
             7126      debts, obligations, or other liabilities of the converted organization;
             7127          (c) an action or proceeding pending by or against the converting organization may be
             7128      continued as if the conversion had not occurred;
             7129          (d) except as prohibited by law other than this chapter, all of the rights, privileges,
             7130      immunities, powers, and purposes of the converting organization remain vested in the
             7131      converted organization;
             7132          (e) except as otherwise provided in the plan of conversion, the terms and conditions of
             7133      the plan of conversion take effect; and
             7134          (f) except as otherwise agreed, the conversion does not dissolve a converting limited
             7135      liability company for the purposes of Part 7, Dissolution and Winding Up.
             7136          (3) A converted organization that is a foreign organization consents to the jurisdiction
             7137      of the courts of this state to enforce any debt, obligation, or other liability for which the
             7138      converting limited liability company is liable if, before the conversion, the converting limited
             7139      liability company was subject to suit in this state on the debt, obligation, or other liability. A
             7140      converted organization that is a foreign organization and not authorized to transact business in
             7141      this state may be served with process at the address required in the articles of conversion under
             7142      Subsection 48-3-1008 (1)(a)(vi).
             7143          Section 269. Section 48-3-1010 is enacted to read:
             7144          48-3-1010. Domestication.
             7145          (1) A foreign limited liability company may become a limited liability company
             7146      pursuant to this section, Sections 48-3-1011 through 48-3-1013 , and a plan of domestication,
             7147      if:
             7148          (a) the foreign limited liability company's governing statute authorizes the
             7149      domestication;
             7150          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             7151      governing statute; and
             7152          (c) the foreign limited liability company complies with its governing statute in
             7153      effecting the domestication.
             7154          (2) A limited liability company may become a foreign limited liability company
             7155      pursuant to this section, Sections 48-3-1011 through 48-3-1013 , and a plan of domestication,



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             7156
     if:
             7157          (a) the foreign limited liability company's governing statute authorizes the
             7158      domestication;
             7159          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             7160      governing statute; and
             7161          (c) the foreign limited liability company complies with its governing statute in
             7162      effecting the domestication.
             7163          (3) A plan of domestication must be in a record and must include:
             7164          (a) the name of the domesticating company before domestication and the jurisdiction of
             7165      its governing statute;
             7166          (b) the name of the domesticated company after domestication and the jurisdiction of
             7167      its governing statute;
             7168          (c) the terms and conditions of the domestication, including the manner and basis for
             7169      converting interests in the domesticating company into any combination of money, interests in
             7170      the domesticated company, and other consideration; and
             7171          (d) the organizational documents of the domesticated company that are, or are
             7172      proposed to be, in a record.
             7173          Section 270. Section 48-3-1011 is enacted to read:
             7174          48-3-1011. Action on plan of domestication by domesticating limited liability
             7175      company.
             7176          (1) A plan of domestication must be consented to:
             7177          (a) by all the members, subject to Section 48-3-1014 , if the domesticating company is a
             7178      limited liability company; and
             7179          (b) as provided in the domesticating company's governing statute, if the limited
             7180      liability company is a foreign limited liability company.
             7181          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             7182      before articles of domestication are delivered to the division for filing under Section
             7183      48-3-1012 , a domesticating company may amend the plan or abandon the domestication:
             7184          (a) as provided in the plan; or
             7185          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             7186      approve the plan.



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             7187
         Section 271. Section 48-3-1012 is enacted to read:
             7188          48-3-1012. Filings required for domestication -- Effective date.
             7189          (1) After a plan of domestication is approved, a domesticating company shall deliver to
             7190      the division for filing articles of domestication, which must include:
             7191          (a) a statement, as the case may be, that the limited liability company has been
             7192      domesticated from or into another jurisdiction;
             7193          (b) the name of the domesticating company and the jurisdiction of its governing
             7194      statute;
             7195          (c) the name of the domesticated company and the jurisdiction of its governing statute;
             7196          (d) the date the domestication is effective under the governing statute of the
             7197      domesticated company;
             7198          (e) if the domesticating company was a limited liability company, a statement that the
             7199      domestication was approved as required by this chapter;
             7200          (f) if the domesticating company was a foreign limited liability company, a statement
             7201      that the domestication was approved as required by the governing statute of the other
             7202      jurisdiction; and
             7203          (g) if the domesticated company was a foreign limited liability company not authorized
             7204      to transact business in this state, the street and mailing addresses of an office that may be used
             7205      for service of process under Subsection 48-3-1013 (2).
             7206          (2) A domestication becomes effective:
             7207          (a) when the certificate of organization takes effect, if the domesticated company is a
             7208      limited liability company; and
             7209          (b) according to the governing statute of the domesticated company, if the
             7210      domesticated organization is a foreign limited liability company.
             7211          Section 272. Section 48-3-1013 is enacted to read:
             7212          48-3-1013. Effect of domestication.
             7213          (1) When a domestication takes effect:
             7214          (a) the domesticated company is for all purposes the limited liability company that
             7215      existed before the domestication;
             7216          (b) all property owned by the domesticating company remains vested in the
             7217      domesticated company;



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             7218
         (c) all debts, obligations, or other liabilities of the domesticating company continue as
             7219      debts, obligations, or other liabilities of the domesticated company;
             7220          (d) an action or proceeding pending by or against a domesticating company may be
             7221      continued as if the domestication had not occurred;
             7222          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             7223      and purposes of the domesticating company remain vested in the domesticated company;
             7224          (f) except as otherwise provided in the plan of domestication, the terms and conditions
             7225      of the plan of domestication take effect; and
             7226          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             7227      company for the purposes of Part 7, Dissolution and Winding Up.
             7228          (2) A domesticated company that is a foreign limited liability company consents to the
             7229      jurisdiction of the courts of this state to enforce any debt, obligation, or other liability owed by
             7230      the domesticating company, if, before the domestication, the domesticating company was
             7231      subject to suit in this state on the debt, obligation, or other liability. A domesticated company
             7232      that is a foreign limited liability company and not authorized to transact business in this state
             7233      may be served with process at the address required in the articles of domestication under
             7234      Subsection 48-3-1012 (1)(g).
             7235          (3) If a limited liability company has adopted and approved a plan of domestication
             7236      under Section 48-3-1010 providing for the limited liability company to be domesticated in a
             7237      foreign jurisdiction, a statement surrendering the limited liability company's certificate of
             7238      organization must be delivered to the division for filing setting forth:
             7239          (a) the name of the limited liability company;
             7240          (b) a statement that the certificate of organization is being surrendered in connection
             7241      with the domestication of the limited liability company in a foreign jurisdiction;
             7242          (c) a statement that the domestication was approved as required by this chapter; and
             7243          (d) the jurisdiction of formation of the domesticated foreign limited liability company.
             7244          Section 273. Section 48-3-1014 is enacted to read:
             7245          48-3-1014. Restrictions on approval of mergers, conversions, and domestications.
             7246          (1) If a member of a constituent, converting, or domesticating limited liability company
             7247      will have personal liability with respect to a surviving, converted, or domesticated
             7248      organization, approval or amendment of a plan of merger, conversion, or domestication are



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             7249
     ineffective without the consent of the member, unless:
             7250          (a) the limited liability company's operating agreement provides for approval of a
             7251      merger, conversion, or domestication with the consent of fewer than all the members; and
             7252          (b) the member has consented to the provision of the operating agreement.
             7253          (2) A member does not give the consent required by Subsection (1) merely by
             7254      consenting to a provision of the operating agreement that permits the operating agreement to be
             7255      amended with the consent of fewer than all the members.
             7256          Section 274. Section 48-3-1015 is enacted to read:
             7257          48-3-1015. Part not exclusive.
             7258          This part does not preclude an entity from being merged, converted, or domesticated
             7259      under law other than this chapter.
             7260          Section 275. Section 48-3-1101 is enacted to read:
             7261     
Part 11. Professional Services Companies

             7262          48-3-1101. Definitions.
             7263          As used in this part:
             7264          (1) "Professional services" means a personal service provided by:
             7265          (a) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             7266      Accountant Licensing Act, or a subsequent law regulating the practice of public accounting;
             7267          (b) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             7268      or a subsequent law regulating the practice of architecture;
             7269          (c) an attorney granted the authority to practice law by the:
             7270          (i) Utah Supreme Court; or
             7271          (ii) one or more of the following that licenses or regulates the authority to practice law
             7272      in a state or territory of the United States other than Utah:
             7273          (A) a supreme court;
             7274          (B) a court other than a supreme court;
             7275          (C) an agency;
             7276          (D) an instrumentality; or
             7277          (E) a regulating board;
             7278          (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             7279      Practice Act, or any subsequent law regulating the practice of chiropractics;



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             7280
         (e) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and
             7281      Dental Hygienist Practice Act, or a subsequent law, regulating the practice of dentistry;
             7282          (f) a professional engineer registered under Title 58, Chapter 22, Professional
             7283      Engineers and Professional Land Surveyors Licensing Act;
             7284          (g) a naturopath holding a license under Title 58, Chapter 71, Naturopathic Physician
             7285      Practice Act, or a subsequent law regulating the practice of naturopathy;
             7286          (h) a nurse licensed under Title 58, Chapter 31b, Nurse Practice Act, or Title 58,
             7287      Chapter 44a, Nurse Midwife Practice Act;
             7288          (i) an optometrist holding a license under Title 58, Chapter 16a, Utah Optometry
             7289      Practice Act, or a subsequent law regulating the practice of optometry;
             7290          (j) an osteopathic physician or surgeon holding a license under Title 58, Chapter 68,
             7291      Utah Osteopathic Medical Practice Act, or a subsequent law regulating the practice of
             7292      osteopathy;
             7293          (k) a pharmacist holding a license under Title 58, Chapter 17b, Pharmacy Practice Act,
             7294      or a subsequent law regulating the practice of pharmacy;
             7295          (l) a physician, surgeon, or doctor of medicine holding a license under Title 58,
             7296      Chapter 67, Utah Medical Practice Act, or a subsequent law regulating the practice of
             7297      medicine;
             7298          (m) a physical therapist holding a license under Title 58, Chapter 24b, Physical
             7299      Therapy Practice Act, or a subsequent law regulating the practice of physical therapy;
             7300          (n) a podiatric physician holding a license under Title 58, Chapter 5a, Podiatric
             7301      Physician Licensing Act, or a subsequent law regulating the practice of podiatry;
             7302          (o) a psychologist holding a license under Title 58, Chapter 61, Psychologist Licensing
             7303      Act, or any subsequent law regulating the practice of psychology;
             7304          (p) a principal broker, associate broker, or sales agent holding a license under Title 61,
             7305      Chapter 2f, Real Estate Licensing and Practices Act, or a subsequent law regulating the sale,
             7306      exchange, purchase, rental, or leasing of real estate;
             7307          (q) a clinical or certified social worker holding a license under Title 58, Chapter 60,
             7308      Part 2, Social Worker Licensing Act, or a subsequent law regulating the practice of social
             7309      work;
             7310          (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental



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             7311
     Health Professional Practice Act, or a subsequent law regulating the practice of mental health
             7312      therapy;
             7313          (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             7314      or a subsequent law regulating the practice of veterinary medicine; or
             7315          (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
             7316      Estate Appraiser Licensing and Certification Act, or a subsequent law regulating the practice of
             7317      appraising real estate.
             7318          (2) "Professional services company" means a limited liability company organized
             7319      under this part to provide professional services.
             7320          (3) "Regulating board" means the entity organized pursuant to state law that licenses
             7321      and regulates the practice of the profession that a limited liability company is organized to
             7322      provide.
             7323          Section 276. Section 48-3-1102 is enacted to read:
             7324          48-3-1102. Application of this part.
             7325          (1) If a conflict arises between this part and another provision of this chapter, this part
             7326      controls.
             7327          (2) Notwithstanding the other provisions of this part, on and after January 1, 2014:
             7328          (a) a professional services company may not designate series of transferable interests;
             7329      and
             7330          (b) a limited liability company may not form a professional services company as a
             7331      series of the limited liability company.
             7332          Section 277. Section 48-3-1103 is enacted to read:
             7333          48-3-1103. Additional requirements for certificate of organization.
             7334          The certificate of organization of a professional services company shall:
             7335          (1) comply with Section 48-3-201 ; and
             7336          (2) contain the following:
             7337          (a) a name consistent with Section 48-3-1104 ;
             7338          (b) a description of the profession to be practiced through the professional services
             7339      company; and
             7340          (c) notwithstanding Section 48-3-201 , the name and street address of each member or
             7341      manager of the professional services company.



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             7342
         Section 278. Section 48-3-1104 is enacted to read:
             7343          48-3-1104. Name limitations.
             7344          (1) The name of a domestic professional services company and of a foreign
             7345      professional services company authorized to transact business in this state, in addition to
             7346      complying with Sections 48-3-108 , 48-3-802 , and 48-3-805 :
             7347          (a) may not contain language stating or implying that it is formed for a purpose other
             7348      than that authorized by:
             7349          (i) its certificate of organization; or
             7350          (ii) Section 48-3-1105 ;
             7351          (b) must conform with any rule made by the regulating board having jurisdiction over a
             7352      professional service described in the professional services company's certificate of
             7353      organization; and
             7354          (c) in lieu of the requirement of Subsection 48-3-108 (1), must contain the words
             7355      "professional limited liability company" or the abbreviations "P.L.L.C." or "PLLC" in:
             7356          (i) its certificate of organization; and
             7357          (ii) a report or document filed with the division.
             7358          (2) Notwithstanding Subsection (1)(c), a professional services company may hold itself
             7359      out to the public under a name that does not contain the words "professional limited liability
             7360      company" or the abbreviations "P.L.L.C." or "PLLC" if that name complies with Subsection
             7361      48-3-108 (1).
             7362          (3) Sections 48-3-108 , 48-3-802 , and 48-3-805 do not prevent the use of a name
             7363      otherwise prohibited by those sections if the name is:
             7364          (a) the personal name of an individual member or individual former member of the
             7365      professional services company; or
             7366          (b) the name of an individual who was associated with a predecessor of the
             7367      professional services company.
             7368          Section 279. Section 48-3-1105 is enacted to read:
             7369          48-3-1105. Providing a professional service.
             7370          (1) A professional services company may provide a professional service in this state
             7371      only through an individual licensed or otherwise authorized in this state to provide the
             7372      professional service.



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             7373
         (2) Subsection (1) does not:
             7374          (a) require an individual employed by a professional services company to be licensed
             7375      to perform a service for the professional services company if a license is not otherwise
             7376      required;
             7377          (b) prohibit a licensed individual from providing a professional service in the
             7378      individual's professional capacity although the individual is a member, manager, employee, or
             7379      agent of a professional services company; or
             7380          (c) prohibit an individual licensed in another state from providing a professional
             7381      service for a professional services company in this state if not prohibited by the regulating
             7382      board.
             7383          (3) A professional services company may not provide a professional service other than
             7384      the professional service authorized by its certificate of organization.
             7385          Section 280. Section 48-3-1106 is enacted to read:
             7386          48-3-1106. Limit of one profession.
             7387          (1) A professional services company organized to provide a professional service under
             7388      this chapter may provide only:
             7389          (a) one specific type of professional service; and
             7390          (b) a service ancillary to the professional service described in Subsection (1)(a).
             7391          (2) A professional services company organized to provide a professional service under
             7392      this chapter may not engage in a business other than to provide:
             7393          (a) the professional service that it was organized to provide; and
             7394          (b) services ancillary to the professional service described in Subsection (2)(a).
             7395          (3) Notwithstanding Subsection (1) or (2), a professional services company may:
             7396          (a) own real and personal property necessary or appropriate for providing the type of
             7397      professional service it was organized to provide; and
             7398          (b) invest the professional services company's money in one or more of the following:
             7399          (i) real estate;
             7400          (ii) mortgages;
             7401          (iii) stocks;
             7402          (iv) bonds; or
             7403          (vi) another type of investment.



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             7404
         Section 281. Section 48-3-1107 is enacted to read:
             7405          48-3-1107. Activity limitations.
             7406          A professional services company may not do anything that an individual licensed to
             7407      practice the profession that the professional services company is organized to provide is
             7408      prohibited from doing.
             7409          Section 282. Section 48-3-1108 is enacted to read:
             7410          48-3-1108. Part does not limit regulating board.
             7411          This chapter does not restrict the authority or duty of a regulating board to license an
             7412      individual providing a professional service or the practice of the profession that is within the
             7413      jurisdiction of the regulating board, notwithstanding that the individual:
             7414          (1) is a member, manager, or employee of a professional services company; and
             7415          (2) provides the professional service or engages in the practice of the profession
             7416      through a professional services company.
             7417          Section 283. Section 48-3-1109 is enacted to read:
             7418          48-3-1109. Member or manager of a professional services company.
             7419          A professional services company organized to provide a professional service:
             7420          (1) may include a member, manager, or employee who is authorized under the laws of
             7421      the jurisdiction where the member, manager, or employee resides to provide a similar
             7422      professional service;
             7423          (2) may include a member who is not licensed or registered by the state to provide the
             7424      professional service to the extent allowed by the applicable licensing or registration act relating
             7425      to the professional service;
             7426          (3) may render a professional service in this state only through a member, manager, or
             7427      employee who is licensed or registered by this state to render the professional service; and
             7428          (4) as a power provided under Section 48-3-105 .
             7429          Section 284. Section 48-3-1110 is enacted to read:
             7430          48-3-1110. Restriction on transfer by member.
             7431          (1) Except as provided in Subsection (2), a member of a professional services company
             7432      may sell or transfer the member's interest in the professional services company only to:
             7433          (a) the professional services company; or
             7434          (b) an individual who is licensed or registered by this state to provide the same type of



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             7435
     professional service as the professional service for which the professional services company is
             7436      organized.
             7437          (2) (a) Upon the death or incapacity of a member of a professional services company,
             7438      the member's interest in the professional services company may be transferred to the personal
             7439      representative or estate of the deceased or incapacitated member.
             7440          (b) The person to whom an interest is transferred under Subsection (2)(a) may continue
             7441      to hold the interest for a reasonable period, but may not participate in a decision concerning the
             7442      providing of a professional service.
             7443          Section 285. Section 48-3-1111 is enacted to read:
             7444          48-3-1111. Purchase of interest upon death, incapacity, or disqualification of
             7445      member.
             7446          (1) Subject to this part, one or more of the following may provide for the purchase of a
             7447      member's interest in a professional services company upon the death, incapacity, or
             7448      disqualification of the member:
             7449          (a) the certificate of organization;
             7450          (b) the operating agreement; or
             7451          (c) a private agreement.
             7452          (2) (a) In the absence of a provision described in Subsection (1), a professional services
             7453      company shall purchase the interest of a member who is deceased, incapacitated, or no longer
             7454      qualified to own an interest in the professional services company within 90 days after the day
             7455      on which the professional services company is notified of the death, incapacity, or
             7456      disqualification.
             7457          (b) If a professional services company purchases a member's interest under this
             7458      Subsection (2), the professional services company shall purchase the interest at a price that is
             7459      the reasonable fair market value as of the date of death, incapacity, or disqualification.
             7460          (3) (a) If a professional services company fails to purchase a member's interest as
             7461      required by Subsection (2)(a) at the end of the 90-day period described in Subsection (2)(a),
             7462      one of the following may bring an action in the district court of the county in which the
             7463      principal office or place of practice of the professional services company is located to enforce
             7464      Subsection (2):
             7465          (i) the personal representative of a deceased member;



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             7466
         (ii) the guardian or conservator of an incapacitated member; or
             7467          (iii) the disqualified member.
             7468          (b) A court in which an action is brought under this Subsection (3) may:
             7469          (i) award the person bringing the action the reasonable fair market value of the interest;
             7470      or
             7471          (ii) within its jurisdiction, order the liquidation of the professional services company.
             7472          (c) If a person described in Subsection (3)(a)(i) through (iii) is successful in an action
             7473      under this Subsection (3), the court shall award the person reasonable attorney fees and costs.
             7474          Section 286. Section 48-3-1112 is enacted to read:
             7475          48-3-1112. Conversion to nonprofessional company.
             7476          (1) A professional services company subject to this part converts into a limited liability
             7477      company subject to this chapter, but not subject to this part on the day on which:
             7478          (a) no member of the professional services company is licensed or registered for the
             7479      professional service for which the professional services company is organized; or
             7480          (b) members holding at least two-thirds interest in the profits of the professional
             7481      services company vote to not be subject to this part.
             7482          (2) A professional services company converted as provided in Subsection (1) shall
             7483      upon the event described in Subsection (1) operate as and be treated as a limited liability
             7484      company subject to this chapter, but not subject to this part.
             7485          (3) A limited liability company converted under this section may reconvert to a
             7486      professional services company:
             7487          (a) upon a member of the professional services company being licensed or registered
             7488      for the professional service for which the professional services company is organized; or
             7489          (b) by the vote of members holding at least two-thirds interests in the profits of the
             7490      professional services company, if at least one member of the professional services company is
             7491      licensed or registered for the professional service for which the professional services company
             7492      is organized.
             7493          (4) If a professional services company is converted or reconverted under this section,
             7494      the professional services company shall file a certificate of amendment to the certificate of
             7495      organization with the division within a reasonable time after the conversion or reconversion to
             7496      reflect the changes.



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Senate 3rd Reading Amendments 2-28-2011 kc/po
             7497
         Section 287. Section 48-3-1201 is enacted to read:
             7498     
Part 12. Series Limited Liability Companies

             7499          48-3-1201. Application of this part.
             7500          If a conflict arises between this part and another provision of this chapter, this part
             7501      controls.
             7502          Section 288. Section 48-3-1202 is enacted to read:
             7503          48-3-1202. Series of transferable interests.
             7504          (1) (a) An operating agreement may establish or provide for the establishment of a
             7505      designated series of transferable interests having separate rights, powers, or duties with respect
             7506      to specified property or obligations of the limited liability company or profits and losses
             7507      associated with specified property or obligations, and, to the extent provided in the operating
             7508      agreement, any such series may have a separate business purpose or investment objective. The
             7509      name of each series must contain the name of the limited liability company and be
             7510      distinguishable from the name of any other series set forth in the certificate of organization..
             7511          (b) An operating agreement shall identify a separate right, power, or duty of a series
             7512      described in Subsection (1)(a).
             7513          (c) Notwithstanding the other provisions of this part, on and after January 1, 2014:
             7514          (i) a professional services company may not designate series of transferable interests;
             7515      and
             7516          (ii) a limited liability company may not form a professional services company as a
             7517      series of the limited liability company.
             7518          (2) A series may have a business purpose or investment objective different from the
             7519      limited liability company.
             7520          (3) Notwithstanding contrary provisions of this chapter, a series' debts, liabilities,
             7521      obligations, and expenses are enforceable against the assets of that series only and may not be
             7522      enforced against the assets of the limited liability company generally or another series S. [ . ] if: .S
             7523          (a) the operating agreement provides for separate treatment of the series;
             7524          (b) separate and distinct records are maintained concerning the series;
             7525          (c) the assets associated with the series are held and accounted for separately from the
             7526      other assets of the limited liability company and any other series; and
             7527          (d) notice of the limitation on liability of a series is included in the limited liability



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             7528
     company's certificate of organization in accordance with Section 48-3-1203 .
             7529          (4) A debt, liability, obligation, or expense incurred, contracted for, or otherwise
             7530      existing with respect to the limited liability company generally or another series may not be
             7531      enforced against the assets of a series if:
             7532          (a) the operating agreement provides for separate treatment of the series;
             7533          (b) separate and distinct records are maintained concerning the series;
             7534          (c) the assets associated with the series are held and accounted for separately from the
             7535      other assets of the limited liability company and any other series; and
             7536          (d) notice of the limitation on liability of a series is included in the limited liability
             7537      company's certificate of organization in accordance with Section 48-3-1203 .
             7538          (5) A series may contract on its own behalf and in its own name, including through a
             7539      manager.
             7540          (6) Notwithstanding other provisions of this section:
             7541          (a) property and assets of a series may not be transferred to the limited liability
             7542      company generally or another series if the transfer impairs the ability of the series releasing the
             7543      property or assets to pay its debts existing at the time of the transfer unless fair value is given to
             7544      the transferring series for the property or assets transferred; and
             7545          (b) a tax or other liability of the limited liability company generally or of a series may
             7546      not be assigned by the series against which the tax or other liability is imposed to the limited
             7547      liability company generally or to another series within the limited liability company if the
             7548      assignment impairs a creditor's right and ability to fully collect an amount due when owed.
             7549          Section 289. Section 48-3-1203 is enacted to read:
             7550          48-3-1203. Notice of series -- Certificate of organization.
             7551          (1) Notice in a limited liability company's certificate of organization of the limitation
             7552      on liabilities of a series, as required by Section 48-3-1202 , is sufficient whether or not the
             7553      limited liability company has established a series at the time the notice is included in the
             7554      certificate of organization.
             7555          (2) The notice required by Section 48-3-1202 :
             7556          (a) is not required to reference a specific series; and
             7557          (b) for a certificate of organization or an amendment to a certificate of organization
             7558      made to include notice of series that is filed on or after May 11, 2010, notice in a company's



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             7559
     certificate of organization is sufficient for purposes of Subsection (1) only if the notice of series
             7560      appears immediately following the provision stating the name of the company.
             7561          (3) The filing of the notice required by Section 48-3-1202 with the division constitutes
             7562      notice of the limitation on liability of a series.
             7563          Section 290. Section 48-3-1204 is enacted to read:
             7564          48-3-1204. Agreement to be liable.
             7565          Notwithstanding Section 48-3-304 , a member or manager may agree to be obligated
             7566      personally for any or all of the debts, obligations, and liabilities of one or more series.
             7567          Section 291. Section 48-3-1205 is enacted to read:
             7568          48-3-1205. Series related provisions in operating agreement.
             7569          (1) An operating agreement may provide for classes or groups of members or managers
             7570      associated with a series with separate rights, powers, or duties as provided in Subsection
             7571      48-3-1202 (1).
             7572          (2) An operating agreement may provide for the future creation of one or more
             7573      additional classes or groups of members or managers associated with a series that have the
             7574      rights, powers, and duties that as may from time to time be established, including a right,
             7575      power, or duty that is senior to an existing class or group of members or managers associated
             7576      with the series.
             7577          (3) An operating agreement may provide for the taking of an action without the vote or
             7578      approval of any member or manager, or class or group of members or managers, including:
             7579          (a) an action to create a class or group of a series of interests in the limited liability
             7580      company that was not previously outstanding; and
             7581          (b) amending the operating agreement.
             7582          (4) An operating agreement may provide that a member or class or group of members
             7583      associated with a series has no voting rights.
             7584          (5) (a) An operating agreement may on any matter grant to all members or managers, a
             7585      specific member or manager, or a specific class or group of members or managers associated
             7586      with a series, the right to vote separately or with all or any class or group of the members or
             7587      managers associated with the series.
             7588          (b) Voting by members or managers associated with a series may be on any basis
             7589      including:



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             7590
         (i) a per capita basis;
             7591          (ii) a number basis;
             7592          (iii) on the basis of a financial interest; or
             7593          (iv) by class or group.
             7594          (6) Except to the extent modified by this part, the provisions of this chapter that are
             7595      generally applicable to a limited liability company, and its managers, members, and transferees,
             7596      are applicable to each series with respect to the operations of the series
             7597          Section 292. Section 48-3-1206 is enacted to read:
             7598          48-3-1206. Management of a series.
             7599          (1) A series is member-managed unless the operating agreement:
             7600          (a) expressly provides that:
             7601          (i) the series is or will be "manager-managed";
             7602          (ii) the series is or will be "managed by managers"; or
             7603          (iii) management of the series is or will be "vested in managers"; or
             7604          (b) includes words of similar import.
             7605          (2) In a member-managed series, unless modified pursuant to Section 48-3-1205 , the
             7606      following rules apply:
             7607          (a) The management and conduct of the series are vested in the members of the series.
             7608          (b) Each series member has equal rights in the management and conduct of the series'
             7609      activities.
             7610          (c) A difference arising among series members as to a matter in the ordinary course of
             7611      the activities of the series shall be decided by a majority of the series members.
             7612          (d) An act outside the ordinary course of the activities of the series may be undertaken
             7613      only with the consent of all members of the series.
             7614          (e) The operating agreement may be amended only with the consent of all members of
             7615      the series.
             7616          (3) In a manager-managed series, the following rules apply:
             7617          (a) Except as otherwise expressly provided in this chapter, any matter relating to the
             7618      activities of the series is decided exclusively by the managers of the series.
             7619          (b) Each series manager has equal rights in the management and conduct of the
             7620      activities of the series.



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             7621
         (c) A difference arising among managers of a series as to a matter in the ordinary
             7622      course of the activities of the series shall be decided by a majority of the managers of the series.
             7623          (d) Unless modified pursuant to Section 48-3-1205 , the consent of all members of the
             7624      series is required to:
             7625          (i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the series'
             7626      property, with or without the goodwill, outside the ordinary course of the series' activities;
             7627          (ii) approve a merger, conversion, or domestication under Part 10, Merger, Conversion,
             7628      and Domestication;
             7629          (iii) undertake any other act outside the ordinary course of the series' activities; and
             7630          (iv) amend the operating agreement.
             7631          (e) A manager of the series may be chosen at any time by the consent of a majority of
             7632      the members of the series and remains a manager of the series until a successor has been
             7633      chosen, unless the series manager at an earlier time resigns, is removed, or dies, or, in the case
             7634      of a series manager that is not an individual, terminates. A series manager may be removed at
             7635      any time by the consent of a majority of the members without notice or cause.
             7636          (f) A person need not be a series member to be a manager of a series, but the
             7637      dissociation of a series member that is also a series manager removes the person as a manager
             7638      of the series. If a person that is both a series manager and a series member ceases to be a
             7639      manager of the series, that cessation does not by itself dissociate the person as a member of the
             7640      series.
             7641          (g) A person's ceasing to be a series manager does not discharge any debt, obligation,
             7642      or other liability to the series or members of the series which the person incurred while a
             7643      manager of the series.
             7644          (4) An action requiring the consent of members of a series under this chapter may be
             7645      taken without a meeting, and a member of a series may appoint a proxy or other agent to
             7646      consent or otherwise act for the series member by signing an appointing record, personally or
             7647      by the series member's agent.
             7648          (5) The dissolution of a series does not affect the applicability of this section.
             7649      However, a person that wrongfully causes dissolution of the series loses the right to participate
             7650      in management as a series member and a series manager.
             7651          (6) This chapter does not entitle a series member of a series to remuneration for



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             7652
     services performed for a member-managed series, except for reasonable compensation for
             7653      services rendered in winding up the activities of the series.
             7654          Section 293. Section 48-3-1207 is enacted to read:
             7655          48-3-1207. Distribution concerning a series.
             7656          (1) Except as otherwise provided in the operating agreement, any distribution made by
             7657      a series before its dissolution and winding up must be in equal shares among the series
             7658      members and dissociated series members, except to the extent necessary to comply with any
             7659      transfer effective under Section 48-3-502 and any charging order in effect under Section
             7660      48-3-503 .
             7661          (2) A person has a right to a distribution before the dissolution and winding up of a
             7662      series only if the series decides to make an interim distribution. A person's dissociation does
             7663      not entitle the person to a distribution.
             7664          (3) A person does not have a right to demand or receive a distribution from a series in
             7665      any form other than money. Except as otherwise provided in Subsection 48-3-709 (3), a series
             7666      may distribute an asset in kind if each part of the asset is fungible with each other part and each
             7667      person receives a percentage of the asset equal in value to the person's share of distributions.
             7668          (4) If a series member or transferee becomes entitled to receive a distribution, the series
             7669      member or transferee has the status of, and is entitled to all remedies available to, a creditor of
             7670      the series with respect to the distribution.
             7671          (5) A series may not make a distribution if after the distribution:
             7672          (a) the series would not be able to pay its debts as they become due in the ordinary
             7673      course of the series' activities; or
             7674          (b) the series' total assets would be less than the sum of its total liabilities plus the
             7675      amount that would be needed, if the series were to be dissolved, wound up, and terminated at
             7676      the time of the distribution, to satisfy the preferential rights upon dissolution, winding up, and
             7677      termination of members whose preferential rights are superior to those of persons receiving the
             7678      distribution.
             7679          (6) A series may base a determination that a distribution is not prohibited under
             7680      Subsection (5) on financial statements prepared on the basis of accounting practices and
             7681      principles that are reasonable in the circumstances or on a fair valuation or other method that is
             7682      reasonable under the circumstances.



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             7683
         (7) Except as otherwise provided in Subsection (9), the effect of a distribution under
             7684      Subsection (5) is measured:
             7685          (a) in the case of a distribution by purchase, redemption, or other acquisition of a
             7686      transferable interest in the series, as of the date money or other property is transferred or debt
             7687      incurred by the series; or
             7688          (b) in all other cases, as of the date:
             7689          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             7690      or
             7691          (ii) the payment is made, if the payment occurs more than 120 days after the
             7692      distribution is authorized.
             7693          (8) A series' indebtedness to a series member incurred by reason of a distribution made
             7694      in accordance with this section is at parity with the series' indebtedness to its general,
             7695      unsecured creditors.
             7696          (9) A series' indebtedness, including indebtedness issued in connection with or as part
             7697      of a distribution, is not a liability for purposes of Subsection (5) if the terms of the indebtedness
             7698      provide that payment of principal and interest are made only to the extent that a distribution
             7699      could be made to members of the series under this section. If such indebtedness is issued as a
             7700      distribution, each payment of principal or interest on the indebtedness is treated as a
             7701      distribution, the effect of which is measured on the date the payment is made.
             7702          (10) As used in Subsection (5) "distribution" does not include amounts constituting
             7703      reasonable compensation for present or past services or reasonable payments made in the
             7704      ordinary course of business under a bona fide retirement plan or other benefits program.
             7705          (11) (a) Except as otherwise provided in Subsection (11)(b), if a member of a
             7706      member-managed series or manager of a manager-managed series consents to a distribution
             7707      made in violation of this section and in consenting to the distribution fails to comply with
             7708      Section 48-3-409 , the member or manager is personally liable to the series for the amount of
             7709      the distribution that exceeds the amount that could have been distributed without the violation
             7710      of Section 48-3-405 .
             7711          (b) To the extent the operating agreement of a member-managed series expressly
             7712      relieves a series member of the authority and responsibility to consent to distributions and
             7713      imposes that authority and responsibility on one or more other members of the series, the



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             7714
     liability stated in Subsection (11)(a) applies to the other members of the series and not the
             7715      member of the series that the operating agreement relieves of authority and responsibility.
             7716          (12) A person that receives a distribution knowing that the distribution to that person
             7717      was made in violation of Section 48-3-405 is personally liable to the limited liability company
             7718      but only to the extent that the distribution received by the person exceeded the amount that
             7719      could have been properly paid under Section 48-3-405 .
             7720          (13) A person against which an action is commenced because the person is liable under
             7721      Subsection (11) may:
             7722          (a) implead any other person that is subject to liability under Subsection (11) and seek
             7723      to compel contribution from the person; and
             7724          (b) implead any person that received a distribution in violation of Subsection (12) and
             7725      seek to compel contribution from the person in the amount the person received in violation of
             7726      Subsection (12).
             7727          (14) An action under this section is barred if not commenced within two years after the
             7728      distribution.
             7729          Section 294. Section 48-3-1208 is enacted to read:
             7730          48-3-1208. Events causing dissociation from a series.
             7731          (1) Unless otherwise provided in the operating agreement, a member ceases to be
             7732      associated with a series and to have the power to exercise a right or power of a member with
             7733      respect to the series upon the assignment of all of the member's interest in the limited liability
             7734      company with respect to the series.
             7735          (2) Unless otherwise provided in an operating agreement, an event under this chapter
             7736      or the operating agreement that causes a member to cease to be associated with a series does
             7737      not, by itself:
             7738          (a) cause the member to cease to be associated with another series;
             7739          (b) terminate the continued membership of a member in the limited liability company;
             7740      or
             7741          (c) cause the termination of the series, regardless of whether the member is the last
             7742      remaining member associated with the series.
             7743          Section 295. Section 48-3-1209 is enacted to read:
             7744          48-3-1209. Termination of a series.



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Senate 3rd Reading Amendments 2-28-2011 kc/po
             7745
         (1) Except to the extent otherwise provided in the operating agreement, a series may be
             7746      terminated and its affairs wound up without causing the dissolution of the limited liability
             7747      company.
             7748          (2) The termination of a series does not affect the limitation on liabilities of the series
             7749      under Section 48-3-1202 .
             7750          (3) A series is terminated and its affairs shall be wound up upon the dissolution of the
             7751      limited liability company under Section 48-3-701 or upon the occurrence of any of the events
             7752      described in Section 48-3-701 , as applied to the series.
             7753          (4) Notwithstanding Section 48-3-703 , unless otherwise provided in the operating
             7754      agreement, any of the following persons may wind up the affairs of a series:
             7755          (a) a manager associated with a series who has not wrongfully terminated the series;
             7756          (b) if there is no manager of a series, the members associated with the series or a
             7757      person approved by the members associated with the series; or
             7758          (c) if there is more than one class or group of members associated with the series, then
             7759      by each class or group of members associated with the series, in either case, by members who
             7760      own more than 50% of the transferable interests of the series owned by all of the members
             7761      associated with the series or by the members of each class or group associated with the series.
             7762          (5) The persons winding up the affairs of a series, in the name of the series and for and
             7763      on behalf of the series, may take all actions with respect to the series as are permitted under
             7764      Section 48-3-703 for a limited liability company. The persons winding up the affairs of a
             7765      series shall provide for the claims and obligations of the series as provided in Section 48-3-709
             7766      for a limited liability company and distribute the assets of the series as provided in Section
             7767      48-3-709 for a limited liability company. An action taken pursuant to this Subsection (5) may
             7768      not affect the liability of a member and may not impose liability on a liquidating trustee.
             7769          Section 296. Section 48-3-1210 is enacted to read:
             7770          48-3-1210. Foreign limited liability company -- Series.
             7771          (1) A foreign limited liability company that is authorized to do business in this state
             7772      that is governed by an operating agreement that establishes or provides for the establishment of
             7773      a series, S. [ the foreign limited liability company ] .S shall indicate that fact on the application for a
             7774      certificate of authority as a foreign limited liability company.
             7775          (2) (a) A foreign limited liability company shall state on the application for a certificate



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             7776
     authority as a foreign limited liability company which of the protections for the series and
             7777      foreign limited liability company found in Section 48-3-1202 apply to a series.
             7778          (b) If different protections found in Section 48-3-1202 apply to different series of a
             7779      foreign limited liability company, the application for authority to transact business in the state
             7780      shall state:
             7781          (i) the protections that apply to each existing series; and
             7782          (ii) the protections that will apply to any series after registering to do business.
             7783          Section 297. Section 48-3-1301 is enacted to read:
             7784     
Part 13. Low-profit Limited Liability Companies

             7785          48-3-1301. Application of this part.
             7786          If a conflict arises between this part and another provision of this chapter, this part
             7787      controls.
             7788          Section 298. Section 48-3-1302 is enacted to read:
             7789          48-3-1302. Requirements.
             7790          (1) To be a low-profit limited liability company, a limited liability company shall:
             7791          (a) contain in its name the abbreviation "L3C" or "l3c";
             7792          (b) state in its certificate of organization that it is a low-profit limited liability
             7793      company;
             7794          (c) organize under this chapter; and
             7795          (d) be organized for a business purpose that satisfies, and at all times operates to satisfy
             7796      each of the requirements under Subsection (2).
             7797          (2) A low-profit limited liability company:
             7798          (a) shall significantly further the accomplishment of one or more charitable or
             7799      educational purposes within the meaning of Section 170(c)(2)(B), Internal Revenue Code;
             7800          (b) shall demonstrate that it would not be formed but for the limited liability company's
             7801      relationship to the accomplishment of a charitable or educational purpose;
             7802          (c) subject to Subsection (3), may not have as a significant purpose the production of
             7803      income or the appreciation of property; and
             7804          (d) may not have as a purpose to accomplish one or more political or legislative
             7805      purposes within the meaning of Section 170(c)(2)(D), Internal Revenue Code.
             7806          (3) Notwithstanding Subsection (2), if a low-profit limited liability company produces



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             7807
     significant income or capital appreciation, in the absence of other factors, the fact that the
             7808      low-profit limited liability company produces significant income or capital appreciation is not
             7809      conclusive evidence of a significant purpose involving the production of income or the
             7810      appreciation of property.
             7811          Section 299. Section 48-3-1303 is enacted to read:
             7812          48-3-1303. Ceasing to be a low-profit limited liability company.
             7813          (1) If a company that is a low-profit limited liability company at its formation at any
             7814      time ceases to meet a requirement to be a low-profit limited liability company under Section
             7815      48-3-1302 , the limited liability company:
             7816          (a) ceases to be a low-profit limited liability company on the day on which the limited
             7817      liability company no longer meets the requirement; and
             7818          (b) if it continues to meet the requirements of this chapter to be a limited liability
             7819      company, continues to exist as a limited liability company that is not a low-profit limited
             7820      liability company.
             7821          (2) A low-profit limited liability company's failure to meet a requirement of Section
             7822      48-3-1302 may be:
             7823          (a) voluntary, in order to convert to a limited liability company that is not a low-profit
             7824      limited liability company; or
             7825          (b) involuntary.
             7826          (3) If a low-profit limited liability company ceases to be a low-profit limited liability
             7827      company in accordance with this section, the limited liability company shall:
             7828          (a) change its name to conform with Section 48-3-108 ; and
             7829          (b) amend its articles of organization in accordance with Section 48-3-202 .
             7830          Section 300. Section 48-3-1304 is enacted to read:
             7831          48-3-1304. Conversion or merger of a low-profit limited liability company.
             7832          A low-profit limited liability company may engage in the following to the same extent
             7833      as a limited liability company that is not a low-profit limited liability company may do so under
             7834      Part 10, Merger, Conversion, and Domestication:
             7835          (1) convert to another subject entity;
             7836          (2) convert from another subject entity; or
             7837          (3) participate in a merger.



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             7838
         Section 301. Section 48-3-1401 is enacted to read:
             7839     
Part 14. Miscellaneous Provisions

             7840          48-3-1401. Uniformity of application and construction.
             7841          In applying and construing this chapter, consideration must be given to the need to
             7842      promote uniformity of the law with respect to its subject matter among states that enact the
             7843      uniform act.
             7844          Section 302. Section 48-3-1402 is enacted to read:
             7845          48-3-1402. Relation to Electronic Signatures in Global and National Commerce
             7846      Act.
             7847          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             7848      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             7849      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             7850      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             7851          Section 303. Section 48-3-1403 is enacted to read:
             7852          48-3-1403. Severability clause.
             7853          If any provision of this chapter or its application to any person or circumstance is held
             7854      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             7855      be given effect without the invalid provision or application, and to this end the provisions of
             7856      this chapter are severable.
             7857          Section 304. Section 48-3-1404 is enacted to read:
             7858          48-3-1404. Savings clause.
             7859          This chapter does not affect an action commenced, proceeding brought, or right accrued
             7860      before this chapter takes effect.
             7861          Section 305. Section 48-3-1405 is enacted to read:
             7862          48-3-1405. Application to existing relationships.
             7863          (1) Before January 1, 2014, this chapter governs only:
             7864          (a) a limited liability company formed on or after July 1, 2012; and
             7865          (b) subject to Subsection (3), a limited liability company formed before July 1, 2012,
             7866      which elects, in the manner provided in its operating agreement or by law for amending the
             7867      operating agreement, to be subject to this chapter.
             7868          (2) Subject to Subsection (3), on and after January 1, 2014, this chapter governs all



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             7869
     limited liability companies.
             7870          (3) For the purposes of applying this chapter to a limited liability company formed
             7871      before July 1, 2012:
             7872          (a) the limited liability company's articles of organization are deemed to be the
             7873      company's certificate of organization;
             7874          (b) for the purposes of applying Subsection 48-3-102 (10) and subject to Subsection
             7875      48-3-112 (4), language in the company's certificates of organization designating the limited
             7876      liability company's management structure operates as if that language were in the operating
             7877      agreement; and
             7878          (c) the limited liability company has a perpetual duration unless otherwise stated in the
             7879      limited liability company's articles of organization.
             7880          Section 306. Section 53C-1-201 is amended to read:
             7881           53C-1-201. Creation of administration -- Purpose -- Director.
             7882          (1) (a) There is established within state government the School and Institutional Trust
             7883      Lands Administration.
             7884          (b) The administration shall manage all school and institutional trust lands and assets
             7885      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             7886      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             7887          (2) The administration is an independent state agency and not a division of any other
             7888      department.
             7889          (3) (a) It is subject to the usual legislative and executive department controls except as
             7890      provided in this Subsection (3).
             7891          (b) (i) The director may make rules as approved by the board that allow the
             7892      administration to classify a business proposal submitted to the administration as protected
             7893      under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
             7894          (ii) The administration shall return the proposal to the party who submitted the
             7895      proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
             7896      and Management Act, if the administration determines not to proceed with the proposal.
             7897          (iii) The administration shall classify the proposal pursuant to law if it decides to
             7898      proceed with the proposal.
             7899          (iv) Section 63G-2-403 does not apply during the review period.



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             7900
         (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             7901      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             7902      63G-3-301 (6) and (7), and the director, with the board's approval, may establish a procedure
             7903      for the expedited approval of rules, based on written findings by the director showing:
             7904          (i) the changes in business opportunities affecting the assets of the trust;
             7905          (ii) the specific business opportunity arising out of those changes which may be lost
             7906      without the rule or changes to the rule;
             7907          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             7908      causing the loss of the specific opportunity;
             7909          (iv) approval by at least five board members; and
             7910          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             7911      reasons and justifications for its findings, with the Division of Administrative Rules and
             7912      notified interested parties as provided in Subsection 63G-3-301 (10).
             7913          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             7914      Management Act, except as provided in this Subsection (3)(d).
             7915          (ii) The board may approve, upon recommendation of the director, that exemption for
             7916      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             7917      the administration to efficiently fulfill its responsibilities under the law. The director shall
             7918      consult with the executive director of the Department of Human Resource Management prior
             7919      to making such a recommendation.
             7920          (iii) The positions of director, deputy director, associate director, assistant director,
             7921      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             7922      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             7923          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             7924      after consultation with the executive director of the Department of Human Resource
             7925      Management, within ranges approved by the board. The board and director shall consider
             7926      salaries for similar positions in private enterprise and other public employment when setting
             7927      salary ranges.
             7928          (v) The board may create an annual incentive and bonus plan for the director and other
             7929      administration employees designated by the board, based upon the attainment of financial
             7930      performance goals and other measurable criteria defined and budgeted in advance by the board.



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             7931
         (e) The administration shall comply with Title 63G, Chapter 6, Utah Procurement
             7932      Code, except where the board approves, upon recommendation of the director, exemption from
             7933      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             7934      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             7935      efficiently fulfill its responsibilities under the law.
             7936          (f) (i) The board and director shall review the exceptions under this Subsection (3) and
             7937      make recommendations for any modification, if required, which the Legislature would be asked
             7938      to consider during its annual general session.
             7939          (ii) The board and director may include in their recommendations any other proposed
             7940      exceptions from the usual executive and legislative controls the board and director consider
             7941      necessary to accomplish the purpose of this title.
             7942          (4) The administration is managed by a director of school and institutional trust lands
             7943      appointed by a majority vote of the board of trustees with the consent of the governor.
             7944          (5) (a) The board of trustees shall provide policies for the management of the
             7945      administration and for the management of trust lands and assets.
             7946          (b) The board shall provide policies for the ownership and control of Native American
             7947      remains that are discovered or excavated on school and institutional trust lands in consultation
             7948      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             7949      Native American Grave Protection and Repatriation Act. The director may make rules in
             7950      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             7951      policies provided by the board regarding Native American remains.
             7952          (6) In connection with joint ventures for the development of trust lands and minerals
             7953      approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may
             7954      become a member of a limited liability company under Title 48, Chapter [2c] 3, Utah Revised
             7955      Uniform Limited Liability Company Act, and is considered a person under Section [ 48-2c-102 ]
             7956      48-3-102 .
             7957          Section 307. Section 61-2b-25 is amended to read:
             7958           61-2b-25. Other law unaffected.
             7959          This chapter may not be considered to prohibit a person approved, licensed, certified, or
             7960      registered under this chapter from engaging in the practice of real estate appraising as a
             7961      professional corporation or a limited liability company in accordance with:



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             7962
         (1) Title 16, Chapter 11, Professional Corporation Act; or
             7963          (2) Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act.
             7964          Section 308. Section 61-2f-401 is amended to read:
             7965           61-2f-401. Grounds for disciplinary action.
             7966          The following acts are unlawful for a person required to be licensed under this chapter:
             7967          (1) (a) making a substantial misrepresentation;
             7968          (b) making an intentional misrepresentation;
             7969          (c) pursuing a continued and flagrant course of misrepresentation;
             7970          (d) making a false representation or promise through an agent, sales agent, advertising,
             7971      or otherwise; or
             7972          (e) making a false representation or promise of a character likely to influence,
             7973      persuade, or induce;
             7974          (2) acting for more than one party in a transaction without the informed consent of all
             7975      parties;
             7976          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             7977      broker;
             7978          (b) representing or attempting to represent a principal broker other than the principal
             7979      broker with whom the person is affiliated; or
             7980          (c) representing as sales agent or having a contractual relationship similar to that of
             7981      sales agent with a person other than a principal broker;
             7982          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs
             7983      to another and comes into the person's possession;
             7984          (b) commingling money described in Subsection (4)(a) with the person's own money;
             7985      or
             7986          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             7987      money is received;
             7988          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             7989      person not licensed under this chapter, except that valuable consideration may be shared:
             7990          (a) with a principal broker of another jurisdiction; or
             7991          (b) as provided under:
             7992          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;



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             7993
         (ii) Title 16, Chapter 11, Professional Corporation Act; or
             7994          (iii) Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act;
             7995          (6) being incompetent to act as a principal broker, associate broker, or sales agent in
             7996      such manner as to safeguard the interests of the public;
             7997          (7) failing to voluntarily furnish a copy of a document to all parties before and after the
             7998      execution of a document;
             7999          (8) failing to keep and make available for inspection by the division a record of each
             8000      transaction, including:
             8001          (a) the names of buyers and sellers or lessees and lessors;
             8002          (b) the identification of real estate;
             8003          (c) the sale or rental price;
             8004          (d) money received in trust;
             8005          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             8006          (f) any other information required by rule;
             8007          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             8008      the purchase, sale, or rental is made for that person or for an undisclosed principal;
             8009          (10) being convicted of a criminal offense involving moral turpitude within five years
             8010      of the most recent application:
             8011          (a) regardless of whether the criminal offense is related to real estate; and
             8012          (b) including:
             8013          (i) a conviction based upon a plea of nolo contendere; or
             8014          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             8015          (11) advertising the availability of real estate or the services of a licensee in a false,
             8016      misleading, or deceptive manner;
             8017          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             8018      exercise reasonable supervision over the activities of the principal broker's or branch manager's
             8019      licensed or unlicensed staff;
             8020          (13) violating or disregarding:
             8021          (a) this chapter;
             8022          (b) an order of the commission; or
             8023          (c) the rules adopted by the commission and the division;



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             8024
         (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             8025      estate transaction;
             8026          (15) any other conduct which constitutes dishonest dealing;
             8027          (16) unprofessional conduct as defined by statute or rule;
             8028          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             8029      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             8030      truthfulness:
             8031          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             8032          (b) another license, registration, or certificate to engage in an occupation or profession
             8033      issued by this state or another jurisdiction;
             8034          (18) failing to respond to a request by the division in an investigation authorized under
             8035      this chapter, including:
             8036          (a) failing to respond to a subpoena;
             8037          (b) withholding evidence; or
             8038          (c) failing to produce documents or records;
             8039          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             8040          (a) providing a title insurance product or service without the approval required by
             8041      Section 31A-2-405 ; or
             8042          (b) knowingly providing false or misleading information in the statement required by
             8043      Subsection 31A-2-405 (2);
             8044          (20) violating an independent contractor agreement between a principal broker and a
             8045      sales agent or associate broker as evidenced by a final judgment of a court;
             8046          (21) (a) engaging in a foreclosure rescue if not licensed under this chapter;
             8047          (b) engaging in an act of loan modification assistance that requires licensure as a
             8048      mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act,
             8049      without being licensed under that chapter;
             8050          (c) requesting or requiring a person to pay a fee if:
             8051          (i) the person is required to pay the fee before entering into a written agreement
             8052      specifying what one or more acts of foreclosure rescue will be completed if the fee is paid; or
             8053          (ii) in a case when the financing that is the subject of the foreclosure rescue is
             8054      foreclosed within one year from the day on which the person enters into a written agreement,



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             8055
     the person is required to forfeit the fee for any reason;
             8056          (d) inducing a person who is at risk of foreclosure to hire the licensee to engage in an
             8057      act of foreclosure rescue by:
             8058          (i) suggesting to the person that the licensee has a special relationship with the person's
             8059      lender or loan servicer; or
             8060          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             8061          (A) a government agency;
             8062          (B) the person's lender or loan servicer; or
             8063          (C) a nonprofit or charitable institution; or
             8064          (e) recommending or participating in a foreclosure rescue that requires a person to:
             8065          (i) transfer title to real property to the licensee or to a third party with whom the
             8066      licensee has a business relationship or financial interest;
             8067          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             8068          (iii) refrain from contacting the person's:
             8069          (A) lender;
             8070          (B) loan servicer;
             8071          (C) attorney;
             8072          (D) credit counselor; or
             8073          (E) housing counselor; or
             8074          (22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             8075      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             8076      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             8077      after the day on which the person enters the agreement.
             8078          Section 309. Section 75-7-1011 is amended to read:
             8079           75-7-1011. Interest as general partner.
             8080          (1) Except as otherwise provided in Subsection (3) or unless personal liability is
             8081      imposed in the contract, a trustee who holds an interest as a general partner in a general or
             8082      limited partnership is not personally liable on a contract entered into by the partnership after
             8083      the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in
             8084      a statement previously filed pursuant to Title 48, Chapter [2a, Utah Revised] 2d, Utah Uniform
             8085      Limited Partnership Act.



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             8086
         (2) Except as otherwise provided in Subsection (3), a trustee who holds an interest as a
             8087      general partner is not personally liable for torts committed by the partnership or for obligations
             8088      arising from ownership or control of the interest unless the trustee is personally at fault.
             8089          (3) The immunity provided by this section does not apply if an interest in the
             8090      partnership is held by the trustee in a capacity other than that of trustee or is held by the
             8091      trustee's spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse
             8092      of any of them.
             8093          (4) If the trustee of a revocable trust holds an interest as a general partner, the settlor is
             8094      personally liable for contracts and other obligations of the partnership as if the settlor were a
             8095      general partner.
             8096          Section 310. Repealer.
             8097          This bill repeals:
             8098          Section 48-1-1, Definition of terms.
             8099          Section 48-1-2, Interpretation of knowledge and notice.
             8100          Section 48-1-3,"Partnership" defined.
             8101          Section 48-1-3.1, Joint venture defined -- Application of chapter.
             8102          Section 48-1-4, Rules for determining the existence of a partnership.
             8103          Section 48-1-5, Partnership property.
             8104          Section 48-1-6, Partner agent of partnership as to partnership business.
             8105          Section 48-1-7, Conveyance of real property of partnership.
             8106          Section 48-1-8, Partnership bound by admission of partner.
             8107          Section 48-1-9, Partnership charged with knowledge of or notice to partner.
             8108          Section 48-1-10, Partnership bound by partner's wrongful act.
             8109          Section 48-1-11, Partnership bound by partner's breach of trust.
             8110          Section 48-1-12, Nature of partner's liability.
             8111          Section 48-1-13, Partner by estoppel.
             8112          Section 48-1-14, Liability of incoming partner.
             8113          Section 48-1-15, Rules determining rights and duties of partners.
             8114          Section 48-1-16, Partnership books.
             8115          Section 48-1-17, Duty of partners to render information.
             8116          Section 48-1-18, Partner accountable as a fiduciary.



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             8117
         Section 48-1-19, Right to an account.
             8118          Section 48-1-20, Continuation of partnership beyond fixed term.
             8119          Section 48-1-21, Extent of property rights of a partner.
             8120          Section 48-1-22, Nature of a partner's right in specific partnership property.
             8121          Section 48-1-23, Nature of partner's interest in the partnership.
             8122          Section 48-1-24, Assignment of partner's interest.
             8123          Section 48-1-25, Partner's interest subject to charging order.
             8124          Section 48-1-26,"Dissolution" defined.
             8125          Section 48-1-27, Partnership not terminated by dissolution.
             8126          Section 48-1-28, Causes of dissolution.
             8127          Section 48-1-29, Dissolution by decree of court.
             8128          Section 48-1-30, General effect of dissolution on authority of partner.
             8129          Section 48-1-31, Right of partner to contribution from copartners after dissolution.
             8130          Section 48-1-32, Power of partner to bind partnership to third persons after
             8131      dissolution.
             8132          Section 48-1-33, Effect of dissolution on partner's existing liability.
             8133          Section 48-1-34, Right to wind up.
             8134          Section 48-1-35, Rights of partners to application of partnership property.
             8135          Section 48-1-36, Rights where partnership is dissolved for fraud or
             8136      misrepresentation.
             8137          Section 48-1-37, Rules for distribution.
             8138          Section 48-1-38, Liability of persons continuing the business in certain cases.
             8139          Section 48-1-39, Rights of retiring or estate of deceased partner when the business
             8140      is continued.
             8141          Section 48-1-40, Accrual of actions.
             8142          Section 48-1-41, Title.
             8143          Section 48-1-42, Registration of limited liability partnerships.
             8144          Section 48-1-43, Scope of chapter -- Choice of law.
             8145          Section 48-1-44, Foreign limited liability partnerships.
             8146          Section 48-1-45, Name of registered limited liability partnership.
             8147          Section 48-1-46, Professional relationship -- Personal liability.



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             8148
         Section 48-1-47, Regulatory agency or board authority -- Prohibitions on
             8149      individuals apply.
             8150          Section 48-1-48, Limited liability partnerships providing professional services.
             8151          Section 48-2a-101, Definitions.
             8152          Section 48-2a-102, Name.
             8153          Section 48-2a-103, Reservation of name.
             8154          Section 48-2a-103.5, Limited partnership name -- Limited rights.
             8155          Section 48-2a-105, Records to be kept.
             8156          Section 48-2a-106, Nature of business.
             8157          Section 48-2a-107, Business transactions of partner with partnership.
             8158          Section 48-2a-108, Conversion of certain entities to a limited partnership.
             8159          Section 48-2a-109, Articles of conversion.
             8160          Section 48-2a-110, Effect of conversion.
             8161          Section 48-2a-111, Approval of conversion.
             8162          Section 48-2a-112, No limitation on other changes.
             8163          Section 48-2a-113, Approval of limited partnership conversion to subject entity.
             8164          Section 48-2a-201, Certificate of limited partnerships.
             8165          Section 48-2a-202, Amendment to certificate.
             8166          Section 48-2a-202.5, Actions not requiring amendment.
             8167          Section 48-2a-203, Voluntary cancellation of certificate.
             8168          Section 48-2a-203.5, Involuntary dissolution of certificate.
             8169          Section 48-2a-204, Execution of certificates.
             8170          Section 48-2a-205, Execution by judicial act.
             8171          Section 48-2a-206, Filing with the division.
             8172          Section 48-2a-207, Liability for false statement in certificate.
             8173          Section 48-2a-208, Scope of notice.
             8174          Section 48-2a-209, Delivery of certificates to limited partners.
             8175          Section 48-2a-210, Annual report.
             8176          Section 48-2a-301, Admission of additional limited partners.
             8177          Section 48-2a-302, Voting.
             8178          Section 48-2a-303, Liability to third parties.



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             8179
         Section 48-2a-304, Person erroneously believing himself to be a limited partner.
             8180          Section 48-2a-305, Inspection of records -- Right to information.
             8181          Section 48-2a-401, Admission of additional general partners.
             8182          Section 48-2a-402, Events of withdrawal.
             8183          Section 48-2a-403, General powers and liabilities.
             8184          Section 48-2a-404, Contributions by general partners.
             8185          Section 48-2a-405, Voting.
             8186          Section 48-2a-501, Form of contribution.
             8187          Section 48-2a-502, Liability for contribution.
             8188          Section 48-2a-503, Sharing of profits and losses.
             8189          Section 48-2a-504, Sharing of distributions.
             8190          Section 48-2a-601, Interim distributions.
             8191          Section 48-2a-602, Withdrawal of general partner.
             8192          Section 48-2a-603, Withdrawal of limited partners.
             8193          Section 48-2a-604, Distribution upon withdrawal.
             8194          Section 48-2a-605, Distribution in kind.
             8195          Section 48-2a-606, Right to distribution.
             8196          Section 48-2a-607, Limitations on distributions.
             8197          Section 48-2a-608, Liability upon return of contribution.
             8198          Section 48-2a-701, Nature of partnership interest.
             8199          Section 48-2a-702, Assignment of partnership interest.
             8200          Section 48-2a-703, Rights of creditor.
             8201          Section 48-2a-704, Right of assignee to become limited partner.
             8202          Section 48-2a-705, Power of estate of deceased or incompetent partner.
             8203          Section 48-2a-801, Nonjudicial dissolution.
             8204          Section 48-2a-802, Judicial dissolution.
             8205          Section 48-2a-803, Winding up.
             8206          Section 48-2a-804, Distribution of assets.
             8207          Section 48-2a-901, Law governing.
             8208          Section 48-2a-902, Registration.
             8209          Section 48-2a-903, Issuance of registration.



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             8210
         Section 48-2a-904, Name.
             8211          Section 48-2a-905, Changes and amendments.
             8212          Section 48-2a-906, Cancellation of registration.
             8213          Section 48-2a-907, Transaction of business without registration.
             8214          Section 48-2a-908, Action by director of division.
             8215          Section 48-2a-1001, Right of action.
             8216          Section 48-2a-1002, Proper plaintiff.
             8217          Section 48-2a-1003, Pleading.
             8218          Section 48-2a-1004, Expenses.
             8219          Section 48-2a-1005, Security and costs.
             8220          Section 48-2a-1006, Indemnification of a general partner.
             8221          Section 48-2a-1101, Construction and application.
             8222          Section 48-2a-1102, Short title.
             8223          Section 48-2a-1103, Severability.
             8224          Section 48-2a-1104, Effective date -- Extended effective date -- Applicability of
             8225      former law.
             8226          Section 48-2a-1105, Rules for cases not provided for in this chapter.
             8227          Section 48-2a-1106, Savings clause.
             8228          Section 48-2a-1107, Fees.
             8229          Section 48-2c-101, Title.
             8230          Section 48-2c-102, Definitions.
             8231          Section 48-2c-103, Application of partnership provisions.
             8232          Section 48-2c-104, Separate legal entity.
             8233          Section 48-2c-105, Purpose.
             8234          Section 48-2c-106, Name -- Exclusive right.
             8235          Section 48-2c-107, Limited liability company name -- Limited rights.
             8236          Section 48-2c-108, Reservation of name.
             8237          Section 48-2c-109, Transaction of business outside state.
             8238          Section 48-2c-110, Powers.
             8239          Section 48-2c-113, Inspection of records by members and managers.
             8240          Section 48-2c-114, Scope of inspection right.



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             8241
         Section 48-2c-115, Court-ordered inspection.
             8242          Section 48-2c-116, Member or manager as a party to proceedings.
             8243          Section 48-2c-118, Waiver of notice.
             8244          Section 48-2c-119, Transaction of members or managers with company.
             8245          Section 48-2c-120, Articles of organization and operating agreement.
             8246          Section 48-2c-121, Scope of notice.
             8247          Section 48-2c-122, Statement of person named as manager or member.
             8248          Section 48-2c-201, Place for filings.
             8249          Section 48-2c-202, Record of filings.
             8250          Section 48-2c-203, Annual report.
             8251          Section 48-2c-204, Signing of documents filed with division.
             8252          Section 48-2c-205, Penalty for signing false documents.
             8253          Section 48-2c-206, Powers of the division.
             8254          Section 48-2c-207, Filing requirements.
             8255          Section 48-2c-208, Effective time and date of filed documents.
             8256          Section 48-2c-209, Correcting filed documents.
             8257          Section 48-2c-210, Filing duty of division.
             8258          Section 48-2c-211, Appeal from division's refusal to file document.
             8259          Section 48-2c-212, Evidentiary effect of copy of filed document.
             8260          Section 48-2c-213, Certificates issued by the division.
             8261          Section 48-2c-214, Fees.
             8262          Section 48-2c-305, Director of division as agent for service of process -- Records of
             8263      process served.
             8264          Section 48-2c-309, Service on withdrawn foreign company.
             8265          Section 48-2c-311, Venue for action against foreign company.
             8266          Section 48-2c-401, Organizer.
             8267          Section 48-2c-402, Formation of company.
             8268          Section 48-2c-403, Articles of organization.
             8269          Section 48-2c-404, Prefiling activities.
             8270          Section 48-2c-405, When amendment to articles of organization required.
             8271          Section 48-2c-406, Actions not requiring amendment.



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             8272
         Section 48-2c-407, Authority to amend articles of organization.
             8273          Section 48-2c-408, Certificate of amendment to articles of organization.
             8274          Section 48-2c-409, Restated articles of organization.
             8275          Section 48-2c-410, Transfer to other jurisdiction.
             8276          Section 48-2c-411, Domestication of foreign company.
             8277          Section 48-2c-412, Low-profit limited liability company.
             8278          Section 48-2c-501, Initial agreement.
             8279          Section 48-2c-502, General rules for operating agreements.
             8280          Section 48-2c-503, Timing.
             8281          Section 48-2c-504, Operating agreement for a one-member company.
             8282          Section 48-2c-505, Interpretation and enforcement.
             8283          Section 48-2c-506, Amendment.
             8284          Section 48-2c-601, General rule.
             8285          Section 48-2c-602, Exceptions to limited liability.
             8286          Section 48-2c-603, Waiver of exceptions to limited liability.
             8287          Section 48-2c-604, Waiver of protection of limited liability.
             8288          Section 48-2c-605, No formalities required to maintain limited liability.
             8289          Section 48-2c-606, Series of members, managers, or limited liability company
             8290      interests.
             8291          Section 48-2c-607, Notice of series -- Articles of organization.
             8292          Section 48-2c-608, Agreement to be liable.
             8293          Section 48-2c-609, Series related provisions in operating agreement.
             8294          Section 48-2c-610, Management of a series.
             8295          Section 48-2c-611, Distributions concerning a series.
             8296          Section 48-2c-612, Member removal from a series -- Effect.
             8297          Section 48-2c-613, Termination of series.
             8298          Section 48-2c-614, Court-decreed termination of series.
             8299          Section 48-2c-615, Participation in winding up.
             8300          Section 48-2c-616, Foreign limited liability company -- Series.
             8301          Section 48-2c-701, Nature of member interest.
             8302          Section 48-2c-702, Initial members.



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             8303
         Section 48-2c-703, Additional members.
             8304          Section 48-2c-704, Meetings of members.
             8305          Section 48-2c-705, Voting.
             8306          Section 48-2c-706, Action by members without a meeting.
             8307          Section 48-2c-707, Classes of members.
             8308          Section 48-2c-708, Cessation of membership.
             8309          Section 48-2c-709, Withdrawal of a member.
             8310          Section 48-2c-710, Expulsion of a member.
             8311          Section 48-2c-801, Management structure.
             8312          Section 48-2c-802, Agency authority of members and managers.
             8313          Section 48-2c-803, Management by members.
             8314          Section 48-2c-803.1, Individual profits interest.
             8315          Section 48-2c-804, Management by managers.
             8316          Section 48-2c-805, Delegation of authority and power to manage.
             8317          Section 48-2c-806, Reliance by member or manager on reports and information.
             8318          Section 48-2c-807, Duties of managers and members.
             8319          Section 48-2c-808, Actions by multiple managers.
             8320          Section 48-2c-809, Removal by judicial proceeding.
             8321          Section 48-2c-901, Form of contribution.
             8322          Section 48-2c-902, Assessments for additional contributions.
             8323          Section 48-2c-903, Capital accounts.
             8324          Section 48-2c-904, Valuation of member's interest in the company.
             8325          Section 48-2c-905, Redemption of interest.
             8326          Section 48-2c-906, Allocation of profits and losses.
             8327          Section 48-2c-1001, Allocation of current distributions.
             8328          Section 48-2c-1002, Timing of distributions.
             8329          Section 48-2c-1003, Liquidating distributions.
             8330          Section 48-2c-1004, Right to distributions.
             8331          Section 48-2c-1005, Limitations on distributions.
             8332          Section 48-2c-1006, Duty to return wrongful distributions.
             8333          Section 48-2c-1007, Distribution in kind.



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             8334
         Section 48-2c-1008, Unclaimed distributions.
             8335          Section 48-2c-1101, Assignment of interests.
             8336          Section 48-2c-1102, Rights of assignee.
             8337          Section 48-2c-1103, Rights of creditor of member.
             8338          Section 48-2c-1104, Right of assignee to become member.
             8339          Section 48-2c-1105, Liability of assignor continues.
             8340          Section 48-2c-1106, Invalid transfers.
             8341          Section 48-2c-1201, Events of dissolution.
             8342          Section 48-2c-1202, Voluntary cancellation of certificate.
             8343          Section 48-2c-1203, Effect of dissolution.
             8344          Section 48-2c-1204, Articles of dissolution.
             8345          Section 48-2c-1205, Revocation of voluntary dissolution.
             8346          Section 48-2c-1206, Grounds for administrative dissolution.
             8347          Section 48-2c-1207, Procedure for and effect of administrative dissolution.
             8348          Section 48-2c-1208, Reinstatement following administrative dissolution.
             8349          Section 48-2c-1209, Appeal from denial of reinstatement.
             8350          Section 48-2c-1210, Grounds for judicial dissolution.
             8351          Section 48-2c-1211, Procedure for judicial dissolution.
             8352          Section 48-2c-1212, Receivership or custodianship.
             8353          Section 48-2c-1213, Decree of dissolution.
             8354          Section 48-2c-1214, Election to purchase in lieu of dissolution.
             8355          Section 48-2c-1301, Winding up defined.
             8356          Section 48-2c-1302, Powers of company in winding up.
             8357          Section 48-2c-1303, Persons authorized to wind up.
             8358          Section 48-2c-1304, Payment of claims and obligations.
             8359          Section 48-2c-1305, Disposition of known claims by notification.
             8360          Section 48-2c-1306, Disposition of claims by publication.
             8361          Section 48-2c-1307, Enforcement of claims against dissolved company in winding
             8362      up.
             8363          Section 48-2c-1308, Distribution of assets on winding up.
             8364          Section 48-2c-1309, Deposit with state treasurer.



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             8365
         Section 48-2c-1401, Conversion of certain entities to a domestic company.
             8366          Section 48-2c-1402, Articles of conversion.
             8367          Section 48-2c-1403, Effect of conversion.
             8368          Section 48-2c-1404, Approval of conversion.
             8369          Section 48-2c-1405, No limitation on other changes.
             8370          Section 48-2c-1406, Approval of company conversion to other entity.
             8371          Section 48-2c-1407, Merger.
             8372          Section 48-2c-1408, Approval of merger.
             8373          Section 48-2c-1409, Articles of merger.
             8374          Section 48-2c-1410, Effect of merger.
             8375          Section 48-2c-1411, Conversion or merger of a low-profit limited liability
             8376      company.
             8377          Section 48-2c-1501, Purpose of Part 15.
             8378          Section 48-2c-1502, Definitions.
             8379          Section 48-2c-1503, Rendering professional services.
             8380          Section 48-2c-1504, No limits on regulating board.
             8381          Section 48-2c-1505, Name limitations.
             8382          Section 48-2c-1506, Activity limitations.
             8383          Section 48-2c-1507, Limit of one profession.
             8384          Section 48-2c-1508, Members and managers restricted to professionals.
             8385          Section 48-2c-1509, Additional requirements for articles of organization.
             8386          Section 48-2c-1510, Restrictions on transfers by members.
             8387          Section 48-2c-1511, Purchase of interest upon death, incapacity, or disqualification
             8388      of members.
             8389          Section 48-2c-1512, Conversion to nonprofessional company.
             8390          Section 48-2c-1513, Application of Part 15.
             8391          Section 48-2c-1601, Law governing foreign companies.
             8392          Section 48-2c-1602, Authority to transact business required.
             8393          Section 48-2c-1603, Consequences of transacting business without authority.
             8394          Section 48-2c-1604, Application for authority to transact business.
             8395          Section 48-2c-1605, Amended application for authority to transact business.



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             8396
         Section 48-2c-1606, Effect of filing an application for authority to transact
             8397      business.
             8398          Section 48-2c-1607, Company name and assumed company name of foreign
             8399      company.
             8400          Section 48-2c-1608, Registered name of foreign company.
             8401          Section 48-2c-1609, Amendment of articles of organization of foreign company.
             8402          Section 48-2c-1610, Merger of foreign company authorized to transact business in
             8403      this state.
             8404          Section 48-2c-1611, Withdrawal of foreign company.
             8405          Section 48-2c-1612, Grounds for revocation.
             8406          Section 48-2c-1613, Procedure for and effect of revocation.
             8407          Section 48-2c-1614, Appeal from revocation.
             8408          Section 48-2c-1615, Actions to restrain transaction of business in state.
             8409          Section 48-2c-1701, Right of action.
             8410          Section 48-2c-1702, Proper plaintiff.
             8411          Section 48-2c-1703, Pleading.
             8412          Section 48-2c-1704, Stay of proceedings.
             8413          Section 48-2c-1705, Expenses.
             8414          Section 48-2c-1706, Security and costs.
             8415          Section 48-2c-1801, Definitions.
             8416          Section 48-2c-1802, Authority to indemnify.
             8417          Section 48-2c-1803, Mandatory indemnification of managers.
             8418          Section 48-2c-1804, Advancement of expenses.
             8419          Section 48-2c-1805, Court-ordered indemnification.
             8420          Section 48-2c-1806, Determination and authorization of indemnification.
             8421          Section 48-2c-1807, Indemnification of members, employees, fiduciaries, and
             8422      agents.
             8423          Section 48-2c-1808, Insurance.
             8424          Section 48-2c-1809, Limitations on indemnification.
             8425          Section 48-2c-1901, Legislative intent -- Freedom of contract.
             8426          Section 48-2c-1902, Transitional provisions.



Text Box

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             8427
         Section 311. Effective date.
             8428          This bill takes effect on July 1, 2012.


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