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S.B. 131 Enrolled

             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;
             26              .    providing for winding up partnership business;
             27              .    providing for conversion, merger, and domestication; 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, mergers, and domestications;
             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
             57              .    providing for low-profit limited liability companies;


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


             86          48-1a-101, Utah Code Annotated 1953
             87          48-1a-102, Utah Code Annotated 1953
             88          48-1b-101, Utah Code Annotated 1953
             89          48-1b-102, Utah Code Annotated 1953
             90          48-1b-103, Utah Code Annotated 1953
             91          48-1b-104, Utah Code Annotated 1953
             92          48-1b-105, Utah Code Annotated 1953
             93          48-1b-106, Utah Code Annotated 1953
             94          48-1b-107, Utah Code Annotated 1953
             95          48-1b-201, Utah Code Annotated 1953
             96          48-1b-202, Utah Code Annotated 1953
             97          48-1b-203, Utah Code Annotated 1953
             98          48-1b-204, Utah Code Annotated 1953
             99          48-1b-301, Utah Code Annotated 1953
             100          48-1b-302, Utah Code Annotated 1953
             101          48-1b-303, Utah Code Annotated 1953
             102          48-1b-304, Utah Code Annotated 1953
             103          48-1b-305, Utah Code Annotated 1953
             104          48-1b-306, Utah Code Annotated 1953
             105          48-1b-307, Utah Code Annotated 1953
             106          48-1b-308, Utah Code Annotated 1953
             107          48-1b-401, Utah Code Annotated 1953
             108          48-1b-402, Utah Code Annotated 1953
             109          48-1b-403, Utah Code Annotated 1953
             110          48-1b-404, Utah Code Annotated 1953
             111          48-1b-405, Utah Code Annotated 1953
             112          48-1b-406, Utah Code Annotated 1953
             113          48-1b-501, Utah Code Annotated 1953


             114          48-1b-502, Utah Code Annotated 1953
             115          48-1b-503, Utah Code Annotated 1953
             116          48-1b-504, Utah Code Annotated 1953
             117          48-1b-601, Utah Code Annotated 1953
             118          48-1b-602, Utah Code Annotated 1953
             119          48-1b-603, Utah Code Annotated 1953
             120          48-1b-701, Utah Code Annotated 1953
             121          48-1b-702, Utah Code Annotated 1953
             122          48-1b-703, Utah Code Annotated 1953
             123          48-1b-704, Utah Code Annotated 1953
             124          48-1b-705, Utah Code Annotated 1953
             125          48-1b-801, Utah Code Annotated 1953
             126          48-1b-802, Utah Code Annotated 1953
             127          48-1b-803, Utah Code Annotated 1953
             128          48-1b-804, Utah Code Annotated 1953
             129          48-1b-805, Utah Code Annotated 1953
             130          48-1b-806, Utah Code Annotated 1953
             131          48-1b-807, Utah Code Annotated 1953
             132          48-1b-901, Utah Code Annotated 1953
             133          48-1b-902, Utah Code Annotated 1953
             134          48-1b-903, Utah Code Annotated 1953
             135          48-1b-904, Utah Code Annotated 1953
             136          48-1b-905, Utah Code Annotated 1953
             137          48-1b-906, Utah Code Annotated 1953
             138          48-1b-907, Utah Code Annotated 1953
             139          48-1b-908, Utah Code Annotated 1953
             140          48-1b-909, Utah Code Annotated 1953
             141          48-1b-910, Utah Code Annotated 1953


             142          48-1b-911, Utah Code Annotated 1953
             143          48-1b-912, Utah Code Annotated 1953
             144          48-1b-913, Utah Code Annotated 1953
             145          48-1b-914, Utah Code Annotated 1953
             146          48-1b-915, Utah Code Annotated 1953
             147          48-1b-1001, Utah Code Annotated 1953
             148          48-1b-1002, Utah Code Annotated 1953
             149          48-1b-1003, Utah Code Annotated 1953
             150          48-1b-1004, Utah Code Annotated 1953
             151          48-1b-1101, Utah Code Annotated 1953
             152          48-1b-1102, Utah Code Annotated 1953
             153          48-1b-1102.1, Utah Code Annotated 1953
             154          48-1b-1103, Utah Code Annotated 1953
             155          48-1b-1104, Utah Code Annotated 1953
             156          48-1b-1105, Utah Code Annotated 1953
             157          48-1b-1201, Utah Code Annotated 1953
             158          48-1b-1202, Utah Code Annotated 1953
             159          48-1b-1203, Utah Code Annotated 1953
             160          48-1b-1204, Utah Code Annotated 1953
             161          48-1b-1205, Utah Code Annotated 1953
             162          48-2d-101, Utah Code Annotated 1953
             163          48-2d-102, Utah Code Annotated 1953
             164          48-2d-103, Utah Code Annotated 1953
             165          48-2d-104, Utah Code Annotated 1953
             166          48-2d-105, Utah Code Annotated 1953
             167          48-2d-106, Utah Code Annotated 1953
             168          48-2d-107, Utah Code Annotated 1953
             169          48-2d-108, Utah Code Annotated 1953


             170          48-2d-109, Utah Code Annotated 1953
             171          48-2d-110, Utah Code Annotated 1953
             172          48-2d-111, Utah Code Annotated 1953
             173          48-2d-112, Utah Code Annotated 1953
             174          48-2d-113, Utah Code Annotated 1953
             175          48-2d-114, Utah Code Annotated 1953
             176          48-2d-201, Utah Code Annotated 1953
             177          48-2d-202, Utah Code Annotated 1953
             178          48-2d-203, Utah Code Annotated 1953
             179          48-2d-204, Utah Code Annotated 1953
             180          48-2d-205, Utah Code Annotated 1953
             181          48-2d-206, Utah Code Annotated 1953
             182          48-2d-207, Utah Code Annotated 1953
             183          48-2d-208, Utah Code Annotated 1953
             184          48-2d-209, Utah Code Annotated 1953
             185          48-2d-210, Utah Code Annotated 1953
             186          48-2d-301, Utah Code Annotated 1953
             187          48-2d-302, Utah Code Annotated 1953
             188          48-2d-303, Utah Code Annotated 1953
             189          48-2d-304, Utah Code Annotated 1953
             190          48-2d-305, Utah Code Annotated 1953
             191          48-2d-306, Utah Code Annotated 1953
             192          48-2d-401, Utah Code Annotated 1953
             193          48-2d-402, Utah Code Annotated 1953
             194          48-2d-403, Utah Code Annotated 1953
             195          48-2d-404, Utah Code Annotated 1953
             196          48-2d-405, Utah Code Annotated 1953
             197          48-2d-406, Utah Code Annotated 1953


             198          48-2d-407, Utah Code Annotated 1953
             199          48-2d-408, Utah Code Annotated 1953
             200          48-2d-501, Utah Code Annotated 1953
             201          48-2d-502, Utah Code Annotated 1953
             202          48-2d-503, Utah Code Annotated 1953
             203          48-2d-504, Utah Code Annotated 1953
             204          48-2d-505, Utah Code Annotated 1953
             205          48-2d-506, Utah Code Annotated 1953
             206          48-2d-507, Utah Code Annotated 1953
             207          48-2d-508, Utah Code Annotated 1953
             208          48-2d-509, Utah Code Annotated 1953
             209          48-2d-601, Utah Code Annotated 1953
             210          48-2d-602, Utah Code Annotated 1953
             211          48-2d-603, Utah Code Annotated 1953
             212          48-2d-604, Utah Code Annotated 1953
             213          48-2d-605, Utah Code Annotated 1953
             214          48-2d-606, Utah Code Annotated 1953
             215          48-2d-607, Utah Code Annotated 1953
             216          48-2d-701, Utah Code Annotated 1953
             217          48-2d-702, Utah Code Annotated 1953
             218          48-2d-703, Utah Code Annotated 1953
             219          48-2d-704, Utah Code Annotated 1953
             220          48-2d-801, Utah Code Annotated 1953
             221          48-2d-802, Utah Code Annotated 1953
             222          48-2d-803, Utah Code Annotated 1953
             223          48-2d-804, Utah Code Annotated 1953
             224          48-2d-805, Utah Code Annotated 1953
             225          48-2d-806, Utah Code Annotated 1953


             226          48-2d-807, Utah Code Annotated 1953
             227          48-2d-808, Utah Code Annotated 1953
             228          48-2d-809, Utah Code Annotated 1953
             229          48-2d-810, Utah Code Annotated 1953
             230          48-2d-811, Utah Code Annotated 1953
             231          48-2d-812, Utah Code Annotated 1953
             232          48-2d-901, Utah Code Annotated 1953
             233          48-2d-902, Utah Code Annotated 1953
             234          48-2d-903, Utah Code Annotated 1953
             235          48-2d-904, Utah Code Annotated 1953
             236          48-2d-905, Utah Code Annotated 1953
             237          48-2d-906, Utah Code Annotated 1953
             238          48-2d-907, Utah Code Annotated 1953
             239          48-2d-908, Utah Code Annotated 1953
             240          48-2d-1001, Utah Code Annotated 1953
             241          48-2d-1002, Utah Code Annotated 1953
             242          48-2d-1003, Utah Code Annotated 1953
             243          48-2d-1004, Utah Code Annotated 1953
             244          48-2d-1005, Utah Code Annotated 1953
             245          48-2d-1101, Utah Code Annotated 1953
             246          48-2d-1102, Utah Code Annotated 1953
             247          48-2d-1103, Utah Code Annotated 1953
             248          48-2d-1104, Utah Code Annotated 1953
             249          48-2d-1105, Utah Code Annotated 1953
             250          48-2d-1106, Utah Code Annotated 1953
             251          48-2d-1107, Utah Code Annotated 1953
             252          48-2d-1108, Utah Code Annotated 1953
             253          48-2d-1109, Utah Code Annotated 1953


             254          48-2d-1110, Utah Code Annotated 1953
             255          48-2d-1111, Utah Code Annotated 1953
             256          48-2d-1112, Utah Code Annotated 1953
             257          48-2d-1113, Utah Code Annotated 1953
             258          48-2d-1114, Utah Code Annotated 1953
             259          48-2d-1115, Utah Code Annotated 1953
             260          48-2d-1116, Utah Code Annotated 1953
             261          48-2d-1117, Utah Code Annotated 1953
             262          48-2d-1201, Utah Code Annotated 1953
             263          48-2d-1202, Utah Code Annotated 1953
             264          48-2d-1203, Utah Code Annotated 1953
             265          48-2d-1204, Utah Code Annotated 1953
             266          48-2d-1205, Utah Code Annotated 1953
             267          48-3-101, Utah Code Annotated 1953
             268          48-3-102, Utah Code Annotated 1953
             269          48-3-103, Utah Code Annotated 1953
             270          48-3-104, Utah Code Annotated 1953
             271          48-3-105, Utah Code Annotated 1953
             272          48-3-106, Utah Code Annotated 1953
             273          48-3-107, Utah Code Annotated 1953
             274          48-3-108, Utah Code Annotated 1953
             275          48-3-109, Utah Code Annotated 1953
             276          48-3-110, Utah Code Annotated 1953
             277          48-3-111, Utah Code Annotated 1953
             278          48-3-112, Utah Code Annotated 1953
             279          48-3-201, Utah Code Annotated 1953
             280          48-3-202, Utah Code Annotated 1953
             281          48-3-203, Utah Code Annotated 1953


             282          48-3-204, Utah Code Annotated 1953
             283          48-3-205, Utah Code Annotated 1953
             284          48-3-206, Utah Code Annotated 1953
             285          48-3-207, Utah Code Annotated 1953
             286          48-3-208, Utah Code Annotated 1953
             287          48-3-209, Utah Code Annotated 1953
             288          48-3-301, Utah Code Annotated 1953
             289          48-3-302, Utah Code Annotated 1953
             290          48-3-303, Utah Code Annotated 1953
             291          48-3-304, Utah Code Annotated 1953
             292          48-3-401, Utah Code Annotated 1953
             293          48-3-402, Utah Code Annotated 1953
             294          48-3-403, Utah Code Annotated 1953
             295          48-3-404, Utah Code Annotated 1953
             296          48-3-405, Utah Code Annotated 1953
             297          48-3-406, Utah Code Annotated 1953
             298          48-3-407, Utah Code Annotated 1953
             299          48-3-408, Utah Code Annotated 1953
             300          48-3-409, Utah Code Annotated 1953
             301          48-3-410, Utah Code Annotated 1953
             302          48-3-501, Utah Code Annotated 1953
             303          48-3-502, Utah Code Annotated 1953
             304          48-3-503, Utah Code Annotated 1953
             305          48-3-504, Utah Code Annotated 1953
             306          48-3-601, Utah Code Annotated 1953
             307          48-3-602, Utah Code Annotated 1953
             308          48-3-603, Utah Code Annotated 1953
             309          48-3-701, Utah Code Annotated 1953


             310          48-3-702, Utah Code Annotated 1953
             311          48-3-703, Utah Code Annotated 1953
             312          48-3-704, Utah Code Annotated 1953
             313          48-3-705, Utah Code Annotated 1953
             314          48-3-706, Utah Code Annotated 1953
             315          48-3-707, Utah Code Annotated 1953
             316          48-3-708, Utah Code Annotated 1953
             317          48-3-709, Utah Code Annotated 1953
             318          48-3-801, Utah Code Annotated 1953
             319          48-3-802, Utah Code Annotated 1953
             320          48-3-803, Utah Code Annotated 1953
             321          48-3-804, Utah Code Annotated 1953
             322          48-3-805, Utah Code Annotated 1953
             323          48-3-806, Utah Code Annotated 1953
             324          48-3-807, Utah Code Annotated 1953
             325          48-3-808, Utah Code Annotated 1953
             326          48-3-809, Utah Code Annotated 1953
             327          48-3-901, Utah Code Annotated 1953
             328          48-3-902, Utah Code Annotated 1953
             329          48-3-903, Utah Code Annotated 1953
             330          48-3-904, Utah Code Annotated 1953
             331          48-3-905, Utah Code Annotated 1953
             332          48-3-906, Utah Code Annotated 1953
             333          48-3-1001, Utah Code Annotated 1953
             334          48-3-1002, Utah Code Annotated 1953
             335          48-3-1003, Utah Code Annotated 1953
             336          48-3-1004, Utah Code Annotated 1953
             337          48-3-1005, Utah Code Annotated 1953


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


             366          48-3-1207, Utah Code Annotated 1953
             367          48-3-1208, Utah Code Annotated 1953
             368          48-3-1209, Utah Code Annotated 1953
             369          48-3-1210, Utah Code Annotated 1953
             370          48-3-1301, Utah Code Annotated 1953
             371          48-3-1302, Utah Code Annotated 1953
             372          48-3-1303, Utah Code Annotated 1953
             373          48-3-1304, Utah Code Annotated 1953
             374          48-3-1401, Utah Code Annotated 1953
             375          48-3-1402, Utah Code Annotated 1953
             376          48-3-1403, Utah Code Annotated 1953
             377          48-3-1404, Utah Code Annotated 1953
             378          48-3-1405, Utah Code Annotated 1953
             379      REPEALS:
             380          48-1-1, as last amended by Laws of Utah 2008, Chapter 249
             381          48-1-2, Utah Code Annotated 1953
             382          48-1-3, as last amended by Laws of Utah 1994, Chapter 61
             383          48-1-3.1, as enacted by Laws of Utah 1985, Chapter 14
             384          48-1-4, Utah Code Annotated 1953
             385          48-1-5, Utah Code Annotated 1953
             386          48-1-6, Utah Code Annotated 1953
             387          48-1-7, Utah Code Annotated 1953
             388          48-1-8, Utah Code Annotated 1953
             389          48-1-9, Utah Code Annotated 1953
             390          48-1-10, Utah Code Annotated 1953
             391          48-1-11, Utah Code Annotated 1953
             392          48-1-12, as last amended by Laws of Utah 1994, Chapter 61
             393          48-1-13, Utah Code Annotated 1953


             394          48-1-14, Utah Code Annotated 1953
             395          48-1-15, as last amended by Laws of Utah 1994, Chapter 61
             396          48-1-16, Utah Code Annotated 1953
             397          48-1-17, Utah Code Annotated 1953
             398          48-1-18, Utah Code Annotated 1953
             399          48-1-19, Utah Code Annotated 1953
             400          48-1-20, Utah Code Annotated 1953
             401          48-1-21, Utah Code Annotated 1953
             402          48-1-22, Utah Code Annotated 1953
             403          48-1-23, Utah Code Annotated 1953
             404          48-1-24, Utah Code Annotated 1953
             405          48-1-25, Utah Code Annotated 1953
             406          48-1-26, Utah Code Annotated 1953
             407          48-1-27, Utah Code Annotated 1953
             408          48-1-28, Utah Code Annotated 1953
             409          48-1-29, Utah Code Annotated 1953
             410          48-1-30, Utah Code Annotated 1953
             411          48-1-31, as last amended by Laws of Utah 1994, Chapter 61
             412          48-1-32, Utah Code Annotated 1953
             413          48-1-33, as last amended by Laws of Utah 1994, Chapter 61
             414          48-1-34, Utah Code Annotated 1953
             415          48-1-35, Utah Code Annotated 1953
             416          48-1-36, Utah Code Annotated 1953
             417          48-1-37, as last amended by Laws of Utah 1994, Chapter 61
             418          48-1-38, Utah Code Annotated 1953
             419          48-1-39, Utah Code Annotated 1953
             420          48-1-40, Utah Code Annotated 1953
             421          48-1-41, as enacted by Laws of Utah 1994, Chapter 61


             422          48-1-42, as last amended by Laws of Utah 2009, Chapter 183
             423          48-1-43, as enacted by Laws of Utah 1994, Chapter 61
             424          48-1-44, as last amended by Laws of Utah 2008, Chapter 249
             425          48-1-45, as enacted by Laws of Utah 1994, Chapter 61
             426          48-1-46, as enacted by Laws of Utah 1994, Chapter 61
             427          48-1-47, as enacted by Laws of Utah 1994, Chapter 61
             428          48-1-48, as last amended by Laws of Utah 2000, Chapter 261
             429          48-2a-101, as last amended by Laws of Utah 2008, Chapter 249
             430          48-2a-102, as last amended by Laws of Utah 2010, Chapter 218
             431          48-2a-103, as last amended by Laws of Utah 1991, Chapter 189
             432          48-2a-103.5, as enacted by Laws of Utah 1991, Chapter 189
             433          48-2a-105, as last amended by Laws of Utah 1991, Chapter 189
             434          48-2a-106, as enacted by Laws of Utah 1990, Chapter 233
             435          48-2a-107, as enacted by Laws of Utah 1990, Chapter 233
             436          48-2a-108, as enacted by Laws of Utah 2001, Chapter 260
             437          48-2a-109, as enacted by Laws of Utah 2001, Chapter 260
             438          48-2a-110, as enacted by Laws of Utah 2001, Chapter 260
             439          48-2a-111, as enacted by Laws of Utah 2001, Chapter 260
             440          48-2a-112, as enacted by Laws of Utah 2001, Chapter 260
             441          48-2a-113, as enacted by Laws of Utah 2001, Chapter 260
             442          48-2a-201, as last amended by Laws of Utah 2008, Chapter 364
             443          48-2a-202, as last amended by Laws of Utah 2002, Chapter 193
             444          48-2a-202.5, as last amended by Laws of Utah 2008, Chapter 364
             445          48-2a-203, as last amended by Laws of Utah 1991, Chapter 189
             446          48-2a-203.5, as last amended by Laws of Utah 2008, Chapter 382
             447          48-2a-204, as enacted by Laws of Utah 1990, Chapter 233
             448          48-2a-205, as enacted by Laws of Utah 1990, Chapter 233
             449          48-2a-206, as last amended by Laws of Utah 2009, Chapter 183


             450          48-2a-207, as last amended by Laws of Utah 1992, Chapter 30
             451          48-2a-208, as last amended by Laws of Utah 1991, Chapter 189
             452          48-2a-209, as enacted by Laws of Utah 1990, Chapter 233
             453          48-2a-210, as last amended by Laws of Utah 2008, Chapter 364
             454          48-2a-301, as last amended by Laws of Utah 1991, Chapter 189
             455          48-2a-302, as enacted by Laws of Utah 1990, Chapter 233
             456          48-2a-303, as last amended by Laws of Utah 1991, Chapter 189
             457          48-2a-304, as last amended by Laws of Utah 1991, Chapter 189
             458          48-2a-305, as enacted by Laws of Utah 1990, Chapter 233
             459          48-2a-401, as enacted by Laws of Utah 1990, Chapter 233
             460          48-2a-402, as last amended by Laws of Utah 2010, Chapter 324
             461          48-2a-403, as enacted by Laws of Utah 1990, Chapter 233
             462          48-2a-404, as last amended by Laws of Utah 1991, Chapter 189
             463          48-2a-405, as enacted by Laws of Utah 1990, Chapter 233
             464          48-2a-501, as enacted by Laws of Utah 1990, Chapter 233
             465          48-2a-502, as enacted by Laws of Utah 1990, Chapter 233
             466          48-2a-503, as enacted by Laws of Utah 1990, Chapter 233
             467          48-2a-504, as last amended by Laws of Utah 1991, Chapter 189
             468          48-2a-601, as last amended by Laws of Utah 1991, Chapter 189
             469          48-2a-602, as enacted by Laws of Utah 1990, Chapter 233
             470          48-2a-603, as enacted by Laws of Utah 1990, Chapter 233
             471          48-2a-604, as last amended by Laws of Utah 1991, Chapter 189
             472          48-2a-605, as enacted by Laws of Utah 1990, Chapter 233
             473          48-2a-606, as enacted by Laws of Utah 1990, Chapter 233
             474          48-2a-607, as enacted by Laws of Utah 1990, Chapter 233
             475          48-2a-608, as last amended by Laws of Utah 1991, Chapter 189
             476          48-2a-701, as enacted by Laws of Utah 1990, Chapter 233
             477          48-2a-702, as last amended by Laws of Utah 1991, Chapter 189


             478          48-2a-703, as last amended by Laws of Utah 1991, Chapter 189
             479          48-2a-704, as last amended by Laws of Utah 1991, Chapter 189
             480          48-2a-705, as last amended by Laws of Utah 1991, Chapter 189
             481          48-2a-801, as last amended by Laws of Utah 1991, Chapter 189
             482          48-2a-802, as enacted by Laws of Utah 1990, Chapter 233
             483          48-2a-803, as enacted by Laws of Utah 1990, Chapter 233
             484          48-2a-804, as last amended by Laws of Utah 1991, Chapter 189
             485          48-2a-901, as enacted by Laws of Utah 1990, Chapter 233
             486          48-2a-902, as last amended by Laws of Utah 2008, Chapters 249 and 364
             487          48-2a-903, as enacted by Laws of Utah 1990, Chapter 233
             488          48-2a-904, as enacted by Laws of Utah 1990, Chapter 233
             489          48-2a-905, as last amended by Laws of Utah 1991, Chapter 189
             490          48-2a-906, as last amended by Laws of Utah 1991, Chapter 189
             491          48-2a-907, as last amended by Laws of Utah 1991, Chapter 189
             492          48-2a-908, as enacted by Laws of Utah 1990, Chapter 233
             493          48-2a-1001, as enacted by Laws of Utah 1990, Chapter 233
             494          48-2a-1002, as last amended by Laws of Utah 1991, Chapter 189
             495          48-2a-1003, as enacted by Laws of Utah 1990, Chapter 233
             496          48-2a-1004, as enacted by Laws of Utah 1990, Chapter 233
             497          48-2a-1005, as last amended by Laws of Utah 1991, Chapter 189
             498          48-2a-1006, as enacted by Laws of Utah 1990, Chapter 233
             499          48-2a-1101, as enacted by Laws of Utah 1990, Chapter 233
             500          48-2a-1102, as enacted by Laws of Utah 1990, Chapter 233
             501          48-2a-1103, as enacted by Laws of Utah 1990, Chapter 233
             502          48-2a-1104, as last amended by Laws of Utah 1991, Chapters 5 and 189
             503          48-2a-1105, as enacted by Laws of Utah 1990, Chapter 233
             504          48-2a-1106, as enacted by Laws of Utah 1990, Chapter 233
             505          48-2a-1107, as last amended by Laws of Utah 2009, Chapter 183


             506          48-2c-101, as enacted by Laws of Utah 2001, Chapter 260
             507          48-2c-102, as last amended by Laws of Utah 2009, Chapter 141
             508          48-2c-103, as enacted by Laws of Utah 2001, Chapter 260
             509          48-2c-104, as enacted by Laws of Utah 2001, Chapter 260
             510          48-2c-105, as enacted by Laws of Utah 2001, Chapter 260
             511          48-2c-106, as last amended by Laws of Utah 2010, Chapter 218
             512          48-2c-107, as enacted by Laws of Utah 2001, Chapter 260
             513          48-2c-108, as last amended by Laws of Utah 2002, Chapter 193
             514          48-2c-109, as enacted by Laws of Utah 2001, Chapter 260
             515          48-2c-110, as last amended by Laws of Utah 2005, Chapter 141
             516          48-2c-113, as last amended by Laws of Utah 2010, Chapter 43
             517          48-2c-114, as enacted by Laws of Utah 2001, Chapter 260
             518          48-2c-115, as last amended by Laws of Utah 2008, Chapter 364
             519          48-2c-116, as enacted by Laws of Utah 2001, Chapter 260
             520          48-2c-118, as enacted by Laws of Utah 2001, Chapter 260
             521          48-2c-119, as enacted by Laws of Utah 2001, Chapter 260
             522          48-2c-120, as last amended by Laws of Utah 2006, Chapter 92
             523          48-2c-121, as last amended by Laws of Utah 2005, Chapter 141
             524          48-2c-122, as enacted by Laws of Utah 2001, Chapter 260
             525          48-2c-201, as enacted by Laws of Utah 2001, Chapter 260
             526          48-2c-202, as enacted by Laws of Utah 2001, Chapter 260
             527          48-2c-203, as last amended by Laws of Utah 2009, Chapter 141
             528          48-2c-204, as last amended by Laws of Utah 2008, Chapter 364
             529          48-2c-205, as enacted by Laws of Utah 2001, Chapter 260
             530          48-2c-206, as enacted by Laws of Utah 2001, Chapter 260
             531          48-2c-207, as enacted by Laws of Utah 2001, Chapter 260
             532          48-2c-208, as enacted by Laws of Utah 2001, Chapter 260
             533          48-2c-209, as enacted by Laws of Utah 2001, Chapter 260


             534          48-2c-210, as enacted by Laws of Utah 2001, Chapter 260
             535          48-2c-211, as last amended by Laws of Utah 2008, Chapter 364
             536          48-2c-212, as enacted by Laws of Utah 2001, Chapter 260
             537          48-2c-213, as enacted by Laws of Utah 2001, Chapter 260
             538          48-2c-214, as last amended by Laws of Utah 2009, Chapter 141
             539          48-2c-305, as enacted by Laws of Utah 2001, Chapter 260
             540          48-2c-309, as last amended by Laws of Utah 2008, Chapter 364
             541          48-2c-311, as enacted by Laws of Utah 2001, Chapter 260
             542          48-2c-401, as last amended by Laws of Utah 2005, Chapter 141
             543          48-2c-402, as enacted by Laws of Utah 2001, Chapter 260
             544          48-2c-403, as last amended by Laws of Utah 2009, Chapter 141
             545          48-2c-404, as enacted by Laws of Utah 2001, Chapter 260
             546          48-2c-405, as last amended by Laws of Utah 2009, Chapter 141
             547          48-2c-406, as last amended by Laws of Utah 2008, Chapter 364
             548          48-2c-407, as enacted by Laws of Utah 2001, Chapter 260
             549          48-2c-408, as last amended by Laws of Utah 2005, Chapter 141
             550          48-2c-409, as enacted by Laws of Utah 2001, Chapter 260
             551          48-2c-410, as last amended by Laws of Utah 2010, Chapter 43
             552          48-2c-411, as last amended by Laws of Utah 2008, Chapter 364
             553          48-2c-412, as enacted by Laws of Utah 2009, Chapter 141
             554          48-2c-501, as last amended by Laws of Utah 2005, Chapter 141
             555          48-2c-502, as enacted by Laws of Utah 2001, Chapter 260
             556          48-2c-503, as enacted by Laws of Utah 2001, Chapter 260
             557          48-2c-504, as enacted by Laws of Utah 2001, Chapter 260
             558          48-2c-505, as enacted by Laws of Utah 2001, Chapter 260
             559          48-2c-506, as enacted by Laws of Utah 2001, Chapter 260
             560          48-2c-601, as enacted by Laws of Utah 2001, Chapter 260
             561          48-2c-602, as last amended by Laws of Utah 2002, Chapter 193


             562          48-2c-603, as enacted by Laws of Utah 2001, Chapter 260
             563          48-2c-604, as enacted by Laws of Utah 2001, Chapter 260
             564          48-2c-605, as enacted by Laws of Utah 2001, Chapter 260
             565          48-2c-606, as last amended by Laws of Utah 2010, Chapter 43
             566          48-2c-607, as last amended by Laws of Utah 2010, Chapter 43
             567          48-2c-608, as enacted by Laws of Utah 2006, Chapter 92
             568          48-2c-609, as enacted by Laws of Utah 2006, Chapter 92
             569          48-2c-610, as enacted by Laws of Utah 2006, Chapter 92
             570          48-2c-611, as enacted by Laws of Utah 2006, Chapter 92
             571          48-2c-612, as enacted by Laws of Utah 2006, Chapter 92
             572          48-2c-613, as enacted by Laws of Utah 2006, Chapter 92
             573          48-2c-614, as enacted by Laws of Utah 2006, Chapter 92
             574          48-2c-615, as enacted by Laws of Utah 2006, Chapter 92
             575          48-2c-616, as enacted by Laws of Utah 2006, Chapter 92
             576          48-2c-701, as enacted by Laws of Utah 2001, Chapter 260
             577          48-2c-702, as last amended by Laws of Utah 2005, Chapter 141
             578          48-2c-703, as enacted by Laws of Utah 2001, Chapter 260
             579          48-2c-704, as last amended by Laws of Utah 2008, Chapter 364
             580          48-2c-705, as enacted by Laws of Utah 2001, Chapter 260
             581          48-2c-706, as enacted by Laws of Utah 2001, Chapter 260
             582          48-2c-707, as last amended by Laws of Utah 2002, Chapter 193
             583          48-2c-708, as enacted by Laws of Utah 2001, Chapter 260
             584          48-2c-709, as enacted by Laws of Utah 2001, Chapter 260
             585          48-2c-710, as enacted by Laws of Utah 2001, Chapter 260
             586          48-2c-801, as last amended by Laws of Utah 2002, Chapter 193
             587          48-2c-802, as enacted by Laws of Utah 2001, Chapter 260
             588          48-2c-803, as last amended by Laws of Utah 2005, Chapter 141
             589          48-2c-803.1, as enacted by Laws of Utah 2005, Chapter 141


             590          48-2c-804, as last amended by Laws of Utah 2005, Chapter 141
             591          48-2c-805, as enacted by Laws of Utah 2001, Chapter 260
             592          48-2c-806, as enacted by Laws of Utah 2001, Chapter 260
             593          48-2c-807, as last amended by Laws of Utah 2005, Chapter 141
             594          48-2c-808, as enacted by Laws of Utah 2001, Chapter 260
             595          48-2c-809, as last amended by Laws of Utah 2008, Chapter 364
             596          48-2c-901, as enacted by Laws of Utah 2001, Chapter 260
             597          48-2c-902, as enacted by Laws of Utah 2001, Chapter 260
             598          48-2c-903, as last amended by Laws of Utah 2005, Chapter 141
             599          48-2c-904, as enacted by Laws of Utah 2001, Chapter 260
             600          48-2c-905, as enacted by Laws of Utah 2001, Chapter 260
             601          48-2c-906, as enacted by Laws of Utah 2001, Chapter 260
             602          48-2c-1001, as enacted by Laws of Utah 2001, Chapter 260
             603          48-2c-1002, as enacted by Laws of Utah 2001, Chapter 260
             604          48-2c-1003, as enacted by Laws of Utah 2001, Chapter 260
             605          48-2c-1004, as enacted by Laws of Utah 2001, Chapter 260
             606          48-2c-1005, as enacted by Laws of Utah 2001, Chapter 260
             607          48-2c-1006, as enacted by Laws of Utah 2001, Chapter 260
             608          48-2c-1007, as enacted by Laws of Utah 2001, Chapter 260
             609          48-2c-1008, as enacted by Laws of Utah 2001, Chapter 260
             610          48-2c-1101, as enacted by Laws of Utah 2001, Chapter 260
             611          48-2c-1102, as enacted by Laws of Utah 2001, Chapter 260
             612          48-2c-1103, as last amended by Laws of Utah 2005, Chapter 141
             613          48-2c-1104, as enacted by Laws of Utah 2001, Chapter 260
             614          48-2c-1105, as enacted by Laws of Utah 2001, Chapter 260
             615          48-2c-1106, as enacted by Laws of Utah 2001, Chapter 260
             616          48-2c-1201, as last amended by Laws of Utah 2005, Chapter 141
             617          48-2c-1202, as enacted by Laws of Utah 2001, Chapter 260


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


             646          48-2c-1408, as enacted by Laws of Utah 2001, Chapter 260
             647          48-2c-1409, as enacted by Laws of Utah 2001, Chapter 260
             648          48-2c-1410, as enacted by Laws of Utah 2001, Chapter 260
             649          48-2c-1411, as enacted by Laws of Utah 2009, Chapter 141
             650          48-2c-1501, as enacted by Laws of Utah 2001, Chapter 260
             651          48-2c-1502, as last amended by Laws of Utah 2010, Chapter 379
             652          48-2c-1503, as enacted by Laws of Utah 2001, Chapter 260
             653          48-2c-1504, as enacted by Laws of Utah 2001, Chapter 260
             654          48-2c-1505, as enacted by Laws of Utah 2001, Chapter 260
             655          48-2c-1506, as enacted by Laws of Utah 2001, Chapter 260
             656          48-2c-1507, as enacted by Laws of Utah 2001, Chapter 260
             657          48-2c-1508, as enacted by Laws of Utah 2001, Chapter 260
             658          48-2c-1509, as enacted by Laws of Utah 2001, Chapter 260
             659          48-2c-1510, as enacted by Laws of Utah 2001, Chapter 260
             660          48-2c-1511, as last amended by Laws of Utah 2008, Chapter 364
             661          48-2c-1512, as enacted by Laws of Utah 2001, Chapter 260
             662          48-2c-1513, as enacted by Laws of Utah 2001, Chapter 260
             663          48-2c-1601, as enacted by Laws of Utah 2001, Chapter 260
             664          48-2c-1602, as enacted by Laws of Utah 2001, Chapter 260
             665          48-2c-1603, as last amended by Laws of Utah 2008, Chapter 364
             666          48-2c-1604, as last amended by Laws of Utah 2008, Chapters 249 and 364
             667          48-2c-1605, as enacted by Laws of Utah 2001, Chapter 260
             668          48-2c-1606, as enacted by Laws of Utah 2001, Chapter 260
             669          48-2c-1607, as enacted by Laws of Utah 2001, Chapter 260
             670          48-2c-1608, as enacted by Laws of Utah 2001, Chapter 260
             671          48-2c-1609, as enacted by Laws of Utah 2001, Chapter 260
             672          48-2c-1610, as enacted by Laws of Utah 2001, Chapter 260
             673          48-2c-1611, as last amended by Laws of Utah 2008, Chapter 364


             674          48-2c-1612, as last amended by Laws of Utah 2008, Chapter 364
             675          48-2c-1613, as last amended by Laws of Utah 2009, Chapter 141
             676          48-2c-1614, as last amended by Laws of Utah 2008, Chapter 364
             677          48-2c-1615, as enacted by Laws of Utah 2001, Chapter 260
             678          48-2c-1701, as enacted by Laws of Utah 2001, Chapter 260
             679          48-2c-1702, as enacted by Laws of Utah 2001, Chapter 260
             680          48-2c-1703, as enacted by Laws of Utah 2001, Chapter 260
             681          48-2c-1704, as enacted by Laws of Utah 2001, Chapter 260
             682          48-2c-1705, as enacted by Laws of Utah 2001, Chapter 260
             683          48-2c-1706, as enacted by Laws of Utah 2001, Chapter 260
             684          48-2c-1801, as enacted by Laws of Utah 2001, Chapter 260
             685          48-2c-1802, as enacted by Laws of Utah 2001, Chapter 260
             686          48-2c-1803, as enacted by Laws of Utah 2001, Chapter 260
             687          48-2c-1804, as enacted by Laws of Utah 2001, Chapter 260
             688          48-2c-1805, as enacted by Laws of Utah 2001, Chapter 260
             689          48-2c-1806, as enacted by Laws of Utah 2001, Chapter 260
             690          48-2c-1807, as enacted by Laws of Utah 2001, Chapter 260
             691          48-2c-1808, as enacted by Laws of Utah 2001, Chapter 260
             692          48-2c-1809, as enacted by Laws of Utah 2001, Chapter 260
             693          48-2c-1901, as enacted by Laws of Utah 2001, Chapter 260
             694          48-2c-1902, as enacted by Laws of Utah 2001, Chapter 260
             695     
             696      Be it enacted by the Legislature of the state of Utah:
             697          Section 1. Section 7-1-810 is amended to read:
             698           7-1-810. Limited liability companies.
             699          (1) Notwithstanding any other provision of this title and subject to Subsection (8), if
             700      the conditions of this section are met, the following may be organized as or convert to a limited
             701      liability company under Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability


             702      Company Act:
             703          (a) an industrial bank chartered under Chapter 8, Industrial Banks;
             704          (b) an industrial loan company as defined in Section 7-8-21 ; or
             705          (c) any of the following if the institution is an S Corporation, as defined in Section
             706      1361, Internal Revenue Code, immediately before becoming a limited liability company:
             707          (i) a bank chartered under Chapter 3, Banks;
             708          (ii) a savings and loan association chartered under Chapter 7, Savings and Loan
             709      Associations Act; or
             710          (iii) a depository institution holding company.
             711          (2) (a) Before an institution described in Subsection (1) may organize as or convert to a
             712      limited liability company, the institution shall obtain approval of the commissioner.
             713          (b) (i) To obtain the approval under this section from the commissioner, the institution
             714      shall file a request for approval with the commissioner at least 30 days before the day on which
             715      the institution becomes a limited liability company.
             716          (ii) If the commissioner does not disapprove the request for approval within 30 days
             717      from the day on which the commissioner receives the request, the request is considered
             718      approved.
             719          (iii) When taking action on a request for approval filed under this section, the
             720      commissioner may:
             721          (A) approve the request;
             722          (B) approve the request subject to terms and conditions the commissioner considers
             723      necessary; or
             724          (C) disapprove the request.
             725          (3) To approve a request for approval, the commissioner shall find:
             726          (a) for an institution described in Subsection (1) that is required to be insured by a
             727      federal deposit insurance agency, that the institution:
             728          (i) will operate in a safe and sound manner;
             729          (ii) has the following characteristics:


             730          (A) the institution is not subject to automatic termination, dissolution, or suspension
             731      upon the happening of some event other than the passage of time;
             732          (B) the exclusive authority to manage the institution is vested in a board of managers
             733      or directors that:
             734          (I) is elected or appointed by the owners;
             735          (II) is not required to have owners of the institution included on the board;
             736          (III) possesses adequate independence and authority to supervise the operation of the
             737      institution; and
             738          (IV) operates with substantially the same rights, powers, privileges, duties, and
             739      responsibilities as the board of directors of a corporation;
             740          (C) neither state law, nor the institution's operating agreement, bylaws, or other
             741      organizational documents provide that an owner of the institution is liable for the debts,
             742      liabilities, and obligations of the institution in excess of the amount of the owner's investment;
             743      and
             744          (D) (I) neither state law, nor the institution's operating agreement, bylaws, or other
             745      organizational documents require the consent of any other owner of the institution in order for
             746      any owner to transfer an ownership interest in the institution, including voting rights; and
             747          (II) the institution is able to obtain new investment funding if needed to maintain
             748      adequate capital; and
             749          (iii) is able to comply with all legal and regulatory requirements for an insured
             750      depository institution under applicable federal and state law; and
             751          (b) for an institution described in Subsection (1) that is not required to be insured by a
             752      federal deposit insurance agency, that the institution will operate in a safe and sound manner.
             753          (4) An institution described in Subsection (3)(a) that is organized as a limited liability
             754      company shall maintain the characteristics listed in Subsection (3)(a)(ii) during such time as it
             755      is authorized to conduct business under this title as a limited liability company.
             756          (5) (a) All rights, privileges, powers, duties, and obligations of an institution described
             757      in Subsection (1) that is organized as a limited liability company and its members and


             758      managers shall be governed by Title 48, Chapter [2c] 3, Utah Revised Uniform Limited
             759      Liability Company Act, except:
             760          (i) the following [sections] do not apply to an institution that is described in Subsection
             761      (3)(a):
             762          [(A) Subsection 48-2c-402 (2)(a)(ii);]
             763          [(B) Section 48-2c-604 ;]
             764          [(C) Section 48-2c-703 ;]
             765          [(D) Section 48-2c-708 ;]
             766          [(E) Subsection 48-2c-801 (2);]
             767          [(F) Section 48-2c-1102 ;]
             768          [(G) Section 48-2c-1104 ; and]
             769          [(H) Subsections 48-2c-1201 (2) through (5); and]
             770          (A) Section 48-3-110 ;
             771          (B) Section 48-3-112 ;
             772          (C) Section 48-3-201 ;
             773          (D) Section 48-3-401 ;
             774          (E) Subsections 48-3-407 (1) and (3)(d);
             775          (F) Section 48-3-410 ;
             776          (G) Subsection 48-3-502 (1)(c);
             777          (H) Title 48, Chapter 3, Part 6, Member's Dissociation;
             778          (I) Section 48-3-701 ; and
             779          (J) Title 48, Chapter 3, Part 8, Foreign Limited Liability Companies; and
             780          (ii) as otherwise provided in this title.
             781          (b) Notwithstanding Subsection (5)(a), for an institution that is described in Subsection
             782      (3)(a):
             783          (i) for purposes of transferring a member's interests in the institution, a member's
             784      interest in the institution shall be treated like a share of stock in a corporation; and
             785          (ii) if a member's interest in the institution is transferred voluntarily or involuntarily to


             786      another person, the person who receives the member's interest shall obtain the member's entire
             787      rights associated with the member's interest in the institution including:
             788          (A) all economic rights; and
             789          (B) all voting rights.
             790          (c) An institution described in Subsection (3)(a) may not by agreement or otherwise
             791      change the application of Subsection (5)(a) to the institution.
             792          (6) Unless the context requires otherwise, for the purpose of applying this title to an
             793      institution described in Subsection (1) that is organized as a limited liability company:
             794          (a) a citation to Title 16, Chapter 10a, Utah Revised Business Corporation Act,
             795      includes the equivalent citation to Title 48, Chapter [2c] 3, Utah Revised Uniform Limited
             796      Liability Company Act;
             797          (b) "articles of incorporation" includes a limited liability company's [articles]
             798      certificate of organization as that term is used in Section [ 48-2c-403 ] 48-3-201 ;
             799          (c) "board of directors" includes one or more persons who have, with respect to an
             800      institution described in Subsection (1), authority substantially similar to that of a board of
             801      directors of a corporation;
             802          (d) "bylaws" includes a limited liability company's operating agreement as that term is
             803      defined in Section [ 48-2c-102 ] 48-3-102 ;
             804          (e) "corporation" includes a limited liability company organized under Title 48,
             805      Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act;
             806          (f) "director" includes any of the following of a limited liability company:
             807          (i) a manager;
             808          (ii) a director; or
             809          (iii) other person who has with respect to the institution described in Subsection (1),
             810      authority substantially similar to that of a director of a corporation;
             811          (g) "dividend" includes distributions made by a limited liability company under Title
             812      48, Chapter [2c, Part 10, Distributions] 3, Part 4, Relations of Members to Each Other and to
             813      Limited Liability Company;


             814          (h) "incorporator" includes [the organizers] an organizer of a limited liability company
             815      as provided in Title 48, Chapter [2c, Part 4, Formation] 3, Part 2, Formation - Certificate of
             816      Organization and Other Filings;
             817          (i) "officer" includes any of the following of an institution described in Subsection (1):
             818          (i) an officer; or
             819          (ii) other person who has with respect to the institution described in Subsection (1)
             820      authority substantially similar to that of an officer of a corporation;
             821          (j) "security," "shares," or "stock" of a corporation includes:
             822          (i) a membership interest in a limited liability company as provided in Title 48,
             823      Chapter [2c, Part 7, Members] 3, Part 4, Relations of Members to Each Other and to Limited
             824      Liability Company; and
             825          (ii) [any] a certificate or other evidence of an ownership interest in a limited liability
             826      company; and
             827          (k) "stockholder" or "shareholder" includes an owner of an interest in an institution
             828      described in Subsection (1) including a member as provided in Title 48, Chapter [2c, Part 7,
             829      Members] 3, Part 4, Relations of Members to Each Other and to Limited Liability Company.
             830          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             831      commissioner shall make rules governing the form of a request for approval filed under this
             832      section.
             833          (8) A depository institution organized under the laws of this state may not be organized
             834      as or converted to a series of [members, managers, or] transferable interests in a limited
             835      liability company as provided in [Section 48-2c-606 ] Title 48, Chapter 3, Part 12, Series
             836      Limited Liability Companies.
             837          Section 2. Section 7-3-10 is amended to read:
             838           7-3-10. Organization -- Powers, rights, and privileges of banking corporation --
             839      Other business activities.
             840          (1) A bank chartered under this chapter shall be:
             841          (a) a domestic corporation under Title 16, Chapter 10a, Utah Revised Business


             842      Corporation Act; or
             843          (b) subject to Section 7-1-810 , including the requirement that the bank be an S
             844      Corporation immediately before becoming a limited liability company, a limited liability
             845      company created under Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability
             846      Company Act.
             847          (2) A bank has all the rights, privileges, and powers necessary or incidental to carrying
             848      on the business of banking in addition to the powers granted:
             849          (a) if the bank is a corporation, under Title 16, Chapter 10a, Utah Revised Business
             850      Corporation Act; or
             851          (b) subject to Section 7-1-810 , if the bank is a limited liability company, under Title
             852      48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act.
             853          (3) The commissioner may, by rule or order, determine that necessary or incidental
             854      rights, privileges, and powers include:
             855          (a) the rights, privileges, and powers held by national banks; or
             856          (b) other business activities so long as the commissioner's determination is not
             857      inconsistent with the rules, regulations, or other actions of the board of governors of the
             858      Federal Reserve System under Section 4(c)(8) of the Bank Holding Company Act of 1956, 12
             859      U.S.C. Sec. 1843(c)(8).
             860          (4) The commissioner shall implement this section in a manner consistent with the
             861      purposes set forth in Section 7-1-102 .
             862          Section 3. Section 7-8-3 is amended to read:
             863           7-8-3. Organization -- Authorization to conduct business -- Deposit insurance.
             864          (1) Subject to Subsection (4), the commissioner may authorize a person described in
             865      Subsection (2) to conduct business as an industrial bank.
             866          (2) (a) Each person organized to conduct the business of an industrial bank in this state
             867      shall be organized under:
             868          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act; or
             869          (ii) in accordance with Section 7-1-810 , Title 48, Chapter [2c] 3, Utah Revised


             870      Uniform Limited Liability Company Act.
             871          (b) A person may not conduct business as an industrial bank authorized under this
             872      chapter to conduct business as an industrial bank in any form of entity other than those
             873      provided in Subsection (2)(a).
             874          (3) (a) All rights, privileges, powers, duties, and obligations of a corporation
             875      authorized to conduct business as an industrial bank and its officers, directors, and stockholders
             876      shall be governed by Title 16, Chapter 10a, Utah Revised Business Corporation Act, except as
             877      otherwise provided in this title.
             878          (b) All rights, privileges, powers, duties, and obligations of a limited liability company
             879      authorized to conduct business as an industrial bank and its members and managers shall be
             880      governed by Title 48, Chapter [2c, Utah Revised] 3, Uniform Limited Liability Company Act,
             881      except as otherwise provided in this title.
             882          (4) (a) An industrial bank is authorized to receive and hold deposits.
             883          (b) An industrial bank may not conduct business under this chapter as an industrial
             884      bank unless the industrial bank obtains insurance from the Federal Deposit Insurance
             885      Corporation or a successor federal deposit insurance entity for any deposits received or held by
             886      the industrial bank.
             887          Section 4. Section 13-34-114 is amended to read:
             888           13-34-114. Consent to use of educational terms in business names.
             889          (1) For purposes of this section:
             890          (a) "Business name" means a name filed with the Division of Corporations and
             891      Commercial Code under:
             892          (i) Section 16-6a-401 ;
             893          (ii) Section 16-10a-401 ;
             894          (iii) Section 16-11-16 ;
             895          (iv) Section 42-2-6.6 ;
             896          (v) Section [ 48-2a-102 ] 48-2d-108 ; or
             897          (vi) Section [ 48-2c-106 ] 48-3-108 .


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


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


             954           16-10a-401. Corporate name.
             955          (1) The name of a corporation:
             956          (a) except for the name of a depository institution as defined in Section 7-1-103 , shall
             957      contain:
             958          (i) the word:
             959          (A) "corporation";
             960          (B) "incorporated"; or
             961          (C) "company";
             962          (ii) the abbreviation:
             963          (A) "corp.";
             964          (B) "inc."; or
             965          (C) "co."; or
             966          (iii) words or abbreviations of like import to the words or abbreviations listed in
             967      Subsections (1)(a)(i) and (ii) in another language;
             968          (b) may not contain language stating or implying that the corporation is organized for a
             969      purpose other than that permitted by:
             970          (i) Section 16-10a-301 ; and
             971          (ii) the corporation's articles of incorporation;
             972          (c) without the written consent of the United States Olympic Committee, may not
             973      contain the words:
             974          (i) "Olympic";
             975          (ii) "Olympiad"; or
             976          (iii) "Citius Altius Fortius"; and
             977          (d) without the written consent of the Division of Consumer Protection issued in
             978      accordance with Section 13-34-114 , may not contain the words:
             979          (i) "university";
             980          (ii) "college"; or
             981          (iii) "institute" or "institution."


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


             1010          (a) the other corporation is incorporated or authorized to transact business in this state;
             1011      and
             1012          (b) the filing corporation:
             1013          (i) has merged with the other corporation; or
             1014          (ii) has been formed by reorganization of the other corporation.
             1015          (5) (a) A name is distinguishable from other names, trademarks, and service marks on
             1016      the records of the division if it:
             1017          (i) contains one or more different letters or numerals; or
             1018          (ii) has a different sequence of letters or numerals from the other names on the
             1019      division's records.
             1020          (b) Differences which are not distinguishing are:
             1021          (i) the words or abbreviations of the words:
             1022          (A) "corporation";
             1023          (B) "company";
             1024          (C) "incorporated";
             1025          (D) "limited partnership";
             1026          (E) "L.P.";
             1027          (F) "limited";
             1028          [(G) "ltd.";]
             1029          [(H)] (G) "limited liability company";
             1030          [(I)] (H) "limited company";
             1031          [(J)] (I) "L.C."; or
             1032          [(K)] (J) "L.L.C.";
             1033          (ii) the presence or absence of the words or symbols of the words "the," "and," or "a";
             1034          (iii) differences in punctuation and special characters;
             1035          (iv) differences in capitalization;
             1036          (v) differences between singular and plural forms of words for a corporation:
             1037          (A) incorporated in or authorized to do business in this state on or after May 4, 1998;


             1038      or
             1039          (B) that changes its name on or after May 4, 1998;
             1040          (vi) differences in whether the letters or numbers immediately follow each other or are
             1041      separated by one or more spaces if:
             1042          (A) the sequence of letters or numbers is identical; and
             1043          (B) the corporation:
             1044          (I) is incorporated in or authorized to do business in this state on or after May 3, 1999;
             1045      or
             1046          (II) changes its name on or after May 3, 1999; or
             1047          (vii) differences in abbreviations, for a corporation:
             1048          (A) incorporated in or authorized to do business in this state on or after May 1, 2000;
             1049      or
             1050          (B) that changes its name on or after May 1, 2000.
             1051          (c) The director of the division has the power and authority reasonably necessary to
             1052      interpret and efficiently administer this section and to perform the duties imposed on the
             1053      division by this section.
             1054          (6) A name that implies that the corporation is an agency of this state or of any of its
             1055      political subdivisions, if it is not actually such a legally established agency or subdivision, may
             1056      not be approved for filing by the division.
             1057          (7) (a) The requirements of Subsection (1)(d) do not apply to a corporation
             1058      incorporated in or authorized to do business in this state on or before May 4, 1998, until
             1059      December 31, 1998.
             1060          (b) On or after January 1, 1999, any corporation incorporated in or authorized to do
             1061      business in this state shall comply with the requirements of Subsection (1)(d).
             1062          Section 7. Section 16-10a-1008.7 is amended to read:
             1063           16-10a-1008.7. Conversion to or from a domestic limited liability company.
             1064          (1) (a) A corporation may convert to a domestic limited liability company subject to
             1065      Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act, by complying


             1066      with:
             1067          (i) this Subsection (1); and
             1068          (ii) Section [ 48-2c-1401 ] 48-3-1006 .
             1069          (b) If a corporation converts to a domestic limited liability company in accordance with
             1070      this Subsection (1), the articles of conversion shall:
             1071          (i) comply with Section [ 48-2c-1402 ] 48-3-1008 ; and
             1072          (ii) if the corporation has issued shares, provide for:
             1073          (A) the cancellation of any issued share; or
             1074          (B) the conversion of any issued share to a membership interest in the domestic limited
             1075      liability company.
             1076          (c) [In accordance with Section 48-2c-1404 , before] Before articles of conversion may
             1077      be filed with the division, the conversion shall be approved:
             1078          (i) in the manner provided for the articles of incorporation or bylaws of the
             1079      corporation; or
             1080          (ii) if the articles of incorporation or bylaws of the corporation do not provide the
             1081      method for approval:
             1082          (A) if the corporation has issued shares, by all of the outstanding shares of all classes
             1083      of shares of the corporation regardless of limitations or restrictions on the voting rights of the
             1084      shares; or
             1085          (B) if the corporation has not issued shares, by a majority of:
             1086          (I) the directors in office at the time that the conversion is approved by the board of
             1087      directors; or
             1088          (II) if directors have not been appointed or elected, the incorporators.
             1089          (2) A domestic limited liability company may convert to a corporation subject to this
             1090      chapter by:
             1091          (a) filing articles of incorporation in accordance with this chapter; and
             1092          (b) complying with Section [ 48-2c-1406 ] 48-3-1006 .
             1093          Section 8. Section 16-11-16 is amended to read:


             1094           16-11-16. Corporate name.
             1095          (1) The name of each professional corporation as set forth in its articles of
             1096      incorporation:
             1097          (a) shall contain the terms:
             1098          (i) "professional corporation"; or
             1099          (ii) "P.C.";
             1100          (b) may not contain the words:
             1101          (i) "incorporated"; or
             1102          (ii) "inc.";
             1103          (c) may not contain language stating or implying that the professional corporation is
             1104      organized for a purpose other than that permitted by:
             1105          (i) Section 16-11-6 ; and
             1106          (ii) the professional corporation's articles of incorporation;
             1107          (d) without the written consent of the United States Olympic Committee, may not
             1108      contain the words:
             1109          (i) "Olympic";
             1110          (ii) "Olympiad"; or
             1111          (iii) "Citius Altius Fortius"; and
             1112          (e) without the written consent of the Division of Consumer Protection in accordance
             1113      with Section 13-34-114 , may not contain the words:
             1114          (i) "university";
             1115          (ii) "college"; or
             1116          (iii) "institute" or "institution."
             1117          (2) The professional corporation may not imply by any word in the name that it is an
             1118      agency of the state or of any of its political subdivisions.
             1119          (3) A person, other than a professional corporation formed or registered under this
             1120      chapter, may not use in its name in this state any of the terms:
             1121          (a) "professional corporation"; or


             1122          (b) "P.C."
             1123          (4) Except as authorized by Subsection (5), the name of the professional corporation
             1124      shall be distinguishable, as defined in Subsection (6), upon the records of the division from:
             1125          (a) the name of any domestic corporation incorporated in or foreign corporation
             1126      authorized to transact business in this state;
             1127          (b) the name of any domestic or foreign nonprofit corporation incorporated or
             1128      authorized to transact business in this state;
             1129          (c) the name of any domestic or foreign limited liability company formed or authorized
             1130      to transact business in this state;
             1131          (d) the name of any limited partnership formed or authorized to transact business in
             1132      this state;
             1133          (e) any name reserved or registered with the division for a corporation, limited liability
             1134      company, or general or limited partnership, under the laws of this state; and
             1135          (f) any business name, fictitious name, assumed name, trademark, or service mark
             1136      registered by the division.
             1137          (5) (a) A professional corporation may apply to the division for authorization to file its
             1138      articles of incorporation under, or to register or reserve, a name that is not distinguishable upon
             1139      its records from one or more of the names described in Subsection (4).
             1140          (b) The division shall approve the application filed under Subsection (5)(a) if:
             1141          (i) the other person whose name is not distinguishable from the name under which the
             1142      applicant desires to file, or which the applicant desires to register or reserve:
             1143          (A) consents to the filing, registration, or reservation in writing; and
             1144          (B) submits an undertaking in a form satisfactory to the division to change its name to
             1145      a name that is distinguishable from the name of the applicant; or
             1146          (ii) the applicant delivers to the division a certified copy of the final judgment of a
             1147      court of competent jurisdiction establishing the applicant's right to make the requested filing in
             1148      this state under the name applied for.
             1149          (6) (a) A name is distinguishable from other names, trademarks, and service marks


             1150      registered with the division if it:
             1151          (i) contains one or more different letters or numerals from other names upon the
             1152      division's records; or
             1153          (ii) has a different sequence of letter or numerals from the other names on the division's
             1154      records.
             1155          (b) The following differences are not distinguishable:
             1156          (i) the words or abbreviations of the words:
             1157          (A) "corporation";
             1158          (B) "incorporated";
             1159          (C) "company";
             1160          (D) "limited partnership";
             1161          (E) "limited";
             1162          (F) "L.P.";
             1163          [(G) "Ltd.";]
             1164          [(H)] (G) "limited liability company";
             1165          [(I)] (H) "limited company";
             1166          [(J)] (I) "L.C."; or
             1167          [(K)] (J) "L.L.C.";
             1168          (ii) the presence or absence of the words or symbols of the words "the," "and," "a," or
             1169      "plus";
             1170          (iii) differences in punctuation and special characters;
             1171          (iv) differences in capitalization; or
             1172          (v) differences in abbreviations.
             1173          (7) The director of the division shall have the power and authority reasonably necessary
             1174      to interpret and efficiently administer this section and to perform the duties imposed upon the
             1175      division by this section.
             1176          Section 9. Section 16-16-111 is amended to read:
             1177           16-16-111. Name.


             1178          (1) Use of the term "cooperative" or its abbreviation under this chapter is not a
             1179      violation of the provisions restricting the use of the term under any other law of this state.
             1180          (2) (a) Notwithstanding Section [ 48-2a-102 ] 48-2d-108 , the name of a limited
             1181      cooperative association shall contain:
             1182          (i) the words "limited cooperative association" or "limited cooperative"; or
             1183          (ii) the abbreviation "L.C.A." or "LCA". ["Limited" may be abbreviated as "Ltd.".]
             1184          (b) "Cooperative" may be abbreviated as "Co-op" or "Coop".
             1185          (c) "Association" may be abbreviated as "Assoc." or "Assn.".
             1186          (d) (i) Use of the term "cooperative" or its abbreviation as permitted by this chapter is
             1187      not a violation of the provisions restricting the use of the term under any other law of this state.
             1188          (ii) A limited cooperative association or a member may enforce the restrictions on the
             1189      use of the term "cooperative" under this chapter and any other law of this state.
             1190          (iii) A limited cooperative association or a member may enforce the restrictions on the
             1191      use of the term "cooperative" under any other law of this state.
             1192          (3) Except as otherwise provided in Subsection (4), a limited cooperative association
             1193      may use only a name that is available. A name is available if it is distinguishable in the records
             1194      of the division from:
             1195          (a) the name of any entity organized or authorized to transact business in this state;
             1196          (b) a name reserved under Section 16-16-112 ; and
             1197          (c) an alternative name approved for a foreign cooperative authorized to transact
             1198      business in this state.
             1199          (4) A limited cooperative association may apply to the division for authorization to use
             1200      a name that is not available. The division shall authorize use of the name if:
             1201          (a) the person with ownership rights to use the name consents in a record to the use and
             1202      applies in a form satisfactory to the division to change the name used or reserved to a name that
             1203      is distinguishable upon the records of the division from the name applied for; or
             1204          (b) the applicant delivers to the division a certified copy of the final judgment of a
             1205      court establishing the applicant's right to use the name in this state.


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


             1234          (8) "Foreign qualification document" means an application for a certificate of authority
             1235      or other foreign qualification filing with the division by a foreign entity.
             1236          (9) "Governance interest" means the right under the organic law or organic rules of an
             1237      entity, other than as a governor, agent, assignee, or proxy, to:
             1238          (a) receive or demand access to information concerning, or the books and records of,
             1239      the entity;
             1240          (b) vote for the election of the governors of the entity; or
             1241          (c) receive notice of or vote on any or all issues involving the internal affairs of the
             1242      entity.
             1243          (10) "Governor" means a person by or under whose authority the powers of an entity
             1244      are exercised and under whose direction the business and affairs of the entity are managed
             1245      pursuant to the organic law and organic rules of the entity.
             1246          (11) "Interest" means:
             1247          (a) a governance interest in an unincorporated entity;
             1248          (b) a transferable interest in an unincorporated entity; or
             1249          (c) a share or membership in a corporation.
             1250          (12) "Interest holder" means a direct holder of an interest.
             1251          (13) "Jurisdiction of organization," with respect to an entity, means the jurisdiction
             1252      whose law includes the organic law of the entity.
             1253          (14) "Noncommercial registered agent" means a person that is not listed as a
             1254      commercial registered agent under Section 16-17-204 and that is:
             1255          (a) an individual or a domestic or foreign entity that serves in this state as the agent for
             1256      service of process of an entity; or
             1257          (b) the individual who holds the office or other position in an entity that is designated
             1258      as the agent for service of process pursuant to Subsection 16-17-203 (1)(b)(ii).
             1259          (15) "Nonqualified foreign entity" means a foreign entity that is not authorized to
             1260      transact business in this state pursuant to a filing with the division.
             1261          (16) "Nonresident LLP statement" means:


             1262          (a) a statement of qualification of a domestic limited liability partnership that does not
             1263      have an office in this state; or
             1264          (b) a statement of foreign qualification of a foreign limited liability partnership that
             1265      does not have an office in this state.
             1266          (17) "Organic law" means the statutes, if any, other than this chapter, governing the
             1267      internal affairs of an entity.
             1268          (18) "Organic rules" means the public organic document and private organic rules of an
             1269      entity.
             1270          (19) "Person" means an individual, corporation, estate, trust, partnership, limited
             1271      liability company, business or similar trust, association, joint venture, public corporation,
             1272      government or governmental subdivision, agency, or instrumentality, or any other legal or
             1273      commercial entity.
             1274          (20) "Private organic rules" mean the rules, whether or not in a record, that govern the
             1275      internal affairs of an entity, are binding on all of its interest holders, and are not part of its
             1276      public organic document, if any.
             1277          (21) "Public organic document" means the public record the filing of which creates an
             1278      entity, and any amendment to or restatement of that record.
             1279          (22) "Qualified foreign entity" means a foreign entity that is authorized to transact
             1280      business in this state pursuant to a filing with the division.
             1281          (23) "Record" means information that is inscribed on a tangible medium or that is
             1282      stored in an electronic or other medium and is retrievable in perceivable form.
             1283          (24) "Registered agent" means a commercial registered agent or a noncommercial
             1284      registered agent.
             1285          (25) "Registered agent filing" means:
             1286          (a) the public organic document of a domestic filing entity;
             1287          (b) a nonresident LLP statement;
             1288          (c) a foreign qualification document; or
             1289          (d) an appointment of agent.


             1290          (26) "Represented entity" means:
             1291          (a) a domestic filing entity;
             1292          (b) a domestic or qualified foreign limited liability partnership that does not have an
             1293      office in this state;
             1294          (c) a qualified foreign entity;
             1295          (d) a domestic or foreign unincorporated nonprofit association for which an
             1296      appointment of agent has been filed;
             1297          (e) a domestic entity that is not a filing entity for which an appointment of agent has
             1298      been filed; or
             1299          (f) a nonqualified foreign entity for which an appointment of agent has been filed.
             1300          (27) "Sign" means, with present intent to authenticate or adopt a record:
             1301          (a) to execute or adopt a tangible symbol; or
             1302          (b) to attach to or logically associate with the record an electronic sound, symbol, or
             1303      process.
             1304          (28) "Transferable interest" means the right under an entity's organic law to receive
             1305      distributions from the entity.
             1306          (29) "Type," with respect to an entity, means a generic form of entity:
             1307          (a) recognized at common law; or
             1308          (b) organized under an organic law, whether or not some entities organized under that
             1309      organic law are subject to provisions of that law that create different categories of the form of
             1310      entity.
             1311          Section 11. Section 31A-37a-102 is amended to read:
             1312           31A-37a-102. Definitions.
             1313          (1) For purposes of this chapter:
             1314          (a) "Ceding insurer" means an insurer that:
             1315          (i) is approved by the commissioner;
             1316          (ii) is licensed or otherwise authorized to transact the business of insurance or
             1317      reinsurance in the insurer's state or country of domicile; and


             1318          (iii) cedes risk to a special purpose financial captive insurance company pursuant to a
             1319      reinsurance contract.
             1320          (b) Notwithstanding Section 31A-27a-102 , "insolvency" or "insolvent" for purposes of
             1321      applying Chapter 27a, Insurer Receivership Act, to a special purpose financial captive
             1322      insurance company, means that a special purpose financial captive insurance company:
             1323          (i) is unable to pay an obligation when the obligation is due, unless the obligation is the
             1324      subject of a bona fide dispute; or
             1325          (ii) fails to meet the criteria and conditions for solvency of the special purpose financial
             1326      captive insurance company established by the commissioner by rule or order.
             1327          (c) (i) "Insurance securitization" means a transaction or a group of related transactions:
             1328          (A) that may include a capital market offering;
             1329          (B) that is effected through one or more related risk transfer instruments and
             1330      facilitating administrative agreements;
             1331          (C) where all or part of the result of the transaction or group of related transactions is
             1332      used to fund the special purpose financial captive insurance company's obligations under a
             1333      reinsurance contract with a ceding insurer;
             1334          (D) by which:
             1335          (I) proceeds are obtained by a special purpose financial captive insurance company,
             1336      directly or indirectly, through the issuance of one or more securities by the special purpose
             1337      financial captive insurance company or another person; or
             1338          (II) a person provides one or more letters of credit or other assets for the benefit of the
             1339      special purpose financial captive insurance company if the commissioner authorizes the special
             1340      purpose financial captive insurance company to treat the letter of credit or asset as an admitted
             1341      asset for purposes of the special purpose financial captive insurance company's annual report;
             1342      and
             1343          (E) if all or a part of the proceeds, a letter of credit, or asset described in this
             1344      Subsection (1)(c) is used to fund the special purpose financial captive insurance company's
             1345      obligations under a reinsurance contract with a ceding insurer.


             1346          (ii) "Insurance securitization" does not include the issuance of a letter of credit for the
             1347      benefit of the commissioner to satisfy all or part of the special purpose financial captive
             1348      insurance company's capital and surplus requirements under Section 31A-37a-302 .
             1349          (d) "Management" means:
             1350          (i) a board of directors of a special purpose financial captive insurance company;
             1351          (ii) a managing board of a special purpose financial captive insurance company; or
             1352          (iii) one or more individuals with the overall responsibility for the management of the
             1353      affairs of the special purpose financial captive insurance company, including:
             1354          (A) an officer elected or appointed to act on behalf of the special purpose financial
             1355      captive insurance company; or
             1356          (B) an agent elected or appointed to act on behalf of the special purpose financial
             1357      captive insurance company.
             1358          (e) "Organizational document" means:
             1359          (i) in the case of a special purpose financial captive insurance company formed as a
             1360      stock corporation, the special purpose financial captive insurance company's:
             1361          (A) articles of incorporation; and
             1362          (B) bylaws; and
             1363          (ii) in the case of a special purpose financial captive insurance company formed as a
             1364      limited liability company, the special purpose financial captive insurance company's:
             1365          (A) [articles] certificate of organization; and
             1366          (B) operating agreement.
             1367          (f) "Reinsurance contract" means a contract between a special purpose financial captive
             1368      insurance company and a ceding insurer pursuant to which the special purpose financial captive
             1369      insurance company agrees to provide reinsurance to the ceding insurer for risks associated with
             1370      the ceding insurer's insurance or reinsurance business.
             1371          (g) "Security" means:
             1372          (i) a security as defined in Section 31A-1-301 ; or
             1373          (ii) one or more of the following that the commissioner designates, by rule or order, as


             1374      a "security" for purposes of this chapter:
             1375          (A) a debt obligation;
             1376          (B) equity;
             1377          (C) a surplus certificate;
             1378          (D) a surplus note;
             1379          (E) a funding agreement;
             1380          (F) a derivative; or
             1381          (G) another financial instrument.
             1382          (h) "Special purpose financial captive insurance company" means a captive insurance
             1383      company has a certificate of authority under this chapter from the commissioner to operate as a
             1384      special purpose financial captive insurance company pursuant to this chapter.
             1385          (i) "Special purpose financial captive insurance company security" means:
             1386          (i) a security issued by a special purpose financial captive insurance company; or
             1387          (ii) a security issued by a third party, the proceeds of which are obtained directly or
             1388      indirectly by a special purpose financial captive insurance company.
             1389          (j) "Surplus note" means an unsecured subordinated debt obligation that has one or
             1390      more characteristics that are consistent with paragraph 3 of the National Association of
             1391      Insurance Commissioners Statement of Statutory Accounting Principals No. 41, as amended
             1392      from time to time and as modified or supplemented by rule or order of the commissioner.
             1393          (2) The terms defined in Section 31A-37-102 shall have the same meaning for
             1394      purposes of this chapter.
             1395          Section 12. Section 46-4-503 is amended to read:
             1396           46-4-503. Government products and services provided electronically.
             1397          (1) Notwithstanding Section 46-4-501 , a state governmental agency that administers
             1398      one or more of the following transactions shall allow those transactions to be conducted
             1399      electronically:
             1400          (a) an application for or renewal of a professional or occupational license issued under
             1401      Title 58, Occupations and Professions;


             1402          (b) the renewal of a drivers license;
             1403          (c) an application for a hunting or fishing license;
             1404          (d) the filing of:
             1405          (i) a return under Title 59, Chapter 10, Individual Income Tax Act or 12, Sales and Use
             1406      Tax Act;
             1407          (ii) a court document, as defined by the Judicial Council; or
             1408          (iii) a document under Title 70A, Uniform Commercial Code;
             1409          (e) a registration for:
             1410          (i) a product; or
             1411          (ii) a brand;
             1412          (f) a renewal of a registration of a motor vehicle;
             1413          (g) a registration under:
             1414          (i) Title 16, Corporations;
             1415          (ii) Title 42, Names; or
             1416          (iii) Title 48, [Partnership] Unincorporated Business Entities Act; or
             1417          (h) submission of an application for benefits:
             1418          (i) under Title 35A, Chapter 3, Employment Support Act;
             1419          (ii) under Title 35A, Chapter 4, Employment Security Act; or
             1420          (iii) related to accident and health insurance.
             1421          (2) The state system of public education, in coordination with the Utah Education
             1422      Network, shall make reasonable progress toward making the following services available
             1423      electronically:
             1424          (a) secure access by parents and students to student grades and progress reports;
             1425          (b) email communications with:
             1426          (i) teachers;
             1427          (ii) parent-teacher associations; and
             1428          (iii) school administrators;
             1429          (c) access to school calendars and schedules; and


             1430          (d) teaching resources that may include:
             1431          (i) teaching plans;
             1432          (ii) curriculum guides; and
             1433          (iii) media resources.
             1434          (3) A state governmental agency shall:
             1435          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
             1436      security and privacy of records that are private or controlled as defined by Title 63G, Chapter 2,
             1437      Government Records Access and Management Act;
             1438          (b) in addition to those transactions listed in Subsections (1) and (2), determine any
             1439      additional services that may be made available to the public through electronic means; and
             1440          (c) as part of the agency's information technology plan required by Section 63F-1-204 ,
             1441      report on the progress of compliance with Subsections (1) through (3).
             1442          (4) Notwithstanding the other provisions of this part, a state governmental agency is
             1443      not required by this part to conduct a transaction electronically if:
             1444          (a) conducting the transaction electronically is not required by federal law; and
             1445          (b) conducting the transaction electronically is:
             1446          (i) impractical;
             1447          (ii) unreasonable; or
             1448          (iii) not permitted by laws pertaining to privacy or security.
             1449          (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
             1450      access to diverse services and agencies at one location including virtual colocation.
             1451          (b) State agencies that provide services or offer direct assistance to the business
             1452      community shall participate in the establishment, maintenance, and enhancement of an
             1453      integrated Utah business web portal known as Business.utah.gov. The purpose of the business
             1454      web portal is to provide "one-stop shop" assistance to businesses.
             1455          (c) State agencies shall partner with other governmental and nonprofit agencies whose
             1456      primary mission is to provide services or offer direct assistance to the business community in
             1457      Utah in fulfilling the requirements of this section.


             1458          (d) The following state entities shall comply with the provisions of this Subsection (5):
             1459          (i) Governor's Office of Economic Development, which shall serve as the managing
             1460      partner for the website;
             1461          (ii) Department of Workforce Services;
             1462          (iii) Department of Commerce;
             1463          (iv) Tax Commission;
             1464          (v) Department of Administrative Services - Division of Purchasing and General
             1465      Services, including other state agencies operating under a grant of authority from the division
             1466      to procure goods and services in excess of $5,000;
             1467          (vi) Department of Agriculture;
             1468          (vii) Department of Natural Resources; and
             1469          (viii) other state agencies that provide services or offer direct assistance to the business
             1470      sector.
             1471          (e) The business services available on the business web portal may include:
             1472          (i) business life cycle information;
             1473          (ii) business searches;
             1474          (iii) employment needs and opportunities;
             1475          (iv) motor vehicle registration;
             1476          (v) permit applications and renewal;
             1477          (vi) tax information;
             1478          (vii) government procurement bid notifications;
             1479          (viii) general business information;
             1480          (ix) business directories; and
             1481          (x) business news.
             1482          Section 13. Section 48-1a-101 is enacted to read:
             1483     
TITLE 48. UNINCORPORATED BUSINESS ENTITIES ACT

             1484     
CHAPTER 1a. GENERAL PROVISIONS

             1485     
Part 1. General Provisions


             1486          48-1a-101. Title.
             1487          (1) This title is known as the "Unincorporated Business Entities Act."
             1488          (2) This chapter is known as "General Provisions."
             1489          Section 14. Section 48-1a-102 is enacted to read:
             1490          48-1a-102. Definitions.
             1491          As used in this title, "division" means the Division of Corporations and Commercial
             1492      Code within the Department of Commerce.
             1493          Section 15. Section 48-1b-101 is enacted to read:
             1494     
CHAPTER 1b. UTAH UNIFORM PARTNERSHIP ACT

             1495     
Part 1. General Provisions

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


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


             1542          (i) a statement of partnership authority under Section 48-1b-303 ;
             1543          (ii) a statement of denial under Section 48-1b-304 ;
             1544          (iii) a statement of dissociation under Section 48-1b-704 ;
             1545          (iv) a statement of dissolution under Section 48-1b-805 ;
             1546          (v) articles of merger under Section 48-1b-904 ;
             1547          (vi) a statement of qualification under Section 48-1b-1001 ;
             1548          (vii) a statement of foreign qualification under Section 48-1b-1102 ; or
             1549          (viii) an amendment or cancellation of any of the foregoing.
             1550          (n) "Transfer" includes an assignment, conveyance, lease, mortgage, deed, and
             1551      encumbrance.
             1552          (o) "Tribe" means a tribe, band, nation, pueblo, or other organized group or community
             1553      of Indians, including an Alaska Native village, that is legally recognized as eligible for and is
             1554      consistent with a special program, service, or entitlement provided by the United States to
             1555      Indians because of their status as Indians.
             1556          (p) "Tribal limited liability partnership" means a limited liability partnership:
             1557          (i) formed under the law of a tribe; and
             1558          (ii) that is at least 51% owned or controlled by the tribe.
             1559          Section 16. Section 48-1b-102 is enacted to read:
             1560          48-1b-102. Knowledge and notice.
             1561          (1) A person knows a fact if the person has actual knowledge of it.
             1562          (2) A person has notice of a fact if the person:
             1563          (a) knows of it;
             1564          (b) has received a notification of it; or
             1565          (c) has reason to know it exists from all of the facts known to the person at the time in
             1566      question.
             1567          (3) A person notifies or gives a notification to another by taking steps reasonably
             1568      required to inform the other person in ordinary course, whether or not the other person learns of
             1569      it.


             1570          (4) A person receives a notification when the notification:
             1571          (a) comes to the person's attention; or
             1572          (b) is duly delivered at the person's place of business or at any other place held out by
             1573      the person as a place for receiving communications.
             1574          (5) Except as otherwise provided in Subsection (6), a person other than an individual
             1575      knows, has notice, or receives a notification of a fact for purposes of a particular transaction
             1576      when the individual conducting the transaction knows, has notice, or receives a notification of
             1577      the fact, or in any event when the fact would have been brought to the individual's attention if
             1578      the person had exercised reasonable diligence. The person exercises reasonable diligence if it
             1579      maintains reasonable routines for communicating significant information to the individual
             1580      conducting the transaction and there is reasonable compliance with the routines. Reasonable
             1581      diligence does not require an individual acting for the person to communicate information
             1582      unless the communication is part of the individual's regular duties or the individual has reason
             1583      to know of the transaction and that the transaction would be materially affected by the
             1584      information.
             1585          (6) A partner's knowledge, notice, or receipt of a notification of a fact relating to the
             1586      partnership is effective immediately as knowledge by, notice to, or receipt of a notification by
             1587      the partnership, except in the case of a fraud on the partnership committed by or with the
             1588      consent of that partner.
             1589          Section 17. Section 48-1b-103 is enacted to read:
             1590          48-1b-103. Effect of partnership agreement -- Nonwaivable provisions.
             1591          (1) Except as otherwise provided in Subsection (2), relations among the partners and
             1592      between the partners and the partnership are governed by the partnership agreement. To the
             1593      extent the partnership agreement does not otherwise provide, this chapter governs relations
             1594      among the partners and between the partners and the partnership.
             1595          (2) The partnership agreement may not:
             1596          (a) vary the rights and duties under Section 48-1b-105 except to eliminate the duty to
             1597      provide copies of statements to all of the partners;


             1598          (b) unreasonably restrict the right of access to books and records under Subsection
             1599      48-1b-403 (2);
             1600          (c) eliminate the duty of loyalty under Subsection 48-1b-404 (2) or 48-1b-603 (2)(c),
             1601      but:
             1602          (i) the partnership agreement may identify specific types or categories of activities that
             1603      do not violate the duty of loyalty, if not unconscionable or against public policy; or
             1604          (ii) all of the partners or a number or percentage specified in the partnership agreement
             1605      may authorize or ratify, after full disclosure of all material facts, a specific act or transaction
             1606      that otherwise would violate the duty of loyalty;
             1607          (d) unreasonably reduce the duty of care under Subsection 48-1b-404 (3) or
             1608      48-1b-603 (2)(c);
             1609          (e) eliminate the obligation of good faith and fair dealing under Subsection
             1610      48-1b-404 (4), but the partnership agreement may prescribe the standards by which the
             1611      performance of the obligation is to be measured, if the standards are not manifestly
             1612      unreasonable;
             1613          (f) vary the power to dissociate as a partner under Subsection 48-1b-602 (1), except to
             1614      require the notice under Subsection 48-1b-601 (1) to be in writing;
             1615          (g) vary the right of a court to expel a partner in the events specified in Subsection
             1616      48-1b-601 (5);
             1617          (h) vary the requirement to wind up the partnership business in cases specified in
             1618      Subsection 48-1b-801 (4), (5), or (6);
             1619          (i) vary the law applicable to a limited liability partnership under Subsection
             1620      48-1b-106 (2); or
             1621          (j) restrict rights of third parties under this chapter.
             1622          Section 18. Section 48-1b-104 is enacted to read:
             1623          48-1b-104. Supplemental principles of law.
             1624          (1) Unless displaced by particular provisions of this chapter, the principles of law and
             1625      equity supplement this chapter.


             1626          (2) If an obligation to pay interest arises under this chapter and the rate is not specified,
             1627      the rate is that specified in Section 15-1-1 .
             1628          Section 19. Section 48-1b-105 is enacted to read:
             1629          48-1b-105. Execution, filing, and recording of statements.
             1630          (1) A statement may be filed with the division. A certified copy of a statement that is
             1631      filed in an office in another state may be filed with the division. Either filing has the effect
             1632      provided in this chapter with respect to partnership property located in or transactions that
             1633      occur in this state.
             1634          (2) A certified copy of a statement that is filed with the division and recorded in the
             1635      office for recording transfers of real property has the effect provided for recorded statements in
             1636      this chapter. A recorded statement that is not a certified copy of a statement filed with the
             1637      division does not have the effect provided for recorded statements in this chapter.
             1638          (3) A statement filed with the division by a partnership must be executed by at least
             1639      two partners. Other statements must be executed by a partner or other person authorized by
             1640      this chapter. An individual who executes a statement as, or on behalf of, a partner or other
             1641      person named as a partner in a statement shall personally declare under penalty of perjury that
             1642      the contents of the statement are accurate.
             1643          (4) A person authorized by this chapter to file a statement with the division may amend
             1644      or cancel the statement by filing an amendment or cancellation that names the partnership,
             1645      identifies the statement, and states the substance of the amendment or cancellation.
             1646          (5) A person who files a statement with the division pursuant to this section shall
             1647      promptly send a copy of the statement to every nonfiling partner and to any other person named
             1648      as a partner in the statement. Failure to send a copy of a statement to a partner or other person
             1649      does not limit the effectiveness of the statement as to a person not a partner.
             1650          (6) The division may collect a fee, established in accordance with Section 63J-1-504 ,
             1651      for filing or providing a certified copy of a statement. The county recorder may in accordance
             1652      with Section 17-21-18.5 collect a fee for recording a statement.
             1653          (7) A statement filed with the division pursuant to this section and in accordance with


             1654      Section 48-1b-303 , is effective for a period of five years from the date of filing. At the
             1655      expiration of that period, if no new filing is made by or on behalf of the person who made the
             1656      original filing, the division shall send a notice by regular mail, postage prepaid, to the address
             1657      shown in the filing indicating that it has expired. If no new filing is made within 30 days after
             1658      the date of mailing the notice, the division shall remove the filing from the division's active
             1659      file.
             1660          Section 20. Section 48-1b-106 is enacted to read:
             1661          48-1b-106. Governing law.
             1662          (1) Except as otherwise provided in Subsection (2), the law of the jurisdiction in which
             1663      a partnership has its chief executive office governs relations among the partners and between
             1664      the partners and the partnership.
             1665          (2) The law of this state governs relations among the partners and between the partners
             1666      and the partnership and the liability of partners for an obligation of a limited liability
             1667      partnership.
             1668          Section 21. Section 48-1b-107 is enacted to read:
             1669          48-1b-107. Partnership subject to amendment or repeal of chapter.
             1670          A partnership governed by this chapter is subject to any amendment to or repeal of this
             1671      chapter.
             1672          Section 22. Section 48-1b-201 is enacted to read:
             1673     
Part 2. Nature of Partnership

             1674          48-1b-201. Partnership as entity.
             1675          (1) A partnership is an entity distinct from its partners.
             1676          (2) A limited liability partnership continues to be the same entity that existed before the
             1677      filing of a statement of qualification with the division under Section 48-1b-1001 .
             1678          Section 23. Section 48-1b-202 is enacted to read:
             1679          48-1b-202. Formation of partnership.
             1680          (1) Except as otherwise provided in Subsection (2), the association of two or more
             1681      persons to carry on as co-owners a business for profit forms a partnership, whether or not the


             1682      persons intend to form a partnership.
             1683          (2) An association formed under a statute other than this chapter, a predecessor statute,
             1684      or a comparable statute of another jurisdiction is not a partnership under this chapter.
             1685          (3) In determining whether a partnership is formed, the following rules apply:
             1686          (a) Joint tenancy, tenancy in common, tenancy by the entireties, joint property,
             1687      common property, or part ownership does not by itself establish a partnership, even if the
             1688      co-owners share profits made by the use of the property.
             1689          (b) The sharing of gross returns does not by itself establish a partnership, even if the
             1690      persons sharing them have a joint or common right or interest in property from which the
             1691      returns are derived.
             1692          (c) A person who receives a share of the profits of a business is presumed to be a
             1693      partner in the business, unless the profits were received in payment:
             1694          (i) of a debt by installments or otherwise;
             1695          (ii) for services as an independent contractor or of wages or other compensation to an
             1696      employee;
             1697          (iii) of rent;
             1698          (iv) of an annuity or other retirement or health benefit to a beneficiary, representative,
             1699      or designee of a deceased or retired partner;
             1700          (v) of interest or other charge on a loan, even if the amount of payment varies with the
             1701      profits of the business, including a direct or indirect present or future ownership of the
             1702      collateral, or rights to income, proceeds, or increase in value derived from the collateral; or
             1703          (vi) for the sale of the goodwill of a business or other property by installments or
             1704      otherwise.
             1705          Section 24. Section 48-1b-203 is enacted to read:
             1706          48-1b-203. Partnership property.
             1707          Property acquired by a partnership is property of the partnership and not of the partners
             1708      individually.
             1709          Section 25. Section 48-1b-204 is enacted to read:


             1710          48-1b-204. When property is partnership property.
             1711          (1) Property is partnership property if acquired in the name of:
             1712          (a) the partnership; or
             1713          (b) one or more partners with an indication in the instrument transferring title to the
             1714      property of the person's capacity as a partner or of the existence of a partnership but without an
             1715      indication of the name of the partnership.
             1716          (2) Property is acquired in the name of the partnership by a transfer to:
             1717          (a) the partnership in its name; or
             1718          (b) one or more partners in their capacity as partners in the partnership, if the name of
             1719      the partnership is indicated in the instrument transferring title to the property.
             1720          (3) Property is presumed to be partnership property if purchased with partnership
             1721      assets, even if not acquired in the name of the partnership or of one or more partners with an
             1722      indication in the instrument transferring title to the property of the person's capacity as a
             1723      partner or of the existence of a partnership.
             1724          (4) Property acquired in the name of one or more of the partners, without an indication
             1725      in the instrument transferring title to the property of the person's capacity as a partner or of the
             1726      existence of a partnership and without use of partnership assets, is presumed to be separate
             1727      property, even if used for partnership purposes.
             1728          Section 26. Section 48-1b-301 is enacted to read:
             1729     
Part 3. Relations of Partners to Persons Dealing with Partnership

             1730          48-1b-301. Partner agent of partnership.
             1731          Subject to the effect of a statement of partnership authority under Section 48-1b-303 :
             1732          (1) Each partner is an agent of the partnership for the purpose of its business. An act of
             1733      a partner, including the execution of an instrument in the partnership name, for apparently
             1734      carrying on in the ordinary course the partnership business or business of the kind carried on by
             1735      the partnership binds the partnership, unless the partner had no authority to act for the
             1736      partnership in the particular matter and the person with whom the partner was dealing knew or
             1737      had received a notification that the partner lacked authority.


             1738          (2) An act of a partner which is not apparently for carrying on in the ordinary course
             1739      the partnership business or business of the kind carried on by the partnership binds the
             1740      partnership only if the act was authorized by the other partners.
             1741          Section 27. Section 48-1b-302 is enacted to read:
             1742          48-1b-302. Transfer of partnership property.
             1743          (1) Partnership property may be transferred as follows:
             1744          (a) Subject to the effect of a statement of partnership authority under Section
             1745      48-1b-303 , partnership property held in the name of the partnership may be transferred by an
             1746      instrument of transfer executed by a partner in the partnership name.
             1747          (b) Partnership property held in the name of one or more partners with an indication in
             1748      the instrument transferring the property to them of their capacity as partners or of the existence
             1749      of a partnership, but without an indication of the name of the partnership, may be transferred by
             1750      an instrument of transfer executed by the persons in whose name the property is held.
             1751          (c) Partnership property held in the name of one or more persons other than the
             1752      partnership, without an indication in the instrument transferring the property to them of their
             1753      capacity as partners or of the existence of a partnership, may be transferred by an instrument of
             1754      transfer executed by the persons in whose name the property is held.
             1755          (2) A partnership may recover partnership property from a transferee only if it proves
             1756      that execution of the instrument of initial transfer did not bind the partnership under Section
             1757      48-1b-301 and:
             1758          (a) as to a subsequent transferee who gave value for property transferred under
             1759      Subsection (1)(a) and (b), proves that the subsequent transferee knew or had received a
             1760      notification that the person who executed the instrument of initial transfer lacked authority to
             1761      bind the partnership; or
             1762          (b) as to a transferee who gave value for property transferred under Subsection (1)(c),
             1763      proves that the transferee knew or had received a notification that the property was partnership
             1764      property and that the person who executed the instrument of initial transfer lacked authority to
             1765      bind the partnership.


             1766          (3) A partnership may not recover partnership property from a subsequent transferee if
             1767      the partnership would not have been entitled to recover the property, under Subsection (2),
             1768      from any earlier transferee of the property.
             1769          (4) If a person holds all of the partners' interests in the partnership, all of the
             1770      partnership property vests in that person. The person may execute a document in the name of
             1771      the partnership to evidence vesting of the property in that person and may file or record the
             1772      document.
             1773          Section 28. Section 48-1b-303 is enacted to read:
             1774          48-1b-303. Statement of partnership authority.
             1775          (1) A partnership may file with the division a statement of partnership authority,
             1776      which:
             1777          (a) must include:
             1778          (i) the name of the partnership;
             1779          (ii) the street address of its chief executive office and of one office in this state, if there
             1780      is one;
             1781          (iii) the names and mailing addresses of all of the partners or of an agent appointed and
             1782      maintained by the partnership for the purpose of Subsection (2); and
             1783          (iv) the names of the partners authorized to execute an instrument transferring real
             1784      property held in the name of the partnership; and
             1785          (b) may state the authority, or limitations on the authority, of some or all of the partners
             1786      to enter into other transactions on behalf of the partnership and any other matter.
             1787          (2) If a statement of partnership authority names an agent, the agent shall maintain a
             1788      list of the names and mailing addresses of all of the partners and make it available to any
             1789      person on request for good cause shown.
             1790          (3) If a filed statement of partnership authority is executed pursuant to Subsection
             1791      48-1b-105 (3) and states the name of the partnership but does not contain all of the other
             1792      information required by Subsection (1), the statement nevertheless operates with respect to a
             1793      person not a partner as provided in Subsections (4) and (5).


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


             1822      Chapter 2, Conducting Business Under Assumed Name.
             1823          (b) A filing with the division under Title 42, Chapter 2, Conducting Business Under
             1824      Assumed Name:
             1825          (i) is not subject to Subsection (7); and
             1826          (ii) is subject to Section 42-2-8 .
             1827          Section 29. Section 48-1b-304 is enacted to read:
             1828          48-1b-304. Statement of denial.
             1829          A partner or other person named as a partner in a filed statement of partnership
             1830      authority or in a list maintained by an agent pursuant to Subsection 48-1b-303 (2) may file a
             1831      statement of denial with the division stating the name of the partnership and the fact that is
             1832      being denied, which may include denial of a person's authority or status as a partner. A
             1833      statement of denial is a limitation on authority as provided in Subsections 48-1b-303 (4) and
             1834      (5).
             1835          Section 30. Section 48-1b-305 is enacted to read:
             1836          48-1b-305. Partnership liable for partner's actionable conduct.
             1837          (1) A partnership is liable for loss or injury caused to a person, or for a penalty
             1838      incurred, as a result of a wrongful act or omission, or other actionable conduct, of a partner
             1839      acting in the ordinary course of business of the partnership or with authority of the partnership.
             1840          (2) If, in the course of the partnership's business or while acting with authority of the
             1841      partnership, a partner receives or causes the partnership to receive money or property of a
             1842      person not a partner, and the money or property is misapplied by a partner, the partnership is
             1843      liable for the loss.
             1844          Section 31. Section 48-1b-306 is enacted to read:
             1845          48-1b-306. Partner's liability.
             1846          (1) Except as otherwise provided in Subsections (2) and (3), all partners are liable
             1847      jointly and severally for all obligations of the partnership unless otherwise agreed by the
             1848      claimant or provided by law.
             1849          (2) A person admitted as a partner into an existing partnership is not personally liable


             1850      for any partnership obligation incurred before the person's admission as a partner.
             1851          (3) (a) An obligation of a partnership incurred while the partnership is a limited
             1852      liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of
             1853      the partnership. A partner is not personally liable, directly or indirectly, by way of contribution
             1854      or otherwise, for such an obligation solely by reason of being or so acting as a partner.
             1855          (b) This Subsection (3) applies notwithstanding anything inconsistent in the
             1856      partnership agreement that existed immediately before the vote required to become a limited
             1857      liability partnership under Subsection 48-1b-1001 (2).
             1858          (c) This Subsection (3) and Part 10, Limited Liability Partnerships, do not alter any law
             1859      applicable to the relationship between a person providing a professional service and a person
             1860      receiving the professional service, including liability arising out of those professional services.
             1861      A person providing a professional service remains personally liable for a result of that person's
             1862      act or omission.
             1863          Section 32. Section 48-1b-307 is enacted to read:
             1864          48-1b-307. Actions by and against partnership and partners.
             1865          (1) A partnership may sue and be sued in the name of the partnership.
             1866          (2) An action may be brought against the partnership and, to the extent not inconsistent
             1867      with Section 48-1b-306 , any or all of the partners in the same action or in separate actions.
             1868          (3) A judgment against a partnership is not by itself a judgment against a partner. A
             1869      judgment against a partnership may not be satisfied from a partner's assets unless there is also a
             1870      judgment against the partner.
             1871          (4) A judgment creditor of a partner may not levy execution against the assets of the
             1872      partner to satisfy a judgment based on a claim against the partnership unless the partner is
             1873      personally liable for the claim under Section 48-1b-306 and:
             1874          (a) a judgment based on the same claim has been obtained against the partnership and a
             1875      writ of execution on the judgment has been returned unsatisfied in whole or in part;
             1876          (b) the partnership is a debtor in bankruptcy;
             1877          (c) the partner has agreed that the creditor need not exhaust partnership assets;


             1878          (d) a court grants permission to the judgment creditor to levy execution against the
             1879      assets of a partner based on a finding that partnership assets subject to execution are clearly
             1880      insufficient to satisfy the judgment, that exhaustion of partnership assets is excessively
             1881      burdensome, or that the grant of permission is an appropriate exercise of the court's equitable
             1882      powers; or
             1883          (e) liability is imposed on the partner by law or contract independent of the existence of
             1884      the partnership.
             1885          (5) This section applies to any partnership liability or obligation resulting from a
             1886      representation by a partner or purported partner under Section 48-1b-308 .
             1887          Section 33. Section 48-1b-308 is enacted to read:
             1888          48-1b-308. Liability of purported partner.
             1889          (1) If a person, by words or conduct, purports to be a partner, or consents to being
             1890      represented by another as a partner, in a partnership or with one or more persons not partners,
             1891      the purported partner is liable to a person to whom the representation is made, if that person,
             1892      relying on the representation, enters into a transaction with the actual or purported partnership.
             1893      If the representation, either by the purported partner or by a person with the purported partner's
             1894      consent, is made in a public manner, the purported partner is liable to a person who relies upon
             1895      the purported partnership even if the purported partner is not aware of being held out as a
             1896      partner to the claimant. If partnership liability results, the purported partner is liable with
             1897      respect to that liability as if the purported partner were a partner. If no partnership liability
             1898      results, the purported partner is liable with respect to that liability jointly and severally with any
             1899      other person consenting to the representation.
             1900          (2) If a person is thus represented to be a partner in an existing partnership, or with one
             1901      or more persons not partners, the purported partner is an agent of persons consenting to the
             1902      representation to bind them to the same extent and in the same manner as if the purported
             1903      partner were a partner, with respect to persons who enter into transactions in reliance upon the
             1904      representation. If all of the partners of the existing partnership consent to the representation, a
             1905      partnership act or obligation results. If fewer than all of the partners of the existing partnership


             1906      consent to the representation, the person acting and the partners consenting to the
             1907      representation are jointly and severally liable.
             1908          (3) A person is not liable as a partner merely because the person is named by another in
             1909      a statement of partnership authority.
             1910          (4) A person does not continue to be liable as a partner merely because of a failure to
             1911      file a statement of dissociation or to amend a statement of partnership authority with the
             1912      division to indicate the partner's dissociation from the partnership.
             1913          (5) Except as otherwise provided in Subsections (1) and (2), persons who are not
             1914      partners as to each other are not liable as partners to other persons.
             1915          Section 34. Section 48-1b-401 is enacted to read:
             1916     
Part 4. Relations of Partners to Each Other and to Partnership

             1917          48-1b-401. Partner's rights and duties.
             1918          (1) Each partner is deemed to have an account that is:
             1919          (a) credited with an amount equal to the money plus the value of any other property,
             1920      net of the amount of any liabilities, the partner contributes to the partnership and the partner's
             1921      share of the partnership profits; and
             1922          (b) charged with an amount equal to the money plus the value of any other property,
             1923      net of the amount of any liabilities, distributed by the partnership to the partner and the
             1924      partner's share of the partnership losses.
             1925          (2) Each partner is entitled to an equal share of the partnership profits and is chargeable
             1926      with a share of the partnership losses in proportion to the partner's share of the profits.
             1927          (3) A partnership shall reimburse a partner for payments made and indemnify a partner
             1928      for liabilities incurred by the partner in the ordinary course of the business of the partnership or
             1929      for the preservation of its business or property.
             1930          (4) A partnership shall reimburse a partner for an advance to the partnership beyond
             1931      the amount of capital the partner agreed to contribute.
             1932          (5) A payment or advance made by a partner which gives rise to a partnership
             1933      obligation under Subsection (3) or (4) constitutes a loan to the partnership which accrues


             1934      interest from the date of the payment or advance.
             1935          (6) Each partner has equal rights in the management and conduct of the partnership
             1936      business.
             1937          (7) A partner may use or possess partnership property only on behalf of the partnership.
             1938          (8) A partner is not entitled to remuneration for services performed for the partnership,
             1939      except for reasonable compensation for services rendered in winding up the business of the
             1940      partnership.
             1941          (9) A person may become a partner only with the consent of all of the partners.
             1942          (10) A difference arising as to a matter in the ordinary course of business of a
             1943      partnership may be decided by a majority of the partners. An act outside the ordinary course of
             1944      business of a partnership and an amendment to the partnership agreement may be undertaken
             1945      only with the consent of all of the partners.
             1946          (11) This section does not affect the obligations of a partnership to other persons under
             1947      Section 48-1b-301 .
             1948          Section 35. Section 48-1b-402 is enacted to read:
             1949          48-1b-402. Distributions in kind.
             1950          A partner has no right to receive, and may not be required to accept, a distribution in
             1951      kind.
             1952          Section 36. Section 48-1b-403 is enacted to read:
             1953          48-1b-403. Partner's rights and duties with respect to information.
             1954          (1) A partnership shall keep its books and records, if any, at its chief executive office.
             1955          (2) A partnership shall provide partners and their agents and attorneys access to its
             1956      books and records. It shall provide former partners and their agents and attorneys access to
             1957      books and records pertaining to the period during which they were partners. The right of
             1958      access provides the opportunity to inspect and copy books and records during ordinary business
             1959      hours. A partnership may impose a reasonable charge, covering the costs of labor and material,
             1960      for copies of documents furnished.
             1961          (3) Each partner and the partnership shall furnish to a partner, and to the legal


             1962      representative of a deceased partner or partner under legal disability:
             1963          (a) without demand, any information concerning the partnership's business and affairs
             1964      reasonably required for the proper exercise of the partner's rights and duties under the
             1965      partnership agreement or this chapter; and
             1966          (b) on demand, any other information concerning the partnership's business and affairs,
             1967      except to the extent the demand or the information demanded is unreasonable or otherwise
             1968      improper under the circumstances.
             1969          Section 37. Section 48-1b-404 is enacted to read:
             1970          48-1b-404. General standards of partner's conduct.
             1971          (1) The only fiduciary duties a partner owes to the partnership and the other partners
             1972      are the duty of loyalty and the duty of care set forth in Subsections (2) and (3).
             1973          (2) A partner's duty of loyalty to the partnership and the other partners is limited to the
             1974      following:
             1975          (a) to account to the partnership and hold as trustee for it any property, profit, or
             1976      benefit derived by the partner in the conduct and winding up of the partnership business or
             1977      derived from a use by the partner of partnership property, including the appropriation of a
             1978      partnership opportunity;
             1979          (b) to refrain from dealing with the partnership in the conduct or winding up of the
             1980      partnership business as or on behalf of a party having an interest adverse to the partnership; and
             1981          (c) to refrain from competing with the partnership in the conduct of the partnership
             1982      business before the dissolution of the partnership.
             1983          (3) A partner's duty of care to the partnership and the other partners in the conduct and
             1984      winding up of the partnership business is limited to refraining from engaging in grossly
             1985      negligent or reckless conduct, intentional misconduct, or a knowing violation of law.
             1986          (4) A partner shall discharge the duties to the partnership and the other partners under
             1987      this chapter or under the partnership agreement and exercise any rights consistently with the
             1988      obligation of good faith and fair dealing.
             1989          (5) A partner does not violate a duty or obligation under this chapter or under the


             1990      partnership agreement merely because the partner's conduct furthers the partner's own interest.
             1991          (6) A partner may lend money to and transact other business with the partnership, and
             1992      as to each loan or transaction the rights and obligations of the partner are the same as those of a
             1993      person who is not a partner, subject to other applicable law.
             1994          (7) This section applies to a person winding up the partnership business as the personal
             1995      or legal representative of the last surviving partner as if the person were a partner.
             1996          Section 38. Section 48-1b-405 is enacted to read:
             1997          48-1b-405. Actions by partnership and partners.
             1998          (1) A partnership may maintain an action against a partner for a breach of the
             1999      partnership agreement, or for the violation of a duty to the partnership, causing harm to the
             2000      partnership.
             2001          (2) A partner may maintain an action against the partnership or another partner for
             2002      legal or equitable relief, with or without an accounting as to partnership business, to:
             2003          (a) enforce the partner's rights under the partnership agreement;
             2004          (b) enforce the partner's rights under this chapter, including:
             2005          (i) the partner's rights under Section 48-1b-401 , 48-1b-403 , or 48-1b-404 ;
             2006          (ii) the partner's right on dissociation to have the partner's interest in the partnership
             2007      purchased pursuant to Section 48-1b-701 or enforce any other right under Part 6, Partner's
             2008      Dissociation, or Part 7, Partner's Dissociation When Business Not Wound Up; or
             2009          (iii) the partner's right to compel a dissolution and winding up of the partnership
             2010      business under Section 48-1b-801 or enforce any other right under Part 8, Winding Up
             2011      Partnership Business; or
             2012          (c) enforce the rights and otherwise protect the interests of the partner, including rights
             2013      and interests arising independently of the partnership relationship.
             2014          (3) The accrual of, and any time limitation on, a right of action for a remedy under this
             2015      section is governed by other law. A right to an accounting upon a dissolution and winding up
             2016      does not revive a claim barred by law.
             2017          Section 39. Section 48-1b-406 is enacted to read:


             2018          48-1b-406. Continuation of partnership beyond definite term or particular
             2019      undertaking.
             2020          (1) If a partnership for a definite term or particular undertaking is continued, without
             2021      an express agreement, after the expiration of the term or completion of the undertaking, the
             2022      rights and duties of the partners remain the same as they were at the expiration or completion,
             2023      so far as is consistent with a partnership at will.
             2024          (2) If the partners, or those of them who habitually acted in the business during the
             2025      term or undertaking, continue the business without any settlement or liquidation of the
             2026      partnership, they are presumed to have agreed that the partnership will continue.
             2027          Section 40. Section 48-1b-501 is enacted to read:
             2028     
Part 5. Transferees and Creditors of Partner

             2029          48-1b-501. Partner not co-owner of partnership property.
             2030          A partner is not a co-owner of partnership property and has no interest in partnership
             2031      property which can be transferred, either voluntarily or involuntarily.
             2032          Section 41. Section 48-1b-502 is enacted to read:
             2033          48-1b-502. Partner's transferable interest in partnership.
             2034          The only transferable interest of a partner in the partnership is the partner's share of the
             2035      profits and losses of the partnership and the partner's right to receive distributions. The interest
             2036      is personal property.
             2037          Section 42. Section 48-1b-503 is enacted to read:
             2038          48-1b-503. Transfer of partner's transferable interest.
             2039          (1) A transfer, in whole or in part, of a partner's transferable interest in the partnership:
             2040          (a) is permissible;
             2041          (b) does not by itself cause the partner's dissociation or a dissolution and winding up of
             2042      the partnership business; and
             2043          (c) does not, as against the other partners or the partnership, entitle the transferee,
             2044      during the continuance of the partnership, to participate in the management or conduct of the
             2045      partnership business, to require access to information concerning partnership transactions, or to


             2046      inspect or copy the partnership books or records.
             2047          (2) A transferee of a partner's transferable interest in the partnership has a right:
             2048          (a) to receive, in accordance with the transfer, distributions to which the transferor
             2049      would otherwise be entitled; and
             2050          (b) to receive upon the dissolution and winding up of the partnership business, in
             2051      accordance with the transfer, the net amount otherwise distributable to the transferor.
             2052          (3) In a dissolution and winding up, a transferee is entitled to an account of partnership
             2053      transactions only from the date of the latest account agreed to by all of the partners.
             2054          (4) Upon transfer, the transferor retains the rights and duties of a partner other than the
             2055      interest in distributions transferred.
             2056          (5) A partnership need not give effect to a transferee's rights under this section until it
             2057      has notice of the transfer.
             2058          (6) A transfer of a partner's transferable interest in the partnership in violation of a
             2059      restriction on transfer contained in the partnership agreement is ineffective as to a person
             2060      having notice of the restriction at the time of transfer.
             2061          Section 43. Section 48-1b-504 is enacted to read:
             2062          48-1b-504. Partner's transferable interest subject to charging order.
             2063          (1) On application by a judgment creditor of a partner or of a partner's transferee, a
             2064      court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy
             2065      the judgment. The court may appoint a receiver of the share of the distributions due or to
             2066      become due to the judgment debtor in respect of the partnership and make all other orders,
             2067      directions, accounts, and inquiries the judgment debtor might have made or which the
             2068      circumstances of the case may require.
             2069          (2) A charging order constitutes a lien on the judgment debtor's transferable interest in
             2070      the partnership. The court may order a foreclosure of the interest subject to the charging order
             2071      at any time. The purchaser at the foreclosure sale has the rights of a transferee.
             2072          (3) At any time before foreclosure, an interest charged may be redeemed:
             2073          (a) by the judgment debtor;


             2074          (b) with property other than partnership property, by one or more of the other partners;
             2075      or
             2076          (c) with partnership property, by one or more of the other partners with the consent of
             2077      all of the partners whose interests are not so charged.
             2078          (4) This chapter does not deprive a partner of a right under exemption laws with
             2079      respect to the partner's interest in the partnership.
             2080          (5) This section provides the exclusive remedy by which a judgment creditor of a
             2081      partner or partner's transferee may satisfy a judgment out of the judgment debtor's transferable
             2082      interest in the partnership.
             2083          Section 44. Section 48-1b-601 is enacted to read:
             2084     
Part 6. Partner's Dissociation

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


             2102      charter or its right to conduct business; or
             2103          (d) a partnership that is a partner has been dissolved and its business is being wound
             2104      up;
             2105          (5) on application by the partnership or another partner, the partner's expulsion by
             2106      judicial determination because:
             2107          (a) the partner engaged in wrongful conduct that adversely and materially affected the
             2108      partnership business;
             2109          (b) the partner willfully or persistently committed a material breach of the partnership
             2110      agreement or of a duty owed to the partnership or the other partners under Section 48-1b-404 ;
             2111      or
             2112          (c) the partner engaged in conduct relating to the partnership business which makes it
             2113      not reasonably practicable to carry on the business in partnership with the partner;
             2114          (6) the partner's:
             2115          (a) becoming a debtor in bankruptcy;
             2116          (b) executing an assignment for the benefit of creditors;
             2117          (c) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or
             2118      liquidator of that partner or of all or substantially all of that partner's property; or
             2119          (d) failing, within 90 days after the appointment, to have vacated or stayed the
             2120      appointment of a trustee, receiver, or liquidator of the partner or of all or substantially all of the
             2121      partner's property obtained without the partner's consent or acquiescence, or failing within 90
             2122      days after the expiration of a stay to have the appointment vacated;
             2123          (7) in the case of a partner who is an individual:
             2124          (a) the partner's death;
             2125          (b) the appointment of a guardian or general conservator for the partner; or
             2126          (c) a judicial determination that the partner has otherwise become incapable of
             2127      performing the partner's duties under the partnership agreement;
             2128          (8) in the case of a partner that is a trust or is acting as a partner by virtue of being a
             2129      trustee of a trust, distribution of the trust's entire transferable interest in the partnership, but not


             2130      merely by reason of the substitution of a successor trustee;
             2131          (9) in the case of a partner that is an estate or is acting as a partner by virtue of being a
             2132      personal representative of an estate, distribution of the estate's entire transferable interest in the
             2133      partnership, but not merely by reason of the substitution of a successor personal representative;
             2134      or
             2135          (10) termination of a partner who is not an individual, partnership, corporation, trust,
             2136      or estate.
             2137          Section 45. Section 48-1b-602 is enacted to read:
             2138          48-1b-602. Partner's power to dissociate -- Wrongful dissociation.
             2139          (1) A partner has the power to dissociate at any time, rightfully or wrongfully, by
             2140      express will pursuant to Subsection 48-1b-601 (1).
             2141          (2) A partner's dissociation is wrongful only if:
             2142          (a) it is in breach of an express provision of the partnership agreement; or
             2143          (b) in the case of a partnership for a definite term or particular undertaking, before the
             2144      expiration of the term or the completion of the undertaking:
             2145          (i) the partner withdraws by express will, unless the withdrawal follows within 90 days
             2146      after another partner's dissociation by death or otherwise under Subsection 48-1b-601 (6)
             2147      through (10) or wrongful dissociation under this Subsection (2);
             2148          (ii) the partner is expelled by judicial determination under Subsection 48-1b-601 (5);
             2149          (iii) the partner is dissociated by becoming a debtor in bankruptcy; or
             2150          (iv) in the case of a partner who is not an individual, trust other than a business trust, or
             2151      estate, the partner is expelled or otherwise dissociated because it willfully dissolved or
             2152      terminated.
             2153          (3) A partner who wrongfully dissociates is liable to the partnership and to the other
             2154      partners for damages caused by the dissociation. The liability is in addition to any other
             2155      obligation of the partner to the partnership or to the other partners.
             2156          Section 46. Section 48-1b-603 is enacted to read:
             2157          48-1b-603. Effect of partner's dissociation.


             2158          (1) (a) If a partner's dissociation results in a dissolution and winding up of the
             2159      partnership business, Part 8, Winding Up Partnership Business, applies.
             2160          (b) Except as provided in Subsection (1)(a), Part 7, Partner's Dissociation When
             2161      Business Not Wound Up, applies.
             2162          (2) Upon a partner's dissociation:
             2163          (a) the partner's right to participate in the management and conduct of the partnership
             2164      business terminates, except as otherwise provided in Section 48-1b-803 ;
             2165          (b) the partner's duty of loyalty under Subsection 48-1b-404 (2)(c) terminates; and
             2166          (c) the partner's duty of loyalty under Subsections 48-1b-404 (2)(a) and (b) and duty of
             2167      care under Subsection 48-1b-404 (3) continue only with regard to matters arising and events
             2168      occurring before the partner's dissociation, unless the partner participates in winding up the
             2169      partnership's business pursuant to Section 48-1b-803 .
             2170          Section 47. Section 48-1b-701 is enacted to read:
             2171     
Part 7. Partner's Dissociation When Business Not Wound Up

             2172          48-1b-701. Purchase of dissociated partner's interest.
             2173          (1) If a partner is dissociated from a partnership without resulting in a dissolution and
             2174      winding up of the partnership business under Section 48-1b-801 , the partnership shall cause the
             2175      dissociated partner's interest in the partnership to be purchased for a buyout price determined
             2176      pursuant to Subsection (2).
             2177          (2) The buyout price of a dissociated partner's interest is the amount that would have
             2178      been distributable to the dissociating partner under Subsection 48-1b-807 (2) if, on the date of
             2179      dissociation, the assets of the partnership were sold at a price equal to the greater of the
             2180      liquidation value or the value based on a sale of the entire business as a going concern without
             2181      the dissociated partner and the partnership were wound up as of that date. Interest must be paid
             2182      from the date of dissociation to the date of payment.
             2183          (3) Damages for wrongful dissociation under Subsection 48-1b-602 (2), and all other
             2184      amounts owing, whether or not presently due, from the dissociated partner to the partnership,
             2185      must be offset against the buyout price. Interest must be paid from the date the amount owed


             2186      becomes due to the date of payment.
             2187          (4) A partnership shall indemnify a dissociated partner whose interest is being
             2188      purchased against all partnership liabilities, whether incurred before or after the dissociation,
             2189      except liabilities incurred by an act of the dissociated partner under Section 48-1b-702 .
             2190          (5) If no agreement for the purchase of a dissociated partner's interest is reached within
             2191      120 days after a written demand for payment, the partnership shall pay, or cause to be paid, in
             2192      cash to the dissociated partner the amount the partnership estimates to be the buyout price and
             2193      accrued interest, reduced by any offsets and accrued interest under Subsection (3).
             2194          (6) If a deferred payment is authorized under Subsection (8), the partnership may
             2195      tender a written offer to pay the amount it estimates to be the buyout price and accrued interest,
             2196      reduced by any offsets under Subsection (3), stating the time of payment, the amount and type
             2197      of security for payment, and the other terms and conditions of the obligation.
             2198          (7) The payment or tender required by Subsection (5) or (6) must be accompanied by
             2199      the following:
             2200          (a) a statement of partnership assets and liabilities as of the date of dissociation;
             2201          (b) the latest available partnership balance sheet and income statement, if any;
             2202          (c) an explanation of how the estimated amount of the payment was calculated; and
             2203          (d) written notice that the payment is in full satisfaction of the obligation to purchase
             2204      unless, within 120 days after the written notice, the dissociated partner commences an action to
             2205      determine the buyout price, any offsets under Subsection (3), or other terms of the obligation to
             2206      purchase.
             2207          (8) A partner who wrongfully dissociates before the expiration of a definite term or the
             2208      completion of a particular undertaking is not entitled to payment of any portion of the buyout
             2209      price until the expiration of the term or completion of the undertaking, unless the partner
             2210      establishes to the satisfaction of the court that earlier payment will not cause undue hardship to
             2211      the business of the partnership. A deferred payment must be adequately secured and bear
             2212      interest.
             2213          (9) A dissociated partner may maintain an action against the partnership, pursuant to


             2214      Subsection 48-1b-405 (2)(b)(ii), to determine the buyout price of that partner's interest, any
             2215      offsets under Subsection (3), or other terms of the obligation to purchase. The action must be
             2216      commenced within 120 days after the partnership has tendered payment or an offer to pay or
             2217      within one year after written demand for payment if no payment or offer to pay is tendered.
             2218      The court shall determine the buyout price of the dissociated partner's interest, any offset due
             2219      under Subsection (3), and accrued interest, and enter judgment for any additional payment or
             2220      refund. If deferred payment is authorized under Subsection (8), the court shall also determine
             2221      the security for payment and other terms of the obligation to purchase. The court may assess
             2222      reasonable attorney fees and the fees and expenses of appraisers or other experts for a party to
             2223      the action, in amounts the court finds equitable, against a party that the court finds acted
             2224      arbitrarily, vexatiously, or not in good faith. The finding may be based on the partnership's
             2225      failure to tender payment or an offer to pay or to comply with Subsection (7).
             2226          Section 48. Section 48-1b-702 is enacted to read:
             2227          48-1b-702. Dissociated partner's power to bind and liability to partnership.
             2228          (1) For two years after a partner dissociates without resulting in a dissolution and
             2229      winding up of the partnership business, the partnership, including a surviving partnership under
             2230      Part 9, Merger, Conversion, and Domestication, is bound by an act of the dissociated partner
             2231      which would have bound the partnership under Section 48-1b-301 before dissociation only if at
             2232      the time of entering into the transaction the other party:
             2233          (a) reasonably believed that the dissociated partner was then a partner;
             2234          (b) did not have notice of the partner's dissociation; and
             2235          (c) is not deemed to have had knowledge under Subsection 48-1b-303 (5) or notice
             2236      under Subsection 48-1b-704 (3).
             2237          (2) A dissociated partner is liable to the partnership for any damage caused to the
             2238      partnership arising from an obligation incurred by the dissociated partner after dissociation for
             2239      which the partnership is liable under Subsection (1).
             2240          Section 49. Section 48-1b-703 is enacted to read:
             2241          48-1b-703. Dissociated partner's liability to other persons.


             2242          (1) A partner's dissociation does not of itself discharge the partner's liability for a
             2243      partnership obligation incurred before dissociation. A dissociated partner is not liable for a
             2244      partnership obligation incurred after dissociation, except as otherwise provided in Subsection
             2245      (2).
             2246          (2) A partner who dissociates without resulting in a dissolution and winding up of the
             2247      partnership business is liable as a partner to the other party in a transaction entered into by the
             2248      partnership, or a surviving partnership under Part 9, Merger, Conversion, and Domestication,
             2249      within two years after the partner's dissociation, only if the partner is liable for the obligation
             2250      under Section 48-1b-306 and at the time of entering into the transaction the other party:
             2251          (a) reasonably believed that the dissociated partner was then a partner;
             2252          (b) did not have notice of the partner's dissociation; and
             2253          (c) is not deemed to have had knowledge under Subsection 48-1b-303 (5) or notice
             2254      under Subsection 48-1b-704 (3).
             2255          (3) By agreement with the partnership creditor and the partners continuing the
             2256      business, a dissociated partner may be released from liability for a partnership obligation.
             2257          (4) A dissociated partner is released from liability for a partnership obligation if a
             2258      partnership creditor, with notice of the partner's dissociation but without the partner's consent,
             2259      agrees to a material alteration in the nature or time of payment of a partnership obligation.
             2260          Section 50. Section 48-1b-704 is enacted to read:
             2261          48-1b-704. Statement of dissociation.
             2262          (1) A dissociated partner or the partnership may file a statement of dissociation with
             2263      the division stating the name of the partnership and that the partner is dissociated from the
             2264      partnership.
             2265          (2) A statement of dissociation is a limitation on the authority of a dissociated partner
             2266      for the purposes of Subsections 48-1b-303 (4) and (5).
             2267          (3) For the purposes of Subsections 48-1b-702 (1)(c) and 48-1b-703 (2)(c), a person not
             2268      a partner is deemed to have notice of the dissociation 90 days after the statement of
             2269      dissociation is filed.


             2270          Section 51. Section 48-1b-705 is enacted to read:
             2271          48-1b-705. Continued use of partnership name.
             2272          Continued use of a partnership name, or a dissociated partner's name as part thereof, by
             2273      partners continuing the business does not of itself make the dissociated partner liable for an
             2274      obligation of the partners or the partnership continuing the business.
             2275          Section 52. Section 48-1b-801 is enacted to read:
             2276     
Part 8. Winding Up Partnership Business

             2277          48-1b-801. Events causing dissolution and winding up of partnership business.
             2278          A partnership is dissolved, and its business must be wound up, only upon the
             2279      occurrence of any of the following events:
             2280          (1) in a partnership at will, the partnership's having notice from a partner, other than a
             2281      partner who is dissociated under Subsections 48-1b-601 (2) through (10), of that partner's
             2282      express will to withdraw as a partner, or on a later date specified by the partner;
             2283          (2) in a partnership for a definite term or particular undertaking:
             2284          (a) within 90 days after a partner's dissociation by death or otherwise under
             2285      Subsections 48-1b-601 (6) through (10) or wrongful dissociation under Subsection
             2286      48-1b-602 (2), the express will of at least half of the remaining partners to wind up the
             2287      partnership business, for which purpose a partner's rightful dissociation pursuant to Subsection
             2288      48-1b-602 (2)(b)(i) constitutes the expression of that partner's will to wind up the partnership
             2289      business;
             2290          (b) the express will of all of the partners to wind up the partnership business; or
             2291          (c) the expiration of the term or the completion of the undertaking;
             2292          (3) an event agreed to in the partnership agreement resulting in the winding up of the
             2293      partnership business;
             2294          (4) an event that makes it unlawful for all or substantially all of the business of the
             2295      partnership to be continued, but a cure of illegality within 90 days after notice to the
             2296      partnership of the event is effective retroactively to the date of the event for purposes of this
             2297      section;


             2298          (5) on application by a partner, a judicial determination that:
             2299          (a) the economic purpose of the partnership is likely to be unreasonably frustrated;
             2300          (b) another partner has engaged in conduct relating to the partnership business which
             2301      makes it not reasonably practicable to carry on the business in partnership with that partner; or
             2302          (c) it is not otherwise reasonably practicable to carry on the partnership business in
             2303      conformity with the partnership agreement; or
             2304          (6) on application by a transferee of a partner's transferable interest, a judicial
             2305      determination that it is equitable to wind up the partnership business:
             2306          (a) after the expiration of the term or completion of the undertaking, if the partnership
             2307      was for a definite term or particular undertaking at the time of the transfer or entry of the
             2308      charging order that gave rise to the transfer; or
             2309          (b) at any time, if the partnership was a partnership at will at the time of the transfer or
             2310      entry of the charging order that gave rise to the transfer.
             2311          Section 53. Section 48-1b-802 is enacted to read:
             2312          48-1b-802. Partnership continues after dissolution.
             2313          (1) Subject to Subsection (2), a partnership continues after dissolution only for the
             2314      purpose of winding up its business. The partnership is terminated when the winding up of its
             2315      business is completed.
             2316          (2) At any time after the dissolution of a partnership and before the winding up of its
             2317      business is completed, all of the partners, including any dissociating partner other than a
             2318      wrongfully dissociating partner, may waive the right to have the partnership's business wound
             2319      up and the partnership terminated. In that event:
             2320          (a) the partnership resumes carrying on its business as if dissolution had never
             2321      occurred, and any liability incurred by the partnership or a partner after the dissolution and
             2322      before the waiver is determined as if dissolution had never occurred; and
             2323          (b) the rights of a third party accruing under Subsection 48-1b-804 (1) or arising out of
             2324      conduct in reliance on the dissolution before the third party knew or received a notification of
             2325      the waiver may not be adversely affected.


             2326          Section 54. Section 48-1b-803 is enacted to read:
             2327          48-1b-803. Right to wind up partnership business.
             2328          (1) After dissolution, a partner who has not wrongfully dissociated may participate in
             2329      winding up the partnership's business, but on application of any partner, partner's legal
             2330      representative, or transferee, the district court, for good cause shown, may order judicial
             2331      supervision of the winding up.
             2332          (2) The legal representative of the last surviving partner may wind up a partnership's
             2333      business.
             2334          (3) A person winding up a partnership's business may preserve the partnership business
             2335      or property as a going concern for a reasonable time, prosecute and defend actions and
             2336      proceedings, whether civil, criminal, or administrative, settle and close the partnership's
             2337      business, dispose of and transfer the partnership's property, discharge the partnership's
             2338      liabilities, distribute the assets of the partnership pursuant to Section 48-1b-807 , settle disputes
             2339      by mediation or arbitration, and perform other necessary acts.
             2340          Section 55. Section 48-1b-804 is enacted to read:
             2341          48-1b-804. Partner's power to bind partnership after dissolution.
             2342          Subject to Section 48-1b-805 , a partnership is bound by a partner's act after dissolution
             2343      that:
             2344          (1) is appropriate for winding up the partnership business; or
             2345          (2) would have bound the partnership under Section 48-1b-301 before dissolution, if
             2346      the other party to the transaction did not have notice of the dissolution.
             2347          Section 56. Section 48-1b-805 is enacted to read:
             2348          48-1b-805. Statement of dissolution.
             2349          (1) After dissolution, a partner who has not wrongfully dissociated may file a statement
             2350      of dissolution with the division stating the name of the partnership and that the partnership has
             2351      dissolved and is winding up its business.
             2352          (2) A statement of dissolution cancels a filed statement of partnership authority for the
             2353      purposes of Subsection 48-1b-303 (4) and is a limitation on authority for the purposes of


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


             2382      accounts. The partnership shall make a distribution to a partner in an amount equal to any
             2383      excess of the credits over the charges in the partner's account. A partner shall contribute to the
             2384      partnership an amount equal to any excess of the charges over the credits in the partner's
             2385      account but excluding from the calculation charges attributable to an obligation for which the
             2386      partner is not personally liable under Section 48-1b-306 .
             2387          (3) If a partner fails to contribute the full amount required under Subsection (2), all of
             2388      the other partners shall contribute, in the proportions in which those partners share partnership
             2389      losses, the additional amount necessary to satisfy the partnership obligations for which they are
             2390      personally liable under Section 48-1b-306 . A partner or partner's legal representative may
             2391      recover from the other partners any contributions the partner makes to the extent the amount
             2392      contributed exceeds that partner's share of the partnership obligations for which the partner is
             2393      personally liable under Section 48-1b-306 .
             2394          (4) After the settlement of accounts, each partner shall contribute, in the proportion in
             2395      which the partner shares partnership losses, the amount necessary to satisfy partnership
             2396      obligations that were not known at the time of the settlement and for which the partner is
             2397      personally liable under Section 48-1b-306 .
             2398          (5) The estate of a deceased partner is liable for the partner's obligation to contribute to
             2399      the partnership.
             2400          (6) An assignee for the benefit of creditors of a partnership or a partner, or a person
             2401      appointed by a court to represent creditors of a partnership or a partner, may enforce a partner's
             2402      obligation to contribute to the partnership.
             2403          Section 59. Section 48-1b-901 is enacted to read:
             2404     
Part 9. Merger, Conversion, and Domestication

             2405          48-1b-901. Definitions.
             2406          In this part:
             2407          (1) "Constituent organization" means an organization that is party to a merger.
             2408          (2) "Constituent partnership" means a constituent organization that is a partnership.
             2409          (3) "Converted organization" means the organization into which a converting


             2410      organization converts pursuant to Sections 48-1b-906 through 48-1b-909 .
             2411          (4) "Converting organization" means an organization that converts into another
             2412      organization pursuant to Section 48-1b-906 .
             2413          (5) "Converting partnership" means a converting organization that is a partnership.
             2414          (6) "Domesticated limited liability partnership" means a limited liability partnership
             2415      that exists after a domesticating foreign limited liability partnership or limited liability
             2416      partnership effects a domestication pursuant to Sections 48-1b-910 through 48-1b-913 .
             2417          (7) "Domesticating limited liability partnership" means a limited liability partnership
             2418      that effects a domestication pursuant to Sections 48-1b-910 through 48-1b-913 .
             2419          (8) "Foreign partnership" means a partnership that has:
             2420          (a) its chief executive office in a jurisdiction other than this state; or
             2421          (b) specified in its partnership agreement that relations among the partners and between
             2422      the partners and the partnership will be governed by the law of a jurisdiction other than this
             2423      state.
             2424          (9) "Governing statute" means the statute that governs an organization's internal affairs.
             2425          (10) (a) "Organization" means:
             2426          (i) a general partnership, including a limited liability partnership;
             2427          (ii) a limited partnership, including a limited liability limited partnership;
             2428          (iii) a limited liability company;
             2429          (iv) a business trust;
             2430          (v) a corporation; or
             2431          (vi) any other person having a governing statute.
             2432          (b) "Organization" includes a domestic or foreign organization regardless of whether
             2433      organized for profit.
             2434          (11) "Organizational documents" means:
             2435          (a) for a domestic or foreign general partnership, its partnership agreement;
             2436          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             2437      partnership and partnership agreement;


             2438          (c) for a domestic or foreign limited liability company, its certificate or articles of
             2439      organization and operating agreement, or comparable records as provided in its governing
             2440      statute;
             2441          (d) for a business trust, its agreement of trust and declaration of trust;
             2442          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             2443      and other agreements among its shareholders which are authorized by its governing statute, or
             2444      comparable records as provided in its governing statute; and
             2445          (f) for any other organization, the basic records that create the organization and
             2446      determine its internal governance and the relations among the persons that own it, have an
             2447      interest in it, or are members of it.
             2448          (12) "Personal liability" means liability for a debt, obligation, or other liability of an
             2449      organization which is imposed on a person that co-owns, has an interest in, or is a member of
             2450      the organization:
             2451          (a) by the governing statute solely by reason of the person co-owning, having an
             2452      interest in, or being a member of the organization; or
             2453          (b) by the organization's organizational documents under a provision of the governing
             2454      statute authorizing those documents to make one or more specified persons liable for all or
             2455      specified debts, obligations, or other liabilities of the organization solely by reason of the
             2456      person or persons co-owning, having an interest in, or being a member of the organization.
             2457          (13) "Surviving organization" means an organization into which one or more other
             2458      organizations are merged whether the organization preexisted the merger or was created by the
             2459      merger.
             2460          Section 60. Section 48-1b-902 is enacted to read:
             2461          48-1b-902. Merger.
             2462          (1) A partnership may merge with one or more other constituent organizations pursuant
             2463      to this section, Sections 48-1b-903 through 48-1b-905 , and a plan of merger, if:
             2464          (a) the governing statute of each of the other organizations authorizes the merger;
             2465          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the


             2466      governing statutes; and
             2467          (c) each of the other organizations complies with its governing statute in effecting the
             2468      merger.
             2469          (2) Unless each constituent organization and the surviving organization are
             2470      partnerships other than limited liability partnerships, a plan of merger must be in a record and
             2471      must include:
             2472          (a) the name and form of each constituent organization;
             2473          (b) the name and form of the surviving organization and, if the surviving organization
             2474      is to be created by the merger, a statement to that effect;
             2475          (c) the terms and conditions of the merger, including the manner and basis for
             2476      converting the interests in each constituent organization into any combination of money,
             2477      interests in the surviving organization, and other consideration;
             2478          (d) if the surviving organization is to be created by the merger, the surviving
             2479      organization's organizational documents that are proposed to be in a record; and
             2480          (e) if the surviving organization is not to be created by the merger, any amendments to
             2481      be made by the merger to the surviving organization's organizational documents that are, or are
             2482      proposed to be, in a record.
             2483          Section 61. Section 48-1b-903 is enacted to read:
             2484          48-1b-903. Action on plan of merger by constituent partnership.
             2485          (1) Subject to Section 48-1b-914 , a plan of merger must be consented to by all the
             2486      partners of a constituent partnership.
             2487          (2) Subject to Section 48-1b-914 and any contractual rights, after a merger is approved,
             2488      and at any time before articles of merger are delivered to the division for filing under Section
             2489      48-1b-904 , a constituent partnership may amend the plan or abandon the merger:
             2490          (a) as provided in the plan; or
             2491          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             2492      approve the plan.
             2493          Section 62. Section 48-1b-904 is enacted to read:


             2494          48-1b-904. Filings required and permitted for merger -- Effective date.
             2495          (1) After each constituent organization has approved a merger, articles of merger must
             2496      be signed on behalf of:
             2497          (a) each constituent partnership, as provided in Section 48-1b-105 , unless the merger is
             2498      only between or among general partnerships, none of which is a limited liability partnership,
             2499      and the surviving organization will be a general partnership other than a limited liability
             2500      partnership; and
             2501          (b) each other constituent organization, as provided in its governing statute.
             2502          (2) Articles of merger under this section must include:
             2503          (a) the name and form of each constituent organization and the jurisdiction of its
             2504      governing statute;
             2505          (b) the name and form of the surviving organization, the jurisdiction of its governing
             2506      statute, and, if the surviving organization is created by the merger, a statement to that effect;
             2507          (c) the date the merger is effective under the governing statute of the surviving
             2508      organization;
             2509          (d) if the surviving organization is to be created by the merger:
             2510          (i) if it will be a limited liability partnership, the limited liability partnership's
             2511      statement of qualification; or
             2512          (ii) if it will be an organization other than a limited liability partnership, the
             2513      organizational document that creates the organization that is in a public record;
             2514          (e) if the surviving organization preexists the merger, any amendments provided for in
             2515      the plan of merger for the organizational document that created the organization that are in a
             2516      public record;
             2517          (f) a statement as to each constituent organization that the merger was approved as
             2518      required by the organization's governing statute;
             2519          (g) if the surviving organization is a foreign organization not authorized to transact
             2520      business in this state, the street and mailing addresses of an office that may be used for service
             2521      of process under Subsection 48-1b-905 (2); and


             2522          (h) any additional information required by the governing statute of any constituent
             2523      organization.
             2524          (3) Each constituent partnership that is a limited liability partnership shall, and each
             2525      constituent partnership that is not a limited liability partnership may, deliver the articles of
             2526      merger for filing in the division.
             2527          (4) A merger becomes effective under this part:
             2528          (a) if the surviving organization is a partnership, upon the later of:
             2529          (i) compliance with Subsection (3); or
             2530          (ii) as specified in the articles of merger; or
             2531          (b) if the surviving organization is not a partnership, as provided by the governing
             2532      statute of the surviving organization.
             2533          Section 63. Section 48-1b-905 is enacted to read:
             2534          48-1b-905. Effect of merger.
             2535          (1) When a merger becomes effective:
             2536          (a) the surviving organization continues or comes into existence;
             2537          (b) each constituent organization that merges into the surviving organization ceases to
             2538      exist as a separate entity;
             2539          (c) all property owned by each constituent organization that ceases to exist vests in the
             2540      surviving organization;
             2541          (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             2542      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             2543          (e) an action or proceeding pending by or against any constituent organization that
             2544      ceases to exist may be continued as if the merger had not occurred;
             2545          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             2546      and purposes of each constituent organization that ceases to exist vest in the surviving
             2547      organization;
             2548          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             2549      plan of merger take effect; and


             2550          (h) except as otherwise agreed, if a constituent partnership ceases to exist, the merger
             2551      does not dissolve the partnership for the purposes of Part 8, Winding Up Partnership Business;
             2552          (i) if the surviving organization is created by the merger:
             2553          (i) if it is a partnership, the partnership is formed upon approval of and on the date
             2554      specified in the plan of merger;
             2555          (ii) if it is a limited liability partnership, the limited liability partnership is formed and
             2556      the statement of qualification takes effect on the later of:
             2557          (A) the day after the day on which the division has received for filing both the articles
             2558      of merger and the statement of qualification pursuant to Section 48-1b-1001 ; or
             2559          (B) the date provided in the statement of qualification; or
             2560          (iii) if it is an organization other than a partnership, the organizational document that
             2561      creates the organization becomes effective; and
             2562          (j) if the surviving organization preexisted the merger, any amendments provided for in
             2563      the articles of merger for the organizational document that created the organization become
             2564      effective.
             2565          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             2566      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             2567      organization, if before the merger the constituent organization was subject to suit in this state
             2568      on the debt, obligation, or other liability. A surviving organization that is a foreign
             2569      organization and not authorized to transact business in this state may be served with process at
             2570      the address required in the articles of merger under Subsection 48-1b-904 (2)(g).
             2571          Section 64. Section 48-1b-906 is enacted to read:
             2572          48-1b-906. Conversion.
             2573          (1) An organization other than a partnership or a foreign partnership may convert to a
             2574      partnership, and a partnership may convert to an organization other than a foreign partnership
             2575      pursuant to this section, Sections 48-1b-907 through 48-1b-909 , and a plan of conversion, if:
             2576          (a) the other organization's governing statute authorizes the conversion;
             2577          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other


             2578      organization's governing statute; and
             2579          (c) the other organization complies with its governing statute in effecting the
             2580      conversion.
             2581          (2) A plan of conversion must be in a record and must include:
             2582          (a) the name and form of the organization before conversion;
             2583          (b) the name and form of the organization after conversion;
             2584          (c) the terms and conditions of the conversion, including the manner and basis for
             2585      converting interests in the converting organization into any combination of money, interests in
             2586      the converted organization, and other consideration; and
             2587          (d) the organizational documents of the converted organization that are, or are
             2588      proposed to be, in a record.
             2589          Section 65. Section 48-1b-907 is enacted to read:
             2590          48-1b-907. Action on plan of conversion by converting partnership.
             2591          (1) Subject to Section 48-1b-914 , a plan of conversion must be consented to by all the
             2592      partners of a converting partnership.
             2593          (2) Subject to Section 48-1b-914 and any contractual rights, after a conversion is
             2594      approved, and at any time before articles of conversion are delivered to the division for filing
             2595      under Section 48-1b-908 , a converting partnership may amend the plan or abandon the
             2596      conversion:
             2597          (a) as provided in the plan; or
             2598          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             2599      approve the plan.
             2600          Section 66. Section 48-1b-908 is enacted to read:
             2601          48-1b-908. Filings required for conversion -- Effective date.
             2602          (1) After a plan of conversion is approved:
             2603          (a) a converting limited liability partnership shall deliver to the division for filing
             2604      articles of conversion, which must be signed as provided in Section 48-1b-105 and must
             2605      include:


             2606          (i) a statement that the limited liability partnership has been converted into another
             2607      organization;
             2608          (ii) the name and form of the converted organization and the jurisdiction of its
             2609      governing statute;
             2610          (iii) the date the conversion is effective under the governing statute of the converted
             2611      organization;
             2612          (iv) a statement that the conversion was approved as required by this chapter;
             2613          (v) a statement that the conversion is authorized by the governing statute of the
             2614      converted organization; and
             2615          (vi) if the converted organization is a foreign organization not authorized to transact
             2616      business in this state, the street and mailing addresses of an office that may be used for
             2617      purposes of Subsection 48-1b-909 (3); and
             2618          (b) if the converting organization is not a converting partnership or limited liability
             2619      partnership, the converting organization shall deliver to the division for filing articles of
             2620      conversion, which must include:
             2621          (i) a statement that the converted organization was converted from another
             2622      organization, and whether the converted organization is a partnership or a limited liability
             2623      partnership;
             2624          (ii) the name and form of that converting organization and the jurisdiction of its
             2625      governing statute; and
             2626          (iii) a statement that the conversion was approved in a manner that complied with the
             2627      converting organization's governing statute.
             2628          (2) A conversion becomes effective:
             2629          (a) if the converted organization is a partnership, as provided in the plan or articles of
             2630      conversion;
             2631          (b) if the converted organization is a limited liability partnership, the later of:
             2632          (i) the day after the day on which the division has received for filing both the articles of
             2633      conversion and the statement of qualification pursuant to Section 48-1b-1001 ; or


             2634          (ii) the date provided in the statement of qualification; or
             2635          (c) if the converted organization is not a partnership or limited liability partnership, as
             2636      provided by the governing statute of the converted organization.
             2637          Section 67. Section 48-1b-909 is enacted to read:
             2638          48-1b-909. Effect of conversion.
             2639          (1) An organization that has been converted pursuant to this part is for all purposes the
             2640      same entity that existed before the conversion.
             2641          (2) When a conversion takes effect:
             2642          (a) all property owned by the converting organization remains vested in the converted
             2643      organization;
             2644          (b) all debts, obligations, or other liabilities of the converting organization continue as
             2645      debts, obligations, or other liabilities of the converted organization;
             2646          (c) an action or proceeding pending by or against the converting organization may be
             2647      continued as if the conversion had not occurred;
             2648          (d) except as prohibited by law other than this chapter, all of the rights, privileges,
             2649      immunities, powers, and purposes of the converting organization remain vested in the
             2650      converted organization;
             2651          (e) except as otherwise provided in the plan of conversion, the terms and conditions of
             2652      the plan of conversion take effect; and
             2653          (f) except as otherwise agreed, the conversion does not dissolve a converting
             2654      partnership for the purposes of Part 8, Winding Up Partnership Business.
             2655          (3) A converted organization that is a foreign organization consents to the jurisdiction
             2656      of the courts of this state to enforce any debt, obligation, or other liability for which the
             2657      converting partnership or limited liability partnership is liable if, before the conversion, the
             2658      converting partnership or limited liability partnership was subject to suit in this state on the
             2659      debt, obligation, or other liability. A converted organization that is a foreign organization and
             2660      not authorized to transact business in this state may be served with process at the address
             2661      required in the articles of conversion under Subsection 48-1b-908 (1)(a)(vi).


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


             2690          (d) the organizational documents of the domesticated limited liability partnership that
             2691      are, or are proposed to be, in a record.
             2692          Section 69. Section 48-1b-911 is enacted to read:
             2693          48-1b-911. Action on plan of domestication by domesticating partnership.
             2694          (1) A plan of domestication must be consented to:
             2695          (a) by all the partners, subject to Section 48-1b-914 , if the domesticating limited
             2696      liability partnership is a limited liability partnership; and
             2697          (b) as provided in the domesticating limited liability partnership's governing statute, if
             2698      the limited liability partnership is a foreign limited liability partnership.
             2699          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             2700      before articles of domestication are delivered to the division for filing under Section
             2701      48-1b-912 , a domesticating limited liability partnership may amend the plan or abandon the
             2702      domestication:
             2703          (a) as provided in the plan; or
             2704          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             2705      approve the plan.
             2706          Section 70. Section 48-1b-912 is enacted to read:
             2707          48-1b-912. Filings required for domestication -- Effective date.
             2708          (1) After a plan of domestication is approved, a domesticating limited liability
             2709      partnership shall deliver to the division for filing articles of domestication, which must include:
             2710          (a) a statement, as the case may be, that the limited liability partnership has been
             2711      domesticated from or into another jurisdiction;
             2712          (b) the name of the domesticating limited liability partnership and the jurisdiction of its
             2713      governing statute;
             2714          (c) the name of the domesticated limited liability partnership and the jurisdiction of its
             2715      governing statute;
             2716          (d) the date the domestication is effective under the governing statute of the
             2717      domesticated limited liability partnership;


             2718          (e) if the domesticating limited liability partnership was a limited liability partnership,
             2719      a statement that the domestication was approved as required by this chapter;
             2720          (f) if the domesticating limited liability partnership was a foreign limited liability
             2721      partnership, a statement that the domestication was approved as required by the governing
             2722      statute of the other jurisdiction; and
             2723          (g) if the domesticated limited liability partnership is a foreign limited liability
             2724      partnership not authorized to transact business in this state, the street and mailing addresses of
             2725      an office that the division may use for the purposes of Subsection 48-1b-913 (2).
             2726          (2) A domestication becomes effective:
             2727          (a) if the domesticated limited liability partnership is a limited liability partnership, the
             2728      later of:
             2729          (i) the day after the day on which the division has received for filing both the articles of
             2730      domestication and the statement of qualification pursuant to Section 48-1b-1001 ; and
             2731          (ii) the date provided in the statement of qualification; or
             2732          (b) if it is a foreign limited liability partnership, according to the governing statute of
             2733      the domesticated limited liability partnership.
             2734          Section 71. Section 48-1b-913 is enacted to read:
             2735          48-1b-913. Effect of domestication.
             2736          (1) When a domestication takes effect:
             2737          (a) the domesticated limited liability partnership is for all purposes the limited liability
             2738      partnership that existed before the domestication;
             2739          (b) all property owned by the domesticating limited liability partnership remains vested
             2740      in the domesticated limited liability partnership;
             2741          (c) all debts, obligations, or other liabilities of the domesticating limited liability
             2742      partnership continue as debts, obligations, or other liabilities of the domesticated limited
             2743      liability partnership;
             2744          (d) an action or proceeding pending by or against a domesticating limited liability
             2745      partnership may be continued as if the domestication had not occurred;


             2746          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             2747      and purposes of the domesticating limited liability partnership remain vested in the
             2748      domesticated limited liability partnership;
             2749          (f) except as otherwise provided in the plan of domestication, the terms and conditions
             2750      of the plan of domestication take effect; and
             2751          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             2752      limited liability partnership for the purposes of Part 8, Winding Up Partnership Business.
             2753          (2) A domesticated limited liability partnership that is a foreign limited liability
             2754      partnership consents to the jurisdiction of the courts of this state to enforce any debt,
             2755      obligation, or other liability owed by the domesticating limited liability partnership, if, before
             2756      the domestication, the domesticating limited liability partnership was subject to suit in this
             2757      state on the debt, obligation, or other liability. A domesticated limited liability partnership that
             2758      is a foreign limited liability partnership and not authorized to transact business in this state may
             2759      be served with process at the address required in the articles of domestication under Subsection
             2760      48-1b-912 (1)(g).
             2761          (3) If a limited liability partnership has adopted and approved a plan of domestication
             2762      under Section 48-1b-910 providing for the limited liability partnership to be domesticated in a
             2763      foreign jurisdiction, a statement pursuant to Subsection 48-1b-1001 (4) cancelling the limited
             2764      liability partnership's statement of qualification must be delivered to the division for filing
             2765      setting forth:
             2766          (a) the name of the limited liability partnership;
             2767          (b) a statement that the limited liability partnership's statement of qualification is being
             2768      cancelled in connection with the domestication of the limited liability partnership in a foreign
             2769      jurisdiction;
             2770          (c) a statement the domestication was approved as required by this chapter; and
             2771          (d) the jurisdiction of formation of the domesticated foreign limited liability
             2772      partnership.
             2773          Section 72. Section 48-1b-914 is enacted to read:


             2774          48-1b-914. Restrictions on approval of mergers, conversions, and domestications.
             2775          (1) If a partner of a constituent or converting partnership, or a partner of a
             2776      domesticating limited liability partnership will have personal liability with respect to a
             2777      surviving, converted, or domesticated organization, approval or amendment of a plan of
             2778      merger, conversion, or domestication are ineffective without the consent of the partner, unless:
             2779          (a) the partnership's partnership agreement provides for approval of a merger,
             2780      conversion, or domestication with the consent of fewer than all the partners; and
             2781          (b) the partner has consented to the provision of the partnership agreement.
             2782          (2) A partner does not give the consent required by Subsection (1) merely by
             2783      consenting to a provision of the partnership agreement that permits the partnership agreement
             2784      to be amended with the consent of fewer than all the partners.
             2785          Section 73. Section 48-1b-915 is enacted to read:
             2786          48-1b-915. Part not exclusive.
             2787          This part does not preclude an entity from being merged, converted, or domesticated
             2788      under law other than this chapter.
             2789          Section 74. Section 48-1b-1001 is enacted to read:
             2790     
Part 10. Limited Liability Partnership

             2791          48-1b-1001. Statement of qualification.
             2792          (1) A partnership may become a limited liability partnership pursuant to this section.
             2793          (2) The terms and conditions on which a partnership becomes a limited liability
             2794      partnership must be approved by the vote necessary to amend the partnership agreement
             2795      except, in the case of a partnership agreement that expressly considers obligations to contribute
             2796      to the partnership, the vote necessary to amend those provisions.
             2797          (3) After the approval required by Subsection (2), a partnership may become a limited
             2798      liability partnership by filing a statement of qualification with the division. The statement must
             2799      contain:
             2800          (a) the name of the partnership;
             2801          (b) the street address of the partnership's chief executive office and, if different, the


             2802      street address of an office in this state, if any;
             2803          (c) if the partnership does not have an office in this state, the information required by
             2804      Subsection 16-17-203 (1);
             2805          (d) a statement that the partnership elects to be a limited liability partnership; and
             2806          (e) a deferred effective date, if any.
             2807          (4) The status of a partnership as a limited liability partnership is effective on the later
             2808      of the filing of the statement or a date specified in the statement. The status remains effective,
             2809      regardless of changes in the partnership, until it is canceled pursuant to Subsection
             2810      48-1b-105 (4) or revoked pursuant to Section 48-1b-1003 .
             2811          (5) The status of a partnership as a limited liability partnership and the liability of its
             2812      partners is not affected by errors or later changes in the information required to be contained in
             2813      the statement of qualification under Subsection (3).
             2814          (6) The filing of a statement of qualification establishes that a partnership has satisfied
             2815      all conditions precedent to the qualification of the partnership as a limited liability partnership.
             2816          (7) An amendment or cancellation of a statement of qualification is effective when it is
             2817      filed or on a deferred effective date specified in the amendment or cancellation.
             2818          Section 75. Section 48-1b-1002 is enacted to read:
             2819          48-1b-1002. Name.
             2820          (1) The name of a limited liability partnership must end with "Registered Limited
             2821      Liability Partnership," "Limited Liability Partnership," "R.L.L.P.," "L.L.P.," "RLLP," or "LLP".
             2822          (2) The name of a limited liability partnership may not contain:
             2823          (a) without the written consent of the United States Olympic Committee, the words:
             2824          (i) "Olympic";
             2825          (ii) "Olympiad"; or
             2826          (iii) "Citius Altius Fortius"; and
             2827          (b) without the written consent of the Division of Consumer Protection issued in
             2828      accordance with Section 13-34-114 , the words:
             2829          (i) "university";


             2830          (ii) "college"; or
             2831          (iii) "institute" or "institution".
             2832          (3) Unless authorized by Subsection (4), the name of a limited liability partnership
             2833      must be distinguishable in the records of the division from:
             2834          (a) the name of each person other than an individual incorporated, organized, or
             2835      authorized to transact business in this state; and
             2836          (b) each name reserved under:
             2837          (i) Section 16-6a-401 or 16-6a-402 ;
             2838          (ii) Section 16-10a-401 or 16-10a-402 ;
             2839          (iii) Section 16-11-16 ;
             2840          (iv) Section 42-2-6.6 ;
             2841          (v) Section 48-2d-108 or 48-2d-109 ; or
             2842          (vi) Section 48-3-108 or 48-3-109 .
             2843          (4) A limited liability partnership may apply to the division for authorization to use a
             2844      name that does not comply with Subsection (3). The division shall authorize use of the name
             2845      applied for if, as to each conflicting name:
             2846          (a) the present user, registrant, or owner of the conflicting name consents in a signed
             2847      record to the use and submits an undertaking in a form satisfactory to the division to change the
             2848      conflicting name to a name that complies with Subsection (3) and is distinguishable in the
             2849      records of the division from the name applied for;
             2850          (b) the applicant delivers to the division a certified copy of the final judgment of a
             2851      district court establishing the applicant's right to use in this state the name applied for; or
             2852          (c) the applicant delivers to the division proof satisfactory to the division that the
             2853      present user, registrant, or owner of the conflicting name:
             2854          (i) has merged into the applicant;
             2855          (ii) has been converted into the applicant; or
             2856          (iii) has transferred substantially all of its assets, including the conflicting name, to the
             2857      applicant.


             2858          (5) Subject to Section 48-1b-1102.1 , this section applies to any foreign limited
             2859      partnership transacting business in this state, having a certificate of authority to transact
             2860      business in this state, or applying for a certificate of authority.
             2861          (6) The division may not approve for filing a name that implies that a limited liability
             2862      partnership is an agency of this state or any of its political subdivisions, if it is not actually such
             2863      a legally established agency or subdivision.
             2864          (7) The authorization to file a certificate under or to reserve or register a limited
             2865      liability partnership name as granted by the division does not:
             2866          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             2867          (b) derogate from the common law, the principles of equity, or the statutes of this state
             2868      or of the United States with respect to the right to acquire and protect names and trademarks; or
             2869          (c) create an exclusive right in geographic or generic terms contained within a name.
             2870          Section 76. Section 48-1b-1003 is enacted to read:
             2871          48-1b-1003. Annual report.
             2872          (1) A limited liability partnership, and a foreign limited liability partnership authorized
             2873      to transact business in this state, shall file an annual report with the division which contains:
             2874          (a) the name of the limited liability partnership and the state or other jurisdiction under
             2875      whose laws the foreign limited liability partnership is formed;
             2876          (b) the street address of the partnership's chief executive office and, if different, the
             2877      street address of an office of the partnership in this state, if any; and
             2878          (c) if the partnership does not have an office in this state, the information required by
             2879      Subsection 16-17-203 (1).
             2880          (2) Following the calendar year in which a partnership files a statement of qualification
             2881      or a foreign partnership becomes authorized to transact business in this state, the partnership
             2882      shall file an annual report:
             2883          (a) during the month of its anniversary date of formation, in the case of a domestic
             2884      partnership; or
             2885          (b) during the month of the anniversary date of being granted authority to transact


             2886      business in this state, in the case of a foreign partnership authorized to transact business in this
             2887      state.
             2888          (3) (a) The division may revoke the statement of qualification of a partnership that fails
             2889      to:
             2890          (i) file an annual report when due; or
             2891          (ii) pay the required filing fee, established in accordance with Section 63J-1-504 .
             2892          (b) To take an action under this Subsection (3), the division shall provide the
             2893      partnership at least 60 days' written notice of intent to revoke the statement. The notice must
             2894      be mailed to the partnership at its chief executive office set forth in the last filed statement of
             2895      qualification or annual report. The notice must specify the annual report that has not been
             2896      filed, the fee that has not been paid, and the effective date of the revocation. The revocation is
             2897      not effective if the annual report is filed and the fee is paid before the effective date of the
             2898      revocation.
             2899          (4) A revocation under Subsection (3) only affects a partnership's status as a limited
             2900      liability partnership and is not an event of dissolution of the partnership.
             2901          (5) A partnership whose statement of qualification has been revoked may apply to the
             2902      division for reinstatement within two years after the effective date of the revocation. The
             2903      application must state:
             2904          (a) the name of the partnership and the effective date of the revocation; and
             2905          (b) that the ground for revocation either did not exist or has been corrected.
             2906          (6) A reinstatement under Subsection (5) relates back to and takes effect as of the
             2907      effective date of the revocation, and the partnership's status as a limited liability partnership
             2908      continues as if the revocation had never occurred.
             2909          Section 77. Section 48-1b-1004 is enacted to read:
             2910          48-1b-1004. Limited liability partnership providing professional services.
             2911          (1) A limited liability partnership organized under this part to provide a professional
             2912      service:
             2913          (a) may provide:


             2914          (i) only one specific type of professional service; and
             2915          (ii) services ancillary to the professional service described in Subsection (1)(a)(i); and
             2916          (b) may not engage in a business other than providing the professional service that it is
             2917      organized to provide and services ancillary to the professional service.
             2918          (2) A limited liability partnership organized to provide a professional service:
             2919          (a) may include a partner or employee authorized under the laws of the jurisdiction
             2920      where the partner or employee reside to provide similar professional service;
             2921          (b) may include a partner who is not licensed or registered by the state to provide the
             2922      professional service to the extent allowed by the applicable licensing act relating to the
             2923      professional service; and
             2924          (c) may render a professional service in Utah only through a partner or employee who
             2925      is licensed or registered by the state to render the professional service.
             2926          (3) A limited liability partnership organized to provide a professional service has the
             2927      powers provided a limited liability partnership under this chapter.
             2928          (4) (a) This part does not restrict or limit the authority or duty of a regulatory entity to
             2929      license an individual who provides a professional service or practices the profession that is
             2930      within the jurisdiction of the regulatory entity, notwithstanding that the individual:
             2931          (i) is a partner or employee of a limited liability partnership; or
             2932          (ii) provides a professional service or engaging in the practice of the profession through
             2933      a limited liability partnership.
             2934          (b) A limited liability partnership may not do anything an individual licensed to
             2935      practice the profession that the limited liability partnership is organized to provide may not do.
             2936          Section 78. Section 48-1b-1101 is enacted to read:
             2937     
Part 11. Foreign Limited Liability Partnership

             2938          48-1b-1101. Law governing foreign limited liability partnership.
             2939          (1) The law under which a foreign limited liability partnership is formed governs
             2940      relations among the partners and between the partners and the partnership and the liability of
             2941      partners for obligations of the partnership.


             2942          (2) A foreign limited liability partnership may not be denied a statement of foreign
             2943      qualification by reason of any difference between the law under which the partnership was
             2944      formed and the law of this state.
             2945          (3) A statement of foreign qualification does not authorize a foreign limited liability
             2946      partnership to engage in any business or exercise any power that a partnership may not engage
             2947      in or exercise in this state as a limited liability partnership.
             2948          (4) (a) The division may permit a tribal limited liability partnership to register with the
             2949      division in the same manner as a foreign limited liability partnership formed in another state.
             2950          (b) If a tribal limited liability partnership elects to register with the division, for
             2951      purposes of this chapter, the tribal limited liability partnership shall be treated in the same
             2952      manner as a foreign limited liability partnership formed under the laws of another state.
             2953          Section 79. Section 48-1b-1102 is enacted to read:
             2954          48-1b-1102. Statement of foreign qualification.
             2955          (1) Before transacting business in this state, a foreign limited liability partnership must
             2956      file a statement of foreign qualification with the division. The statement must contain:
             2957          (a) the name of the foreign limited liability partnership which satisfies the requirements
             2958      of the state or other jurisdiction under whose law it is formed;
             2959          (b) the street address of the partnership's chief executive office;
             2960          (c) the information required by Subsection 16-17-203 (1); and
             2961          (d) a deferred effective date, if any.
             2962          (2) The status of a partnership as a foreign limited liability partnership is effective on
             2963      the later of the filing of the statement of foreign qualification or a date specified in the
             2964      statement. The status remains effective, regardless of changes in the partnership, until it is
             2965      canceled pursuant to Subsection 48-1b-105 (4) or revoked pursuant to Section 48-1b-1003 .
             2966          (3) An amendment or cancellation of a statement of foreign qualification is effective
             2967      when it is filed or on a deferred effective date specified in the amendment or cancellation.
             2968          Section 80. Section 48-1b-1102.1 is enacted to read:
             2969          48-1b-1102.1. Noncomplying name of foreign limited liability partnership.


             2970          (1) A foreign limited liability partnership whose name does not comply with Section
             2971      48-1b-1002 may not obtain a certificate of authority until it adopts, for the purpose of
             2972      transacting business in this state, an alternate name that complies with Section 48-1b-1002 . A
             2973      foreign limited liability partnership that adopts an alternate name under this Subsection (1) and
             2974      then obtains a certificate of authority with the name need not comply with Title 42, Chapter 2,
             2975      Conducting Business Under Assumed Name. After obtaining a certificate of authority with an
             2976      alternate name, a foreign limited liability partnership shall transact business in this state under
             2977      the name unless the foreign limited liability partnership is authorized under Title 42, Chapter 2,
             2978      Conducting Business Under Assumed Name, to transact business in this state under another
             2979      name.
             2980          (2) If a foreign limited liability partnership authorized to transact business in this state
             2981      changes its name to one that does not comply with Section 48-1b-1002 , it may not thereafter
             2982      transact business in this state until it complies with Subsection (1) and obtains an amended
             2983      certificate of authority.
             2984          Section 81. Section 48-1b-1103 is enacted to read:
             2985          48-1b-1103. Effect of failure to qualify.
             2986          (1) A foreign limited liability partnership transacting business in this state may not
             2987      maintain an action or proceeding in this state unless it has in effect a statement of foreign
             2988      qualification.
             2989          (2) The failure of a foreign limited liability partnership to have in effect a statement of
             2990      foreign qualification does not impair the validity of a contract or act of the foreign limited
             2991      liability partnership or preclude it from defending an action or proceeding in this state.
             2992          (3) A limitation on personal liability of a partner is not waived solely by transacting
             2993      business in this state without a statement of foreign qualification.
             2994          (4) If a foreign limited liability partnership transacts business in this state without a
             2995      statement of foreign qualification, service of process with respect to a right of action arising out
             2996      of the transaction of business in this state shall be served in accordance with Section
             2997      16-17-301 .


             2998          Section 82. Section 48-1b-1104 is enacted to read:
             2999          48-1b-1104. Activities not constituting transacting business.
             3000          (1) Activities of a foreign limited liability partnership which do not constitute
             3001      transacting business for the purpose of this part include:
             3002          (a) maintaining, defending, or settling an action or proceeding;
             3003          (b) holding meetings of its partners or carrying on any other activity concerning its
             3004      internal affairs;
             3005          (c) maintaining bank accounts;
             3006          (d) maintaining offices or agencies for the transfer, exchange, and registration of the
             3007      partnership's own securities or maintaining trustees or depositories with respect to those
             3008      securities;
             3009          (e) selling through independent contractors;
             3010          (f) soliciting or obtaining orders, whether by mail or through employees or agents or
             3011      otherwise, if the orders require acceptance outside this state before they become contracts;
             3012          (g) creating or acquiring indebtedness, with or without a mortgage, or other security
             3013      interest in property;
             3014          (h) collecting debts or foreclosing mortgages or other security interests in property
             3015      securing the debts, and holding, protecting, and maintaining property so acquired;
             3016          (i) conducting an isolated transaction that is completed within 30 days and is not one in
             3017      the course of similar transactions; and
             3018          (j) transacting business in interstate commerce.
             3019          (2) For purposes of this part, the ownership in this state of income-producing real
             3020      property or tangible personal property, other than property excluded under Subsection (1),
             3021      constitutes transacting business in this state.
             3022          (3) This section does not apply in determining the contacts or activities that may
             3023      subject a foreign limited liability partnership to service of process, taxation, or regulation under
             3024      any other law of this state.
             3025          Section 83. Section 48-1b-1105 is enacted to read:


             3026          48-1b-1105. Action by attorney general.
             3027          The attorney general may maintain an action to restrain a foreign limited liability
             3028      partnership from transacting business in this state in violation of this part.
             3029          Section 84. Section 48-1b-1201 is enacted to read:
             3030     
Part 12. Miscellaneous Provisions

             3031          48-1b-1201. Uniformity of application and construction.
             3032          This chapter shall be applied and construed to effectuate its general purpose to make
             3033      uniform the law with respect to the subject of this chapter among states enacting it.
             3034          Section 85. Section 48-1b-1202 is enacted to read:
             3035          48-1b-1202. Relation to electronic signatures in global and national commerce act.
             3036          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             3037      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             3038      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             3039      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             3040          Section 86. Section 48-1b-1203 is enacted to read:
             3041          48-1b-1203. Severability clause.
             3042          If any provision of this chapter or its application to any person or circumstance is held
             3043      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             3044      be given effect without the invalid provision or application, and to this end the provisions of
             3045      this chapter are severable.
             3046          Section 87. Section 48-1b-1204 is enacted to read:
             3047          48-1b-1204. Savings clause.
             3048          This chapter does not affect an action or proceeding commenced or right accrued before
             3049      July 1, 2012.
             3050          Section 88. Section 48-1b-1205 is enacted to read:
             3051          48-1b-1205. Applicability.
             3052          (1) Before January 1, 2014, this chapter governs only a partnership formed:
             3053          (a) after July 1, 2012, except a partnership that is continuing the business of a dissolved


             3054      partnership; and
             3055          (b) before July 1, 2012, that elects, as provided by Subsection (3), to be governed by
             3056      this chapter.
             3057          (2) On and after January 1, 2014, this chapter governs all partnerships.
             3058          (3) Before January 1, 2014, a partnership voluntarily may elect, in the manner provided
             3059      in its partnership agreement or by law for amending the partnership agreement, to be governed
             3060      by this chapter. The provisions of this chapter relating to the liability of the partnership's
             3061      partners to third parties apply to limit those partners' liability to a third party who had done
             3062      business with the partnership within one year before the partnership's election to be governed
             3063      by this chapter only if the third party knows or has received a notification of the partnership's
             3064      election to be governed by this chapter.
             3065          Section 89. Section 48-2d-101 is enacted to read:
             3066     
CHAPTER 2d. UTAH UNIFORM LIMITED PARTNERSHIP ACT

             3067     
Part 1. General Provisions

             3068          48-2d-101. Title.
             3069          This chapter is known as the "Utah Uniform Limited Partnership Act."
             3070          Section 90. Section 48-2d-102 is enacted to read:
             3071          48-2d-102. Definitions.
             3072          As used in this chapter:
             3073          (1) (a) "Certificate of limited partnership" means the certificate required by Section
             3074      48-2d-201 .
             3075          (b) "Certificate of limited partnership" includes the certificate as amended or restated.
             3076          (2) "Contribution," except in the phrase "right of contribution," means any benefit
             3077      provided by a person to a limited partnership in order to become a partner or in the person's
             3078      capacity as a partner.
             3079          (3) "Debtor in bankruptcy" means a person that is the subject of:
             3080          (a) an order for relief under United States Code, Title 11, or a comparable order under
             3081      a successor statute of general application; or


             3082          (b) a comparable order under federal, state, or foreign law governing insolvency.
             3083          (4) "Distribution" means a transfer of money or other property from a limited
             3084      partnership to a partner in the partner's capacity as a partner or to a transferee on account of a
             3085      transferable interest owned by the transferee.
             3086          (5) "Foreign limited liability limited partnership" means a foreign limited partnership
             3087      whose general partners have limited liability for the obligations of the foreign limited
             3088      partnership under a provision similar to Subsection 48-2d-404 (3).
             3089          (6) (a) "Foreign limited partnership" means a partnership formed under the laws of a
             3090      jurisdiction other than this state and required by those laws to have one or more general
             3091      partners and one or more limited partners.
             3092          (b) "Foreign limited partnership" includes a foreign limited liability limited
             3093      partnership.
             3094          (7) "General partner" means:
             3095          (a) with respect to a limited partnership, a person that:
             3096          (i) becomes a general partner under Section 48-2d-401 ; or
             3097          (ii) was a general partner in a limited partnership when the limited partnership became
             3098      subject to this chapter under Subsection 48-2d-1205 (1) or (2); and
             3099          (b) with respect to a foreign limited partnership, a person that has rights, powers, and
             3100      obligations similar to those of a general partner in a limited partnership.
             3101          (8) "Limited liability limited partnership," except in the phrase "foreign limited liability
             3102      limited partnership," means a limited partnership whose certificate of limited partnership states
             3103      that the limited partnership is a limited liability limited partnership.
             3104          (9) "Limited partner" means:
             3105          (a) with respect to a limited partnership, a person that:
             3106          (i) becomes a limited partner under Section 48-2d-301 ; or
             3107          (ii) was a limited partner in a limited partnership when the limited partnership became
             3108      subject to this chapter under Subsection 48-2d-1205 (1) or (2); and
             3109          (b) with respect to a foreign limited partnership, a person that has rights, powers, and


             3110      obligations similar to those of a limited partner in a limited partnership.
             3111          (10) (a) "Limited partnership," except in the phrases "foreign limited partnership" and
             3112      "foreign limited liability limited partnership," means an entity, having one or more general
             3113      partners and one or more limited partners, which is formed under this chapter by two or more
             3114      persons or becomes subject to this chapter under Part 11, Merger, Conversion, and
             3115      Domestication, or Subsection 48-2d-1205 (1) or (2).
             3116          (b) "Limited partnership" includes a limited liability limited partnership.
             3117          (11) "Partner" means a limited partner or general partner.
             3118          (12) (a) "Partnership agreement" means the partners' agreement, whether oral, implied,
             3119      in a record, or in any combination, concerning the limited partnership.
             3120          (b) "Partnership agreement" includes the agreement as amended.
             3121          (13) "Person" means:
             3122          (a) an individual;
             3123          (b) a corporation;
             3124          (c) a business trust;
             3125          (d) an estate;
             3126          (e) a trust;
             3127          (f) a partnership;
             3128          (g) a limited liability company;
             3129          (h) an association;
             3130          (i) a joint venture;
             3131          (j) government;
             3132          (k) a governmental subdivision, agency, or instrumentality;
             3133          (l) a public corporation; or
             3134          (m) any other legal or commercial entity.
             3135          (14) "Person dissociated as a general partner" means a person dissociated as a general
             3136      partner of a limited partnership.
             3137          (15) "Principal office" means the office where the principal executive office of a


             3138      limited partnership or foreign limited partnership is located, whether or not the office is located
             3139      in this state.
             3140          (16) "Record" means information that is inscribed on a tangible medium or that is
             3141      stored in an electronic or other medium and is retrievable in perceivable form.
             3142          (17) "Required information" means the information that a limited partnership is
             3143      required to maintain under Section 48-2d-111 .
             3144          (18) "Sign" means:
             3145          (a) to execute or adopt a tangible symbol with the present intent to authenticate a
             3146      record; or
             3147          (b) to attach or logically associate an electronic symbol, sound, or process to or with a
             3148      record with the present intent to authenticate the record.
             3149          (19) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             3150      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             3151      of the United States.
             3152          (20) "Transfer" includes an assignment, conveyance, deed, bill of sale, lease, mortgage,
             3153      security interest, encumbrance, gift, and transfer by operation of law.
             3154          (21) "Transferable interest" means a partner's right to receive distributions.
             3155          (22) "Transferee" means a person to which all or part of a transferable interest has been
             3156      transferred, whether or not the transferor is a partner.
             3157          (23) "Tribal limited partnership" means a limited partnership:
             3158          (a) formed under the law of a tribe; and
             3159          (b) that is at least 51% owned or controlled by the tribe.
             3160          (24) "Tribe" means a tribe, band, nation, pueblo, or other organized group or
             3161      community of Indians, including an Alaska Native village, that is legally recognized as eligible
             3162      for and is consistent with a special program, service, or entitlement provided by the United
             3163      States to Indians because of their status as Indians.
             3164          Section 91. Section 48-2d-103 is enacted to read:
             3165          48-2d-103. Knowledge and notice.


             3166          (1) A person knows a fact if the person has actual knowledge of it.
             3167          (2) A person has notice of a fact if the person:
             3168          (a) knows of it;
             3169          (b) has received a notification of it;
             3170          (c) has reason to know it exists from all of the facts known to the person at the time in
             3171      question; or
             3172          (d) has notice of it under Subsection (3) or (4).
             3173          (3) A certificate of limited partnership on file in the division is notice that the
             3174      partnership is a limited partnership and the persons designated in the certificate as general
             3175      partners are general partners. Except as otherwise provided in Subsection (4), the certificate is
             3176      not notice of any other fact.
             3177          (4) A person has notice of:
             3178          (a) another person's dissociation as a general partner, 90 days after the effective date of
             3179      an amendment to the certificate of limited partnership which states that the other person has
             3180      dissociated or 90 days after the effective date of a statement of dissociation pertaining to the
             3181      other person, whichever occurs first;
             3182          (b) a limited partnership's dissolution, 90 days after the effective date of an amendment
             3183      to the certificate of limited partnership stating that the limited partnership is dissolved;
             3184          (c) a limited partnership's termination, 90 days after the effective date of a statement of
             3185      termination;
             3186          (d) a limited partnership's conversion under Part 11, Merger, Conversion, and
             3187      Domestication, 90 days after the effective date of the articles of conversion; or
             3188          (e) a merger under Part 11, Merger, Conversion, and Domestication, 90 days after the
             3189      effective date of the articles of merger.
             3190          (5) A person notifies or gives a notification to another person by taking steps
             3191      reasonably required to inform the other person in ordinary course, whether or not the other
             3192      person learns of it.
             3193          (6) A person receives a notification when the notification:


             3194          (a) comes to the person's attention; or
             3195          (b) is delivered at the person's place of business or at any other place held out by the
             3196      person as a place for receiving communications.
             3197          (7) (a) Except as otherwise provided in Subsection (8), a person other than an
             3198      individual knows, has notice, or receives a notification of a fact for purposes of a particular
             3199      transaction when the individual conducting the transaction for the person knows, has notice, or
             3200      receives a notification of the fact, or in any event when the fact would have been brought to the
             3201      individual's attention if the person had exercised reasonable diligence.
             3202          (b) A person other than an individual exercises reasonable diligence if it maintains
             3203      reasonable routines for communicating significant information to the individual conducting the
             3204      transaction for the person and there is reasonable compliance with the routines. Reasonable
             3205      diligence does not require an individual acting for the person to communicate information
             3206      unless the communication is part of the individual's regular duties or the individual has reason
             3207      to know of the transaction and that the transaction would be materially affected by the
             3208      information.
             3209          (8) A general partner's knowledge, notice, or receipt of a notification of a fact relating
             3210      to the limited partnership is effective immediately as knowledge of, notice to, or receipt of a
             3211      notification by the limited partnership, except in the case of a fraud on the limited partnership
             3212      committed by or with the consent of the general partner. A limited partner's knowledge, notice,
             3213      or receipt of a notification of a fact relating to the limited partnership is not effective as
             3214      knowledge of, notice to, or receipt of a notification by the limited partnership.
             3215          Section 92. Section 48-2d-104 is enacted to read:
             3216          48-2d-104. Nature, purpose, and duration of entity.
             3217          (1) (a) A limited partnership is an entity distinct from its partners.
             3218          (b) A limited partnership is the same entity regardless of whether its certificate states
             3219      that the limited partnership is a limited liability limited partnership.
             3220          (2) A limited partnership may be organized under this chapter for any lawful purpose.
             3221          (3) A limited partnership has a perpetual duration.


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


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


             3278      records of the division from the name applied for;
             3279          (b) the applicant delivers to the division a certified copy of the final judgment of a
             3280      district court establishing the applicant's right to use in this state the name applied for; or
             3281          (c) the applicant delivers to the division proof satisfactory to the division that the
             3282      present user, registrant, or owner of the conflicting name:
             3283          (i) has merged into the applicant;
             3284          (ii) has been converted into the applicant; or
             3285          (iii) has transferred substantially all of its assets, including the conflicting name, to the
             3286      applicant.
             3287          (6) Subject to Section 48-2d-905 , this section applies to any foreign limited partnership
             3288      transacting business in this state, having a certificate of authority to transact business in this
             3289      state, or applying for a certificate of authority.
             3290          (7) The division may not approve for filing a name that implies that a limited
             3291      partnership is an agency of this state or any of its political subdivisions, if it is not actually such
             3292      a legally established agency or subdivision.
             3293          (8) The authorization to file a certificate under or to reserve or register a limited
             3294      partnership name as granted by the division does not:
             3295          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             3296          (b) derogate from the common law, the principles of equity, or the statutes of this state
             3297      or of the United States with respect to the right to acquire and protect names and trademarks; or
             3298          (c) create an exclusive right in geographic or generic terms contained within a name.
             3299          Section 97. Section 48-2d-109 is enacted to read:
             3300          48-2d-109. Reservation of name.
             3301          (1) The exclusive right to the use of a name that complies with Section 48-2d-108 may
             3302      be reserved by:
             3303          (a) a person intending to organize a limited partnership under this chapter and to adopt
             3304      the name;
             3305          (b) a limited partnership or a foreign limited partnership authorized to transact business


             3306      in this state intending to adopt the name;
             3307          (c) a foreign limited partnership intending to obtain a certificate of authority to transact
             3308      business in this state and adopt the name;
             3309          (d) a person intending to organize a foreign limited partnership and intending to have it
             3310      obtain a certificate of authority to transact business in this state and adopt the name;
             3311          (e) a foreign limited partnership formed under the name; or
             3312          (f) a foreign limited partnership formed under a name that does not comply with
             3313      Subsection 48-2d-108 (2) or (3), but the name reserved under this Subsection (1)(f) may differ
             3314      from the foreign limited partnership's name only to the extent necessary to comply with
             3315      Subsections 48-2d-108 (2) and (3).
             3316          (2) (a) A person may apply to reserve a name under Subsection (1) by delivering to the
             3317      division for filing an application that states the name to be reserved and the provision of
             3318      Subsection (1) which applies.
             3319          (b) If the division finds that the name is available for use by the applicant, the division
             3320      shall file a statement of name reservation and thereby reserve the name for the exclusive use of
             3321      the applicant for 120 days.
             3322          (3) An applicant that has reserved a name pursuant to Subsection (2) may reserve the
             3323      same name for additional 120-day periods. A person having a current reservation for a name
             3324      may not apply for another 120-day period for the same name until 90 days have elapsed in the
             3325      current reservation.
             3326          (4) A person that has reserved a name under this section may deliver to the division for
             3327      filing a notice of transfer that states the reserved name, the name, and street and mailing
             3328      address of some other person to which the reservation is to be transferred, and the provision of
             3329      Subsection (1) which applies to the other person. Subject to Subsection 48-2d-206 (3), the
             3330      transfer is effective when the division files the notice of transfer.
             3331          Section 98. Section 48-2d-110 is enacted to read:
             3332          48-2d-110. Effect of partnership agreement -- Nonwaivable provisions.
             3333          (1) Except as otherwise provided in Subsection (2), the partnership agreement governs


             3334      relations among the partners and between the partners and the partnership. To the extent the
             3335      partnership agreement does not otherwise provide, this chapter governs relations among the
             3336      partners and between the partners and the partnership.
             3337          (2) A partnership agreement may not:
             3338          (a) vary a limited partnership's power under Section 48-2d-105 to sue, be sued, and
             3339      defend in its own name;
             3340          (b) vary the law applicable to a limited partnership under Section 48-2d-106 ;
             3341          (c) vary the requirements of Section 48-2d-204 ;
             3342          (d) vary the information required under Section 48-2d-111 or unreasonably restrict the
             3343      right to information under Section 48-2d-304 or 48-2d-407 , but the partnership agreement may
             3344      impose reasonable restrictions on the availability and use of information obtained under those
             3345      sections and may define appropriate remedies, including liquidated damages, for a breach of
             3346      any reasonable restriction on use;
             3347          (e) eliminate the duty of loyalty under Section 48-2d-408 , but the partnership
             3348      agreement may:
             3349          (i) identify specific types or categories of activities that do not violate the duty of
             3350      loyalty, if not unconscionable or against public policy; and
             3351          (ii) specify the number or percentage of partners which may authorize or ratify, after
             3352      full disclosure to all partners of all material facts, a specific act or transaction that otherwise
             3353      would violate the duty of loyalty;
             3354          (f) unreasonably reduce the duty of care under Subsection 48-2d-408 (3);
             3355          (g) eliminate the obligation of good faith and fair dealing under Subsections
             3356      48-2d-305 (2) and 48-2d-408 (4), but the partnership agreement may prescribe the standards by
             3357      which the performance of the obligation is to be measured, if the standards are not manifestly
             3358      unreasonable;
             3359          (h) vary the power of a person to dissociate as a general partner under Subsection
             3360      48-2d-604 (1) except to require that the notice under Subsection 48-2d-603 (1) be in a record;
             3361          (i) vary the power of a court to decree dissolution in the circumstances specified in


             3362      Section 48-2d-802 ;
             3363          (j) vary the requirement to wind up the partnership's business as specified in Section
             3364      48-2d-803 ;
             3365          (k) unreasonably restrict the right to maintain an action under Part 10, Actions by
             3366      Partners;
             3367          (l) restrict the right of a partner under Subsection 48-2d-1114 (1) to approve a
             3368      conversion or merger or the right of a general partner under Subsection 48-2d-1114 (2) to
             3369      consent to an amendment to the certificate of limited partnership which deletes a statement that
             3370      the limited partnership is a limited liability limited partnership; or
             3371          (m) restrict rights under this chapter of a person other than a partner or a transferee.
             3372          Section 99. Section 48-2d-111 is enacted to read:
             3373          48-2d-111. Required information.
             3374          A limited partnership shall maintain at its designated office the following information:
             3375          (1) a current list showing the full name and last known street and mailing address of
             3376      each partner, separately identifying the general partners, in alphabetical order, and the limited
             3377      partners, in alphabetical order;
             3378          (2) a copy of the initial certificate of limited partnership and all amendments to and
             3379      restatements of the certificate, together with signed copies of any powers of attorney under
             3380      which any certificate, amendment, or restatement has been signed;
             3381          (3) a copy of any filed articles of conversion or merger;
             3382          (4) a copy of the limited partnership's federal, state, and local income tax returns and
             3383      reports, if any, for the three most recent years;
             3384          (5) a copy of any partnership agreement made in a record and any amendment made in
             3385      a record to any partnership agreement;
             3386          (6) a copy of any financial statement of the limited partnership for the three most recent
             3387      years;
             3388          (7) a copy of the three most recent annual reports delivered by the limited partnership
             3389      to the division pursuant to Section 48-2d-210 ;


             3390          (8) a copy of any record made by the limited partnership during the past three years of
             3391      any consent given by or vote taken of any partner pursuant to this chapter or the partnership
             3392      agreement; and
             3393          (9) unless contained in a partnership agreement made in a record, a record stating:
             3394          (a) the amount of cash, and a description and statement of the agreed value of the other
             3395      benefits, contributed and agreed to be contributed by each partner;
             3396          (b) the times at which, or events on the happening of which, any additional
             3397      contributions agreed to be made by each partner are to be made;
             3398          (c) for any person that is both a general partner and a limited partner, a specification of
             3399      what transferable interest the person owns in each capacity; and
             3400          (d) any events upon the happening of which the limited partnership is to be dissolved
             3401      and its activities wound up.
             3402          Section 100. Section 48-2d-112 is enacted to read:
             3403          48-2d-112. Business transactions of partner with partnership.
             3404          A partner may lend money to and transact other business with the limited partnership
             3405      and has the same rights and obligations with respect to the loan or other transaction as a person
             3406      that is not a partner.
             3407          Section 101. Section 48-2d-113 is enacted to read:
             3408          48-2d-113. Dual capacity.
             3409          (1) A person may be both a general partner and a limited partner.
             3410          (2) A person that is both a general and limited partner has the rights, powers, duties,
             3411      and obligations provided by this chapter and the partnership agreement in each of those
             3412      capacities. When the person acts as a general partner, the person is subject to the obligations,
             3413      duties, and restrictions under this chapter and the partnership agreement for general partners.
             3414      When the person acts as a limited partner, the person is subject to the obligations, duties, and
             3415      restrictions under this chapter and the partnership agreement for limited partners.
             3416          Section 102. Section 48-2d-114 is enacted to read:
             3417          48-2d-114. Consent and proxies of partners.


             3418          Action requiring the consent of partners under this chapter may be taken without a
             3419      meeting, and a partner may appoint a proxy to consent or otherwise act for the partner by
             3420      signing an appointment record, either personally or by the partner's attorney-in-fact.
             3421          Section 103. Section 48-2d-201 is enacted to read:
             3422     
Part 2. Formation and Certificate of Limited Partnership and Other Filings

             3423          48-2d-201. Formation of limited partnership -- Certificate of limited partnership.
             3424          (1) In order for a limited partnership to be formed, a certificate of limited partnership
             3425      must be delivered to the division for filing. The certificate must state:
             3426          (a) the name of the limited partnership, which must comply with Section 48-2d-108 ;
             3427          (b) the information required by Subsection 16-17-203 (1);
             3428          (c) the name and the street and mailing address of each general partner;
             3429          (d) whether the limited partnership is a limited liability limited partnership; and
             3430          (e) any additional information required by Part 11, Merger, Conversion, and
             3431      Domestication.
             3432          (2) A certificate of limited partnership may also contain any other matters but may not
             3433      vary or otherwise affect the provisions specified in Subsection 48-2d-110 (2) in a manner
             3434      inconsistent with that section.
             3435          (3) If there has been substantial compliance with Subsection (1), subject to Subsection
             3436      48-2d-206 (3) a limited partnership is formed when the division files the certificate of limited
             3437      partnership.
             3438          (4) Subject to Subsection (2), if any provision of a partnership agreement is
             3439      inconsistent with the filed certificate of limited partnership or with a filed statement of
             3440      dissociation, termination, or change or filed articles of conversion or merger:
             3441          (a) the partnership agreement prevails as to partners and transferees; and
             3442          (b) the filed certificate of limited partnership, statement of dissociation, termination, or
             3443      change, or articles of conversion or merger prevail as to persons, other than partners and
             3444      transferees, that reasonably rely on the filed record to their detriment.
             3445          Section 104. Section 48-2d-202 is enacted to read:


             3446          48-2d-202. Amendment or restatement of certificate.
             3447          (1) To amend its certificate of limited partnership, a limited partnership must deliver to
             3448      the division for filing an amendment or, pursuant to Part 11, Merger, Conversion, and
             3449      Domestication, articles of merger stating:
             3450          (a) the name of the limited partnership;
             3451          (b) the date of filing of its initial certificate; and
             3452          (c) the changes the amendment makes to the certificate as most recently amended or
             3453      restated.
             3454          (2) By no later than 60 days from the day on which one of the following occurs, a
             3455      limited partnership shall deliver to the division for filing an amendment to a certificate of
             3456      limited partnership to reflect:
             3457          (a) the admission of a new general partner;
             3458          (b) the dissociation of a person as a general partner; or
             3459          (c) the appointment of a person to wind up the limited partnership's activities under
             3460      Subsection 48-2d-803 (3) or (4).
             3461          (3) A general partner that knows that any information in a filed certificate of limited
             3462      partnership was false when the certificate was filed or has become false due to changed
             3463      circumstances shall promptly:
             3464          (a) cause the certificate to be amended; or
             3465          (b) if appropriate, deliver to the division for filing a statement of change pursuant to
             3466      Section 16-17-206 or a statement of correction pursuant to Section 16-17-206 or 48-2d-207 .
             3467          (4) A certificate of limited partnership may be amended at any time for any other
             3468      proper purpose as determined by the limited partnership.
             3469          (5) A restated certificate of limited partnership may be delivered to the division for
             3470      filing in the same manner as an amendment.
             3471          (6) Subject to Subsection 48-2d-206 (3), an amendment or restated certificate is
             3472      effective when filed by the division.
             3473          Section 105. Section 48-2d-203 is enacted to read:


             3474          48-2d-203. Statement of termination.
             3475          A dissolved limited partnership that has completed winding up may deliver to the
             3476      division for filing a statement of termination that states:
             3477          (1) the name of the limited partnership;
             3478          (2) the date of filing of its initial certificate of limited partnership; and
             3479          (3) any other information as determined by the general partners filing the statement or
             3480      by a person appointed pursuant to Subsection 48-2d-803 (3) or (4).
             3481          Section 106. Section 48-2d-204 is enacted to read:
             3482          48-2d-204. Signing of records.
             3483          (1) Each record delivered to the division for filing pursuant to this chapter must be
             3484      signed in the following manner:
             3485          (a) An initial certificate of limited partnership must be signed by all general partners
             3486      listed in the certificate.
             3487          (b) An amendment adding or deleting a statement that the limited partnership is a
             3488      limited liability limited partnership must be signed by all general partners listed in the
             3489      certificate.
             3490          (c) An amendment designating as general partner a person admitted under Subsection
             3491      48-2d-801 (3)(b) following the dissociation of a limited partnership's last general partner must
             3492      be signed by that person.
             3493          (d) An amendment required by Subsection 48-2d-803 (3) following the appointment of
             3494      a person to wind up the dissolved limited partnership's activities must be signed by that person.
             3495          (e) Any other amendment must be signed by:
             3496          (i) at least one general partner listed in the certificate;
             3497          (ii) each other person designated in the amendment as a new general partner; and
             3498          (iii) each person that the amendment indicates has dissociated as a general partner,
             3499      unless:
             3500          (A) the person is deceased or a guardian or a general conservator has been appointed
             3501      for the person and the amendment so states; or


             3502          (B) the person has previously delivered to the division for filing a statement of
             3503      dissociation.
             3504          (f) A restated certificate of limited partnership must be signed by at least one general
             3505      partner listed in the certificate, and, to the extent the restated certificate effects a change under
             3506      any other subsection of this Subsection (1), the certificate must be signed in a manner that
             3507      satisfies that subsection.
             3508          (g) A statement of termination must be signed by all general partners listed in the
             3509      certificate or, if the certificate of a dissolved limited partnership lists no general partners, by the
             3510      person appointed pursuant to Subsection 48-2d-803 (3) or (4) to wind up the dissolved limited
             3511      partnership's activities.
             3512          (h) Articles of conversion must be signed by each general partner listed in the
             3513      certificate of limited partnership.
             3514          (i) Articles of merger must be signed as provided in Subsection 48-2d-1108 (1).
             3515          (j) Any other record delivered on behalf of a limited partnership to the division for
             3516      filing must be signed by at least one general partner listed in the certificate.
             3517          (k) A statement by a person pursuant to Subsection 48-2d-605 (1)(d) stating that the
             3518      person has dissociated as a general partner must be signed by that person.
             3519          (l) A statement of withdrawal by a person pursuant to Section 48-2d-306 must be
             3520      signed by that person.
             3521          (m) A record delivered on behalf of a foreign limited partnership to the division for
             3522      filing must be signed by at least one general partner of the foreign limited partnership.
             3523          (n) Any other record delivered on behalf of any person to the division for filing must
             3524      be signed by that person.
             3525          (2) Any person may sign by an attorney-in-fact any record to be filed pursuant to this
             3526      chapter.
             3527          Section 107. Section 48-2d-205 is enacted to read:
             3528          48-2d-205. Signing and filing pursuant to judicial order.
             3529          (1) If a person required by this chapter to sign a record or deliver a record to the


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


             3558          (c) for all other records, send a copy of the filed record and a receipt for the fees to the
             3559      person on whose behalf the record was filed.
             3560          (2) Upon request and payment of a fee, established in accordance with Section
             3561      63J-1-504 , the division shall send to the requester a certified copy of the requested record.
             3562          (3) Except as otherwise provided in Section 48-2d-207 , a record delivered to the
             3563      division for filing under this chapter may specify an effective time and a delayed effective date.
             3564      Except as otherwise provided in this chapter, a record filed by the division is effective:
             3565          (a) if the record does not specify an effective time and does not specify a delayed
             3566      effective date, on the date and at the time the record is filed as evidenced by the division's
             3567      endorsement of the date and time on the record;
             3568          (b) if the record specifies an effective time but not a delayed effective date, on the date
             3569      the record is filed at the time specified in the record;
             3570          (c) if the record specifies a delayed effective date but not an effective time, at 12:01
             3571      a.m. on the earlier of:
             3572          (i) the specified date; or
             3573          (ii) the 90th day after the record is filed; or
             3574          (d) if the record specifies an effective time and a delayed effective date, at the specified
             3575      time on the earlier of:
             3576          (i) the specified date; or
             3577          (ii) the 90th day after the record is filed.
             3578          Section 109. Section 48-2d-207 is enacted to read:
             3579          48-2d-207. Correcting filed record.
             3580          (1) A limited partnership or foreign limited partnership may deliver to the division for
             3581      filing a statement of correction to correct a record previously delivered by the limited
             3582      partnership or foreign limited partnership to the division and filed by the division, if at the time
             3583      of filing the record contained false or erroneous information or was defectively signed.
             3584          (2) A statement of correction may not state a delayed effective date and must:
             3585          (a) describe the record to be corrected, including its filing date, or attach a copy of the


             3586      record as filed;
             3587          (b) specify the incorrect information and the reason it is incorrect or the manner in
             3588      which the signing was defective; and
             3589          (c) correct the incorrect information or defective signature.
             3590          (3) When filed by the division, a statement of correction is effective retroactively as of
             3591      the effective date of the record the statement corrects, but the statement is effective when filed:
             3592          (a) for the purposes of Subsections 48-2d-103 (3) and (4); and
             3593          (b) as to persons relying on the uncorrected record and adversely affected by the
             3594      correction.
             3595          Section 110. Section 48-2d-208 is enacted to read:
             3596          48-2d-208. Liability for false information in filed record.
             3597          (1) If a record delivered to the division for filing under this chapter and filed by the
             3598      division contains false information, a person that suffers loss by reliance on the information
             3599      may recover damages for the loss from:
             3600          (a) a person that signed the record, or caused another to sign it on the person's behalf,
             3601      and knew the information to be false at the time the record was signed; and
             3602          (b) a general partner that has notice that the information was false when the record was
             3603      filed or has become false because of changed circumstances, if the general partner has notice
             3604      for a reasonably sufficient time before the information is relied upon to enable the general
             3605      partner to effect an amendment under Section 48-2d-202 , file a petition pursuant to Section
             3606      48-2d-205 , or deliver to the division for filing a statement of change pursuant to Section
             3607      16-17-206 or a statement of correction pursuant to Section 48-2d-207 .
             3608          (2) Signing a record authorized or required to be filed under this chapter constitutes an
             3609      affirmation under the penalties of perjury that the facts stated in the record are true.
             3610          Section 111. Section 48-2d-209 is enacted to read:
             3611          48-2d-209. Certificate of existence or authorization.
             3612          (1) The division, upon request and payment of the requisite fee, shall furnish a
             3613      certificate of existence for a limited partnership if the records filed in the division show that the


             3614      division has filed a certificate of limited partnership and has not filed a statement of
             3615      termination. A certificate of existence must state:
             3616          (a) the limited partnership's name;
             3617          (b) that it was duly formed under the laws of this state and the date of formation;
             3618          (c) whether all fees, taxes, and penalties due to the division under this chapter or other
             3619      law have been paid;
             3620          (d) whether the limited partnership's most recent annual report required by Section
             3621      48-2d-210 has been filed by the division;
             3622          (e) whether the division has administratively dissolved the limited partnership;
             3623          (f) whether the limited partnership's certificate of limited partnership has been
             3624      amended to state that the limited partnership is dissolved;
             3625          (g) that a statement of termination has not been filed by the division; and
             3626          (h) other facts of record in the division which may be requested by the applicant.
             3627          (2) The division, upon request and payment of the requisite fee, shall furnish a
             3628      certificate of authorization for a foreign limited partnership if the records filed in the division
             3629      show that the division has filed a certificate of authority, has not revoked the certificate of
             3630      authority, and has not filed a notice of cancellation. A certificate of authorization must state:
             3631          (a) the foreign limited partnership's name and any alternate name adopted under
             3632      Subsection 48-2d-905 (1) for use in this state;
             3633          (b) that it is authorized to transact business in this state;
             3634          (c) whether all fees, taxes, and penalties due to the division under this chapter or other
             3635      law have been paid;
             3636          (d) whether the foreign limited partnership's most recent annual report required by
             3637      Section 48-2d-210 has been filed by the division;
             3638          (e) that the division has not revoked its certificate of authority and has not filed a notice
             3639      of cancellation; and
             3640          (f) other facts of record in the division which may be requested by the applicant.
             3641          (3) Subject to any qualification stated in the certificate, a certificate of existence or


             3642      authorization issued by the division may be relied upon as conclusive evidence that the limited
             3643      partnership or foreign limited partnership is in existence or is authorized to transact business in
             3644      this state.
             3645          Section 112. Section 48-2d-210 is enacted to read:
             3646          48-2d-210. Annual report for division.
             3647          (1) A limited partnership or a foreign limited partnership authorized to transact
             3648      business in this state shall deliver to the division for filing an annual report that states:
             3649          (a) the name of the limited partnership or foreign limited partnership;
             3650          (b) the information required by Subsection 16-17-203 (1);
             3651          (c) in the case of a limited partnership, the street and mailing address of its principal
             3652      office; and
             3653          (d) in the case of a foreign limited partnership, the state or other jurisdiction under
             3654      whose law the foreign limited partnership is formed and any alternate name adopted under
             3655      Subsection 48-2d-905 (1).
             3656          (2) Information in an annual report must be current as of the date the annual report is
             3657      delivered to the division for filing.
             3658          (3) An annual report must be delivered to the division:
             3659          (a) during the month of its anniversary date of formation, in the case of domestic
             3660      limited partnerships; or
             3661          (b) during the month of the anniversary date of being granted authority to transact
             3662      business in this state, in the case of foreign limited partnerships authorized to transact business
             3663      in this state.
             3664          (4) If an annual report does not contain the information required in Subsection (1), the
             3665      division shall promptly notify the reporting limited partnership or foreign limited partnership
             3666      and return the report to it for correction. If the report is corrected to contain the information
             3667      required in Subsection (1) and delivered to the division within 30 days after the effective date
             3668      of the notice, it is timely delivered.
             3669          (5) If a filed annual report contains information provided under Subsection (1)(b)


             3670      which differs from the information shown in the records of the division immediately before the
             3671      filing, the differing information in the annual report is considered a statement of change under
             3672      Section 16-17-206 .
             3673          Section 113. Section 48-2d-301 is enacted to read:
             3674     
Part 3. Limited Partners

             3675          48-2d-301. Becoming limited partner.
             3676          A person becomes a limited partner:
             3677          (1) as provided in the partnership agreement;
             3678          (2) as the result of a conversion or merger under Part 11, Merger, Conversion, and
             3679      Domestication; or
             3680          (3) with the consent of all the partners.
             3681          Section 114. Section 48-2d-302 is enacted to read:
             3682          48-2d-302. No right or power as limited partner to bind limited partnership.
             3683          A limited partner does not have the right or the power as a limited partner to act for or
             3684      bind the limited partnership.
             3685          Section 115. Section 48-2d-303 is enacted to read:
             3686          48-2d-303. No liability as limited partner for limited partnership obligations.
             3687          (1) An obligation of a limited partnership, whether arising in contract, tort, or
             3688      otherwise, is not the obligation of a limited partner.
             3689          (2) A limited partner is not personally liable, directly or indirectly, by way of
             3690      contribution or otherwise, for an obligation of the limited partnership solely by reason of being
             3691      a limited partner, even if the limited partner participates in the management and control of the
             3692      limited partnership.
             3693          Section 116. Section 48-2d-304 is enacted to read:
             3694          48-2d-304. Right of limited partner and former limited partner to information.
             3695          (1) On 10 days' demand, made in a record received by the limited partnership, a limited
             3696      partner may inspect and copy required information during regular business hours in the limited
             3697      partnership's principal office. The limited partner need not have any particular purpose for


             3698      seeking the information.
             3699          (2) During regular business hours and at a reasonable location specified by the limited
             3700      partnership, a limited partner may obtain from the limited partnership and inspect and copy true
             3701      and full information regarding the state of the activities and financial condition of the limited
             3702      partnership and other information regarding the activities of the limited partnership as is just
             3703      and reasonable if:
             3704          (a) the limited partner seeks the information for a purpose reasonably related to the
             3705      partner's interest as a limited partner;
             3706          (b) the limited partner makes a demand in a record received by the limited partnership,
             3707      describing with reasonable particularity the information sought and the purpose for seeking the
             3708      information; and
             3709          (c) the information sought is directly connected to the limited partner's purpose.
             3710          (3) Within 10 days after receiving a demand pursuant to Subsection (2), the limited
             3711      partnership in a record shall inform the limited partner that made the demand:
             3712          (a) what information the limited partnership will provide in response to the demand;
             3713          (b) when and where the limited partnership will provide the information; and
             3714          (c) if the limited partnership declines to provide any demanded information, the limited
             3715      partnership's reasons for declining.
             3716          (4) Subject to Subsection (6), a person dissociated as a limited partner may inspect and
             3717      copy required information during regular business hours in the limited partnership's principle
             3718      office if:
             3719          (a) the information pertains to the period during which the person was a limited
             3720      partner;
             3721          (b) the person seeks the information in good faith; and
             3722          (c) the person meets the requirements of Subsection (2).
             3723          (5) The limited partnership shall respond to a demand made pursuant to Subsection (4)
             3724      in the same manner as provided in Subsection (3).
             3725          (6) If a limited partner dies, Section 48-2d-704 applies.


             3726          (7) The limited partnership may impose reasonable restrictions on the use of
             3727      information obtained under this section. In a dispute concerning the reasonableness of a
             3728      restriction under this Subsection (7), the limited partnership has the burden of proving
             3729      reasonableness.
             3730          (8) A limited partnership may charge a person that makes a demand under this section
             3731      reasonable costs of copying, limited to the costs of labor and material.
             3732          (9) Whenever this chapter or a partnership agreement provides for a limited partner to
             3733      give or withhold consent to a matter, before the consent is given or withheld, the limited
             3734      partnership shall, without demand, provide the limited partner with all information material to
             3735      the limited partner's decision that the limited partnership knows.
             3736          (10) A limited partner or person dissociated as a limited partner may exercise the rights
             3737      under this section through an attorney or other agent. Any restriction imposed under
             3738      Subsection (7) or by the partnership agreement applies both to the attorney or other agent and
             3739      to the limited partner or person dissociated as a limited partner.
             3740          (11) The rights stated in this section do not extend to a person as transferee, but may be
             3741      exercised by the legal representative of an individual under legal disability who is a limited
             3742      partner or person dissociated as a limited partner.
             3743          Section 117. Section 48-2d-305 is enacted to read:
             3744          48-2d-305. Limited duties of limited partners.
             3745          (1) (a) A limited partner does not have any fiduciary duty to the limited partnership or
             3746      to any other partner solely by reason of being a limited partner.
             3747          (b) Notwithstanding Subsection (1)(a), a limited partner has a duty of loyalty to the
             3748      limited partnership and the other partners to refrain from competing with the limited
             3749      partnership in the conduct or winding up of the limited partnership's activities.
             3750          (2) A limited partner shall discharge the duties to the partnership and the other partners
             3751      under this chapter or under the partnership agreement and exercise any rights consistently with
             3752      the obligation of good faith and fair dealing.
             3753          (3) A limited partner does not violate a duty or obligation under this chapter or under


             3754      the partnership agreement merely because the limited partner's conduct furthers the limited
             3755      partner's own interest.
             3756          Section 118. Section 48-2d-306 is enacted to read:
             3757          48-2d-306. Person erroneously believing self to be limited partner.
             3758          (1) Except as otherwise provided in Subsection (2), a person that makes an investment
             3759      in a business enterprise and erroneously but in good faith believes that the person has become a
             3760      limited partner in the enterprise is not liable for the enterprise's obligations by reason of making
             3761      the investment, receiving distributions from the enterprise, or exercising any rights of or
             3762      appropriate to a limited partner, if, on ascertaining the mistake, the person:
             3763          (a) causes an appropriate certificate of limited partnership, amendment, or statement of
             3764      correction to be signed and delivered to the division for filing; or
             3765          (b) withdraws from future participation as an owner in the enterprise by signing and
             3766      delivering to the division for filing a statement of withdrawal under this section.
             3767          (2) A person that makes an investment described in Subsection (1) is liable to the same
             3768      extent as a general partner to any third party that enters into a transaction with the enterprise,
             3769      believing in good faith that the person is a general partner, before the division files a statement
             3770      of withdrawal, certificate of limited partnership, amendment, or statement of correction to
             3771      show that the person is not a general partner.
             3772          (3) If a person makes a diligent effort in good faith to comply with Subsection (1)(a)
             3773      and is unable to cause the appropriate certificate of limited partnership, amendment, or
             3774      statement of correction to be signed and delivered to the division for filing, the person has the
             3775      right to withdraw from the enterprise pursuant to Subsection (1)(b) even if the withdrawal
             3776      would otherwise breach an agreement with others that are or have agreed to become co-owners
             3777      of the enterprise.
             3778          Section 119. Section 48-2d-401 is enacted to read:
             3779     
Part 4. General Partners

             3780          48-2d-401. Becoming general partner.
             3781          A person becomes a general partner:


             3782          (1) as provided in the partnership agreement;
             3783          (2) under Subsection 48-2d-801 (3)(b) following the dissociation of a limited
             3784      partnership's last general partner;
             3785          (3) as the result of a conversion or merger under Part 11, Merger, Conversion, and
             3786      Domestication; or
             3787          (4) with the consent of all the partners.
             3788          Section 120. Section 48-2d-402 is enacted to read:
             3789          48-2d-402. General partner agent of limited partnership.
             3790          (1) (a) Each general partner is an agent of the limited partnership for the purposes of its
             3791      activities.
             3792          (b) An act of a general partner, including the signing of a record in the partnership's
             3793      name, for apparently carrying on in the ordinary course the limited partnership's activities or
             3794      activities of the kind carried on by the limited partnership binds the limited partnership, unless
             3795      the general partner did not have authority to act for the limited partnership in the particular
             3796      matter and the person with which the general partner was dealing knew, had received a
             3797      notification, or had notice under Subsection 48-2d-103 (4) that the general partner lacked
             3798      authority.
             3799          (2) An act of a general partner which is not apparently for carrying on in the ordinary
             3800      course the limited partnership's activities or activities of the kind carried on by the limited
             3801      partnership binds the limited partnership only if the act was actually authorized by all the other
             3802      partners.
             3803          Section 121. Section 48-2d-403 is enacted to read:
             3804          48-2d-403. Limited partnership liable for general partner's actionable conduct.
             3805          (1) A limited partnership is liable for loss or injury caused to a person, or for a penalty
             3806      incurred, as a result of a wrongful act or omission, or other actionable conduct, of a general
             3807      partner acting in the ordinary course of activities of the limited partnership or with authority of
             3808      the limited partnership.
             3809          (2) If, in the course of the limited partnership's activities or while acting with authority


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


             3838      of the general partner to satisfy a judgment based on a claim against the limited partnership,
             3839      unless the partner is personally liable for the claim under Section 48-2d-404 and:
             3840          (a) a judgment based on the same claim has been obtained against the limited
             3841      partnership and a writ of execution on the judgment has been returned unsatisfied in whole or
             3842      in part;
             3843          (b) the limited partnership is a debtor in bankruptcy;
             3844          (c) the general partner has agreed that the creditor need not exhaust limited partnership
             3845      assets;
             3846          (d) a court grants permission to the judgment creditor to levy execution against the
             3847      assets of a general partner based on a finding that limited partnership assets subject to
             3848      execution are clearly insufficient to satisfy the judgment, that exhaustion of limited partnership
             3849      assets is excessively burdensome, or that the grant of permission is an appropriate exercise of
             3850      the court's equitable powers; or
             3851          (e) liability is imposed on the general partner by law or contract independent of the
             3852      existence of the limited partnership.
             3853          Section 124. Section 48-2d-406 is enacted to read:
             3854          48-2d-406. Management rights of general partner.
             3855          (1) Each general partner has equal rights in the management and conduct of the limited
             3856      partnership's activities. Except as expressly provided in this chapter, any matter relating to the
             3857      activities of the limited partnership may be exclusively decided by the general partner or, if
             3858      there is more than one general partner, by a majority of the general partners.
             3859          (2) The consent of each partner is necessary to:
             3860          (a) amend the partnership agreement;
             3861          (b) amend the certificate of limited partnership to add or, subject to Section
             3862      48-2d-1114 , delete a statement that the limited partnership is a limited liability limited
             3863      partnership; and
             3864          (c) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the limited
             3865      partnership's property, with or without the good will, other than in the usual and regular course


             3866      of the limited partnership's activities.
             3867          (3) A limited partnership shall reimburse a general partner for payments made and
             3868      indemnify a general partner for liabilities incurred by the general partner in the ordinary course
             3869      of the activities of the partnership or for the preservation of its activities or property.
             3870          (4) A limited partnership shall reimburse a general partner for an advance to the limited
             3871      partnership beyond the amount of capital the general partner agreed to contribute.
             3872          (5) A payment or advance made by a general partner which gives rise to an obligation
             3873      of the limited partnership under Subsection (3) or (4) constitutes a loan to the limited
             3874      partnership which accrues interest from the date of the payment or advance.
             3875          (6) A general partner is not entitled to remuneration for services performed for the
             3876      partnership.
             3877          Section 125. Section 48-2d-407 is enacted to read:
             3878          48-2d-407. Right of general partner and former general partner to information.
             3879          (1) A general partner, without having any particular purpose for seeking the
             3880      information, may inspect and copy during regular business hours:
             3881          (a) in the limited partnership's principal office, required information; and
             3882          (b) at a reasonable location specified by the limited partnership, any other records
             3883      maintained by the limited partnership regarding the limited partnership's activities and financial
             3884      condition.
             3885          (2) Each general partner and the limited partnership shall furnish to a general partner:
             3886          (a) without demand, any information concerning the limited partnership's activities and
             3887      activities reasonably required for the proper exercise of the general partner's rights and duties
             3888      under the partnership agreement or this chapter; and
             3889          (b) on demand, any other information concerning the limited partnership's activities,
             3890      except to the extent the demand or the information demanded is unreasonable or otherwise
             3891      improper under the circumstances.
             3892          (3) Subject to Subsection (5), on 10 days' demand made in a record received by the
             3893      limited partnership, a person dissociated as a general partner may have access to the


             3894      information and records described in Subsection (1) at the location specified in Subsection (1)
             3895      if:
             3896          (a) the information or record pertains to the period during which the person was a
             3897      general partner;
             3898          (b) the person seeks the information or record in good faith; and
             3899          (c) the person satisfies the requirements imposed on a limited partner by Subsection
             3900      48-2d-304 (2).
             3901          (4) The limited partnership shall respond to a demand made pursuant to Subsection (3)
             3902      in the same manner as provided in Subsection 48-2d-304 (3).
             3903          (5) If a general partner dies, Section 48-2d-704 applies.
             3904          (6) The limited partnership may impose reasonable restrictions on the use of
             3905      information under this section. In any dispute concerning the reasonableness of a restriction
             3906      under this Subsection (6), the limited partnership has the burden of proving reasonableness.
             3907          (7) A limited partnership may charge a person dissociated as a general partner that
             3908      makes a demand under this section reasonable costs of copying, limited to the costs of labor
             3909      and material.
             3910          (8) A general partner or person dissociated as a general partner may exercise the rights
             3911      under this section through an attorney or other agent. Any restriction imposed under
             3912      Subsection (6) or by the partnership agreement applies both to the attorney or other agent and
             3913      to the general partner or person dissociated as a general partner.
             3914          (9) The rights under this section do not extend to a person as transferee, but the rights
             3915      under Subsection (3) of a person dissociated as a general may be exercised by the legal
             3916      representative of an individual who dissociated as a general partner under Subsection
             3917      48-2d-603 (7)(b) or (c).
             3918          Section 126. Section 48-2d-408 is enacted to read:
             3919          48-2d-408. General standards of general partner's conduct.
             3920          (1) The only fiduciary duties that a general partner has to the limited partnership and
             3921      the other partners are the duties of loyalty and care under Subsections (2) and (3).


             3922          (2) A general partner's duty of loyalty to the limited partnership and the other partners
             3923      is limited to the following:
             3924          (a) to account to the limited partnership and hold as trustee for it any property, profit,
             3925      or benefit derived by the general partner in the conduct and winding up of the limited
             3926      partnership's activities or derived from a use by the general partner of limited partnership
             3927      property, including the appropriation of a limited partnership opportunity;
             3928          (b) to refrain from dealing with the limited partnership in the conduct or winding up of
             3929      the limited partnership's activities as or on behalf of a party having an interest adverse to the
             3930      limited partnership; and
             3931          (c) to refrain from competing with the limited partnership in the conduct or winding up
             3932      of the limited partnership's activities.
             3933          (3) The duty of care of a general partner to the limited partnership and the other
             3934      partners in the conduct and winding up of the limited partnership's activities is to refrain from
             3935      conduct or inaction that constitutes:
             3936          (a) gross negligence;
             3937          (b) intentional misconduct; or
             3938          (c) an intentional violation of law.
             3939          (4) A general partner shall discharge the duties to the partnership and the other partners
             3940      under this chapter or under the partnership agreement and exercise any rights consistently with
             3941      the obligation of good faith and fair dealing.
             3942          (5) A general partner does not violate a duty or obligation under this chapter or under
             3943      the partnership agreement merely because the general partner's conduct furthers the general
             3944      partner's own interest.
             3945          Section 127. Section 48-2d-501 is enacted to read:
             3946     
Part 5. Contributions and Distributions

             3947          48-2d-501. Form of contribution.
             3948          A contribution of a partner may consist of tangible or intangible property or other
             3949      benefit to the limited partnership, including money, services performed, promissory notes,


             3950      other agreements to contribute cash or property, and contracts for services to be performed.
             3951          Section 128. Section 48-2d-502 is enacted to read:
             3952          48-2d-502. Liability for contribution.
             3953          (1) (a) A partner's obligation to contribute money or other property or other benefit to,
             3954      or to perform services for, a limited partnership is not excused by the partner's death, disability,
             3955      or other inability to perform personally.
             3956          (b) Notwithstanding Subsection (1)(a), a limited partnership's partnership agreement
             3957      may provide for a partner's obligation to contribute to be excused by the death of the partner.
             3958          (2) If a partner does not make a promised non-monetary contribution, the partner is
             3959      obligated at the option of the limited partnership to contribute money equal to that portion of
             3960      the value, as stated in the required information, of the stated contribution which has not been
             3961      made.
             3962          (3) The obligation of a partner to make a contribution or return money or other
             3963      property paid or distributed in violation of this chapter may be compromised only by consent of
             3964      all partners. A creditor of a limited partnership which extends credit or otherwise acts in
             3965      reliance on an obligation described in Subsection (2), without notice of any compromise under
             3966      this Subsection (3), may enforce the original obligation.
             3967          Section 129. Section 48-2d-503 is enacted to read:
             3968          48-2d-503. Sharing of distributions.
             3969          A distribution by a limited partnership must be shared among the partners on the basis
             3970      of the value, as stated in the required records when the limited partnership decides to make the
             3971      distribution, of the contributions the limited partnership has received from each partner.
             3972          Section 130. Section 48-2d-504 is enacted to read:
             3973          48-2d-504. Interim distributions.
             3974          A partner does not have a right to any distribution before the dissolution and winding
             3975      up of the limited partnership unless the limited partnership decides to make an interim
             3976      distribution.
             3977          Section 131. Section 48-2d-505 is enacted to read:


             3978          48-2d-505. No distribution on account of dissociation.
             3979          A person does not have a right to receive a distribution on account of dissociation.
             3980          Section 132. Section 48-2d-506 is enacted to read:
             3981          48-2d-506. Distribution in kind.
             3982          A partner does not have a right to demand or receive any distribution from a limited
             3983      partnership in any form other than cash. Subject to Subsection 48-2d-812 (2), a limited
             3984      partnership may distribute an asset in kind to the extent each partner receives a percentage of
             3985      the asset equal to the partner's share of distributions.
             3986          Section 133. Section 48-2d-507 is enacted to read:
             3987          48-2d-507. Right to distribution.
             3988          When a partner or transferee becomes entitled to receive a distribution, the partner or
             3989      transferee has the status of, and is entitled to all remedies available to, a creditor of the limited
             3990      partnership with respect to the distribution. However, the limited partnership's obligation to
             3991      make a distribution is subject to offset for any amount owed to the limited partnership by the
             3992      partner or dissociated partner on whose account the distribution is made.
             3993          Section 134. Section 48-2d-508 is enacted to read:
             3994          48-2d-508. Limitations on distribution.
             3995          (1) A limited partnership may not make a distribution in violation of the partnership
             3996      agreement.
             3997          (2) A limited partnership may not make a distribution if after the distribution:
             3998          (a) the limited partnership would not be able to pay its debts as they become due in the
             3999      ordinary course of the limited partnership's activities; or
             4000          (b) the limited partnership's total assets would be less than the sum of its total liabilities
             4001      plus the amount that would be needed, if the limited partnership were to be dissolved, wound
             4002      up, and terminated at the time of the distribution, to satisfy the preferential rights upon
             4003      dissolution, winding up, and termination of partners whose preferential rights are superior to
             4004      those of persons receiving the distribution.
             4005          (3) A limited partnership may base a determination that a distribution is not prohibited


             4006      under Subsection (2) on financial statements prepared on the basis of accounting practices and
             4007      principles that are reasonable in the circumstances or on a fair valuation or other method that is
             4008      reasonable in the circumstances.
             4009          (4) Except as otherwise provided in Subsection (7), the effect of a distribution under
             4010      Subsection (2) is measured:
             4011          (a) in the case of distribution by purchase, redemption, or other acquisition of a
             4012      transferable interest in the limited partnership, as of the date money or other property is
             4013      transferred or debt incurred by the limited partnership; and
             4014          (b) in all other cases, as of the date:
             4015          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             4016      or
             4017          (ii) the payment is made, if payment occurs more than 120 days after the distribution is
             4018      authorized.
             4019          (5) A limited partnership's indebtedness to a partner incurred by reason of a
             4020      distribution made in accordance with this section is at parity with the limited partnership's
             4021      indebtedness to its general, unsecured creditors.
             4022          (6) A limited partnership's indebtedness, including indebtedness issued in connection
             4023      with or as part of a distribution, is not considered a liability for purposes of Subsection (2) if
             4024      the terms of the indebtedness provide that payment of principal and interest are made only to
             4025      the extent that a distribution could then be made to partners under this section.
             4026          (7) If indebtedness is issued as a distribution, each payment of principal or interest on
             4027      the indebtedness is treated as a distribution, the effect of which is measured on the date the
             4028      payment is made.
             4029          Section 135. Section 48-2d-509 is enacted to read:
             4030          48-2d-509. Liability for improper distributions.
             4031          (1) A general partner that consents to a distribution made in violation of Section
             4032      48-2d-508 is personally liable to the limited partnership for the amount of the distribution
             4033      which exceeds the amount that could have been distributed without the violation if it is


             4034      established that in consenting to the distribution the general partner failed to comply with
             4035      Section 48-2d-408 .
             4036          (2) A partner or transferee that received a distribution knowing that the distribution to
             4037      that partner or transferee was made in violation of Section 48-2d-508 is personally liable to the
             4038      limited partnership but only to the extent that the distribution received by the partner or
             4039      transferee exceeded the amount that could have been properly paid under Section 48-2d-508 .
             4040          (3) A general partner against which an action is commenced under Subsection (1) may:
             4041          (a) implead in the action any other person that is liable under Subsection (1) and
             4042      compel contribution from the person; and
             4043          (b) implead in the action any person that received a distribution in violation of
             4044      Subsection (2) and compel contribution from the person in the amount the person received in
             4045      violation of Subsection (2).
             4046          (4) An action under this section is barred if it is not commenced within two years after
             4047      the distribution.
             4048          Section 136. Section 48-2d-601 is enacted to read:
             4049     
Part 6. Dissociation

             4050          48-2d-601. Dissociation as limited partner.
             4051          (1) A person does not have a right to dissociate as a limited partner before the
             4052      termination of the limited partnership.
             4053          (2) A person is dissociated from a limited partnership as a limited partner upon the
             4054      occurrence of any of the following events:
             4055          (a) the limited partnership's having notice of the person's express will to withdraw as a
             4056      limited partner or on a later date specified by the person;
             4057          (b) an event agreed to in the partnership agreement as causing the person's dissociation
             4058      as a limited partner;
             4059          (c) the person's expulsion as a limited partner pursuant to the partnership agreement;
             4060          (d) the person's expulsion as a limited partner by the unanimous consent of the other
             4061      partners if:


             4062          (i) it is unlawful to carry on the limited partnership's activities with the person as a
             4063      limited partner;
             4064          (ii) there has been a transfer of all of the person's transferable interest in the limited
             4065      partnership, other than a transfer for security purposes, or a court order charging the person's
             4066      interest, which has not been foreclosed;
             4067          (iii) the person is a corporation and, within 90 days after the limited partnership
             4068      notifies the person that it will be expelled as a limited partner because it has filed a certificate
             4069      of dissolution or the equivalent, its charter has been revoked, or its right to conduct business
             4070      has been suspended by the jurisdiction of its incorporation, there is no revocation of the
             4071      certificate of dissolution or no reinstatement of its charter or its right to conduct business; or
             4072          (iv) the person is a limited liability company or partnership that has been dissolved and
             4073      whose business is being wound up;
             4074          (e) on application by the limited partnership, the person's expulsion as a limited partner
             4075      by judicial order because:
             4076          (i) the person engaged in wrongful conduct that adversely and materially affected the
             4077      limited partnership's activities;
             4078          (ii) the person willfully or persistently committed a material breach of the partnership
             4079      agreement or of the obligation of good faith and fair dealing under Subsection 48-2d-305 (2); or
             4080          (iii) the person engaged in conduct relating to the limited partnership's activities which
             4081      makes it not reasonably practicable to carry on the activities with the person as limited partner;
             4082          (f) in the case of a person who is an individual, the person's death;
             4083          (g) in the case of a person that is a trust or is acting as a limited partner by virtue of
             4084      being a trustee of a trust, distribution of the trust's entire transferable interest in the limited
             4085      partnership, but not merely by reason of the substitution of a successor trustee;
             4086          (h) in the case of a person that is an estate or is acting as a limited partner by virtue of
             4087      being a personal representative of an estate, distribution of the estate's entire transferable
             4088      interest in the limited partnership, but not merely by reason of the substitution of a successor
             4089      personal representative;


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


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


             4146          (b) execution of an assignment for the benefit of creditors;
             4147          (c) seeking, consenting to, or acquiescing in the appointment of a trustee, receiver, or
             4148      liquidator of the person or of all or substantially all of the person's property; or
             4149          (d) failure, within 90 days after the appointment, to have vacated or stayed the
             4150      appointment of a trustee, receiver, or liquidator of the general partner or of all or substantially
             4151      all of the person's property obtained without the person's consent or acquiescence, or failing
             4152      within 90 days after the expiration of a stay to have the appointment vacated;
             4153          (7) in the case of a person who is an individual:
             4154          (a) the person's death;
             4155          (b) the appointment of a guardian or general conservator for the person; or
             4156          (c) a judicial determination that the person has otherwise become incapable of
             4157      performing the person's duties as a general partner under the partnership agreement;
             4158          (8) in the case of a person that is a trust or is acting as a general partner by virtue of
             4159      being a trustee of a trust, distribution of the trust's entire transferable interest in the limited
             4160      partnership, but not merely by reason of the substitution of a successor trustee;
             4161          (9) in the case of a person that is an estate or is acting as a general partner by virtue of
             4162      being a personal representative of an estate, distribution of the estate's entire transferable
             4163      interest in the limited partnership, but not merely by reason of the substitution of a successor
             4164      personal representative;
             4165          (10) termination of a general partner that is not an individual, partnership, limited
             4166      liability company, corporation, trust, or estate; or
             4167          (11) the limited partnership's participation in a conversion or merger under Part 11,
             4168      Merger, Conversion, and Domestication, if the limited partnership:
             4169          (a) is not the converted or surviving entity; or
             4170          (b) is the converted or surviving entity but, as a result of the conversion or merger, the
             4171      person ceases to be a general partner.
             4172          Section 139. Section 48-2d-604 is enacted to read:
             4173          48-2d-604. Person's power to dissociate as general partner -- Wrongful


             4174      dissociation.
             4175          (1) A person has the power to dissociate as a general partner at any time, rightfully or
             4176      wrongfully, by express will pursuant to Subsection 48-2d-603 (1).
             4177          (2) A person's dissociation as a general partner is wrongful only if:
             4178          (a) it is in breach of an express provision of the partnership agreement; or
             4179          (b) it occurs before the termination of the limited partnership, and:
             4180          (i) the person withdraws as a general partner by express will;
             4181          (ii) the person is expelled as a general partner by judicial determination under
             4182      Subsection 48-2d-603 (5);
             4183          (iii) the person is dissociated as a general partner by becoming a debtor in bankruptcy;
             4184      or
             4185          (iv) in the case of a person that is not an individual, trust other than a business trust, or
             4186      estate, the person is expelled or otherwise dissociated as a general partner because it willfully
             4187      dissolved or terminated.
             4188          (3) A person that wrongfully dissociates as a general partner is liable to the limited
             4189      partnership and, subject to Section 48-2d-1001 , to the other partners for damages caused by the
             4190      dissociation. The liability is in addition to any other obligation of the general partner to the
             4191      limited partnership or to the other partners.
             4192          Section 140. Section 48-2d-605 is enacted to read:
             4193          48-2d-605. Effect of dissociation as general partner.
             4194          (1) Upon a person's dissociation as a general partner:
             4195          (a) the person's right to participate as a general partner in the management and conduct
             4196      of the partnership's activities terminates;
             4197          (b) the person's duty of loyalty as a general partner under Subsection 48-2d-408 (2)(c)
             4198      terminates;
             4199          (c) the person's duty of loyalty as a general partner under Subsections 48-2d-408 (2)(a)
             4200      and (b) and duty of care under Subsection 48-2d-408 (3) continue only with regard to matters
             4201      arising and events occurring before the person's dissociation as a general partner;


             4202          (d) the person may sign and deliver to the division for filing a statement of dissociation
             4203      pertaining to the person and, at the request of the limited partnership, shall sign an amendment
             4204      to the certificate of limited partnership which states that the person has dissociated; and
             4205          (e) subject to Section 48-2d-704 and Part 11, Merger, Conversion, and Domestication,
             4206      any transferable interest owned by the person immediately before dissociation in the person's
             4207      capacity as a general partner is owned by the person as a mere transferee.
             4208          (2) A person's dissociation as a general partner does not of itself discharge the person
             4209      from any obligation to the limited partnership or the other partners which the person incurred
             4210      while a general partner.
             4211          Section 141. Section 48-2d-606 is enacted to read:
             4212          48-2d-606. Power to bind and liability to limited partnership before dissolution of
             4213      partnership of person dissociated as general partner.
             4214          (1) After a person is dissociated as a general partner and before the limited partnership
             4215      is dissolved, converted under Part 11, Merger, Conversion, and Domestication, or merged out
             4216      of existence under Part 11, the limited partnership is bound by an act of the person only if:
             4217          (a) the act would have bound the limited partnership under Section 48-2d-402 before
             4218      the dissociation; and
             4219          (b) at the time the other party enters into the transaction:
             4220          (i) less than two years have passed since the dissociation; and
             4221          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4222      the person is a general partner.
             4223          (2) If a limited partnership is bound under Subsection (1), the person dissociated as a
             4224      general partner which caused the limited partnership to be bound is liable:
             4225          (a) to the limited partnership for any damage caused to the limited partnership arising
             4226      from the obligation incurred under Subsection (1); and
             4227          (b) if a general partner or another person dissociated as a general partner is liable for
             4228      the obligation, to the general partner or other person for any damage caused to the general
             4229      partner or other person arising from the liability.


             4230          Section 142. Section 48-2d-607 is enacted to read:
             4231          48-2d-607. Liability to other persons of person dissociated as general partner.
             4232          (1) A person's dissociation as a general partner does not of itself discharge the person's
             4233      liability as a general partner for an obligation of the limited partnership incurred before
             4234      dissociation. Except as otherwise provided in Subsections (2) and (3), the person is not liable
             4235      for a limited partnership's obligation incurred after dissociation.
             4236          (2) A person whose dissociation as a general partner resulted in a dissolution and
             4237      winding up of the limited partnership's activities is liable to the same extent as a general partner
             4238      under Section 48-2d-404 on an obligation incurred by the limited partnership under Section
             4239      48-2d-804 .
             4240          (3) A person that has dissociated as a general partner but whose dissociation did not
             4241      result in a dissolution and winding up of the limited partnership's activities is liable on a
             4242      transaction entered into by the limited partnership after the dissociation only if:
             4243          (a) a general partner would be liable on the transaction; and
             4244          (b) at the time the other party enters into the transaction:
             4245          (i) less than two years have passed since the dissociation; and
             4246          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4247      the person is a general partner.
             4248          (4) By agreement with a creditor of a limited partnership and the limited partnership, a
             4249      person dissociated as a general partner may be released from liability for an obligation of the
             4250      limited partnership.
             4251          (5) A person dissociated as a general partner is released from liability for an obligation
             4252      of the limited partnership if the limited partnership's creditor, with notice of the person's
             4253      dissociation as a general partner but without the person's consent, agrees to a material alteration
             4254      in the nature or time of payment of the obligation.
             4255          Section 143. Section 48-2d-701 is enacted to read:
             4256     
Part 7. Transferable Interests and Rights of Transferees and Creditors

             4257          48-2d-701. Partner's transferable interest.


             4258          The only interest of a partner which is transferable is the partner's transferable interest.
             4259      A transferable interest is personal property.
             4260          Section 144. Section 48-2d-702 is enacted to read:
             4261          48-2d-702. Transfer of partner's transferable interest.
             4262          (1) A transfer, in whole or in part, of a partner's transferable interest:
             4263          (a) is permissible;
             4264          (b) does not by itself cause the partner's dissociation or a dissolution and winding up of
             4265      the limited partnership's activities; and
             4266          (c) does not, as against the other partners or the limited partnership, entitle the
             4267      transferee to participate in the management or conduct of the limited partnership's activities, to
             4268      require access to information concerning the limited partnership's transactions except as
             4269      otherwise provided in Subsection (3), or to inspect or copy the required information or the
             4270      limited partnership's other records.
             4271          (2) A transferee has a right to receive, in accordance with the transfer:
             4272          (a) distributions to which the transferor would otherwise be entitled; and
             4273          (b) upon the dissolution and winding up of the limited partnership's activities the net
             4274      amount otherwise distributable to the transferor.
             4275          (3) In a dissolution and winding up, a transferee is entitled to an account of the limited
             4276      partnership's transactions only from the date of dissolution.
             4277          (4) Upon transfer, the transferor retains the rights of a partner other than the interest in
             4278      distributions transferred and retains all duties and obligations of a partner.
             4279          (5) A limited partnership need not give effect to a transferee's rights under this section
             4280      until the limited partnership has notice of the transfer.
             4281          (6) A transfer of a partner's transferable interest in the limited partnership in violation
             4282      of a restriction on transfer contained in the partnership agreement is ineffective as to a person
             4283      having notice of the restriction at the time of transfer.
             4284          (7) A transferee that becomes a partner with respect to a transferable interest is liable
             4285      for the transferor's obligations under Sections 48-2d-502 and 48-2d-509 . However, the


             4286      transferee is not obligated for liabilities unknown to the transferee at the time the transferee
             4287      became a partner.
             4288          Section 145. Section 48-2d-703 is enacted to read:
             4289          48-2d-703. Rights of creditor of partner or transferee.
             4290          (1) (a) On application to a district court by any judgment creditor of a partner or
             4291      transferee, the court may charge the transferable interest of the judgment debtor with payment
             4292      of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment
             4293      creditor has only the rights of a transferee.
             4294          (b) The court may appoint a receiver of the share of the distributions due or to become
             4295      due to the judgment debtor in respect of the partnership and make all other orders, directions,
             4296      accounts, and inquiries the judgment debtor might have made or which the circumstances of
             4297      the case may require to give effect to the charging order.
             4298          (2) A charging order constitutes a lien on the judgment debtor's transferable interest.
             4299      The court may order a foreclosure upon the interest subject to the charging order at any time.
             4300      The purchaser at the foreclosure sale has the rights of a transferee.
             4301          (3) At any time before foreclosure, an interest charged may be redeemed:
             4302          (a) by the judgment debtor;
             4303          (b) with property other than limited partnership property, by one or more of the other
             4304      partners; or
             4305          (c) with limited partnership property, by the limited partnership with the consent of all
             4306      partners whose interests are not so charged.
             4307          (4) This chapter does not deprive any partner or transferee of the benefit of any
             4308      exemption laws applicable to the partner's or transferee's transferable interest.
             4309          (5) This section provides the exclusive remedy by which a judgment creditor of a
             4310      partner or transferee may satisfy a judgment out of the judgment debtor's transferable interest.
             4311          Section 146. Section 48-2d-704 is enacted to read:
             4312          48-2d-704. Power of estate of deceased partner.
             4313          If a partner dies, the deceased partner's personal representative or other legal


             4314      representative may exercise the rights of a transferee as provided in Section 48-2d-702 and, for
             4315      the purposes of settling the estate, may exercise the rights of a current limited partner under
             4316      Section 48-2d-304 .
             4317          Section 147. Section 48-2d-801 is enacted to read:
             4318     
Part 8. Dissolution

             4319          48-2d-801. Nonjudicial dissolution.
             4320          Except as otherwise provided in Section 48-2d-802 , a limited partnership is dissolved,
             4321      and its activities must be wound up, only upon the occurrence of any of the following:
             4322          (1) the happening of an event specified in the partnership agreement;
             4323          (2) the consent of all general partners and of limited partners owning a majority of the
             4324      rights to receive distributions as limited partners at the time the consent is to be effective;
             4325          (3) after the dissociation of a person as a general partner:
             4326          (a) if the limited partnership has at least one remaining general partner, the consent to
             4327      dissolve the limited partnership given within 90 days after the dissociation by partners owning
             4328      a majority of the rights to receive distributions as partners at the time the consent is to be
             4329      effective; or
             4330          (b) if the limited partnership does not have a remaining general partner, the passage of
             4331      90 days after the dissociation, unless before the end of the period:
             4332          (i) consent to continue the activities of the limited partnership and admit at least one
             4333      general partner is given by limited partners owning a majority of the rights to receive
             4334      distributions as limited partners at the time the consent is to be effective; and
             4335          (ii) at least one person is admitted as a general partner in accordance with the consent
             4336      effective as of the last date the last person to have been a general partner ceases to be a general
             4337      partner;
             4338          (4) the passage of 90 days after the dissociation of the limited partnership's last limited
             4339      partner, unless before the end of the period the limited partnership admits at least one limited
             4340      partner; or
             4341          (5) the signing and filing of a declaration of dissolution by the division under


             4342      Subsection 48-2d-809 (3).
             4343          Section 148. Section 48-2d-802 is enacted to read:
             4344          48-2d-802. Judicial dissolution.
             4345          On application by a partner the court of appropriate jurisdiction may order dissolution
             4346      of a limited partnership if it is not reasonably practicable to carry on the activities of the limited
             4347      partnership in conformity with the partnership agreement.
             4348          Section 149. Section 48-2d-803 is enacted to read:
             4349          48-2d-803. Winding up.
             4350          (1) A limited partnership continues after dissolution only for the purpose of winding up
             4351      its activities.
             4352          (2) In winding up its activities, the limited partnership:
             4353          (a) may amend its certificate of limited partnership to state that the limited partnership
             4354      is dissolved, preserve the limited partnership business or property as a going concern for a
             4355      reasonable time, prosecute and defend actions and proceedings, whether civil, criminal, or
             4356      administrative, transfer the limited partnership's property, settle disputes by mediation or
             4357      arbitration, file a statement of termination as provided in Section 48-2d-203 , and perform other
             4358      necessary acts; and
             4359          (b) shall discharge the limited partnership's liabilities, settle and close the limited
             4360      partnership's activities, and marshal and distribute the assets of the partnership.
             4361          (3) If a dissolved limited partnership does not have a general partner, a person to wind
             4362      up the dissolved limited partnership's activities may be appointed by the consent of limited
             4363      partners owning a majority of the rights to receive distributions as limited partners at the time
             4364      the consent is to be effective. A person appointed under this Subsection (3):
             4365          (a) has the powers of a general partner under Section 48-2d-804 ; and
             4366          (b) shall promptly amend the certificate of limited partnership to state:
             4367          (i) that the limited partnership does not have a general partner;
             4368          (ii) the name of the person that has been appointed to wind up the limited partnership;
             4369      and


             4370          (iii) the street and mailing address of the person.
             4371          (4) On the application of any partner, a district court may order judicial supervision of
             4372      the winding up, including the appointment of a person to wind up the dissolved limited
             4373      partnership's activities, if:
             4374          (a) a limited partnership does not have a general partner and within a reasonable time
             4375      following the dissolution no person has been appointed pursuant to Subsection (3); or
             4376          (b) the applicant establishes other good cause.
             4377          Section 150. Section 48-2d-804 is enacted to read:
             4378          48-2d-804. Power of general partner and person dissociated as general partner to
             4379      bind partnership after dissolution.
             4380          (1) A limited partnership is bound by a general partner's act after dissolution which:
             4381          (a) is appropriate for winding up the limited partnership's activities; or
             4382          (b) would have bound the limited partnership under Section 48-2d-402 before
             4383      dissolution, if, at the time the other party enters into the transaction, the other party does not
             4384      have notice of the dissolution.
             4385          (2) A person dissociated as a general partner binds a limited partnership through an act
             4386      occurring after dissolution if:
             4387          (a) at the time the other party enters into the transaction:
             4388          (i) less than two years have passed since the dissociation; and
             4389          (ii) the other party does not have notice of the dissociation and reasonably believes that
             4390      the person is a general partner; and
             4391          (b) the act:
             4392          (i) is appropriate for winding up the limited partnership's activities; or
             4393          (ii) would have bound the limited partnership under Section 48-2d-402 before
             4394      dissolution and at the time the other party enters into the transaction the other party does not
             4395      have notice of the dissolution.
             4396          Section 151. Section 48-2d-805 is enacted to read:
             4397          48-2d-805. Liability after dissolution of general partner and person dissociated as


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


             4426      the notice, by which the dissolved limited partnership must receive the claim; and
             4427          (d) state that, unless sooner barred by another state statute limiting actions, the claim
             4428      will be barred if not received by the deadline.
             4429          (3) Unless sooner barred by another statute limiting actions, a claim against the
             4430      dissolved limited partnership is barred if:
             4431          (a) a claimant was given notice under Subsection (2) and the claim is not received by
             4432      the dissolved limited partnership by the deadline; or
             4433          (b) the dissolved limited partnership delivers to the claimant written notice of rejection
             4434      of the claim within 90 days after receipt of the claim and the claimant whose claim was
             4435      rejected by the dissolved limited partnership does not commence a proceeding to enforce the
             4436      claim within 90 days after the effective date of the rejection notice.
             4437          (4) Claims that are not rejected by the dissolved limited partnership in writing within
             4438      90 days after receipt of the claim by the dissolved limited partnership are considered approved.
             4439          (5) The failure of the dissolved limited partnership to give notice to any known
             4440      claimant pursuant to Subsection (2) does not affect the disposition under this section of any
             4441      claim held by any other known claimant.
             4442          (6) This section does not apply to a claim based on an event occurring after the
             4443      effective date of dissolution or a liability that is contingent on that date.
             4444          Section 153. Section 48-2d-807 is enacted to read:
             4445          48-2d-807. Other claims against dissolved limited partnership.
             4446          (1) A dissolved limited partnership may publish notice of its dissolution and request
             4447      persons having claims against the limited partnership to present them in accordance with the
             4448      notice.
             4449          (2) The notice must:
             4450          (a) be published:
             4451          (i) at least once in a newspaper of general circulation in the county in which the
             4452      dissolved limited partnership's principal office is located or, if it has none in this state, in Salt
             4453      Lake County; and


             4454          (ii) in accordance with Section 45-1-101 ;
             4455          (b) describe the information required to be contained in a claim and provide a mailing
             4456      address to which the claim is to be sent;
             4457          (c) state that a claim against the limited partnership is barred unless an action to
             4458      enforce the claim is commenced within five years after publication of the notice; and
             4459          (d) unless the limited partnership has been throughout its existence a limited liability
             4460      limited partnership, state that the barring of a claim against the limited partnership will also bar
             4461      any corresponding claim against any general partner or person dissociated as a general partner
             4462      which is based on Section 48-2d-404 .
             4463          (3) If a dissolved limited partnership publishes a notice in accordance with Subsection
             4464      (2), the claim of each of the following claimants is barred unless the claimant commences an
             4465      action to enforce the claim against the dissolved limited partnership within five years after the
             4466      publication date of the notice:
             4467          (a) a claimant that did not receive notice in a record under Section 48-2d-806 ;
             4468          (b) a claimant whose claim was timely sent to the dissolved limited partnership but not
             4469      acted on; and
             4470          (c) a claimant whose claim is contingent or based on an event occurring after the
             4471      effective date of dissolution.
             4472          (4) A claim not barred under this section may be enforced:
             4473          (a) against the dissolved limited partnership, to the extent of its undistributed assets;
             4474          (b) if the assets have been distributed in liquidation, against a partner or transferee to
             4475      the extent of that person's proportionate share of the claim or the limited partnership's assets
             4476      distributed to the partner or transferee in liquidation, whichever is less, but a person's total
             4477      liability for all claims under this Subsection (4)(b) does not exceed the total amount of assets
             4478      distributed to the person as part of the winding up of the dissolved limited partnership; or
             4479          (c) against any person liable on the claim under Section 48-2d-404 .
             4480          Section 154. Section 48-2d-808 is enacted to read:
             4481          48-2d-808. Liability of general partner and person dissociated as general partner


             4482      when claim against limited partnership barred.
             4483          If a claim against a dissolved limited partnership is barred under Section 48-2d-806 or
             4484      48-2d-807 , any corresponding claim under Section 48-2d-404 is also barred.
             4485          Section 155. Section 48-2d-809 is enacted to read:
             4486          48-2d-809. Administrative dissolution.
             4487          (1) The division may dissolve a limited partnership administratively if the limited
             4488      partnership does not, within 60 days after the due date:
             4489          (a) pay any fee, tax, or penalty due to the division under this chapter or other law; or
             4490          (b) deliver its annual report to the division.
             4491          (2) If the division determines that a ground exists for administratively dissolving a
             4492      limited partnership, the division shall file a record of the determination and serve the limited
             4493      partnership with a copy of the filed record.
             4494          (3) If within 60 days after service of the copy the limited partnership does not correct
             4495      each ground for dissolution or demonstrate to the reasonable satisfaction of the division that
             4496      each ground determined by the division does not exist, the division shall administratively
             4497      dissolve the limited partnership by preparing, signing, and filing a declaration of dissolution
             4498      that states the grounds for dissolution. The division shall serve the limited partnership with a
             4499      copy of the filed declaration.
             4500          (4) A limited partnership administratively dissolved continues its existence but may
             4501      carry on only activities necessary to wind up its activities and liquidate its assets under Sections
             4502      48-2d-803 and 48-2d-812 and to notify claimants under Sections 48-2d-806 and 48-2d-807 .
             4503          (5) The administrative dissolution of a limited partnership does not terminate the
             4504      authority of its agent for service of process.
             4505          Section 156. Section 48-2d-810 is enacted to read:
             4506          48-2d-810. Reinstatement following administrative dissolution.
             4507          (1) A limited partnership that has been administratively dissolved may apply to the
             4508      division for reinstatement within two years after the effective date of dissolution. The
             4509      application must be delivered to the division for filing and state:


             4510          (a) the name of the limited partnership and the effective date of its administrative
             4511      dissolution;
             4512          (b) that the grounds for dissolution either did not exist or have been eliminated; and
             4513          (c) that the limited partnership's name satisfies the requirements of Section 48-2d-108 .
             4514          (2) If the division determines that an application contains the information required by
             4515      Subsection (1) and that the information is correct, the division shall prepare a declaration of
             4516      reinstatement that states this determination, sign and file the original of the declaration of
             4517      reinstatement, and serve the limited partnership with a copy.
             4518          (3) When reinstatement becomes effective, it relates back to and takes effect as of the
             4519      effective date of the administrative dissolution and the limited partnership may resume its
             4520      activities as if the administrative dissolution had never occurred.
             4521          Section 157. Section 48-2d-811 is enacted to read:
             4522          48-2d-811. Appeal from denial of reinstatement.
             4523          (1) If the division denies a limited partnership's application for reinstatement following
             4524      administrative dissolution, the division shall prepare, sign and file a notice that explains the
             4525      reason or reasons for denial and serve the limited partnership with a copy of the notice.
             4526          (2) Within 30 days after service of the notice of denial, the limited partnership may
             4527      appeal from the denial of reinstatement by petitioning a district court to set aside the
             4528      dissolution. The petition must be served on the division and contain a copy of the division's
             4529      declaration of dissolution, the limited partnership's application for reinstatement, and the
             4530      division's notice of denial.
             4531          (3) The court may summarily order the division to reinstate the dissolved limited
             4532      partnership or may take other action the court considers appropriate.
             4533          Section 158. Section 48-2d-812 is enacted to read:
             4534          48-2d-812. Disposition of assets -- When contributions required.
             4535          (1) In winding up a limited partnership's activities, the assets of the limited partnership,
             4536      including the contributions required by this section, must be applied to satisfy the limited
             4537      partnership's obligations to creditors, including, to the extent permitted by law, partners that are


             4538      creditors.
             4539          (2) Any surplus remaining after the limited partnership complies with Subsection (1)
             4540      must be paid in cash as a distribution.
             4541          (3) If a limited partnership's assets are insufficient to satisfy all of its obligations under
             4542      Subsection (1), with respect to each unsatisfied obligation incurred when the limited
             4543      partnership was not a limited liability limited partnership, the following rules apply:
             4544          (a) Each person that was a general partner when the obligation was incurred and that
             4545      has not been released from the obligation under Section 48-2d-607 shall contribute to the
             4546      limited partnership for the purpose of enabling the limited partnership to satisfy the obligation.
             4547      The contribution due from each of those persons is in proportion to the right to receive
             4548      distributions in the capacity of general partner in effect for each of those persons when the
             4549      obligation was incurred.
             4550          (b) If a person does not contribute the full amount required under Subsection (3)(a)
             4551      with respect to an unsatisfied obligation of the limited partnership, the other persons required
             4552      to contribute by Subsection (3)(a) on account of the obligation shall contribute the additional
             4553      amount necessary to discharge the obligation. The additional contribution due from each of
             4554      those other persons is in proportion to the right to receive distributions in the capacity of
             4555      general partner in effect for each of those other persons when the obligation was incurred.
             4556          (c) If a person does not make the additional contribution required by Subsection (3)(b),
             4557      further additional contributions are determined and due in the same manner as provided in
             4558      Subsection (3)(b).
             4559          (4) A person that makes an additional contribution under Subsection (3)(b) or (c) may
             4560      recover from any person whose failure to contribute under Subsection (3)(a) or (b) necessitated
             4561      the additional contribution. A person may not recover under this Subsection (4) more than the
             4562      amount additionally contributed. A person's liability under this Subsection (4) may not exceed
             4563      the amount the person failed to contribute.
             4564          (5) The estate of a deceased individual is liable for the person's obligations under this
             4565      section.


             4566          (6) An assignee for the benefit of creditors of a limited partnership or a partner, or a
             4567      person appointed by a court to represent creditors of a limited partnership or a partner, may
             4568      enforce a person's obligation to contribute under Subsection (3).
             4569          Section 159. Section 48-2d-901 is enacted to read:
             4570     
Part 9. Foreign Limited Partnerships

             4571          48-2d-901. Governing law.
             4572          (1) The laws of the state or other jurisdiction under which a foreign limited partnership
             4573      is organized govern relations among the partners of the foreign limited partnership and between
             4574      the partners and the foreign limited partnership and the liability of partners as partners for an
             4575      obligation of the foreign limited partnership.
             4576          (2) A foreign limited partnership may not be denied a certificate of authority by reason
             4577      of any difference between the laws of the jurisdiction under which the foreign limited
             4578      partnership is organized and the laws of this state.
             4579          (3) A certificate of authority does not authorize a foreign limited partnership to engage
             4580      in any business or exercise any power that a limited partnership may not engage in or exercise
             4581      in this state.
             4582          (4) (a) The division may permit a tribal limited partnership to register with the division
             4583      in the same manner as a foreign limited partnership formed in another state.
             4584          (b) If a tribal limited partnership elects to register with the division, for purposes of this
             4585      chapter, the tribal limited partnership shall be treated in the same manner as a foreign limited
             4586      partnership formed under the laws of another state.
             4587          Section 160. Section 48-2d-902 is enacted to read:
             4588          48-2d-902. Application for certificate of authority.
             4589          (1) A foreign limited partnership may apply for a certificate of authority to transact
             4590      business in this state by delivering an application to the division for filing. The application
             4591      must state:
             4592          (a) the name of the foreign limited partnership and, if the name does not comply with
             4593      Section 48-2d-108 , an alternate name adopted pursuant to Subsection 48-2d-905 (1).


             4594          (b) the name of the state or other jurisdiction under whose law the foreign limited
             4595      partnership is organized;
             4596          (c) the street and mailing address of the foreign limited partnership's principal office
             4597      and, if the laws of the jurisdiction under which the foreign limited partnership is organized
             4598      require the foreign limited partnership to maintain an office in that jurisdiction, the street and
             4599      mailing address of the required office;
             4600          (d) the information required by Subsection 16-17-203 (1);
             4601          (e) the name and street and mailing address of each of the foreign limited partnership's
             4602      general partners; and
             4603          (f) whether the foreign limited partnership is a foreign limited liability limited
             4604      partnership.
             4605          (2) A foreign limited partnership shall deliver with the completed application a
             4606      certificate of existence or a record of similar import signed by the division or other official
             4607      having custody of the foreign limited partnership's publicly filed records in the state or other
             4608      jurisdiction under whose law the foreign limited partnership is organized.
             4609          Section 161. Section 48-2d-903 is enacted to read:
             4610          48-2d-903. Activities not constituting transacting business.
             4611          (1) Activities of a foreign limited partnership which do not constitute transacting
             4612      business in this state within the meaning of this part include:
             4613          (a) maintaining, defending, and settling an action or proceeding;
             4614          (b) holding meetings of its partners or carrying on any other activity concerning its
             4615      internal affairs;
             4616          (c) maintaining accounts in financial institutions;
             4617          (d) maintaining offices or agencies for the transfer, exchange, and registration of the
             4618      foreign limited partnership's own securities or maintaining trustees or depositories with respect
             4619      to those securities;
             4620          (e) selling through independent contractors;
             4621          (f) soliciting or obtaining orders, whether by mail or electronic means or through


             4622      employees or agents or otherwise, if the orders require acceptance outside this state before they
             4623      become contracts;
             4624          (g) creating or acquiring indebtedness, mortgages, or security interests in real or
             4625      personal property;
             4626          (h) securing or collecting debts or enforcing mortgages or other security interests in
             4627      property securing the debts, and holding, protecting, and maintaining property so acquired;
             4628          (i) conducting an isolated transaction that is completed within 30 days and is not one in
             4629      the course of similar transactions of a like manner; and
             4630          (j) transacting business in interstate commerce.
             4631          (2) For purposes of this part, the ownership in this state of income-producing real
             4632      property or tangible personal property, other than property excluded under Subsection (1),
             4633      constitutes transacting business in this state.
             4634          (3) This section does not apply in determining the contacts or activities that may
             4635      subject a foreign limited partnership to service of process, taxation, or regulation under any
             4636      other law of this state.
             4637          Section 162. Section 48-2d-904 is enacted to read:
             4638          48-2d-904. Filing of certificate of authority.
             4639          Unless the division determines that an application for a certificate of authority does not
             4640      comply with the filing requirements of this chapter, the division, upon payment of all filing
             4641      fees, shall file the application, prepare, sign and file a certificate of authority to transact
             4642      business in this state, and send a copy of the filed certificate, together with a receipt for the
             4643      fees, to the foreign limited partnership or its representative.
             4644          Section 163. Section 48-2d-905 is enacted to read:
             4645          48-2d-905. Noncomplying name of foreign limited partnership.
             4646          (1) A foreign limited partnership whose name does not comply with Section 48-2d-108
             4647      may not obtain a certificate of authority until it adopts, for the purpose of transacting business
             4648      in this state, an alternate name that complies with Section 48-2d-108 . A foreign limited
             4649      partnership that adopts an alternate name under this Subsection (1) and then obtains a


             4650      certificate of authority with the name need not comply with Title 42, Chapter 2, Conducting
             4651      Business Under Assumed Name. After obtaining a certificate of authority with an alternate
             4652      name, a foreign limited partnership shall transact business in this state under the name unless
             4653      the foreign limited partnership is authorized under Title 42, Chapter 2, Conducting Business
             4654      Under Assumed Name, to transact business in this state under another name.
             4655          (2) If a foreign limited partnership authorized to transact business in this state changes
             4656      its name to one that does not comply with Section 48-2d-108 , it may not thereafter transact
             4657      business in this state until it complies with Subsection (1) and obtains an amended certificate of
             4658      authority.
             4659          Section 164. Section 48-2d-906 is enacted to read:
             4660          48-2d-906. Revocation of certificate of authority.
             4661          (1) A certificate of authority of a foreign limited partnership to transact business in this
             4662      state may be revoked by the division in the manner provided in Subsections (2) and (3) if the
             4663      foreign limited partnership does not:
             4664          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             4665      under this chapter or other law;
             4666          (b) deliver to the division, within 60 days after the due date, its annual report required
             4667      under Section 48-2d-210 ;
             4668          (c) appoint and maintain an agent for service of process as required by Subsection
             4669      16-17-203 (1); or
             4670          (d) deliver to the division for filing a statement of a change under Section 16-17-206
             4671      within 30 days after a change has occurred in the name or address of the agent.
             4672          (2) To revoke a certificate of authority, the division must prepare, sign, and file a
             4673      notice of revocation and send a copy to the foreign limited partnership's agent for service of
             4674      process in this state, or if the foreign limited partnership does not appoint and maintain a
             4675      proper agent in this state, to the foreign limited partnership's principal office. The notice must
             4676      state:
             4677          (a) the revocation's effective date, which must be at least 60 days after the date the


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


             4706          48-2d-908. Action by attorney general.
             4707          The attorney general may maintain an action to restrain a foreign limited partnership
             4708      from transacting business in this state in violation of this part.
             4709          Section 167. Section 48-2d-1001 is enacted to read:
             4710     
Part 10. Actions by Partners

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


             4734          (1) that was a partner when the conduct giving rise to the action occurred; or
             4735          (2) whose status as a partner devolved upon the person by operation of law or pursuant
             4736      to the terms of the partnership agreement from a person that was a partner at the time of the
             4737      conduct.
             4738          Section 170. Section 48-2d-1004 is enacted to read:
             4739          48-2d-1004. Pleading.
             4740          In a derivative action, the complaint must state with particularity:
             4741          (1) the date and content of plaintiff's demand and the general partners' response to the
             4742      demand; or
             4743          (2) why demand should be excused as futile.
             4744          Section 171. Section 48-2d-1005 is enacted to read:
             4745          48-2d-1005. Proceeds and expenses.
             4746          (1) Except as otherwise provided in Subsection (2):
             4747          (a) any proceeds or other benefits of a derivative action, whether by judgment,
             4748      compromise, or settlement, belong to the limited partnership and not to the derivative plaintiff;
             4749      and
             4750          (b) if the derivative plaintiff receives any proceeds, the derivative plaintiff shall
             4751      immediately remit them to the limited partnership.
             4752          (2) If a derivative action is successful in whole or in part, the court may award the
             4753      plaintiff reasonable expenses, including reasonable attorney fees, from the recovery of the
             4754      limited partnership.
             4755          Section 172. Section 48-2d-1101 is enacted to read:
             4756     
Part 11. Merger, Conversion, and Domestication

             4757          48-2d-1101. Definitions.
             4758          In this part:
             4759          (1) "Constituent limited partnership" means a constituent organization that is a limited
             4760      partnership.
             4761          (2) "Constituent organization" means an organization that is party to a merger.


             4762          (3) "Converted organization" means the organization into which a converting
             4763      organization converts pursuant to Sections 48-2d-1106 through 48-2d-1109 .
             4764          (4) "Converting limited partnership" means a converting organization that is a limited
             4765      partnership.
             4766          (5) "Converting organization" means an organization that converts into another
             4767      organization pursuant to Section 48-2d-1106 .
             4768          (6) "Domesticated limited partnership" means a limited partnership that exists after a
             4769      domesticating foreign limited partnership or limited partnership effects a domestication
             4770      pursuant to Sections 48-2d-1110 through 48-2d-1113 .
             4771          (7) "Domesticating limited partnership" means a limited partnership that effects a
             4772      domestication pursuant to Sections 48-2d-1110 through 48-2d-1113 .
             4773          (8) "Foreign limited partnership" means a limited partnership that:
             4774          (a) has its chief executive office in a jurisdiction other than this state; or
             4775          (b) specified in its partnership agreement that relations among the partners and between
             4776      the partners and the limited partnership will be governed by the law of a jurisdiction other than
             4777      this state.
             4778          (9) "Governing statute" means the statute that governs an organization's internal affairs.
             4779          (10) (a) "Organization" means:
             4780          (i) a general partnership, including a limited liability partnership;
             4781          (ii) a limited partnership, including a limited liability limited partnership;
             4782          (iii) a limited liability company;
             4783          (iv) a business trust;
             4784          (v) a corporation; or
             4785          (vi) any other person having a governing statute.
             4786          (b) "Organization" includes a domestic or foreign organization regardless of whether
             4787      organized for profit.
             4788          (11) "Organizational documents" means:
             4789          (a) for a domestic or foreign general partnership, its partnership agreement;


             4790          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             4791      partnership and partnership agreement;
             4792          (c) for a domestic or foreign limited liability company, its certificate or articles of
             4793      organization and operating agreement, or comparable records as provided in its governing
             4794      statute;
             4795          (d) for a business trust, its agreement of trust and declaration of trust;
             4796          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             4797      and other agreements among its shareholders which are authorized by its governing statute, or
             4798      comparable records as provided in its governing statute; and
             4799          (f) for any other organization, the basic records that create the organization and
             4800      determine its internal governance and the relations among the persons that own it, have an
             4801      interest in it, or are members of it.
             4802          (12) "Personal liability" means liability for a debt, obligation, or other liability of an
             4803      organization which is imposed on a person that co-owns, has an interest in, or is a member of
             4804      the organization:
             4805          (a) by the governing statute solely by reason of the person co-owning, having an
             4806      interest in, or being a member of the organization; or
             4807          (b) by the organization's organizational documents under a provision of the governing
             4808      statute authorizing those documents to make one or more specified persons liable for all or
             4809      specified debts, obligations, or other liabilities of the organization solely by reason of the
             4810      person or persons co-owning, having an interest in, or being a member of the organization.
             4811          (13) "Surviving organization" means an organization into which one or more other
             4812      organizations are merged whether the organization preexisted the merger or was created by the
             4813      merger.
             4814          Section 173. Section 48-2d-1102 is enacted to read:
             4815          48-2d-1102. Merger.
             4816          (1) A limited partnership may merge with one or more other constituent organizations
             4817      pursuant to this section, Sections 48-2d-1103 through 48-2d-1105 , and a plan of merger, if:


             4818          (a) the governing statute of each of the other organizations authorizes the merger;
             4819          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the
             4820      governing statutes; and
             4821          (c) each of the other organizations complies with its governing statute in effecting the
             4822      merger.
             4823          (2) A plan of merger must be in a record and must include:
             4824          (a) the name and form of each constituent organization;
             4825          (b) the name and form of the surviving organization and, if the surviving organization
             4826      is to be created by the merger, a statement to that effect;
             4827          (c) the terms and conditions of the merger, including the manner and basis for
             4828      converting the interests in each constituent organization into any combination of money,
             4829      interests in the surviving organization, and other consideration;
             4830          (d) if the surviving organization is to be created by the merger, the surviving
             4831      organization's organizational documents that are proposed to be in a record; and
             4832          (e) if the surviving organization is not to be created by the merger, any amendments to
             4833      be made by the merger to the surviving organization's organizational documents that are, or are
             4834      proposed to be, in a record.
             4835          Section 174. Section 48-2d-1103 is enacted to read:
             4836          48-2d-1103. Action on plan of merger by constituent partnership.
             4837          (1) Subject to Section 48-2d-1114 , a plan of merger must be consented to by all the
             4838      partners of a constituent limited partnership.
             4839          (2) Subject to Section 48-2d-1114 and any contractual rights, after a merger is
             4840      approved, and at any time before articles of merger are delivered to the division for filing under
             4841      Section 48-2d-1104 , a constituent limited partnership may amend the plan or abandon the
             4842      merger:
             4843          (a) as provided in the plan; or
             4844          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             4845      approve the plan.


             4846          Section 175. Section 48-2d-1104 is enacted to read:
             4847          48-2d-1104. Filings required and permitted for merger -- Effective date.
             4848          (1) After each constituent organization has approved a merger, articles of merger must
             4849      be signed on behalf of:
             4850          (a) each constituent limited partnership, by each general partner listed in the certificate
             4851      of limited partnership; and
             4852          (b) each other constituent organization, as provided in its governing statute.
             4853          (2) Articles of merger under this section must include:
             4854          (a) the name and form of each constituent organization and the jurisdiction of its
             4855      governing statute;
             4856          (b) the name and form of the surviving organization, the jurisdiction of its governing
             4857      statute, and, if the surviving organization is created by the merger, a statement to that effect;
             4858          (c) the date the merger is effective under the governing statute of the surviving
             4859      organization;
             4860          (d) if the surviving organization is to be created by the merger:
             4861          (i) if it will be a limited partnership, the limited partnership's certificate of limited
             4862      partnership; or
             4863          (ii) if it will be an organization other than a limited partnership, the organizational
             4864      document that creates the organization that is in a public record;
             4865          (e) if the surviving organization preexists the merger, any amendments provided for in
             4866      the plan of merger for the organizational document that created the organization that are in a
             4867      public record;
             4868          (f) a statement as to each constituent organization that the merger was approved as
             4869      required by the organization's governing statute;
             4870          (g) if the surviving organization is a foreign organization not authorized to transact
             4871      business in this state, the street and mailing addresses of an office that may be used for service
             4872      of process under Subsection 48-2d-1105 (2); and
             4873          (h) any additional information required by the governing statute of any constituent


             4874      organization.
             4875          (3) Each constituent limited partnership shall deliver the articles of merger for filing in
             4876      the division.
             4877          (4) A merger becomes effective under this part:
             4878          (a) if the surviving organization is a limited partnership, upon the later of:
             4879          (i) compliance with Subsection (3); or
             4880          (ii) subject to Subsection 48-2d-206 (3), as specified in the articles of merger; or
             4881          (b) if the surviving organization is not a limited partnership, as provided by the
             4882      governing statute of the surviving organization.
             4883          Section 176. Section 48-2d-1105 is enacted to read:
             4884          48-2d-1105. Effect of merger.
             4885          (1) When a merger becomes effective:
             4886          (a) the surviving organization continues or comes into existence;
             4887          (b) each constituent organization that merges into the surviving organization ceases to
             4888      exist as a separate entity;
             4889          (c) all property owned by each constituent organization that ceases to exist vests in the
             4890      surviving organization;
             4891          (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             4892      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             4893          (e) an action or proceeding pending by or against any constituent organization that
             4894      ceases to exist may be continued as if the merger had not occurred;
             4895          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             4896      and purposes of each constituent organization that ceases to exist vest in the surviving
             4897      organization;
             4898          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             4899      plan of merger take effect;
             4900          (h) except as otherwise agreed, if a constituent limited partnership ceases to exist, the
             4901      merger does not dissolve the limited partnership for the purposes of Part 8, Dissolution;


             4902          (i) if the surviving organization is created by the merger:
             4903          (i) if it is a limited partnership, the certificate of limited partnership becomes effective;
             4904      or
             4905          (ii) if it is an organization other than a limited partnership, the organizational document
             4906      that creates the organization becomes effective; and
             4907          (j) if the surviving organization preexisted the merger, any amendments provided for in
             4908      the articles of merger for the organizational document that created the organization become
             4909      effective.
             4910          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             4911      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             4912      organization, if before the merger the constituent organization was subject to suit in this state
             4913      on the debt, obligation, or other liability. A surviving organization that is a foreign
             4914      organization and not authorized to transact business in this state may be served with process at
             4915      the address required in the articles of merger under Subsection 48-2d-1104 (2)(g).
             4916          Section 177. Section 48-2d-1106 is enacted to read:
             4917          48-2d-1106. Conversion.
             4918          (1) An organization other than a partnership or a foreign partnership may convert to a
             4919      limited partnership, and a limited partnership may convert to an organization other than a
             4920      foreign partnership pursuant to this section, Sections 48-2d-1107 through 48-2d-1109 , and a
             4921      plan of conversion, if:
             4922          (a) the other organization's governing statute authorizes the conversion;
             4923          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other
             4924      organization's governing statute; and
             4925          (c) the other organization complies with its governing statute in effecting the
             4926      conversion.
             4927          (2) A plan of conversion must be in a record and must include:
             4928          (a) the name and form of the organization before conversion;
             4929          (b) the name and form of the organization after conversion;


             4930          (c) the terms and conditions of the conversion, including the manner and basis for
             4931      converting interests in the converting organization into any combination of money, interests in
             4932      the converted organization, and other consideration; and
             4933          (d) the organizational documents of the converted organization that are, or are
             4934      proposed to be, in a record.
             4935          Section 178. Section 48-2d-1107 is enacted to read:
             4936          48-2d-1107. Action on plan of conversion by converting partnership.
             4937          (1) Subject to Section 48-2d-1114 , a plan of conversion must be consented to by all the
             4938      partners of a converting limited partnership.
             4939          (2) Subject to Section 48-2d-1114 and any contractual rights, after a conversion is
             4940      approved, and at any time before articles of conversion are delivered to the division for filing
             4941      under Section 48-2d-1108 , a converting limited partnership may amend the plan or abandon the
             4942      conversion:
             4943          (a) as provided in the plan; or
             4944          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             4945      approve the plan.
             4946          Section 179. Section 48-2d-1108 is enacted to read:
             4947          48-2d-1108. Filings required for conversion -- Effective date.
             4948          (1) After a plan of conversion is approved:
             4949          (a) a converting limited partnership shall deliver to the division for filing articles of
             4950      conversion and must include:
             4951          (i) a statement that the limited partnership has been converted into another
             4952      organization;
             4953          (ii) the name and form of the converted organization and the jurisdiction of its
             4954      governing statute;
             4955          (iii) the date the conversion is effective under the governing statute of the converted
             4956      organization;
             4957          (iv) a statement that the conversion was approved as required by this chapter;


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


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


             5014          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             5015      governing statute; and
             5016          (c) the foreign limited partnership complies with its governing statute in effecting the
             5017      domestication.
             5018          (3) A plan of domestication must be in a record and must include:
             5019          (a) the name of the domesticating limited partnership before domestication and the
             5020      jurisdiction of its governing statute;
             5021          (b) the name of the domesticated limited partnership after domestication and the
             5022      jurisdiction of its governing statute;
             5023          (c) the terms and conditions of the domestication, including the manner and basis for
             5024      converting interests in the domesticating limited partnership into any combination of money,
             5025      interests in the domesticated limited partnership, and other consideration; and
             5026          (d) the organizational documents of the domesticated limited partnership that are, or
             5027      are proposed to be, in a record.
             5028          Section 182. Section 48-2d-1111 is enacted to read:
             5029          48-2d-1111. Action on plan of domestication by domesticating partnership.
             5030          (1) A plan of domestication must be consented to:
             5031          (a) by all the partners, subject to Section 48-2d-1114 , if the domesticating limited
             5032      partnership is a limited partnership; and
             5033          (b) as provided in the domesticating limited partnership's governing statute, if the
             5034      limited partnership is a foreign limited partnership.
             5035          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             5036      before articles of domestication are delivered to the division for filing under Section
             5037      48-2d-1112 , a domesticating limited partnership may amend the plan or abandon the
             5038      domestication:
             5039          (a) as provided in the plan; or
             5040          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             5041      approve the plan.


             5042          Section 183. Section 48-2d-1112 is enacted to read:
             5043          48-2d-1112. Filings required for domestication -- Effective date.
             5044          (1) After a plan of domestication is approved, a domesticating limited partnership shall
             5045      deliver to the division for filing articles of domestication, which must include:
             5046          (a) a statement, as the case may be, that the limited partnership has been domesticated
             5047      from or into another jurisdiction;
             5048          (b) the name of the domesticating limited partnership and the jurisdiction of its
             5049      governing statute;
             5050          (c) the name of the domesticated limited partnership and the jurisdiction of its
             5051      governing statute;
             5052          (d) the date the domestication is effective under the governing statute of the
             5053      domesticated limited partnership;
             5054          (e) if the domesticating limited partnership was a limited partnership, a statement that
             5055      the domestication was approved as required by this chapter;
             5056          (f) if the domesticating limited partnership was a foreign limited partnership, a
             5057      statement that the domestication was approved as required by the governing statute of the other
             5058      jurisdiction; and
             5059          (g) if the domesticated limited partnership is a foreign limited partnership not
             5060      authorized to transact business in this state, the street and mailing addresses of an office that
             5061      the division may use for the purposes of Subsection 48-2d-1113 (2).
             5062          (2) A domestication becomes effective:
             5063          (a) upon the filing of the statement of qualification pursuant to Section 48-2d-1001 or
             5064      on the date provided therein, whichever is later, if the domesticated limited partnership is a
             5065      limited partnership; and
             5066          (b) according to the governing statute of the domesticated limited partnership, if it is a
             5067      foreign limited partnership.
             5068          Section 184. Section 48-2d-1113 is enacted to read:
             5069          48-2d-1113. Effect of domestication.


             5070          (1) When a domestication takes effect:
             5071          (a) the domesticated limited partnership is for all purposes the limited partnership that
             5072      existed before the domestication;
             5073          (b) all property owned by the domesticating limited partnership remains vested in the
             5074      domesticated limited partnership;
             5075          (c) all debts, obligations, or other liabilities of the domesticating limited partnership
             5076      continue as debts, obligations, or other liabilities of the domesticated limited partnership;
             5077          (d) an action or proceeding pending by or against a domesticating limited partnership
             5078      may be continued as if the domestication had not occurred;
             5079          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             5080      and purposes of the domesticating limited partnership remain vested in the domesticated
             5081      limited partnership;
             5082          (f) except as otherwise provided in the plan of domestication, the terms and conditions
             5083      of the plan of domestication take effect; and
             5084          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             5085      limited partnership for the purposes of Part 8, Dissolution.
             5086          (2) A domesticated limited partnership that is a foreign limited partnership consents to
             5087      the jurisdiction of the courts of this state to enforce any debt, obligation, or other liability owed
             5088      by the domesticating limited partnership, if, before the domestication, the domesticating
             5089      limited partnership was subject to suit in this state on the debt, obligation, or other liability. A
             5090      domesticated limited partnership that is a foreign limited partnership and not authorized to
             5091      transact business in this state may be served with process at the address required in the articles
             5092      of domestication under Subsection 48-2d-1112 (1)(g).
             5093          (3) If a limited partnership has adopted and approved a plan of domestication under
             5094      Section 48-2d-1110 providing for the limited partnership to be domesticated in a foreign
             5095      jurisdiction, a statement pursuant to Section 48-2d-907 cancelling the limited partnership's
             5096      certificate of authority must be delivered to the division for filing setting forth:
             5097          (a) the name of the limited partnership;


             5098          (b) a statement that the limited partnership's certificate of authority is being cancelled
             5099      in connection with the domestication of the limited partnership in a foreign jurisdiction;
             5100          (c) a statement the domestication was approved as required by this chapter; and
             5101          (d) the jurisdiction of formation of the domesticated foreign limited partnership.
             5102          Section 185. Section 48-2d-1114 is enacted to read:
             5103          48-2d-1114. Restrictions on approval of mergers, conversions, and domestications
             5104      -- Relinquishing limited liability partnership status.
             5105          (1) If a partner of a constituent, converting, or domesticating limited partnership will
             5106      have personal liability with respect to a surviving, converted, or domesticated organization,
             5107      approval or amendment of a plan of merger, conversion, or domestication is ineffective without
             5108      the consent of the partner, unless:
             5109          (a) the limited partnership's partnership agreement provides for approval of a merger,
             5110      conversion, or domestication with the consent of fewer than all the partners; and
             5111          (b) the partner has consented to the provision of the partnership agreement.
             5112          (2) An amendment to a certificate of limited partnership which deletes a statement that
             5113      the limited partnership is a limited liability limited partnership is ineffective without the
             5114      consent of each general partner unless:
             5115          (a) the limited partnership's partnership agreement provides for the amendment with
             5116      the consent of less than all the general partners; and
             5117          (b) each general partner that does not consent to the amendment has consented to the
             5118      provision of the partnership agreement.
             5119          (3) A partner does not give the consent required by Subsection (1) or (2) merely by
             5120      consenting to a provision of the partnership agreement that permits the partnership agreement
             5121      to be amended with the consent of fewer than all the partners.
             5122          Section 186. Section 48-2d-1115 is enacted to read:
             5123          48-2d-1115. Liability of general partner after conversion or merger.
             5124          (1) A conversion or merger under this part does not discharge any liability under
             5125      Sections 48-2d-404 and 48-2d-607 of a person that was a general partner in or dissociated as a


             5126      general partner from a converting or constituent limited partnership, but:
             5127          (a) the provisions of this chapter pertaining to the collection or discharge of the liability
             5128      continue to apply to the liability;
             5129          (b) for the purposes of applying those provisions, the converted or surviving
             5130      organization is deemed to be the converting or constituent limited partnership; and
             5131          (c) if a person is required to pay any amount under this Subsection (1):
             5132          (i) the person has a right of contribution from each other person that was liable as a
             5133      general partner under Section 48-2d-404 when the obligation was incurred and has not been
             5134      released from the obligation under Section 48-2d-607 ; and
             5135          (ii) the contribution due from each of those persons is in proportion to the right to
             5136      receive distributions in the capacity of general partner in effect for each of those persons when
             5137      the obligation was incurred.
             5138          (2) In addition to any other liability provided by law:
             5139          (a) a person that immediately before a conversion or merger became effective was a
             5140      general partner in a converting or constituent limited partnership that was not a limited liability
             5141      limited partnership is personally liable for each obligation of the converted or surviving
             5142      organization arising from a transaction with a third party after the conversion or merger
             5143      becomes effective, if, at the time the third party enters into the transaction, the third party:
             5144          (i) does not have notice of the conversion or merger; and
             5145          (ii) reasonably believes that:
             5146          (A) the converted or surviving business is the converting or constituent limited
             5147      partnership;
             5148          (B) the converting or constituent limited partnership is not a limited liability limited
             5149      partnership; and
             5150          (C) the person is a general partner in the converting or constituent limited partnership;
             5151      and
             5152          (b) a person that was dissociated as a general partner from a converting or constituent
             5153      limited partnership before the conversion or merger became effective is personally liable for


             5154      each obligation of the converted or surviving organization arising from a transaction with a
             5155      third party after the conversion or merger becomes effective, if:
             5156          (i) immediately before the conversion or merger became effective the converting or
             5157      surviving limited partnership was not a limited liability limited partnership; and
             5158          (ii) at the time the third party enters into the transaction less than two years have passed
             5159      since the person dissociated as a general partner and the third party:
             5160          (A) does not have notice of the dissociation;
             5161          (B) does not have notice of the conversion or merger; and
             5162          (C) reasonably believes that the converted or surviving organization is the converting
             5163      or constituent limited partnership, the converting or constituent limited partnership is not a
             5164      limited liability limited partnership, and the person is a general partner in the converting or
             5165      constituent limited partnership.
             5166          Section 187. Section 48-2d-1116 is enacted to read:
             5167          48-2d-1116. Power of general partners and persons dissociated as general
             5168      partners to bind organization after conversion or merger.
             5169          (1) An act of a person that immediately before a conversion or merger became effective
             5170      was a general partner in a converting or constituent limited partnership binds the converted or
             5171      surviving organization after the conversion or merger becomes effective, if:
             5172          (a) before the conversion or merger became effective, the act would have bound the
             5173      converting or constituent limited partnership under Section 48-2d-402 ; and
             5174          (b) at the time the third party enters into the transaction, the third party:
             5175          (i) does not have notice of the conversion or merger; and
             5176          (ii) reasonably believes that the converted or surviving business is the converting or
             5177      constituent limited partnership and that the person is a general partner in the converting or
             5178      constituent limited partnership.
             5179          (2) An act of a person that before a conversion or merger became effective was
             5180      dissociated as a general partner from a converting or constituent limited partnership binds the
             5181      converted or surviving organization after the conversion or merger becomes effective, if:


             5182          (a) before the conversion or merger became effective, the act would have bound the
             5183      converting or constituent limited partnership under Section 48-2d-402 if the person had been a
             5184      general partner; and
             5185          (b) at the time the third party enters into the transaction, less than two years have
             5186      passed since the person dissociated as a general partner and the third party:
             5187          (i) does not have notice of the dissociation;
             5188          (ii) does not have notice of the conversion or merger; and
             5189          (iii) reasonably believes that the converted or surviving organization is the converting
             5190      or constituent limited partnership and that the person is a general partner in the converting or
             5191      constituent limited partnership.
             5192          (3) If a person having knowledge of the conversion or merger causes a converted or
             5193      surviving organization to incur an obligation under Subsection (1) or (2), the person is liable:
             5194          (a) to the converted or surviving organization for any damage caused to the
             5195      organization arising from the obligation; and
             5196          (b) if another person is liable for the obligation, to that other person for any damage
             5197      caused to that other person arising from the liability.
             5198          Section 188. Section 48-2d-1117 is enacted to read:
             5199          48-2d-1117. Part not exclusive.
             5200          This part does not preclude an entity from being merged, converted, or domesticated
             5201      under law other than this chapter.
             5202          Section 189. Section 48-2d-1201 is enacted to read:
             5203     
Part 12. Miscellaneous Provisions

             5204          48-2d-1201. Uniformity of application and construction.
             5205          In applying and construing this chapter, consideration must be given to the need to
             5206      promote uniformity of the law with respect to its subject matter among states that enact this
             5207      uniform act.
             5208          Section 190. Section 48-2d-1202 is enacted to read:
             5209          48-2d-1202. Relation to electronic signatures in global and national commerce act.


             5210          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             5211      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             5212      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             5213      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             5214          Section 191. Section 48-2d-1203 is enacted to read:
             5215          48-2d-1203. Severability clause.
             5216          If any provision of this chapter or its application to any person or circumstance is held
             5217      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             5218      be given effect without the invalid provision or application, and to this end the provisions of
             5219      this chapter are severable.
             5220          Section 192. Section 48-2d-1204 is enacted to read:
             5221          48-2d-1204. Savings clause.
             5222          This chapter does not affect an action commenced, proceeding brought, or right accrued
             5223      before July 1, 2012.
             5224          Section 193. Section 48-2d-1205 is enacted to read:
             5225          48-2d-1205. Application to existing relationships.
             5226          (1) Before January 1, 2014, this chapter governs only:
             5227          (a) a limited partnership formed on or after July 1, 2012; and
             5228          (b) subject to Subsections (3) and (4), a limited partnership formed before July 1, 2012,
             5229      which elects, in the manner provided in its partnership agreement or by law for amending the
             5230      partnership agreement, to be subject to this chapter.
             5231          (2) Subject to Subsection (3), on and after January 1, 2014, this chapter governs all
             5232      limited partnerships.
             5233          (3) With respect to a limited partnership formed before July 1, 2012, the following
             5234      rules apply except as the partners otherwise elect in the manner provided in the partnership
             5235      agreement or by law for amending the partnership agreement:
             5236          (a) Subsection 48-2d-104 (3) does not apply and the limited partnership has whatever
             5237      duration it had under the law applicable immediately before July 1, 2012.


             5238          (b) The limited partnership is not required to amend its certificate of limited
             5239      partnership to comply with Subsection 48-2d-201 (1)(d).
             5240          (c) Sections 48-2d-601 and 48-2d-602 do not apply and a limited partner has the same
             5241      right and power to dissociate from the limited partnership, with the same consequences, as
             5242      existed immediately before July 1, 2012.
             5243          (d) Subsection 48-2d-603 (4) does not apply.
             5244          (e) Subsection 48-2d-603 (5) does not apply and a court has the same power to expel a
             5245      general partner as the court had immediately before July 1, 2012.
             5246          (f) Subsection 48-2d-801 (3) does not apply and the connection between a person's
             5247      dissociation as a general partner and the dissolution of the limited partnership is the same as
             5248      existed immediately before July 1, 2012.
             5249          (4) With respect to a limited partnership that elects pursuant to Subsection (1)(b) to be
             5250      subject to this chapter, after the election takes effect the provisions of this chapter relating to
             5251      the liability of the limited partnership's general partners to third parties apply:
             5252          (a) before July 1, 2012, to:
             5253          (i) a third party that had not done business with the limited partnership in the year
             5254      before the election took effect; and
             5255          (ii) a third party that had done business with the limited partnership in the year before
             5256      the election took effect only if the third party knows or has received a notification of the
             5257      election; and
             5258          (b) on and after July 1, 2012, to all third parties, but those provisions remain
             5259      inapplicable to any obligation incurred while those provisions were inapplicable under
             5260      Subsection (4)(a)(ii).
             5261          Section 194. Section 48-3-101 is enacted to read:
             5262     
CHAPTER 3. UTAH REVISED UNIFORM LIMITED LIABILITY

             5263     
COMPANY ACT

             5264     
Part 1. General Provisions

             5265          48-3-101. Title.


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


             5294          (7) "Limited liability company," except in the phrase "foreign limited liability
             5295      company," means an entity formed under this chapter, including a low-profit limited liability
             5296      company formed under this chapter.
             5297          (8) "Low-profit limited liability company" means a limited liability company meeting
             5298      the requirements of Part 13, Low-profit Limited Liability Companies.
             5299          (9) "Manager" means a person that under the operating agreement of a
             5300      manager-managed limited liability company is responsible, alone or in concert with others, for
             5301      performing the management functions stated in Subsection 48-3-407 (3).
             5302          (10) "Manager-managed limited liability company" means a limited liability company
             5303      that qualifies under Subsection 48-3-407 (1).
             5304          (11) "Member" means a person that has become a member of a limited liability
             5305      company under Section 48-3-401 and has not dissociated under Section 48-3-602 .
             5306          (12) "Member-managed limited liability company" means a limited liability company
             5307      that is not a manager-managed limited liability company.
             5308          (13) (a) "Operating agreement" means the agreement, whether or not referred to as an
             5309      operating agreement and whether oral, in a record, implied, or in any combination thereof, of
             5310      all the members of a limited liability company, including a sole member, concerning the
             5311      matters described in Subsection 48-3-110 (1).
             5312          (b) "Operating agreement" includes the agreement as amended or restated.
             5313          (14) "Organizer" means a person that acts under Section 48-3-201 to form a limited
             5314      liability company.
             5315          (15) "Person" means:
             5316          (a) an individual;
             5317          (b) a corporation;
             5318          (c) a business trust;
             5319          (d) an estate;
             5320          (e) a trust;
             5321          (f) a partnership;


             5322          (g) a limited liability company;
             5323          (h) an association;
             5324          (i) a joint venture;
             5325          (j) a public corporation;
             5326          (k) government;
             5327          (l) a governmental subdivision, agency, or instrumentality; or
             5328          (m) any other legal or commercial entity.
             5329          (16) "Principal office" means the principal executive office of a limited liability
             5330      company or foreign limited liability company, whether or not the office is located in this state.
             5331          (17) "Professional services company" means a limited liability company meeting the
             5332      requirements of Part 11, Professional Services Companies.
             5333          (18) "Record" means information that is inscribed on a tangible medium or that is
             5334      stored in an electronic or other medium and is retrievable in perceivable form.
             5335          (19) "Series" means a series created in accordance with Part 12, Series Limited
             5336      Liability Companies.
             5337          (20) "Sign" means, with the present intent to authenticate or adopt a record:
             5338          (a) to execute or adopt a tangible symbol; or
             5339          (b) to attach to or logically associate with the record an electronic symbol, sound, or
             5340      process.
             5341          (21) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             5342      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             5343      of the United States.
             5344          (22) "Transfer" includes an assignment, conveyance, deed, bill of sale, lease, mortgage,
             5345      security interest, encumbrance, gift, and transfer by operation of law.
             5346          (23) "Transferable interest" means the right, as originally associated with a person's
             5347      capacity as a member, to receive distributions from a limited liability company in accordance
             5348      with the operating agreement, whether or not the person remains a member or continues to own
             5349      any part of the right.


             5350          (24) "Transferee" means a person to which all or part of a transferable interest has been
             5351      transferred, whether or not the transferor is a member.
             5352          (25) "Tribal limited liability company" means a limited liability company:
             5353          (a) formed under the law of a tribe; and
             5354          (b) that is at least 51% owned or controlled by the tribe.
             5355          (26) "Tribe" means a tribe, band, nation, pueblo, or other organized group or
             5356      community of Indians, including an Alaska Native village, that is legally recognized as eligible
             5357      for and is consistent with a special program, service, or entitlement provided by the United
             5358      States to Indians because of their status as Indians.
             5359          Section 196. Section 48-3-103 is enacted to read:
             5360          48-3-103. Knowledge -- Notice.
             5361          (1) A person knows a fact when the person:
             5362          (a) has actual knowledge of it; or
             5363          (b) is deemed to know it under Subsection (4)(a) or law other than this chapter.
             5364          (2) A person has notice of a fact when the person:
             5365          (a) has reason to know the fact from all of the facts known to the person at the time in
             5366      question; or
             5367          (b) is deemed to have notice of the fact under Subsection (4)(b).
             5368          (3) A person notifies another of a fact by taking steps reasonably required to inform the
             5369      other person in ordinary course, whether or not the other person knows the fact.
             5370          (4) A person that is not a member is deemed:
             5371          (a) to know of a limitation on authority to transfer real property as provided in
             5372      Subsection 48-3-302 (7);
             5373          (b) to have notice of a limited liability company's:
             5374          (i) dissolution, 90 days after a statement of dissolution under Subsection
             5375      48-3-703 (2)(b)(i) becomes effective;
             5376          (ii) termination, 90 days after a statement of termination Subsection 48-3-703 (2)(b)(vi)
             5377      becomes effective; and


             5378          (iii) merger, conversion, or domestication, 90 days after articles of merger, conversion,
             5379      or domestication under Part 10, Merger, Conversion, and Domestication, become effective; and
             5380          (c) for a filing not described in Subsection (4)(b), to have constructive notice of an
             5381      action taken by a filing that is filed with the division.
             5382          Section 197. Section 48-3-104 is enacted to read:
             5383          48-3-104. Nature, purpose, and duration of limited liability company.
             5384          (1) A limited liability company is an entity distinct from its members.
             5385          (2) A limited liability company may have any lawful purpose, regardless of whether for
             5386      profit.
             5387          (3) A limited liability company has perpetual duration.
             5388          Section 198. Section 48-3-105 is enacted to read:
             5389          48-3-105. Powers.
             5390          A limited liability company has the capacity to sue and be sued in its own name and the
             5391      power to do all things necessary or convenient to carry on its activities.
             5392          Section 199. Section 48-3-106 is enacted to read:
             5393          48-3-106. Governing law.
             5394          The law of this state governs:
             5395          (1) the internal affairs of a limited liability company; and
             5396          (2) the liability of a member as member and a manager as manager for the debts,
             5397      obligations, or other liabilities of a limited liability company.
             5398          Section 200. Section 48-3-107 is enacted to read:
             5399          48-3-107. Supplemental principles of law.
             5400          Unless displaced by particular provisions of this chapter, the principles of law and
             5401      equity supplement this chapter.
             5402          Section 201. Section 48-3-108 is enacted to read:
             5403          48-3-108. Name.
             5404          (1) (a) Except as provided in Section 48-3-1104 or 48-3-1302 , the name of a limited
             5405      liability company must contain the words "limited liability company" or "limited company" or


             5406      the abbreviation "L.L.C.," "LLC," "L.C.," or "LC".
             5407          (b) "Company" may be abbreviated as "Co.".
             5408          (c) The name of a limited liability company may not contain:
             5409          (i) without the written consent of the United States Olympic Committee, the words:
             5410          (A) "Olympic";
             5411          (B) "Olympiad"; or
             5412          (C) "Citius Altius Fortius"; and
             5413          (ii) without the written consent of the Division of Consumer Protection issued in
             5414      accordance with Section 13-34-114 , the words:
             5415          (A) "university";
             5416          (B) "college"; or
             5417          (C) "institute" or "institution".
             5418          (2) Unless authorized by Subsection (3), the name of a limited liability company must
             5419      be distinguishable in the records of the division from:
             5420          (a) the name of each person that is not an individual and that is incorporated,
             5421      organized, or authorized to transact business in this state; and
             5422          (b) each name reserved under Section 48-3-109 and:
             5423          (i) Section 16-6a-401 or 16-6a-402 ;
             5424          (ii) Section 16-10a-401 or 16-10a-402 ;
             5425          (iii) Section 16-11-16 ;
             5426          (iv) Section 42-2-6.6 ;
             5427          (v) Section 48-1b-1002 ; or
             5428          (vi) Section 48-2d-108 or 48-2d-109 .
             5429          (3) A limited liability company may apply to the division for authorization to use a
             5430      name that does not comply with Subsection (2). The division shall authorize use of the name
             5431      applied for if, as to each noncomplying name:
             5432          (a) the present user, registrant, or owner of the noncomplying name consents in a
             5433      signed record to the use and submits an undertaking in a form satisfactory to the division to


             5434      change the noncomplying name to a name that complies with Subsection (2) and is
             5435      distinguishable in the records of the division from the name applied for; or
             5436          (b) the applicant delivers to the division a certified copy of the final judgment of a
             5437      court establishing the applicant's right to use in this state the name applied for.
             5438          (4) Subject to Section 48-3-805 , this section applies to a foreign limited liability
             5439      company transacting business in this state which has a certificate of authority to transact
             5440      business in this state or which has applied for a certificate of authority.
             5441          (5) The division may not approve for filing a name that implies that a limited liability
             5442      company is an agency of this state or any of its political subdivisions, if it is not actually such a
             5443      legally established agency or subdivision.
             5444          (6) The authorization to file a certificate under or to reserve or register a limited
             5445      liability company name as granted by the division does not:
             5446          (a) abrogate or limit the law governing unfair competition or unfair trade practices;
             5447          (b) derogate from the common law, the principles of equity, or the statutes of this state
             5448      or of the United States with respect to the right to acquire and protect names and trademarks; or
             5449          (c) create an exclusive right in geographic or generic terms contained within a name.
             5450          Section 202. Section 48-3-109 is enacted to read:
             5451          48-3-109. Reservation of name.
             5452          (1) A person may reserve the exclusive use of the name of a limited liability company,
             5453      including a fictitious or assumed name for a foreign limited liability company whose name is
             5454      not available, by delivering an application to the division for filing. The application must state
             5455      the name and address of the applicant and the name proposed to be reserved. If the division
             5456      finds that the name applied for is available, it must be reserved for the applicant's exclusive use
             5457      for a 120-day period.
             5458          (2) The owner of a name reserved for a limited liability company may transfer the
             5459      reservation to another person by delivering to the division for filing a signed notice of the
             5460      transfer which states the name and address of the transferee.
             5461          Section 203. Section 48-3-110 is enacted to read:


             5462          48-3-110. Operating agreement -- Scope, function, and limitations.
             5463          (1) Except as otherwise provided in Subsections (2) and (3), the operating agreement
             5464      governs:
             5465          (a) relations among the members as members and between the members and the
             5466      limited liability company;
             5467          (b) the rights and duties under this chapter of a person in the capacity of manager;
             5468          (c) the activities of the limited liability company and the conduct of those activities;
             5469      and
             5470          (d) the means and conditions for amending the operating agreement.
             5471          (2) To the extent the operating agreement does not otherwise provide for a matter
             5472      described in Subsection (1), this chapter governs the matter.
             5473          (3) An operating agreement may not:
             5474          (a) vary a limited liability company's capacity under Section 48-3-105 to sue and be
             5475      sued in its own name;
             5476          (b) vary the law applicable under Section 48-3-106 ;
             5477          (c) vary the power of the court under Section 48-3-204 ;
             5478          (d) subject to Subsections (4) through (7), eliminate the duty of loyalty, the duty of
             5479      care, or any other fiduciary duty;
             5480          (e) subject to Subsections (4) through (7), eliminate the contractual obligation of good
             5481      faith and fair dealing under Subsection 48-3-409 (4);
             5482          (f) unreasonably restrict the duties and rights stated in Section 48-3-410 ;
             5483          (g) vary the power of a court to decree dissolution in the circumstances specified in
             5484      Subsections 48-3-701 (4) and (5);
             5485          (h) vary the requirement to wind up a limited liability company's business as specified
             5486      in Subsections 48-3-703 (1) and (2)(a);
             5487          (i) unreasonably restrict the right of a member to maintain an action under Part 9,
             5488      Actions By Members;
             5489          (j) restrict the right to approve a merger, conversion, or domestication under Section


             5490      48-3-1014 to a member that will have personal liability with respect to a surviving, converted,
             5491      or domesticated organization; or
             5492          (k) except as otherwise provided in Subsection 48-3-112 (2), restrict the rights under
             5493      this chapter of a person other than a member or manager.
             5494          (4) If not unconscionable or against public policy, the operating agreement may:
             5495          (a) restrict or eliminate the duty:
             5496          (i) as required in Subsections 48-3-409 (2)(a) and (7), to account to the limited liability
             5497      company and to hold as trustee for it any property, profit, or benefit derived by the member in
             5498      the conduct or winding up of the limited liability company's business, from a use by the
             5499      member of the limited liability company's property, or from the appropriation of a limited
             5500      liability company opportunity;
             5501          (ii) as required in Subsections 48-3-409 (2)(b) and (7), to refrain from dealing with the
             5502      limited liability company in the conduct or winding up of the limited liability company's
             5503      business as or on behalf of a party having an interest adverse to the limited liability company;
             5504      and
             5505          (iii) as required by Subsections 48-3-409 (2)(c) and (7), to refrain from competing with
             5506      the limited liability company in the conduct of the limited liability company's business before
             5507      the dissolution of the limited liability company;
             5508          (b) identify specific types or categories of activities that do not violate the duty of
             5509      loyalty;
             5510          (c) alter the duty of care, except to authorize intentional misconduct or knowing
             5511      violation of law;
             5512          (d) alter or eliminate any other fiduciary duty; and
             5513          (e) prescribe the standards by which to measure the performance of the contractual
             5514      obligation of good faith and fair dealing under Subsection 48-3-409 (4), if the standards are not
             5515      manifestly unreasonable.
             5516          (5) The operating agreement may specify the method by which a specific act or
             5517      transaction that would otherwise violate the duty of loyalty may be authorized or ratified by one


             5518      or more disinterested and independent persons after full disclosure of all material facts.
             5519          (6) To the extent the operating agreement of a member-managed limited liability
             5520      company expressly relieves a member of a responsibility that the member would otherwise
             5521      have under this chapter and imposes the responsibility on one or more other members, the
             5522      operating agreement may, to the benefit of the member that the operating agreement relieves of
             5523      the responsibility, also eliminate or limit any fiduciary duty that would have pertained to the
             5524      responsibility.
             5525          (7) The operating agreement may alter or eliminate the indemnification for a member
             5526      or manager provided by Subsection 48-3-408 (1) and may eliminate or limit a member or
             5527      manager's liability to the limited liability company and members for money damages, except
             5528      for:
             5529          (a) breach of the duty of loyalty;
             5530          (b) a financial benefit received by the member or manager to which the member or
             5531      manager is not entitled;
             5532          (c) a breach of a duty under Section 48-3-406 ; or
             5533          (d) an intentional violation of criminal law.
             5534          (8) The court shall decide any claim under Subsection (4) that a term of an operating
             5535      agreement is unconscionable or against public policy. The court:
             5536          (a) shall make its determination as of the time the challenged term became part of the
             5537      operating agreement and by considering only circumstances existing at that time; and
             5538          (b) may invalidate the term only if, in light of the purposes and activities of the limited
             5539      liability company, it is readily apparent that:
             5540          (i) the objective of the term is unconscionable or against public policy; or
             5541          (ii) the means to achieve the term's objective is unconscionable or against public
             5542      policy.
             5543          Section 204. Section 48-3-111 is enacted to read:
             5544          48-3-111. Operating agreement -- Effect on limited liability company and persons
             5545      becoming members -- Preformation agreement.


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


             5574      is likewise ineffective in the record.
             5575          (4) Subject to Subsection (3), if a record that has been delivered by a limited liability
             5576      company to the division for filing and has become effective under this chapter conflicts with a
             5577      provision of the operating agreement:
             5578          (a) the operating agreement prevails as to members, dissociated members, transferees,
             5579      and managers; and
             5580          (b) the record prevails as to other persons to the extent they reasonably rely on the
             5581      record.
             5582          Section 206. Section 48-3-201 is enacted to read:
             5583     
Part 2. Formation -- Certificate of Organization and Other Filings

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


             5602      48-3-205 (3).
             5603          (b) If the certificate states a delayed effective date, a limited liability company is not
             5604      formed if, before the certificate takes effect, a statement of cancellation is signed and delivered
             5605      to the division for filing and the division files the certificate.
             5606          (c) Subject to any delayed effective date and except in a proceeding by this state to
             5607      dissolve a limited liability company, the filing of the certificate of organization by the division
             5608      is conclusive proof that the organizer satisfied all conditions to the formation of a limited
             5609      liability company.
             5610          Section 207. Section 48-3-202 is enacted to read:
             5611          48-3-202. Amendment or restatement of certificate of organization.
             5612          (1) A certificate of organization may be amended or restated at any time, except that in
             5613      accordance with Section 48-3-1303 , a low-profit limited liability company shall amend its
             5614      certificate of organization if the limited liability company ceases to be a low-profit limited
             5615      liability company.
             5616          (2) To amend its certificate of organization, a limited liability company must deliver to
             5617      the division for filing an amendment stating:
             5618          (a) the name of the limited liability company;
             5619          (b) the date of filing of its certificate of organization; and
             5620          (c) the changes the amendment makes to the certificate as most recently amended or
             5621      restated.
             5622          (3) To restate its certificate of organization, a limited liability company must deliver to
             5623      the division for filing a restatement, designated as such in its heading, stating:
             5624          (a) in the heading or an introductory paragraph, the limited liability company's present
             5625      name and the date of the filing of the limited liability company's initial certificate of
             5626      organization;
             5627          (b) if the limited liability company's name has been changed at any time since the
             5628      limited liability company's formation, each of the limited liability company's former names;
             5629      and


             5630          (c) the changes the restatement makes to the certificate as most recently amended or
             5631      restated.
             5632          (4) Subject to Subsections 48-3-112 (3) and 48-3-205 (3), an amendment to or
             5633      restatement of a certificate of organization is effective when filed by the division.
             5634          (5) If a member of a member-managed limited liability company, or a manager of a
             5635      manager-managed limited liability company, knows that any information in a filed certificate
             5636      of organization was inaccurate when the certificate was filed or has become inaccurate owing
             5637      to changed circumstances, the member or manager shall promptly:
             5638          (a) cause the certificate to be amended; or
             5639          (b) if appropriate, deliver to the division for filing a statement of change under Section
             5640      16-17-206 or a statement of correction under Section 48-3-206 .
             5641          Section 208. Section 48-3-203 is enacted to read:
             5642          48-3-203. Signing of records to be delivered for filing to division.
             5643          (1) A record delivered to the division for filing pursuant to this chapter must be signed
             5644      as follows:
             5645          (a) Except as otherwise provided in Subsections (1)(b) through (d), a record signed on
             5646      behalf of a limited liability company must be signed by a person authorized by the limited
             5647      liability company.
             5648          (b) A limited liability company's initial certificate of organization must be signed by at
             5649      least one person acting as an organizer.
             5650          (c) A record filed on behalf of a dissolved limited liability company that has no
             5651      members must be signed by the person winding up the limited liability company's activities
             5652      under Subsection 48-3-703 (3) or a person appointed under Subsection 48-3-703 (4) to wind up
             5653      those activities.
             5654          (d) A statement of cancellation under Subsection 48-3-201 (4)(b) must be signed by
             5655      each organizer that signed the initial certificate of organization, but a personal representative of
             5656      a deceased or incompetent organizer may sign in the place of the decedent or incompetent.
             5657          (e) A statement of denial by a person under Section 48-3-303 must be signed by that


             5658      person.
             5659          (f) Any other record must be signed by the person on whose behalf the record is
             5660      delivered to the division.
             5661          (2) Any record filed under this chapter may be signed by an agent.
             5662          Section 209. Section 48-3-204 is enacted to read:
             5663          48-3-204. Signing and filing pursuant to judicial order.
             5664          (1) If a person required by this chapter to sign a record or deliver a record to the
             5665      division for filing under this chapter does not do so, any other person that is aggrieved may
             5666      petition a district court to order:
             5667          (a) the person to sign the record;
             5668          (b) the person to deliver the record to the division for filing; or
             5669          (c) the division to file the record unsigned, which will have the same effect as if signed
             5670      by the person required by this chapter to sign the record.
             5671          (2) If a petitioner under Subsection (1) is not the limited liability company or foreign
             5672      limited liability company to which the record pertains, the petitioner shall make the limited
             5673      liability company a party to the action.
             5674          Section 210. Section 48-3-205 is enacted to read:
             5675          48-3-205. Delivery to and filing of records by division -- Effective time and date.
             5676          (1) A record authorized or required to be delivered to the division for filing under this
             5677      chapter must be captioned to describe the record's purpose, be in a medium permitted by the
             5678      division, and be delivered to the division. If the filing fees have been paid, unless the division
             5679      determines that a record does not comply with the filing requirements of this chapter, the
             5680      division shall file the record and:
             5681          (a) for a statement of denial under Section 48-3-303 , send a copy of the filed statement
             5682      and a receipt for the fees to the person on whose behalf the statement was delivered for filing
             5683      and to the limited liability company; and
             5684          (b) for all other records, send a copy of the filed record and a receipt for the fees to the
             5685      person on whose behalf the record was filed.


             5686          (2) Upon request and payment of the requisite fee, the division shall send to the
             5687      requester a certified copy of a requested record.
             5688          (3) Except as otherwise provided in Section 48-3-206 , a record delivered to the
             5689      division for filing under this chapter may specify an effective time and a delayed effective date.
             5690      Subject to Subsection 48-3-201 (4)(a) and Section 48-3-206 , a record filed by the division is
             5691      effective:
             5692          (a) if the record does not specify either an effective time or a delayed effective date, on
             5693      the date and at the time the record is filed as evidenced by the division's endorsement of the
             5694      date and time on the record;
             5695          (b) if the record specifies an effective time but not a delayed effective date, on the date
             5696      the record is filed at the time specified in the record;
             5697          (c) if the record specifies a delayed effective date but not an effective time, at 12:01
             5698      a.m. on the earlier of:
             5699          (i) the specified date; or
             5700          (ii) the 90th day after the record is filed; or
             5701          (d) if the record specifies an effective time and a delayed effective date, at the specified
             5702      time on the earlier of:
             5703          (i) the specified date; or
             5704          (ii) the 90th day after the record is filed.
             5705          Section 211. Section 48-3-206 is enacted to read:
             5706          48-3-206. Correcting filed record.
             5707          (1) A limited liability company or foreign limited liability company may deliver to the
             5708      division for filing a statement of correction to correct a record previously delivered by the
             5709      limited liability company to the division and filed by the division, if at the time of filing the
             5710      record contained inaccurate information or was defectively signed.
             5711          (2) A statement of correction under Subsection (1) may not state a delayed effective
             5712      date and must:
             5713          (a) describe the record to be corrected, including its filing date, or attach a copy of the


             5714      record as filed;
             5715          (b) specify the inaccurate information and the reason it is inaccurate or the manner in
             5716      which the signing was defective; and
             5717          (c) correct the defective signature or inaccurate information.
             5718          (3) When filed by the division, a statement of correction under Subsection (1) is
             5719      effective retroactively as of the effective date of the record the statement corrects, but the
             5720      statement is effective when filed:
             5721          (a) for the purposes of Subsection 48-3-103 (4); and
             5722          (b) as to persons that previously relied on the uncorrected record and would be
             5723      adversely affected by the retroactive effect.
             5724          Section 212. Section 48-3-207 is enacted to read:
             5725          48-3-207. Liability for inaccurate information in filed record.
             5726          (1) If a record delivered to the division for filing under this chapter and filed by the
             5727      division contains inaccurate information, a person that suffers a loss by reliance on the
             5728      information may recover damages for the loss from:
             5729          (a) a person that signed the record, or caused another to sign it on the person's behalf,
             5730      and knew the information to be inaccurate at the time the record was signed; and
             5731          (b) subject to Subsection (2), a member of a member-managed limited liability
             5732      company or the manager of a manager-managed limited liability company, if:
             5733          (i) the record was delivered for filing on behalf of the limited liability company; and
             5734          (ii) the member or manager had notice of the inaccuracy for a reasonably sufficient
             5735      time before the information was relied upon so that, before the reliance, the member or
             5736      manager reasonably could have:
             5737          (A) effected an amendment under Section 48-3-202 ;
             5738          (B) filed a petition under Section 48-3-204 ; or
             5739          (C) delivered to the division for filing a statement of change pursuant to Section
             5740      16-17-206 or a statement of correction under Section 48-3-206 .
             5741          (2) To the extent that the operating agreement of a member-managed limited liability


             5742      company expressly relieves a member of responsibility for maintaining the accuracy of
             5743      information contained in records delivered on behalf of the limited liability company to the
             5744      division for filing under this chapter and imposes that responsibility on one or more other
             5745      members, the liability stated in Subsection (1)(b) applies to those other members and not to the
             5746      member that the operating agreement relieves of the responsibility.
             5747          (3) An individual who signs a record authorized or required to be filed under this
             5748      chapter affirms under penalty of perjury that the information stated in the record is accurate.
             5749          Section 213. Section 48-3-208 is enacted to read:
             5750          48-3-208. Certificate of existence or authorization.
             5751          (1) The division, upon request and payment of the requisite fee, shall furnish to any
             5752      person a certificate of existence for a limited liability company if the records filed in the
             5753      division show that the limited liability company has been formed under Section 48-3-201 and
             5754      the division has not filed a statement of termination pertaining to the limited liability company.
             5755      A certificate of existence must state:
             5756          (a) the limited liability company's name;
             5757          (b) that the limited liability company was duly formed under the laws of this state and
             5758      the date of formation;
             5759          (c) whether all fees, taxes, and penalties due under this chapter or other law to the
             5760      division have been paid;
             5761          (d) whether the limited liability company's most recent annual report required by
             5762      Section 48-3-209 has been filed by the division;
             5763          (e) whether the division has administratively dissolved the limited liability company;
             5764          (f) whether the limited liability company has delivered to the division for filing a
             5765      statement of dissolution;
             5766          (g) that a statement of termination has not been filed by the division; and
             5767          (h) other facts of record in the division which are specified by the person requesting the
             5768      certificate.
             5769          (2) The division, upon request and payment of the requisite fee, shall furnish to any


             5770      person a certificate of authorization for a foreign limited liability company if the records filed
             5771      in the division show that the division has filed a certificate of authority, has not revoked the
             5772      certificate of authority, and has not filed a notice of cancellation. A certificate of authorization
             5773      must state:
             5774          (a) the limited liability company's name and any alternate name adopted under
             5775      Subsection 48-3-805 (1) for use in this state;
             5776          (b) that the limited liability company is authorized to transact business in this state;
             5777          (c) whether all fees, taxes, and penalties due under this chapter or other law to the
             5778      division have been paid;
             5779          (d) whether the limited liability company's most recent annual report required by
             5780      Section 48-3-209 has been filed by the division;
             5781          (e) that the division has not revoked the limited liability company's certificate of
             5782      authority and has not filed a notice of cancellation; and
             5783          (f) other facts of record in the division which are specified by the person requesting the
             5784      certificate.
             5785          (3) Subject to any qualification stated in the certificate, a certificate of existence or
             5786      certificate of authorization issued by the division is conclusive evidence that the limited
             5787      liability company is in existence or the foreign limited liability company is authorized to
             5788      transact business in this state.
             5789          Section 214. Section 48-3-209 is enacted to read:
             5790          48-3-209. Annual report for division.
             5791          (1) Each year, a limited liability company or a foreign limited liability company
             5792      authorized to transact business in this state shall deliver to the division for filing a report that
             5793      states:
             5794          (a) the name of the limited liability company;
             5795          (b) the information required by Subsection 16-17-203 (1);
             5796          (c) the street and mailing addresses of its principal office; and
             5797          (d) in the case of a foreign limited liability company, the state or other jurisdiction


             5798      under whose law the limited liability company is formed and any alternate name adopted under
             5799      Subsection 48-3-805 (1).
             5800          (2) Information in an annual report under this section must be current as of the date the
             5801      report is delivered to the division for filing.
             5802          (3) A report must be delivered to the division:
             5803          (a) during the month of its anniversary date of formation, in the case of a domestic
             5804      limited liability company; or
             5805          (b) during the month of the anniversary date of being granted authority to transact
             5806      business in this state, in the case of a foreign limited liability company authorized to transact
             5807      business in this state.
             5808          (4) If an annual report under this section does not contain the information required in
             5809      Subsection (1), the division shall promptly notify the reporting limited liability company or
             5810      foreign limited liability company and return the report to it for correction. If the report is
             5811      corrected to contain the information required in Subsection (1) and delivered to the division
             5812      within 30 days after the effective date of the notice, it is timely delivered.
             5813          (5) If an annual report under this section contains information provided under
             5814      Subsection (1)(b) that differs from the information shown in the records of the division
             5815      immediately before the annual report becomes effective, the differing information in the annual
             5816      report is considered a statement of change under Section 16-17-206 .
             5817          Section 215. Section 48-3-301 is enacted to read:
             5818     
Part 3. Relations of Members and Managers to Persons Dealing with Limited     Liability

             5819     
Company

             5820          48-3-301. No agency power of member as member.
             5821          (1) A member is not an agent of a limited liability company solely by reason of being a
             5822      member.
             5823          (2) A person's status as a member does not prevent or restrict law other than this
             5824      chapter from imposing liability on a limited liability company because of the person's conduct.
             5825          Section 216. Section 48-3-302 is enacted to read:


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


             5854          (4) Subject to Subsection (3) and Subsection 48-3-103 (4) and except as otherwise
             5855      provided in Subsections (6), (7), and (8), a limitation on the authority of a person or a position
             5856      contained in an effective statement of authority is not by itself evidence of knowledge or notice
             5857      of the limitation by any person.
             5858          (5) Subject to Subsection (3), a grant of authority not pertaining to transfers of real
             5859      property and contained in an effective statement of authority is conclusive in favor of a person
             5860      that gives value in reliance on the grant, except to the extent that when the person gives value:
             5861          (a) the person has knowledge to the contrary;
             5862          (b) the statement has been canceled or restrictively amended under Subsection (2); or
             5863          (c) a limitation on the grant is contained in another statement of authority that became
             5864      effective after the statement containing the grant became effective.
             5865          (6) Subject to Subsection (3), an effective statement of authority that grants authority to
             5866      transfer real property held in the name of the limited liability company and that is recorded by
             5867      certified copy in the office for recording transfers of the real property is conclusive in favor of a
             5868      person that gives value in reliance on the grant without knowledge to the contrary, except to the
             5869      extent that when the person gives value:
             5870          (a) the statement has been canceled or restrictively amended under Subsection (2) and a
             5871      certified copy of the cancellation or restrictive amendment has been recorded in the office for
             5872      recording transfers of the real property; or
             5873          (b) a limitation on the grant is contained in another statement of authority that became
             5874      effective after the statement containing the grant became effective and a certified copy of the
             5875      later-effective statement is recorded in the office for recording transfers of the real property.
             5876          (7) Subject to Subsection (3), if a certified copy of an effective statement containing a
             5877      limitation on the authority to transfer real property held in the name of a limited liability
             5878      company is recorded in the office for recording transfers of that real property, all persons are
             5879      deemed to know of the limitation.
             5880          (8) Subject to Subsection (9), an effective statement of dissolution or termination is a
             5881      cancellation of any filed statement of authority for the purposes of Subsection (6) and is a


             5882      limitation on authority for the purposes of Subsection (7).
             5883          (9) After a statement of dissolution becomes effective, a limited liability company may
             5884      deliver to the division for filing and, if appropriate, may record a statement of authority that is
             5885      designated as a post-dissolution statement of authority. The statement operates as provided in
             5886      Subsections (6) and (7).
             5887          (10) Unless earlier canceled, an effective statement of authority is canceled by
             5888      operation of law five years after the date on which the statement, or its most recent amendment,
             5889      becomes effective. This cancellation operates without need for any recording under Subsection
             5890      (6) or (7).
             5891          (11) An effective statement of denial operates as a restrictive amendment under this
             5892      section and may be recorded by certified copy for the purposes of Subsection (6)(a).
             5893          Section 217. Section 48-3-303 is enacted to read:
             5894          48-3-303. Statement of denial.
             5895          A person named in a filed statement of authority granting that person authority may
             5896      deliver to the division for filing a statement of denial that:
             5897          (1) provides the name of the limited liability company and the caption of the statement
             5898      of authority to which the statement of denial pertains; and
             5899          (2) denies the grant of authority.
             5900          Section 218. Section 48-3-304 is enacted to read:
             5901          48-3-304. Liability of members and managers.
             5902          (1) The debts, obligations, or other liabilities of a limited liability company, whether
             5903      arising in contract, tort, or otherwise:
             5904          (a) are solely the debts, obligations, or other liabilities of the limited liability company;
             5905      and
             5906          (b) do not become the debts, obligations, or other liabilities of a member or manager
             5907      solely by reason of the member acting as a member or manager acting as a manager.
             5908          (2) The failure of a limited liability company to observe any particular formalities
             5909      relating to the exercise of its powers or management of its activities is not a ground for


             5910      imposing liability on the members or managers for the debts, obligations, or other liabilities of
             5911      the limited liability company.
             5912          Section 219. Section 48-3-401 is enacted to read:
             5913     
Part 4. Relations of Members to Each Other and to Limited Liability Company

             5914          48-3-401. Becoming a member.
             5915          (1) If a limited liability company is to have only one member upon formation, the
             5916      person becomes a member as agreed by that person and the organizer of the limited liability
             5917      company. That person and the organizer may be, but need not be, different persons. If
             5918      different, the organizer acts on behalf of the initial member.
             5919          (2) If a limited liability company is to have more than one member upon formation,
             5920      those persons become members as agreed by the persons before the formation of the limited
             5921      liability company. The organizer acts on behalf of the persons in forming the limited liability
             5922      company and may be, but need not be, one of the persons.
             5923          (3) After formation of a limited liability company, a person becomes a member:
             5924          (a) as provided in the operating agreement;
             5925          (b) as the result of a transaction effective under Part 10, Merger, Conversion, and
             5926      Domestication;
             5927          (c) with the consent of all the members; or
             5928          (d) if, within 90 consecutive days after the limited liability company ceases to have any
             5929      members:
             5930          (i) the last person to have been a member, or the legal representative of that person,
             5931      designates a person to become a member; and
             5932          (ii) the designated person consents to become a member effective as of the date the last
             5933      person to have been a member ceased to be a member.
             5934          (4) A person may become a member without acquiring a transferable interest and
             5935      without making or being obligated to make a contribution to the limited liability company.
             5936          Section 220. Section 48-3-402 is enacted to read:
             5937          48-3-402. Form of contribution.


             5938          A contribution may consist of tangible or intangible property or other benefit to a
             5939      limited liability company, including money, services performed, promissory notes, other
             5940      agreements to contribute money or property, and contracts for services to be performed.
             5941          Section 221. Section 48-3-403 is enacted to read:
             5942          48-3-403. Liability for contributions.
             5943          (1) (a) A person's obligation to make a contribution to a limited liability company is
             5944      not excused by the person's death, disability, or other inability to perform personally.
             5945          (b) If a person does not make a required contribution, the person or the person's estate
             5946      is obligated to contribute money equal to the value of the part of the contribution which has not
             5947      been made, at the option of the limited liability company.
             5948          (c) Notwithstanding the other provisions of this Subsection (1), the operating
             5949      agreement of a limited liability company may allow a person's obligation to make a
             5950      contribution to be excused by the person's death.
             5951          (2) A creditor of a limited liability company which extends credit or otherwise acts in
             5952      reliance on an obligation described in Subsection (1) may enforce the obligation.
             5953          Section 222. Section 48-3-404 is enacted to read:
             5954          48-3-404. Sharing of and right to distributions before dissolution.
             5955          (1) Except as otherwise provided in the operating agreement, any distributions made by
             5956      a limited liability company before its dissolution and winding up must be in equal shares
             5957      among members and dissociated members, except to the extent necessary to comply with any
             5958      transfer effective under Section 48-3-502 and any charging order in effect under Section
             5959      48-3-503 .
             5960          (2) A person has a right to a distribution before the dissolution and winding up of a
             5961      limited liability company only if the limited liability company decides to make an interim
             5962      distribution. A person's dissociation does not entitle the person to a distribution.
             5963          (3) A person does not have a right to demand or receive a distribution from a limited
             5964      liability company in any form other than money. Except as otherwise provided in Subsection
             5965      48-3-709 (3), a limited liability company may distribute an asset in kind if each part of the asset


             5966      is fungible with each other part and each person receives a percentage of the asset equal in
             5967      value to the person's share of distributions.
             5968          (4) If a member or transferee becomes entitled to receive a distribution, the member or
             5969      transferee has the status of, and is entitled to all remedies available to, a creditor of the limited
             5970      liability company with respect to the distribution.
             5971          Section 223. Section 48-3-405 is enacted to read:
             5972          48-3-405. Limitations on distribution.
             5973          (1) A limited liability company may not make a distribution if after the distribution:
             5974          (a) the limited liability company would not be able to pay its debts as they become due
             5975      in the ordinary course of the limited liability company's activities; or
             5976          (b) the limited liability company's total assets would be less than the sum of its total
             5977      liabilities plus the amount that would be needed, if the limited liability company were to be
             5978      dissolved, wound up, and terminated at the time of the distribution, to satisfy the preferential
             5979      rights upon dissolution, winding up, and termination of members whose preferential rights are
             5980      superior to those of persons receiving the distribution.
             5981          (2) A limited liability company may base a determination that a distribution is not
             5982      prohibited under Subsection (1) on financial statements prepared on the basis of accounting
             5983      practices and principles that are reasonable in the circumstances or on a fair valuation or other
             5984      method that is reasonable under the circumstances.
             5985          (3) Except as otherwise provided in Subsection (6), the effect of a distribution under
             5986      Subsection (1) is measured:
             5987          (a) in the case of a distribution by purchase, redemption, or other acquisition of a
             5988      transferable interest in the limited liability company, as of the date money or other property is
             5989      transferred or debt incurred by the limited liability company; and
             5990          (b) in all other cases, as of the date:
             5991          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             5992      or
             5993          (ii) the payment is made, if the payment occurs more than 120 days after the


             5994      distribution is authorized.
             5995          (4) A limited liability company's indebtedness to a member incurred by reason of a
             5996      distribution made in accordance with this section is at parity with the limited liability
             5997      company's indebtedness to its general, unsecured creditors.
             5998          (5) A limited liability company's indebtedness, including indebtedness issued in
             5999      connection with or as part of a distribution, is not a liability for purposes of Subsection (1) if
             6000      the terms of the indebtedness provide that payment of principal and interest are made only to
             6001      the extent that a distribution could be made to members under this section.
             6002          (6) If indebtedness is issued as a distribution, each payment of principal or interest on
             6003      the indebtedness is treated as a distribution, the effect of which is measured on the date the
             6004      payment is made.
             6005          (7) In Subsection (1), "distribution" does not include amounts constituting reasonable
             6006      compensation for present or past services or reasonable payments made in the ordinary course
             6007      of business under a bona fide retirement plan or other benefits program.
             6008          Section 224. Section 48-3-406 is enacted to read:
             6009          48-3-406. Liability for improper distributions.
             6010          (1) Except as otherwise provided in Subsection (2), if a member of a member-managed
             6011      limited liability company or manager of a manager-managed limited liability company consents
             6012      to a distribution made in violation of Section 48-3-405 and in consenting to the distribution
             6013      fails to comply with Section 48-3-409 , the member or manager is personally liable to the
             6014      limited liability company for the amount of the distribution that exceeds the amount that could
             6015      have been distributed without the violation of Section 48-3-405 .
             6016          (2) To the extent the operating agreement of a member-managed limited liability
             6017      company expressly relieves a member of the authority and responsibility to consent to
             6018      distributions and imposes that authority and responsibility on one or more other members, the
             6019      liability stated in Subsection (1) applies to the other members and not the member that the
             6020      operating agreement relieves of authority and responsibility.
             6021          (3) A person that receives a distribution knowing that the distribution to that person


             6022      was made in violation of Section 48-3-405 is personally liable to the limited liability company
             6023      but only to the extent that the distribution received by the person exceeded the amount that
             6024      could have been properly paid under Section 48-3-405 .
             6025          (4) A person against which an action is commenced because the person is liable under
             6026      Subsection (1) may:
             6027          (a) implead any other person that is subject to liability under Subsection (1) and seek to
             6028      compel contribution from the person; and
             6029          (b) implead any person that received a distribution in violation of Subsection (3) and
             6030      seek to compel contribution from the person in the amount the person received in violation of
             6031      Subsection (3).
             6032          (5) An action under this section is barred if not commenced within two years after the
             6033      distribution.
             6034          Section 225. Section 48-3-407 is enacted to read:
             6035          48-3-407. Management of limited liability company.
             6036          (1) A limited liability company is a member-managed limited liability company unless
             6037      the operating agreement:
             6038          (a) expressly provides that:
             6039          (i) the limited liability company is or will be "manager-managed";
             6040          (ii) the limited liability company is or will be "managed by managers"; or
             6041          (iii) management of the limited liability company is or will be "vested in managers"; or
             6042          (b) includes words of similar import.
             6043          (2) In a member-managed limited liability company, the following rules apply:
             6044          (a) The management and conduct of the limited liability company are vested in the
             6045      members.
             6046          (b) Each member has equal rights in the management and conduct of the limited
             6047      liability company's activities.
             6048          (c) A difference arising among members as to a matter in the ordinary course of the
             6049      activities of the limited liability company shall be decided by a majority of the members.


             6050          (d) An act outside the ordinary course of the activities of the limited liability company
             6051      may be undertaken only with the consent of all members.
             6052          (e) The operating agreement may be amended only with the consent of all members.
             6053          (3) In a manager-managed limited liability company, the following rules apply:
             6054          (a) Except as otherwise expressly provided in this chapter, any matter relating to the
             6055      activities of the limited liability company is decided exclusively by the managers.
             6056          (b) Each manager has equal rights in the management and conduct of the activities of
             6057      the limited liability company.
             6058          (c) A difference arising among managers as to a matter in the ordinary course of the
             6059      activities of the limited liability company shall be decided by a majority of the managers.
             6060          (d) The consent of all members is required to:
             6061          (i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the limited
             6062      liability company's property, with or without the good will, outside the ordinary course of the
             6063      limited liability company's activities;
             6064          (ii) approve a merger, conversion, or domestication under Part 10, Merger, Conversion,
             6065      and Domestication;
             6066          (iii) undertake any other act outside the ordinary course of the limited liability
             6067      company's activities; and
             6068          (iv) amend the operating agreement.
             6069          (e) A manager may be chosen at any time by the consent of a majority of the members
             6070      and remains a manager until a successor has been chosen, unless the manager at an earlier time
             6071      resigns, is removed, or dies, or, in the case of a manager that is not an individual, terminates.
             6072      A manager may be removed at any time by the consent of a majority of the members without
             6073      notice or cause.
             6074          (f) A person need not be a member to be a manager, but the dissociation of a member
             6075      that is also a manager removes the person as a manager. If a person that is both a manager and
             6076      a member ceases to be a manager, that cessation does not by itself dissociate the person as a
             6077      member.


             6078          (g) A person's ceasing to be a manager does not discharge any debt, obligation, or other
             6079      liability to the limited liability company or members which the person incurred while a
             6080      manager.
             6081          (4) An action requiring the consent of members under this chapter may be taken
             6082      without a meeting, and a member may appoint a proxy or other agent to consent or otherwise
             6083      act for the member by signing an appointing record, personally or by the member's agent.
             6084          (5) The dissolution of a limited liability company does not affect the applicability of
             6085      this section. However, a person that wrongfully causes dissolution of the limited liability
             6086      company loses the right to participate in management as a member and a manager.
             6087          (6) This chapter does not entitle a member to remuneration for services performed for a
             6088      member-managed limited liability company, except for reasonable compensation for services
             6089      rendered in winding up the activities of the limited liability company.
             6090          Section 226. Section 48-3-408 is enacted to read:
             6091          48-3-408. Indemnification and insurance.
             6092          (1) A limited liability company shall reimburse for any payment made and indemnify
             6093      for any debt, obligation, or other liability incurred by a member of a member-managed
             6094      company or the manager of a manager-managed company in the course of the member's or
             6095      manager's activities on behalf of the limited liability company, if, in making the payment or
             6096      incurring the debt, obligation, or other liability, the member or manager complied with the
             6097      duties stated in Sections 48-3-405 and 48-3-409 .
             6098          (2) A limited liability company may purchase and maintain insurance on behalf of a
             6099      member or manager of the limited liability company against liability asserted against or
             6100      incurred by the member or manager in that capacity or arising from that status even if, under
             6101      Subsection 48-3-110 (7), the operating agreement could not eliminate or limit the person's
             6102      liability to the limited liability company for the conduct giving rise to the liability.
             6103          Section 227. Section 48-3-409 is enacted to read:
             6104          48-3-409. Standards of conduct for members and managers.
             6105          (1) A member of a member-managed limited liability company owes to the limited


             6106      liability company and, subject to Subsection 48-3-901 (2), the other members the fiduciary
             6107      duties of loyalty and care stated in Subsections (2) and (3).
             6108          (2) The duty of loyalty of a member in a member-managed limited liability company
             6109      includes the duties:
             6110          (a) to account to the limited liability company and to hold as trustee for it any property,
             6111      profit, or benefit derived by the member:
             6112          (i) in the conduct or winding up of the limited liability company's activities;
             6113          (ii) from a use by the member of the limited liability company's property; or
             6114          (iii) from the appropriation of a limited liability company opportunity;
             6115          (b) to refrain from dealing with the limited liability company in the conduct or winding
             6116      up of the limited liability company's activities as or on behalf of a person having an interest
             6117      adverse to the limited liability company; and
             6118          (c) to refrain from competing with the limited liability company in the conduct of the
             6119      limited liability company's activities before the dissolution of the limited liability company.
             6120          (3) The duty of care of a member in a member-managed limited liability company in
             6121      the conduct and winding up of the limited liability company's activities is to refrain from
             6122      conduct or inaction that constitutes:
             6123          (a) gross negligence;
             6124          (b) intentional misconduct; or
             6125          (c) an intentional violation of law.
             6126          (4) A member in a member-managed limited liability company or a manager-managed
             6127      limited liability company shall discharge the duties under this chapter or under the operating
             6128      agreement and exercise any rights consistently with the contractual obligation of good faith and
             6129      fair dealing.
             6130          (5) It is a defense to a claim under Subsection (2)(b) and any comparable claim in
             6131      equity or at common law that the transaction was fair to the limited liability company.
             6132          (6) All of the members of a member-managed limited liability company or a
             6133      manager-managed limited liability company may authorize or ratify, after full disclosure of all


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


             6162      member to the extent the member knows any of the information described in Subsection (1)(b).
             6163          (2) In a manager-managed limited liability company, the following rules apply:
             6164          (a) The informational rights stated in Subsection (1) and the duty stated in Subsection
             6165      (1)(c) apply to the managers and not the members.
             6166          (b) During regular business hours and at a reasonable location specified by the limited
             6167      liability company, a member may obtain from the limited liability company and inspect and
             6168      copy full information regarding the activities, financial condition, and other circumstances of
             6169      the limited liability company as is just and reasonable if:
             6170          (i) the member seeks the information for a purpose material to the member's interest as
             6171      a member;
             6172          (ii) the member makes a demand in a record received by the limited liability company,
             6173      describing with reasonable particularity the information sought and the purpose for seeking the
             6174      information; and
             6175          (iii) the information sought is directly connected to the member's purpose.
             6176          (c) Within 10 days after receiving a demand pursuant to Subsection (2)(b)(ii), the
             6177      limited liability company shall in a record inform the member that made the demand:
             6178          (i) of the information that the limited liability company will provide in response to the
             6179      demand and when and where the limited liability company will provide the information; and
             6180          (ii) if the limited liability company declines to provide any demanded information, the
             6181      limited liability company's reasons for declining.
             6182          (d) Whenever this chapter or an operating agreement provides for a member to give or
             6183      withhold consent to a matter, before the consent is given or withheld, the limited liability
             6184      company shall, without demand, provide the member with all information that is known to the
             6185      limited liability company and is material to the member's decision.
             6186          (3) On 10 days' demand made in a record received by a limited liability company, a
             6187      dissociated member may have access to information to which the person was entitled while a
             6188      member if the information pertains to the period during which the person was a member, the
             6189      person seeks the information in good faith, and the person satisfies the requirements imposed


             6190      on a member by Subsection (2)(b). The limited liability company shall respond to a demand
             6191      made pursuant to this Subsection (3) in the manner provided in Subsection (2)(c).
             6192          (4) A limited liability company may charge a person that makes a demand under this
             6193      section the reasonable costs of copying, limited to the costs of labor and material.
             6194          (5) A member or dissociated member may exercise rights under this section through an
             6195      agent or, in the case of an individual under legal disability, a legal representative. Any
             6196      restriction or condition imposed by the operating agreement or under Subsection (7) applies
             6197      both to the agent or legal representative and the member or dissociated member.
             6198          (6) The rights under this section do not extend to a person as transferee.
             6199          (7) In addition to any restriction or condition stated in its operating agreement, a
             6200      limited liability company, as a matter within the ordinary course of its activities, may impose
             6201      reasonable restrictions and conditions on access to and use of information to be furnished under
             6202      this section, including designating information confidential and imposing nondisclosure and
             6203      safeguarding obligations on the recipient. In a dispute concerning the reasonableness of a
             6204      restriction under this Subsection (7), the limited liability company has the burden of proving
             6205      reasonableness.
             6206          Section 229. Section 48-3-501 is enacted to read:
             6207     
Part 5. Transferable Interests and Rights of Transferees and Creditors

             6208          48-3-501. Nature of transferable interest.
             6209          A transferable interest is personal property.
             6210          Section 230. Section 48-3-502 is enacted to read:
             6211          48-3-502. Transfer of transferable interest.
             6212          (1) A transfer, in whole or in part, of a transferable interest:
             6213          (a) is permissible;
             6214          (b) does not by itself cause a member's dissociation or a dissolution and winding up of
             6215      the limited liability company's activities; and
             6216          (c) subject to Section 48-3-504 , does not entitle the transferee to:
             6217          (i) participate in the management or conduct of the limited liability company's


             6218      activities; or
             6219          (ii) except as otherwise provided in Subsection (3), have access to records or other
             6220      information concerning the limited liability company's activities.
             6221          (2) A transferee has the right to receive, in accordance with the transfer, distributions to
             6222      which the transferor would otherwise be entitled.
             6223          (3) In a dissolution and winding up of a limited liability company, a transferee is
             6224      entitled to an account of the limited liability company's transactions only from the date of
             6225      dissolution.
             6226          (4) A transferable interest may be evidenced by a certificate of the interest issued by
             6227      the limited liability company in a record, and, subject to this section, the interest represented by
             6228      the certificate may be transferred by a transfer of the certificate.
             6229          (5) A limited liability company need not give effect to a transferee's rights under this
             6230      section until the limited liability company has notice of the transfer.
             6231          (6) A transfer of a transferable interest in violation of a restriction on transfer contained
             6232      in the operating agreement is ineffective as to a person having notice of the restriction at the
             6233      time of transfer.
             6234          (7) Except as otherwise provided in Subsection 48-3-602 (4)(b), when a member
             6235      transfers a transferable interest, the transferor retains the rights of a member other than the
             6236      interest in distributions transferred and retains all duties and obligations of a member.
             6237          (8) When a member transfers a transferable interest to a person that becomes a member
             6238      with respect to the transferred interest, the transferee is liable for the member's obligations
             6239      under Section 48-3-403 and Subsection 48-3-406 (3) known to the transferee when the
             6240      transferee becomes a member.
             6241          Section 231. Section 48-3-503 is enacted to read:
             6242          48-3-503. Charging order.
             6243          (1) On application by a judgment creditor of a member or transferee, a court may enter
             6244      a charging order against the transferable interest of the judgment debtor for the unsatisfied
             6245      amount of the judgment. A charging order constitutes a lien on a judgment debtor's


             6246      transferable interest and, after the limited liability company has been served with the charging
             6247      order, requires the limited liability company to pay over to the person to which the charging
             6248      order was issued any distribution that would otherwise be paid to the judgment debtor.
             6249          (2) To the extent necessary to effectuate the collection of distributions pursuant to a
             6250      charging order in effect under Subsection (1), the court may:
             6251          (a) appoint a receiver of the distributions subject to the charging order, with the power
             6252      to make all inquiries the judgment debtor might have made; and
             6253          (b) make all other orders necessary to give effect to the charging order.
             6254          (3) Upon a showing that distributions under a charging order will not pay the judgment
             6255      debt within a reasonable time, the court may foreclose the lien and order the sale of the
             6256      transferable interest. The purchaser at the foreclosure sale only obtains the transferable
             6257      interest, does not thereby become a member, and is subject to Section 48-3-502 .
             6258          (4) Notwithstanding Subsection (3), if the member whose interest is charged under this
             6259      section is the sole member of the company when the charging order is entered:
             6260          (a) the purchaser at a foreclosure sale acquires all rights of the member, including
             6261      voting rights; and
             6262          (b) the member is considered to have consented to the admission of the purchaser as a
             6263      member of the company.
             6264          (5) At any time before foreclosure under Subsection (3), the member or transferee
             6265      whose transferable interest is subject to a charging order under Subsection (1) may extinguish
             6266      the charging order by satisfying the judgment and filing a certified copy of the satisfaction with
             6267      the court that issued the charging order.
             6268          (6) At any time before foreclosure under Subsection (3), a limited liability company or
             6269      one or more members whose transferable interests are not subject to the charging order may
             6270      pay to the judgment creditor the full amount due under the judgment and thereby succeed to the
             6271      rights of the judgment creditor, including the charging order.
             6272          (7) This chapter does not deprive any member or transferee of the benefit of any
             6273      exemption laws applicable to the member's or transferee's transferable interest.


             6274          (8) This section provides the exclusive remedy by which a person seeking to enforce a
             6275      judgment against a member or transferee may, in the capacity of judgment creditor, satisfy the
             6276      judgment from the judgment debtor's transferable interest.
             6277          Section 232. Section 48-3-504 is enacted to read:
             6278          48-3-504. Power of personal representative of deceased member.
             6279          If a member dies, the deceased member's personal representative or other legal
             6280      representative may exercise the rights of a transferee provided in Subsection 48-3-502 (3) and,
             6281      for the purposes of settling the estate, the rights of a current member under Section 48-3-410 .
             6282          Section 233. Section 48-3-601 is enacted to read:
             6283     
Part 6. Member's Dissociation

             6284          48-3-601. Member's power to dissociate -- Wrongful dissociation.
             6285          (1) A person has the power to dissociate as a member at any time, rightfully or
             6286      wrongfully, by withdrawing as a member by express will under Subsection 48-3-602 (1).
             6287          (2) A person's dissociation from a limited liability company is wrongful only if the
             6288      dissociation:
             6289          (a) is in breach of an express provision of the operating agreement; or
             6290          (b) occurs before the termination of the limited liability company and:
             6291          (i) the person withdraws as a member by express will;
             6292          (ii) the person is expelled as a member by judicial order under Subsection 48-3-602 (5);
             6293          (iii) the person is dissociated under Subsection 48-3-602 (7)(a) by becoming a debtor in
             6294      bankruptcy; or
             6295          (iv) in the case of a person that is not a trust other than a business trust, an estate, or an
             6296      individual, the person is expelled or otherwise dissociated as a member because it willfully
             6297      dissolved or terminated.
             6298          (3) A person that wrongfully dissociates as a member is liable to the limited liability
             6299      company and, subject to Section 48-3-901 , to the other members for damages caused by the
             6300      dissociation. The liability is in addition to any other debt, obligation, or other liability of the
             6301      member to the limited liability company or the other members.


             6302          Section 234. Section 48-3-602 is enacted to read:
             6303          48-3-602. Events causing dissociation.
             6304          A person is dissociated as a member from a limited liability company when:
             6305          (1) the limited liability company has notice of the person's express will to withdraw as
             6306      a member, but, if the person specified a withdrawal date later than the date the limited liability
             6307      company had notice, on that later date;
             6308          (2) an event stated in the operating agreement as causing the person's dissociation
             6309      occurs;
             6310          (3) the person is expelled as a member pursuant to the operating agreement;
             6311          (4) the person is expelled as a member by the unanimous consent of the other members
             6312      if:
             6313          (a) it is unlawful to carry on the limited liability company's activities with the person as
             6314      a member;
             6315          (b) there has been a transfer of all of the person's transferable interest in the limited
             6316      liability company, other than:
             6317          (i) a transfer for security purposes; or
             6318          (ii) a charging order in effect under Section 48-3-503 which has not been foreclosed;
             6319          (c) the person is a corporation and, within 90 days after the limited liability company
             6320      notifies the person that it will be expelled as a member because the person has filed a
             6321      certificate of dissolution or the equivalent, its charter has been revoked, or its right to conduct
             6322      business has been suspended by the jurisdiction of its incorporation, the certificate of
             6323      dissolution has not been revoked or its charter or right to conduct business has not been
             6324      reinstated; or
             6325          (d) the person is a limited liability company or partnership that has been dissolved and
             6326      whose business is being wound up;
             6327          (5) on application by the limited liability company, the person is expelled as a member
             6328      by judicial order because the person:
             6329          (a) has engaged, or is engaging, in wrongful conduct that has adversely and materially


             6330      affected, or will adversely and materially affect, the limited liability company's activities;
             6331          (b) has willfully or persistently committed, or is willfully and persistently committing,
             6332      a material breach of the operating agreement or the person's duties or obligations under Section
             6333      48-3-409 ; or
             6334          (c) has engaged in, or is engaging, in conduct relating to the limited liability company's
             6335      activities which makes it not reasonably practicable to carry on the activities with the person as
             6336      a member;
             6337          (6) in the case of a person who is an individual:
             6338          (a) the person dies; or
             6339          (b) in a member-managed limited liability company:
             6340          (i) a guardian or general conservator for the person is appointed; or
             6341          (ii) there is a judicial order that the person has otherwise become incapable of
             6342      performing the person's duties as a member under this chapter or the operating agreement;
             6343          (7) in a member-managed limited liability company, the person:
             6344          (a) becomes a debtor in bankruptcy;
             6345          (b) executes an assignment for the benefit of creditors; or
             6346          (c) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or
             6347      liquidator of the person or of all or substantially all of the person's property;
             6348          (8) in the case of a person that is a trust or is acting as a member by virtue of being a
             6349      trustee of a trust, the trust's entire transferable interest in the limited liability company is
             6350      distributed;
             6351          (9) in the case of a person that is an estate or is acting as a member by virtue of being a
             6352      personal representative of an estate, the estate's entire transferable interest in the limited
             6353      liability company is distributed;
             6354          (10) in the case of a member that is not an individual, partnership, limited liability
             6355      company, corporation, trust, or estate, the termination of the member;
             6356          (11) the limited liability company participates in a merger under Part 10, Merger,
             6357      Conversion, and Domestication, if:


             6358          (a) the limited liability company is not the surviving entity; or
             6359          (b) otherwise as a result of the merger, the person ceases to be a member;
             6360          (12) the limited liability company participates in a conversion under Part 10, Merger,
             6361      Conversion, and Domestication;
             6362          (13) the limited liability company participates in a domestication under Part 10,
             6363      Merger, Conversion, and Domestication, if, as a result of the domestication, the person ceases
             6364      to be a member; or
             6365          (14) the limited liability company terminates.
             6366          Section 235. Section 48-3-603 is enacted to read:
             6367          48-3-603. Effect of person's dissociation as member.
             6368          (1) When a person is dissociated as a member of a limited liability company:
             6369          (a) the person's right to participate as a member in the management and conduct of the
             6370      limited liability company's activities terminates;
             6371          (b) if the limited liability company is member-managed, the person's fiduciary duties as
             6372      a member end with regard to matters arising and events occurring after the person's
             6373      dissociation; and
             6374          (c) subject to Section 48-3-504 and Part 10, Merger, Conversion, and Domestication,
             6375      any transferable interest owned by the person immediately before dissociation in the person's
             6376      capacity as a member is owned by the person solely as a transferee.
             6377          (2) A person's dissociation as a member of a limited liability company does not of itself
             6378      discharge the person from any debt, obligation, or other liability to the limited liability
             6379      company or the other members which the person incurred while a member.
             6380          Section 236. Section 48-3-701 is enacted to read:
             6381     
Part 7. Dissolution and Winding Up

             6382          48-3-701. Events causing dissolution.
             6383          A limited liability company is dissolved, and its activities must be wound up, upon the
             6384      occurrence of any of the following:
             6385          (1) an event or circumstance that the operating agreement states causes dissolution;


             6386          (2) the consent of all the members;
             6387          (3) the passage of 90 consecutive days during which the limited liability company has
             6388      no members;
             6389          (4) on application by a member, the entry by a district court of an order dissolving the
             6390      limited liability company on the grounds that:
             6391          (a) the conduct of all or substantially all of the limited liability company's activities is
             6392      unlawful; or
             6393          (b) it is not reasonably practicable to carry on the limited liability company's activities
             6394      in conformity with the certificate of organization and the operating agreement; or
             6395          (5) on application by a member, the entry by a district court of an order dissolving the
             6396      limited liability company on the grounds that the managers or those in control of the limited
             6397      liability company have acted, are acting, or will act in a manner that is illegal, oppressive, or
             6398      fraudulent.
             6399          Section 237. Section 48-3-702 is enacted to read:
             6400          48-3-702. Election to purchase in lieu of dissolution.
             6401          (1) In a proceeding under Subsection 48-3-701 (5) to dissolve a limited liability
             6402      company, the limited liability company may elect or, if it fails to elect, one or more members
             6403      may elect to purchase the interest in the limited liability company owned by the petitioning
             6404      member at the fair market value of the interest, determined as provided in this section. An
             6405      election pursuant to this section is irrevocable unless the court determines that it is equitable to
             6406      set aside or modify the election.
             6407          (2) (a) An election to purchase pursuant to this section may be filed with the court at
             6408      any time within 90 days after the filing of the petition in a proceeding under Subsection
             6409      48-3-701 (5) or at any later time as the court in its discretion may allow. If the limited liability
             6410      company files an election with the court within the 90-day period, or at any later time allowed
             6411      by the court, to purchase the interest in the limited liability company owned by the petitioning
             6412      member, the limited liability company shall purchase the interest in the manner provided in this
             6413      section.


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


             6442      discontinuance, settlement, sale, or other disposition.
             6443          (3) If, within 60 days after the earlier of the limited liability company filing of an
             6444      election to purchase the interest in the limited liability company of the petitioning member or
             6445      the limited liability company's mailing of a notice to its members of the filing of an election by
             6446      the members to purchase the interest in the limited liability company of the petitioning
             6447      member, the petitioning member and electing limited liability company or members reach
             6448      agreement as to the fair market value and terms of the purchase of the petitioning member's
             6449      interest, the court shall enter an order directing the purchase of the petitioning member's
             6450      interest, upon the terms and conditions agreed to by the parties.
             6451          (4) If the parties are unable to reach an agreement as provided for in Subsection (3),
             6452      upon application of any party, the court shall stay the proceedings under Subsection
             6453      48-3-701 (5) and determine the fair market value of the petitioning member's interest in the
             6454      limited liability company as of the day before the date on which the petition under Subsection
             6455      48-3-701 (5) was filed or as of any other date the court determines to be appropriate under the
             6456      circumstances and based on the factors the court determines to be appropriate.
             6457          (5) (a) Upon determining the fair market value of the interest in the limited liability
             6458      company of the petitioning member, the court shall enter an order directing the purchase of the
             6459      interest in the limited liability company upon terms and conditions the court determines to be
             6460      appropriate. The terms and conditions may include payment of the purchase price in
             6461      installments, where necessary in the interest of equity, provision for security to assure payment
             6462      of the purchase price and any additional costs, fees, and expenses awarded by the court, and an
             6463      allocation of the interest in the limited liability company among members if the interest in the
             6464      limited liability company is to be purchased by members.
             6465          (b) In allocating the petitioning member's interest in the limited liability company
             6466      among holders of different classes of members, the court shall attempt to preserve the existing
             6467      distribution of voting rights among member classes to the extent practicable. The court may
             6468      direct that holders of a specific class or classes may not participate in the purchase. The court
             6469      may not require any electing member to purchase more of the interest in the limited liability


             6470      company owned by the petitioning member than the percentage interest that the purchasing
             6471      member may have set forth in the purchasing member's election or notice of intent to
             6472      participate filed with the court.
             6473          (c) Interest may be allowed at the rate and from the date determined by the court to be
             6474      equitable. However, if the court finds that the refusal of the petitioning member to accept an
             6475      offer of payment was arbitrary or otherwise not in good faith, interest may not be allowed.
             6476          (d) If the court finds that the petitioning member had probable ground for relief under
             6477      Subsection 48-3-701 (5), the court may award to the petitioning member reasonable fees and
             6478      expenses of counsel and experts employed by the petitioning member.
             6479          (6) Upon entry of an order under Subsection (3) or (5), the court shall dismiss the
             6480      petition to dissolve the limited liability company under Subsection 48-3-701 (5) and the
             6481      petitioning member shall no longer have any rights or status as a member of the limited liability
             6482      company, except the right to receive the amounts awarded to him by the court. The award is
             6483      enforceable in the same manner as any other judgment.
             6484          (7) (a) The purchase ordered pursuant to Subsection (5) shall be made within 10 days
             6485      after the date the order becomes final, unless before that time the limited liability company files
             6486      with the court a notice of its intention to file a certificate of dissolution. The certificate of
             6487      dissolution must then be adopted and filed within 60 days after notice.
             6488          (b) Upon filing of articles of dissolution, the limited liability company is dissolved and
             6489      shall be wound up pursuant to Section 48-3-703 , and the order entered pursuant to Subsection
             6490      (5) is no longer of any force or effect. However, the court may award the petitioning member
             6491      reasonable fees and expenses in accordance with Subsection (5)(d). The petitioning member
             6492      may continue to pursue any claims previously asserted on behalf of the limited liability
             6493      company.
             6494          (8) Any payment by the limited liability company pursuant to an order under
             6495      Subsection (3) or (5), other than an award of fees and expenses pursuant to Subsection (5)(d),
             6496      is subject to the provisions of Sections 48-3-405 and 48-3-406 .
             6497          Section 238. Section 48-3-703 is enacted to read:


             6498          48-3-703. Winding up.
             6499          (1) A dissolved limited liability company shall wind up its activities, and the limited
             6500      liability company continues after dissolution only for the purpose of winding up.
             6501          (2) In winding up its activities, a limited liability company:
             6502          (a) shall discharge the limited liability company's debts, obligations, or other liabilities,
             6503      settle and close the limited liability company's activities, and marshal and distribute the assets
             6504      of the limited liability company; and
             6505          (b) may:
             6506          (i) deliver to the division for filing a statement of dissolution stating the name of the
             6507      limited liability company and that the limited liability company is dissolved;
             6508          (ii) preserve the limited liability company activities and property as a going concern for
             6509      a reasonable time;
             6510          (iii) prosecute and defend actions and proceedings, whether civil, criminal, or
             6511      administrative;
             6512          (iv) transfer the limited liability company's property;
             6513          (v) settle disputes by mediation or arbitration;
             6514          (vi) deliver to the division for filing a statement of termination stating the name of the
             6515      limited liability company and that the limited liability company is terminated; and
             6516          (vii) perform other acts necessary or appropriate to the winding up.
             6517          (3) If a dissolved limited liability company has no members, the legal representative of
             6518      the last person to have been a member may wind up the activities of the limited liability
             6519      company. If the person does so, the person has the powers of a sole manager under Subsection
             6520      48-3-407 (3) and is deemed to be a manager for the purposes of Subsection 48-3-304 (1)(b).
             6521          (4) If the legal representative under Subsection (3) declines or fails to wind up the
             6522      limited liability company's activities, a person may be appointed to do so by the consent of
             6523      transferees owning a majority of the rights to receive distributions as transferees at the time the
             6524      consent is to be effective. A person appointed under this Subsection (4):
             6525          (a) has the powers of a sole manager under Subsection 48-3-407 (3) and is deemed to


             6526      be a manager for the purposes of Subsection 48-3-304 (1)(b); and
             6527          (b) shall promptly deliver to the division for filing an amendment to the limited
             6528      liability company's certificate of organization to:
             6529          (i) state that the limited liability company has no members;
             6530          (ii) state that the person has been appointed pursuant to this Subsection (4) to wind up
             6531      the limited liability company; and
             6532          (c) provide the street and mailing addresses of the person.
             6533          (5) A district court may order judicial supervision of the winding up of a dissolved
             6534      limited liability company, including the appointment of a person to wind up the limited liability
             6535      company's activities:
             6536          (a) on application of a member, if the applicant establishes good cause;
             6537          (b) on the application of a transferee, if:
             6538          (i) the limited liability company does not have any members;
             6539          (ii) the legal representative of the last person to have been a member declines or fails to
             6540      wind up the limited liability company's activities; and
             6541          (iii) within a reasonable time following the dissolution a person has not been appointed
             6542      pursuant to Subsection (4); or
             6543          (c) in connection with a proceeding under Subsection 48-3-701 (4) or (5).
             6544          Section 239. Section 48-3-704 is enacted to read:
             6545          48-3-704. Known claims against dissolved limited liability company.
             6546          (1) A dissolved limited liability company in winding up may dispose of the known
             6547      claims against it by following the procedures described in this section.
             6548          (2) A limited liability company in winding up electing to dispose of known claims
             6549      pursuant to this section may give written notice of the limited liability company's dissolution to
             6550      known claimants at any time after the effective date of the dissolution. The written notice
             6551      must:
             6552          (a) describe the information that must be included in a claim;
             6553          (b) provide an address to which written notice of any claim must be given to the


             6554      limited liability company;
             6555          (c) state the deadline, which may not be fewer than 120 days after the effective date of
             6556      the notice, by which the dissolved limited liability company must receive the claim; and
             6557          (d) state that, unless sooner barred by another state statute limiting actions, the claim
             6558      will be barred if not received by the deadline.
             6559          (3) Unless sooner barred by another statute limiting actions, a claim against the
             6560      dissolved limited liability company is barred if:
             6561          (a) a claimant was given notice under Subsection (2) and the claim is not received by
             6562      the dissolved limited liability company by the deadline; or
             6563          (b) the dissolved limited liability company delivers to the claimant written notice of
             6564      rejection of the claim within 90 days after receipt of the claim and the claimant whose claim
             6565      was rejected by the dissolved limited liability company does not commence a proceeding to
             6566      enforce the claim within 90 days after the effective date of the rejection notice.
             6567          (4) Claims which are not rejected by the dissolved limited liability company in writing
             6568      within 90 days after receipt of the claim by the dissolved limited liability company shall be
             6569      considered approved.
             6570          (5) The failure of the dissolved limited liability company to give notice to any known
             6571      claimant pursuant to Subsection (2) does not affect the disposition under this section of any
             6572      claim held by any other known claimant.
             6573          (6) This section does not apply to a claim based on an event occurring after the
             6574      effective date of dissolution or a liability that on that date is contingent.
             6575          Section 240. Section 48-3-705 is enacted to read:
             6576          48-3-705. Other claims against dissolved limited liability company.
             6577          (1) A dissolved limited liability company may publish notice of its dissolution and
             6578      request persons having claims against the limited liability company to present them in
             6579      accordance with the notice.
             6580          (2) The notice authorized by Subsection (1) must:
             6581          (a) be published:


             6582          (i) at least once in a newspaper of general circulation in the county in this state in
             6583      which the dissolved limited liability company's principal office is located or, if it has none in
             6584      this state, in Salt Lake County; and
             6585          (ii) in accordance with Section 45-1-101 ;
             6586          (b) describe the information required to be contained in a claim and provide a mailing
             6587      address to which the claim is to be sent; and
             6588          (c) state that a claim against the limited liability company is barred unless an action to
             6589      enforce the claim is commenced within five years after publication of the notice.
             6590          (3) If a dissolved limited liability company publishes a notice in accordance with
             6591      Subsection (2), unless the claimant commences an action to enforce the claim against the
             6592      limited liability company within five years after the publication date of the notice, the claim of
             6593      each of the following claimants is barred:
             6594          (a) a claimant that did not receive notice in a record under Section 48-3-704 ;
             6595          (b) a claimant whose claim was timely sent to the limited liability company but not
             6596      acted on; and
             6597          (c) a claimant whose claim is contingent at, or based on an event occurring after, the
             6598      effective date of dissolution.
             6599          (4) A claim not barred under this section may be enforced:
             6600          (a) against a dissolved limited liability company, to the extent of its undistributed
             6601      assets; and
             6602          (b) if assets of the limited liability company have been distributed after dissolution,
             6603      against a member or transferee to the extent of that person's proportionate share of the claim or
             6604      of the assets distributed to the member or transferee after dissolution, whichever is less, but a
             6605      person's total liability for all claims under this Subsection (4)(b) does not exceed the total
             6606      amount of assets distributed to the person after dissolution.
             6607          Section 241. Section 48-3-706 is enacted to read:
             6608          48-3-706. Administrative dissolution.
             6609          (1) The division may dissolve a limited liability company administratively if the


             6610      limited liability company does not:
             6611          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             6612      under this chapter or law other than this chapter; or
             6613          (b) deliver, within 60 days after the due date, its annual report to the division.
             6614          (2) If the division determines that a ground exists for administratively dissolving a
             6615      limited liability company, the division shall file a record of the determination and serve the
             6616      limited liability company with a copy of the filed record.
             6617          (3) If within 60 days after service of the copy pursuant to Subsection (2) a limited
             6618      liability company does not correct each ground for dissolution or demonstrate to the reasonable
             6619      satisfaction of the division that each ground determined by the division does not exist, the
             6620      division shall dissolve the limited liability company administratively by preparing, signing, and
             6621      filing a declaration of dissolution that states the grounds for dissolution. The division shall
             6622      serve the limited liability company with a copy of the filed declaration.
             6623          (4) A limited liability company that has been administratively dissolved continues in
             6624      existence but, subject to Section 48-3-707 , may carry on only activities necessary to wind up its
             6625      activities and liquidate its assets under Sections 48-3-703 and 48-3-709 and to notify claimants
             6626      under Sections 48-3-704 and 48-3-705 .
             6627          (5) The administrative dissolution of a limited liability company does not terminate the
             6628      authority of its agent for service of process.
             6629          Section 242. Section 48-3-707 is enacted to read:
             6630          48-3-707. Reinstatement following administrative dissolution.
             6631          (1) A limited liability company that has been administratively dissolved may apply to
             6632      the division for reinstatement within two years after the effective date of dissolution. The
             6633      application must be delivered to the division for filing and state:
             6634          (a) the name of the limited liability company and the effective date of its dissolution;
             6635          (b) that the grounds for dissolution did not exist or have been eliminated; and
             6636          (c) that the limited liability company's name satisfies the requirements of Section
             6637      48-3-108 .


             6638          (2) If the division determines that an application under Subsection (1) contains the
             6639      required information and that the information is correct, the division shall prepare a declaration
             6640      of reinstatement that states this determination, sign and file the original of the declaration of
             6641      reinstatement, and serve the limited liability company with a copy.
             6642          (3) When a reinstatement becomes effective, it relates back to and takes effect as of the
             6643      effective date of the administrative dissolution and the limited liability company may resume
             6644      its activities as if the dissolution had not occurred.
             6645          Section 243. Section 48-3-708 is enacted to read:
             6646          48-3-708. Appeal from rejection of reinstatement.
             6647          (1) If the division rejects a limited liability company's application for reinstatement
             6648      following administrative dissolution, the division shall prepare, sign, and file a notice that
             6649      explains the reason for rejection and serve the limited liability company with a copy of the
             6650      notice.
             6651          (2) Within 30 days after service of a notice of rejection of reinstatement under
             6652      Subsection (1), a limited liability company may appeal from the rejection by petitioning a court
             6653      of appropriate jurisdiction to set aside the dissolution. The petition must be served on the
             6654      division and contain a copy of the division's declaration of dissolution, the limited liability
             6655      company's application for reinstatement, and the division's notice of rejection.
             6656          (3) The court may order the division to reinstate a dissolved limited liability company
             6657      or take other action the court considers appropriate.
             6658          Section 244. Section 48-3-709 is enacted to read:
             6659          48-3-709. Distribution of assets in winding up limited liability company's
             6660      activities.
             6661          (1) In winding up its activities, a limited liability company must apply its assets to
             6662      discharge its obligations to creditors, including members that are creditors.
             6663          (2) After a limited liability company complies with Subsection (1), any surplus must be
             6664      distributed in the following order, subject to any charging order in effect under Section
             6665      48-3-503 :


             6666          (a) to each person owning a transferable interest that reflects contributions made by a
             6667      member and not previously returned, an amount equal to the value of the unreturned
             6668      contributions; and
             6669          (b) in equal shares among members and dissociated members, except to the extent
             6670      necessary to comply with any transfer effective under Section 48-3-502 .
             6671          (3) If a limited liability company does not have sufficient surplus to comply with
             6672      Subsection (2)(a), any surplus must be distributed among the owners of transferable interests in
             6673      proportion to the value of their respective unreturned contributions.
             6674          (4) All distributions made under Subsections (2) and (3) must be paid in money.
             6675          Section 245. Section 48-3-801 is enacted to read:
             6676     
Part 8. Foreign Limited Liability Companies

             6677          48-3-801. Governing law.
             6678          (1) The law of the state or other jurisdiction under which a foreign limited liability
             6679      company is formed governs:
             6680          (a) the internal affairs of the limited liability company; and
             6681          (b) the liability of a member as member and a manager as manager for the debts,
             6682      obligations, or other liabilities of the limited liability company.
             6683          (2) A foreign limited liability company may not be denied a certificate of authority by
             6684      reason of any difference between the law of the jurisdiction under which the limited liability
             6685      company is formed and the law of this state.
             6686          (3) A certificate of authority does not authorize a foreign limited liability company to
             6687      engage in any business or exercise any power that a limited liability company may not engage
             6688      in or exercise in this state.
             6689          (4) (a) The division may permit a tribal limited liability company to apply for authority
             6690      to transact business in the state in the same manner as a foreign company formed in another
             6691      state.
             6692          (b) If a tribal limited liability company elects to apply for authority to transact business
             6693      in the state, for purposes of this chapter, the tribal limited liability company shall be treated in


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


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


             6750          (1) A foreign limited liability company whose name does not comply with Section
             6751      48-3-108 may not obtain a certificate of authority until it adopts, for the purpose of transacting
             6752      business in this state, an alternate name that complies with Section 48-3-108 . A foreign limited
             6753      liability company that adopts an alternate name under this Subsection (1) and obtains a
             6754      certificate of authority with the alternate name need not comply with Title 42, Chapter 2,
             6755      Conducting Business Under Assumed Name. After obtaining a certificate of authority with an
             6756      alternate name, a foreign limited liability company shall transact business in this state under the
             6757      alternate name unless the limited liability company is authorized under Title 42, Chapter 2,
             6758      Conducting Business Under Assumed Name, to transact business in this state under another
             6759      name.
             6760          (2) If a foreign limited liability company authorized to transact business in this state
             6761      changes its name to one that does not comply with Section 48-3-108 , it may not thereafter
             6762      transact business in this state until it complies with Subsection (1) and obtains an amended
             6763      certificate of authority.
             6764          Section 250. Section 48-3-806 is enacted to read:
             6765          48-3-806. Revocation of certificate of authority.
             6766          (1) A certificate of authority of a foreign limited liability company to transact business
             6767      in this state may be revoked by the division in the manner provided in Subsections (2) and (3)
             6768      if the limited liability company does not:
             6769          (a) pay, within 60 days after the due date, any fee, tax, or penalty due to the division
             6770      under this chapter or law other than this chapter;
             6771          (b) deliver, within 60 days after the due date, its annual report required under Section
             6772      48-3-209 ;
             6773          (c) appoint and maintain an agent for service of process as required by Subsection
             6774      16-17-203 (1); or
             6775          (d) deliver for filing a statement of a change under Section 16-17-206 within 30 days
             6776      after a change has occurred in the name or address of the agent.
             6777          (2) To revoke a certificate of authority of a foreign limited liability company, the


             6778      division must prepare, sign, and file a notice of revocation and send a copy to the limited
             6779      liability company's agent for service of process in this state, or if the limited liability company
             6780      does not appoint and maintain a proper agent in this state, to the limited liability company's
             6781      principal office. The notice must state:
             6782          (a) the revocation's effective date, which must be at least 60 days after the date the
             6783      division sends the copy; and
             6784          (b) the grounds for revocation under Subsection (1).
             6785          (3) The authority of a foreign limited liability company to transact business in this state
             6786      ceases on the effective date of the notice of revocation unless before that date the limited
             6787      liability company cures each ground for revocation stated in the notice filed under Subsection
             6788      (2). If the limited liability company cures each ground, the division shall file a record so
             6789      stating.
             6790          Section 251. Section 48-3-807 is enacted to read:
             6791          48-3-807. Cancellation of certificate of authority.
             6792          To cancel its certificate of authority to transact business in this state, a foreign limited
             6793      liability company must deliver to the division for filing a notice of cancellation stating the
             6794      name of the limited liability company and that the limited liability company desires to cancel
             6795      its certificate of authority. The certificate is canceled when the notice becomes effective.
             6796          Section 252. Section 48-3-808 is enacted to read:
             6797          48-3-808. Effect of failure to have certificate of authority.
             6798          (1) A foreign limited liability company transacting business in this state may not
             6799      maintain an action or proceeding in this state unless it has a certificate of authority to transact
             6800      business in this state.
             6801          (2) The failure of a foreign limited liability company to have a certificate of authority
             6802      to transact business in this state does not impair the validity of a contract or act of the limited
             6803      liability company or prevent the limited liability company from defending an action or
             6804      proceeding in this state.
             6805          (3) A member or manager of a foreign limited liability company is not liable for the


             6806      debts, obligations, or other liabilities of the limited liability company solely because the limited
             6807      liability company transacted business in this state without a certificate of authority.
             6808          (4) If a foreign limited liability company transacts business in this state without a
             6809      certificate of authority or cancels its certificate of authority, service of process for rights of
             6810      action arising out of the transaction of business in this state shall be served in accordance with
             6811      Section 16-17-301 .
             6812          Section 253. Section 48-3-809 is enacted to read:
             6813          48-3-809. Action by attorney general.
             6814          The attorney general may maintain an action to enjoin a foreign limited liability
             6815      company from transacting business in this state in violation of this part.
             6816          Section 254. Section 48-3-901 is enacted to read:
             6817     
Part 9. Actions by Members

             6818          48-3-901. Direct action by member.
             6819          (1) Subject to Subsection (2), a member may maintain a direct action against another
             6820      member, a manager, or the limited liability company to enforce the member's rights and
             6821      otherwise protect the member's interests, including rights and interests under the operating
             6822      agreement or this chapter or arising independently of the membership relationship.
             6823          (2) A member maintaining a direct action under this section must plead and prove an
             6824      actual or threatened injury that is not solely the result of an injury suffered or threatened to be
             6825      suffered by the limited liability company.
             6826          Section 255. Section 48-3-902 is enacted to read:
             6827          48-3-902. Derivative action.
             6828          A member may maintain a derivative action to enforce a right of a limited liability
             6829      company if:
             6830          (1) the member first makes a demand on the other members in a member-managed
             6831      limited liability company, or the managers of a manager-managed limited liability company,
             6832      requesting that they cause the limited liability company to bring an action to enforce the right,
             6833      and the managers or other members do not bring the action within a reasonable time; or


             6834          (2) a demand under Subsection (1) would be futile.
             6835          Section 256. Section 48-3-903 is enacted to read:
             6836          48-3-903. Proper plaintiff.
             6837          (1) Except as otherwise provided in Subsection (2), a derivative action under Section
             6838      48-3-902 may be maintained only by a person that is a member at the time the action is
             6839      commenced and remains a member while the action continues.
             6840          (2) If the sole plaintiff in a derivative action dies while the action is pending, the court
             6841      may permit another member of the limited liability company to be substituted as plaintiff.
             6842          Section 257. Section 48-3-904 is enacted to read:
             6843          48-3-904. Pleading.
             6844          In a derivative action under Section 48-3-902 , the complaint must state with
             6845      particularity:
             6846          (1) the date and content of plaintiff's demand and the response to the demand by the
             6847      managers or other members; or
             6848          (2) if a demand has not been made, the reasons a demand under Subsection
             6849      48-3-902 (1) would be futile.
             6850          Section 258. Section 48-3-905 is enacted to read:
             6851          48-3-905. Special litigation committee.
             6852          (1) If a limited liability company is named as or made a party in a derivative
             6853      proceeding, the limited liability company may appoint a special litigation committee to
             6854      investigate the claims asserted in the proceeding and determine whether pursuing the action is
             6855      in the best interests of the limited liability company. If the limited liability company appoints a
             6856      special litigation committee, on motion by the committee made in the name of the limited
             6857      liability company, except for good cause shown, the court shall stay discovery for the time
             6858      reasonably necessary to permit the committee to make its investigation. This Subsection (1)
             6859      does not prevent the court from enforcing a person's right to information under Section
             6860      48-3-410 or, for good cause shown, granting extraordinary relief in the form of a temporary
             6861      restraining order or preliminary injunction.


             6862          (2) A special litigation committee may be composed of one or more disinterested and
             6863      independent individuals, who may be members.
             6864          (3) A special litigation committee may be appointed:
             6865          (a) in a member-managed limited liability company:
             6866          (i) by the consent of a majority of the members not named as defendants or plaintiffs in
             6867      the proceeding; and
             6868          (ii) if all members are named as defendants or plaintiffs in the proceeding, by a
             6869      majority of the members named as defendants; or
             6870          (b) in a manager-managed limited liability company:
             6871          (i) by a majority of the managers not named as defendants or plaintiffs in the
             6872      proceeding; and
             6873          (ii) if all managers are named as defendants or plaintiffs in the proceeding, by a
             6874      majority of the managers named as defendants.
             6875          (4) After appropriate investigation, a special litigation committee may determine that it
             6876      is in the best interests of the limited liability company that the proceeding:
             6877          (a) continue under the control of the plaintiff;
             6878          (b) continue under the control of the committee;
             6879          (c) be settled on terms approved by the committee; or
             6880          (d) be dismissed.
             6881          (5) After making a determination under Subsection (4), a special litigation committee
             6882      shall file with the court a statement of its determination and its report supporting its
             6883      determination, giving notice to the plaintiff. The court shall determine whether the members of
             6884      the committee were disinterested and independent and whether the committee conducted its
             6885      investigation and made its recommendation in good faith, independently, and with reasonable
             6886      care, with the committee having the burden of proof. If the court finds that the members of the
             6887      committee were disinterested and independent and that the committee acted in good faith,
             6888      independently, and with reasonable care, the court shall enforce the determination of the
             6889      committee. Otherwise, the court shall dissolve the stay of discovery entered under Subsection


             6890      (1) and allow the action to proceed under the direction of the plaintiff.
             6891          Section 259. Section 48-3-906 is enacted to read:
             6892          48-3-906. Proceeds and expenses.
             6893          (1) Except as otherwise provided in Subsection (2):
             6894          (a) any proceeds or other benefits of a derivative action under Section 48-3-902 ,
             6895      whether by judgment, compromise, or settlement, belong to the limited liability company and
             6896      not to the plaintiff; and
             6897          (b) if the plaintiff receives any proceeds, the plaintiff shall remit them immediately to
             6898      the limited liability company.
             6899          (2) If a derivative action under Section 48-3-902 is successful in whole or in part, the
             6900      court may award the plaintiff reasonable expenses, including reasonable attorney fees and
             6901      costs, from the recovery of the limited liability company.
             6902          Section 260. Section 48-3-1001 is enacted to read:
             6903     
Part 10. Merger, Conversion, and Domestication

             6904          48-3-1001. Definitions.
             6905          As used in this part:
             6906          (1) "Constituent limited liability company" means a constituent organization that is a
             6907      limited liability company.
             6908          (2) "Constituent organization" means an organization that is party to a merger.
             6909          (3) "Converted organization" means the organization into which a converting
             6910      organization converts pursuant to Sections 48-3-1006 through 48-3-1009 .
             6911          (4) "Converting limited liability company" means a converting organization that is a
             6912      limited liability company.
             6913          (5) "Converting organization" means an organization that converts into another
             6914      organization pursuant to Section 48-3-1006 .
             6915          (6) "Domesticated company" means the limited liability company that exists after a
             6916      domesticating foreign limited liability company or limited liability company effects a
             6917      domestication pursuant to Sections 48-3-1010 through 48-3-1013 .


             6918          (7) "Domesticating company" means the limited liability company that effects a
             6919      domestication pursuant to Sections 48-3-1010 through 48-3-1013 .
             6920          (8) "Governing statute" means the statute that governs an organization's internal affairs.
             6921          (9) (a) "Organization" means:
             6922          (i) a general partnership, including a limited liability partnership;
             6923          (ii) a limited partnership, including a limited liability limited partnership;
             6924          (iii) a limited liability company;
             6925          (iv) a business trust;
             6926          (v) a corporation; or
             6927          (vi) any other person having a governing statute.
             6928          (b) "Organization" includes a domestic or foreign organization regardless of whether
             6929      organized for profit.
             6930          (10) "Organizational documents" means:
             6931          (a) for a domestic or foreign general partnership, its partnership agreement;
             6932          (b) for a limited partnership or foreign limited partnership, its certificate of limited
             6933      partnership and partnership agreement;
             6934          (c) for a domestic or foreign limited liability company, its certificate or articles of
             6935      organization and operating agreement, or comparable records as provided in its governing
             6936      statute;
             6937          (d) for a business trust, its agreement of trust and declaration of trust;
             6938          (e) for a domestic or foreign corporation for profit, its articles of incorporation, bylaws,
             6939      and other agreements among its shareholders which are authorized by its governing statute, or
             6940      comparable records as provided in its governing statute; and
             6941          (f) for any other organization, the basic records that create the organization and
             6942      determine its internal governance and the relations among the persons that own it, have an
             6943      interest in it, or are members of it.
             6944          (11) "Personal liability" means liability for a debt, obligation, or other liability of an
             6945      organization which is imposed on a person that co-owns, has an interest in, or is a member of


             6946      the organization:
             6947          (a) by the governing statute solely by reason of the person co-owning, having an
             6948      interest in, or being a member of the organization; or
             6949          (b) by the organization's organizational documents under a provision of the governing
             6950      statute authorizing those documents to make one or more specified persons liable for all or
             6951      specified debts, obligations, or other liabilities of the organization solely by reason of the
             6952      person or persons co-owning, having an interest in, or being a member of the organization.
             6953          (12) "Surviving organization" means an organization into which one or more other
             6954      organizations are merged whether the organization preexisted the merger or was created by the
             6955      merger.
             6956          Section 261. Section 48-3-1002 is enacted to read:
             6957          48-3-1002. Merger.
             6958          (1) A limited liability company may merge with one or more other constituent
             6959      organizations pursuant to this section, Sections 48-3-1003 through 48-3-1005 , and a plan of
             6960      merger, if:
             6961          (a) the governing statute of each of the other organizations authorizes the merger;
             6962          (b) the merger is not prohibited by the law of a jurisdiction that enacted any of the
             6963      governing statutes; and
             6964          (c) each of the other organizations complies with its governing statute in effecting the
             6965      merger.
             6966          (2) A plan of merger must be in a record and must include:
             6967          (a) the name and form of each constituent organization;
             6968          (b) the name and form of the surviving organization and, if the surviving organization
             6969      is to be created by the merger, a statement to that effect;
             6970          (c) the terms and conditions of the merger, including the manner and basis for
             6971      converting the interests in each constituent organization into any combination of money,
             6972      interests in the surviving organization, and other consideration;
             6973          (d) if the surviving organization is to be created by the merger, the surviving


             6974      organization's organizational documents that are proposed to be in a record; and
             6975          (e) if the surviving organization is not to be created by the merger, any amendments to
             6976      be made by the merger to the surviving organization's organizational documents that are, or are
             6977      proposed to be, in a record.
             6978          Section 262. Section 48-3-1003 is enacted to read:
             6979          48-3-1003. Action on plan of merger by constituent limited liability company.
             6980          (1) Subject to Section 48-3-1014 , a plan of merger must be consented to by all the
             6981      members of a constituent limited liability company.
             6982          (2) Subject to Section 48-3-1014 and any contractual rights, after a merger is approved,
             6983      and at any time before articles of merger are delivered to the division for filing under Section
             6984      48-3-1004 , a constituent limited liability company may amend the plan or abandon the merger:
             6985          (a) as provided in the plan; or
             6986          (b) except as otherwise prohibited in the plan, with the same consent as was required to
             6987      approve the plan.
             6988          Section 263. Section 48-3-1004 is enacted to read:
             6989          48-3-1004. Filings required for merger -- Effective date.
             6990          (1) After each constituent organization has approved a merger, articles of merger must
             6991      be signed on behalf of:
             6992          (a) each constituent limited liability company, as provided in Subsection 48-3-203 (1);
             6993      and
             6994          (b) each other constituent organization, as provided in its governing statute.
             6995          (2) Articles of merger under this section must include:
             6996          (a) the name and form of each constituent organization and the jurisdiction of its
             6997      governing statute;
             6998          (b) the name and form of the surviving organization, the jurisdiction of its governing
             6999      statute, and, if the surviving organization is created by the merger, a statement to that effect;
             7000          (c) the date the merger is effective under the governing statute of the surviving
             7001      organization;


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


             7030      exist as a separate entity;
             7031          (c) all property owned by each constituent organization that ceases to exist vests in the
             7032      surviving organization;
             7033          (d) all debts, obligations, or other liabilities of each constituent organization that ceases
             7034      to exist continue as debts, obligations, or other liabilities of the surviving organization;
             7035          (e) an action or proceeding pending by or against any constituent organization that
             7036      ceases to exist may be continued as if the merger had not occurred;
             7037          (f) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             7038      and purposes of each constituent organization that ceases to exist vest in the surviving
             7039      organization;
             7040          (g) except as otherwise provided in the plan of merger, the terms and conditions of the
             7041      plan of merger take effect; and
             7042          (h) except as otherwise agreed, if a constituent limited liability company ceases to
             7043      exist, the merger does not dissolve the limited liability company for the purposes of Part 7,
             7044      Dissolution and Winding Up;
             7045          (i) if the surviving organization is created by the merger:
             7046          (A) if it is a limited liability company, the certificate of organization becomes
             7047      effective; or
             7048          (B) if it is an organization other than a limited liability company, the organizational
             7049      document that creates the organization becomes effective; and
             7050          (j) if the surviving organization preexisted the merger, any amendments provided for in
             7051      the articles of merger for the organizational document that created the organization become
             7052      effective.
             7053          (2) A surviving organization that is a foreign organization consents to the jurisdiction
             7054      of the courts of this state to enforce any debt, obligation, or other liability owed by a constituent
             7055      organization, if before the merger the constituent organization was subject to suit in this state
             7056      on the debt, obligation, or other liability. A surviving organization that is a foreign
             7057      organization and not authorized to transact business in this state may be served with process at


             7058      the address required in the articles of merger under Subsection 48-3-1004 (2)(g).
             7059          Section 265. Section 48-3-1006 is enacted to read:
             7060          48-3-1006. Conversion.
             7061          (1) An organization other than a limited liability company or a foreign limited liability
             7062      company may convert to a limited liability company, and a limited liability company may
             7063      convert to an organization other than a foreign limited liability company pursuant to this
             7064      section, Sections 48-3-1007 through 48-3-1009 , and a plan of conversion, if:
             7065          (a) the other organization's governing statute authorizes the conversion;
             7066          (b) the conversion is not prohibited by the law of the jurisdiction that enacted the other
             7067      organization's governing statute; and
             7068          (c) the other organization complies with its governing statute in effecting the
             7069      conversion.
             7070          (2) A plan of conversion must be in a record and must include:
             7071          (a) the name and form of the organization before conversion;
             7072          (b) the name and form of the organization after conversion;
             7073          (c) the terms and conditions of the conversion, including the manner and basis for
             7074      converting interests in the converting organization into any combination of money, interests in
             7075      the converted organization, and other consideration; and
             7076          (d) the organizational documents of the converted organization that are, or are
             7077      proposed to be, in a record.
             7078          Section 266. Section 48-3-1007 is enacted to read:
             7079          48-3-1007. Action on plan of conversion by converting limited liability company.
             7080          (1) Subject to Section 48-3-1014 , a plan of conversion must be consented to by all the
             7081      members of a converting limited liability company.
             7082          (2) Subject to Section 48-3-1014 and any contractual rights, after a conversion is
             7083      approved, and at any time before articles of conversion are delivered to the division for filing
             7084      under Section 48-3-1008 , a converting limited liability company may amend the plan or
             7085      abandon the conversion:


             7086          (a) as provided in the plan; or
             7087          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             7088      approve the plan.
             7089          Section 267. Section 48-3-1008 is enacted to read:
             7090          48-3-1008. Filings required for conversion -- Effective date.
             7091          (1) After a plan of conversion is approved:
             7092          (a) a converting limited liability company shall deliver to the division for filing articles
             7093      of conversion, which must be signed as provided in Subsection 48-3-203 (1) and must include:
             7094          (i) a statement that the limited liability company has been converted into another
             7095      organization;
             7096          (ii) the name and form of the organization and the jurisdiction of its governing statute;
             7097          (iii) the date the conversion is effective under the governing statute of the converted
             7098      organization;
             7099          (iv) a statement that the conversion was approved as required by this chapter;
             7100          (v) a statement that the conversion was approved as required by the governing statute
             7101      of the converted organization; and
             7102          (vi) if the converted organization is a foreign organization not authorized to transact
             7103      business in this state, the street and mailing addresses of an office that may be used for service
             7104      of process under Subsection 48-3-1009 (3); and
             7105          (b) if the converting organization is not a converting limited liability company, the
             7106      converting organization shall deliver to the division for filing a certificate of organization,
             7107      which must include, in addition to the information required by Subsection 48-3-201 (2):
             7108          (i) a statement that the converted organization was converted from another
             7109      organization;
             7110          (ii) the name and form of that converting organization and the jurisdiction of its
             7111      governing statute; and
             7112          (iii) a statement that the conversion was approved in a manner that complied with the
             7113      converting organization's governing statute.


             7114          (2) A conversion becomes effective:
             7115          (a) if the converted organization is a limited liability company, when the certificate of
             7116      organization takes effect; and
             7117          (b) if the converted organization is not a limited liability company, as provided by the
             7118      governing statute of the converted organization.
             7119          Section 268. Section 48-3-1009 is enacted to read:
             7120          48-3-1009. Effect of conversion.
             7121          (1) An organization that has been converted pursuant to this part is for all purposes the
             7122      same entity that existed before the conversion.
             7123          (2) When a conversion takes effect:
             7124          (a) all property owned by the converting organization remains vested in the converted
             7125      organization;
             7126          (b) all debts, obligations, or other liabilities of the converting organization continue as
             7127      debts, obligations, or other liabilities of the converted organization;
             7128          (c) an action or proceeding pending by or against the converting organization may be
             7129      continued as if the conversion had not occurred;
             7130          (d) except as prohibited by law other than this chapter, all of the rights, privileges,
             7131      immunities, powers, and purposes of the converting organization remain vested in the
             7132      converted organization;
             7133          (e) except as otherwise provided in the plan of conversion, the terms and conditions of
             7134      the plan of conversion take effect; and
             7135          (f) except as otherwise agreed, the conversion does not dissolve a converting limited
             7136      liability company for the purposes of Part 7, Dissolution and Winding Up.
             7137          (3) A converted organization that is a foreign organization consents to the jurisdiction
             7138      of the courts of this state to enforce any debt, obligation, or other liability for which the
             7139      converting limited liability company is liable if, before the conversion, the converting limited
             7140      liability company was subject to suit in this state on the debt, obligation, or other liability. A
             7141      converted organization that is a foreign organization and not authorized to transact business in


             7142      this state may be served with process at the address required in the articles of conversion under
             7143      Subsection 48-3-1008 (1)(a)(vi).
             7144          Section 269. Section 48-3-1010 is enacted to read:
             7145          48-3-1010. Domestication.
             7146          (1) A foreign limited liability company may become a limited liability company
             7147      pursuant to this section, Sections 48-3-1011 through 48-3-1013 , and a plan of domestication,
             7148      if:
             7149          (a) the foreign limited liability company's governing statute authorizes the
             7150      domestication;
             7151          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             7152      governing statute; and
             7153          (c) the foreign limited liability company complies with its governing statute in
             7154      effecting the domestication.
             7155          (2) A limited liability company may become a foreign limited liability company
             7156      pursuant to this section, Sections 48-3-1011 through 48-3-1013 , and a plan of domestication,
             7157      if:
             7158          (a) the foreign limited liability company's governing statute authorizes the
             7159      domestication;
             7160          (b) the domestication is not prohibited by the law of the jurisdiction that enacted the
             7161      governing statute; and
             7162          (c) the foreign limited liability company complies with its governing statute in
             7163      effecting the domestication.
             7164          (3) A plan of domestication must be in a record and must include:
             7165          (a) the name of the domesticating company before domestication and the jurisdiction of
             7166      its governing statute;
             7167          (b) the name of the domesticated company after domestication and the jurisdiction of
             7168      its governing statute;
             7169          (c) the terms and conditions of the domestication, including the manner and basis for


             7170      converting interests in the domesticating company into any combination of money, interests in
             7171      the domesticated company, and other consideration; and
             7172          (d) the organizational documents of the domesticated company that are, or are
             7173      proposed to be, in a record.
             7174          Section 270. Section 48-3-1011 is enacted to read:
             7175          48-3-1011. Action on plan of domestication by domesticating limited liability
             7176      company.
             7177          (1) A plan of domestication must be consented to:
             7178          (a) by all the members, subject to Section 48-3-1014 , if the domesticating company is a
             7179      limited liability company; and
             7180          (b) as provided in the domesticating company's governing statute, if the limited
             7181      liability company is a foreign limited liability company.
             7182          (2) Subject to any contractual rights, after a domestication is approved, and at any time
             7183      before articles of domestication are delivered to the division for filing under Section
             7184      48-3-1012 , a domesticating company may amend the plan or abandon the domestication:
             7185          (a) as provided in the plan; or
             7186          (b) except as otherwise prohibited in the plan, by the same consent as was required to
             7187      approve the plan.
             7188          Section 271. Section 48-3-1012 is enacted to read:
             7189          48-3-1012. Filings required for domestication -- Effective date.
             7190          (1) After a plan of domestication is approved, a domesticating company shall deliver to
             7191      the division for filing articles of domestication, which must include:
             7192          (a) a statement, as the case may be, that the limited liability company has been
             7193      domesticated from or into another jurisdiction;
             7194          (b) the name of the domesticating company and the jurisdiction of its governing
             7195      statute;
             7196          (c) the name of the domesticated company and the jurisdiction of its governing statute;
             7197          (d) the date the domestication is effective under the governing statute of the


             7198      domesticated company;
             7199          (e) if the domesticating company was a limited liability company, a statement that the
             7200      domestication was approved as required by this chapter;
             7201          (f) if the domesticating company was a foreign limited liability company, a statement
             7202      that the domestication was approved as required by the governing statute of the other
             7203      jurisdiction; and
             7204          (g) if the domesticated company was a foreign limited liability company not authorized
             7205      to transact business in this state, the street and mailing addresses of an office that may be used
             7206      for service of process under Subsection 48-3-1013 (2).
             7207          (2) A domestication becomes effective:
             7208          (a) when the certificate of organization takes effect, if the domesticated company is a
             7209      limited liability company; and
             7210          (b) according to the governing statute of the domesticated company, if the
             7211      domesticated organization is a foreign limited liability company.
             7212          Section 272. Section 48-3-1013 is enacted to read:
             7213          48-3-1013. Effect of domestication.
             7214          (1) When a domestication takes effect:
             7215          (a) the domesticated company is for all purposes the limited liability company that
             7216      existed before the domestication;
             7217          (b) all property owned by the domesticating company remains vested in the
             7218      domesticated company;
             7219          (c) all debts, obligations, or other liabilities of the domesticating company continue as
             7220      debts, obligations, or other liabilities of the domesticated company;
             7221          (d) an action or proceeding pending by or against a domesticating company may be
             7222      continued as if the domestication had not occurred;
             7223          (e) except as prohibited by other law, all of the rights, privileges, immunities, powers,
             7224      and purposes of the domesticating company remain vested in the domesticated company;
             7225          (f) except as otherwise provided in the plan of domestication, the terms and conditions


             7226      of the plan of domestication take effect; and
             7227          (g) except as otherwise agreed, the domestication does not dissolve a domesticating
             7228      company for the purposes of Part 7, Dissolution and Winding Up.
             7229          (2) A domesticated company that is a foreign limited liability company consents to the
             7230      jurisdiction of the courts of this state to enforce any debt, obligation, or other liability owed by
             7231      the domesticating company, if, before the domestication, the domesticating company was
             7232      subject to suit in this state on the debt, obligation, or other liability. A domesticated company
             7233      that is a foreign limited liability company and not authorized to transact business in this state
             7234      may be served with process at the address required in the articles of domestication under
             7235      Subsection 48-3-1012 (1)(g).
             7236          (3) If a limited liability company has adopted and approved a plan of domestication
             7237      under Section 48-3-1010 providing for the limited liability company to be domesticated in a
             7238      foreign jurisdiction, a statement surrendering the limited liability company's certificate of
             7239      organization must be delivered to the division for filing setting forth:
             7240          (a) the name of the limited liability company;
             7241          (b) a statement that the certificate of organization is being surrendered in connection
             7242      with the domestication of the limited liability company in a foreign jurisdiction;
             7243          (c) a statement that the domestication was approved as required by this chapter; and
             7244          (d) the jurisdiction of formation of the domesticated foreign limited liability company.
             7245          Section 273. Section 48-3-1014 is enacted to read:
             7246          48-3-1014. Restrictions on approval of mergers, conversions, and domestications.
             7247          (1) If a member of a constituent, converting, or domesticating limited liability company
             7248      will have personal liability with respect to a surviving, converted, or domesticated
             7249      organization, approval or amendment of a plan of merger, conversion, or domestication are
             7250      ineffective without the consent of the member, unless:
             7251          (a) the limited liability company's operating agreement provides for approval of a
             7252      merger, conversion, or domestication with the consent of fewer than all the members; and
             7253          (b) the member has consented to the provision of the operating agreement.


             7254          (2) A member does not give the consent required by Subsection (1) merely by
             7255      consenting to a provision of the operating agreement that permits the operating agreement to be
             7256      amended with the consent of fewer than all the members.
             7257          Section 274. Section 48-3-1015 is enacted to read:
             7258          48-3-1015. Part not exclusive.
             7259          This part does not preclude an entity from being merged, converted, or domesticated
             7260      under law other than this chapter.
             7261          Section 275. Section 48-3-1101 is enacted to read:
             7262     
Part 11. Professional Services Companies

             7263          48-3-1101. Definitions.
             7264          As used in this part:
             7265          (1) "Professional services" means a personal service provided by:
             7266          (a) a public accountant holding a license under Title 58, Chapter 26a, Certified Public
             7267      Accountant Licensing Act, or a subsequent law regulating the practice of public accounting;
             7268          (b) an architect holding a license under Title 58, Chapter 3a, Architects Licensing Act,
             7269      or a subsequent law regulating the practice of architecture;
             7270          (c) an attorney granted the authority to practice law by the:
             7271          (i) Utah Supreme Court; or
             7272          (ii) one or more of the following that licenses or regulates the authority to practice law
             7273      in a state or territory of the United States other than Utah:
             7274          (A) a supreme court;
             7275          (B) a court other than a supreme court;
             7276          (C) an agency;
             7277          (D) an instrumentality; or
             7278          (E) a regulating board;
             7279          (d) a chiropractor holding a license under Title 58, Chapter 73, Chiropractic Physician
             7280      Practice Act, or any subsequent law regulating the practice of chiropractics;
             7281          (e) a doctor of dentistry holding a license under Title 58, Chapter 69, Dentist and


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


             7310      work;
             7311          (r) a mental health therapist holding a license under Title 58, Chapter 60, Mental
             7312      Health Professional Practice Act, or a subsequent law regulating the practice of mental health
             7313      therapy;
             7314          (s) a veterinarian holding a license under Title 58, Chapter 28, Veterinary Practice Act,
             7315      or a subsequent law regulating the practice of veterinary medicine; or
             7316          (t) an individual licensed, certified, or registered under Title 61, Chapter 2b, Real
             7317      Estate Appraiser Licensing and Certification Act, or a subsequent law regulating the practice of
             7318      appraising real estate.
             7319          (2) "Professional services company" means a limited liability company organized
             7320      under this part to provide professional services.
             7321          (3) "Regulating board" means the entity organized pursuant to state law that licenses
             7322      and regulates the practice of the profession that a limited liability company is organized to
             7323      provide.
             7324          Section 276. Section 48-3-1102 is enacted to read:
             7325          48-3-1102. Application of this part.
             7326          (1) If a conflict arises between this part and another provision of this chapter, this part
             7327      controls.
             7328          (2) Notwithstanding the other provisions of this part, on and after January 1, 2014:
             7329          (a) a professional services company may not designate series of transferable interests;
             7330      and
             7331          (b) a limited liability company may not form a professional services company as a
             7332      series of the limited liability company.
             7333          Section 277. Section 48-3-1103 is enacted to read:
             7334          48-3-1103. Additional requirements for certificate of organization.
             7335          The certificate of organization of a professional services company shall:
             7336          (1) comply with Section 48-3-201 ; and
             7337          (2) contain the following:


             7338          (a) a name consistent with Section 48-3-1104 ;
             7339          (b) a description of the profession to be practiced through the professional services
             7340      company; and
             7341          (c) notwithstanding Section 48-3-201 , the name and street address of each member or
             7342      manager of the professional services company.
             7343          Section 278. Section 48-3-1104 is enacted to read:
             7344          48-3-1104. Name limitations.
             7345          (1) The name of a domestic professional services company and of a foreign
             7346      professional services company authorized to transact business in this state, in addition to
             7347      complying with Sections 48-3-108 , 48-3-802 , and 48-3-805 :
             7348          (a) may not contain language stating or implying that it is formed for a purpose other
             7349      than that authorized by:
             7350          (i) its certificate of organization; or
             7351          (ii) Section 48-3-1105 ;
             7352          (b) must conform with any rule made by the regulating board having jurisdiction over a
             7353      professional service described in the professional services company's certificate of
             7354      organization; and
             7355          (c) in lieu of the requirement of Subsection 48-3-108 (1), must contain the words
             7356      "professional limited liability company" or the abbreviations "P.L.L.C." or "PLLC" in:
             7357          (i) its certificate of organization; and
             7358          (ii) a report or document filed with the division.
             7359          (2) Notwithstanding Subsection (1)(c), a professional services company may hold itself
             7360      out to the public under a name that does not contain the words "professional limited liability
             7361      company" or the abbreviations "P.L.L.C." or "PLLC" if that name complies with Subsection
             7362      48-3-108 (1).
             7363          (3) Sections 48-3-108 , 48-3-802 , and 48-3-805 do not prevent the use of a name
             7364      otherwise prohibited by those sections if the name is:
             7365          (a) the personal name of an individual member or individual former member of the


             7366      professional services company; or
             7367          (b) the name of an individual who was associated with a predecessor of the
             7368      professional services company.
             7369          Section 279. Section 48-3-1105 is enacted to read:
             7370          48-3-1105. Providing a professional service.
             7371          (1) A professional services company may provide a professional service in this state
             7372      only through an individual licensed or otherwise authorized in this state to provide the
             7373      professional service.
             7374          (2) Subsection (1) does not:
             7375          (a) require an individual employed by a professional services company to be licensed
             7376      to perform a service for the professional services company if a license is not otherwise
             7377      required;
             7378          (b) prohibit a licensed individual from providing a professional service in the
             7379      individual's professional capacity although the individual is a member, manager, employee, or
             7380      agent of a professional services company; or
             7381          (c) prohibit an individual licensed in another state from providing a professional
             7382      service for a professional services company in this state if not prohibited by the regulating
             7383      board.
             7384          (3) A professional services company may not provide a professional service other than
             7385      the professional service authorized by its certificate of organization.
             7386          Section 280. Section 48-3-1106 is enacted to read:
             7387          48-3-1106. Limit of one profession.
             7388          (1) A professional services company organized to provide a professional service under
             7389      this chapter may provide only:
             7390          (a) one specific type of professional service; and
             7391          (b) a service ancillary to the professional service described in Subsection (1)(a).
             7392          (2) A professional services company organized to provide a professional service under
             7393      this chapter may not engage in a business other than to provide:


             7394          (a) the professional service that it was organized to provide; and
             7395          (b) services ancillary to the professional service described in Subsection (2)(a).
             7396          (3) Notwithstanding Subsection (1) or (2), a professional services company may:
             7397          (a) own real and personal property necessary or appropriate for providing the type of
             7398      professional service it was organized to provide; and
             7399          (b) invest the professional services company's money in one or more of the following:
             7400          (i) real estate;
             7401          (ii) mortgages;
             7402          (iii) stocks;
             7403          (iv) bonds; or
             7404          (v) another type of investment.
             7405          Section 281. Section 48-3-1107 is enacted to read:
             7406          48-3-1107. Activity limitations.
             7407          A professional services company may not do anything that an individual licensed to
             7408      practice the profession that the professional services company is organized to provide is
             7409      prohibited from doing.
             7410          Section 282. Section 48-3-1108 is enacted to read:
             7411          48-3-1108. Part does not limit regulating board.
             7412          This chapter does not restrict the authority or duty of a regulating board to license an
             7413      individual providing a professional service or the practice of the profession that is within the
             7414      jurisdiction of the regulating board, notwithstanding that the individual:
             7415          (1) is a member, manager, or employee of a professional services company; and
             7416          (2) provides the professional service or engages in the practice of the profession
             7417      through a professional services company.
             7418          Section 283. Section 48-3-1109 is enacted to read:
             7419          48-3-1109. Member or manager of a professional services company.
             7420          A professional services company organized to provide a professional service:
             7421          (1) may include a member, manager, or employee who is authorized under the laws of


             7422      the jurisdiction where the member, manager, or employee resides to provide a similar
             7423      professional service;
             7424          (2) may include a member who is not licensed or registered by the state to provide the
             7425      professional service to the extent allowed by the applicable licensing or registration act relating
             7426      to the professional service;
             7427          (3) may render a professional service in this state only through a member, manager, or
             7428      employee who is licensed or registered by this state to render the professional service; and
             7429          (4) has a power provided under Section 48-3-105 .
             7430          Section 284. Section 48-3-1110 is enacted to read:
             7431          48-3-1110. Restriction on transfer by member.
             7432          (1) Except as provided in Subsection (2), a member of a professional services company
             7433      may sell or transfer the member's interest in the professional services company only to:
             7434          (a) the professional services company; or
             7435          (b) an individual who is licensed or registered by this state to provide the same type of
             7436      professional service as the professional service for which the professional services company is
             7437      organized.
             7438          (2) (a) Upon the death or incapacity of a member of a professional services company,
             7439      the member's interest in the professional services company may be transferred to the personal
             7440      representative or estate of the deceased or incapacitated member.
             7441          (b) The person to whom an interest is transferred under Subsection (2)(a) may continue
             7442      to hold the interest for a reasonable period, but may not participate in a decision concerning the
             7443      providing of a professional service.
             7444          Section 285. Section 48-3-1111 is enacted to read:
             7445          48-3-1111. Purchase of interest upon death, incapacity, or disqualification of
             7446      member.
             7447          (1) Subject to this part, one or more of the following may provide for the purchase of a
             7448      member's interest in a professional services company upon the death, incapacity, or
             7449      disqualification of the member:


             7450          (a) the certificate of organization;
             7451          (b) the operating agreement; or
             7452          (c) a private agreement.
             7453          (2) (a) In the absence of a provision described in Subsection (1), a professional services
             7454      company shall purchase the interest of a member who is deceased, incapacitated, or no longer
             7455      qualified to own an interest in the professional services company within 90 days after the day
             7456      on which the professional services company is notified of the death, incapacity, or
             7457      disqualification.
             7458          (b) If a professional services company purchases a member's interest under this
             7459      Subsection (2), the professional services company shall purchase the interest at a price that is
             7460      the reasonable fair market value as of the date of death, incapacity, or disqualification.
             7461          (3) (a) If a professional services company fails to purchase a member's interest as
             7462      required by Subsection (2)(a) at the end of the 90-day period described in Subsection (2)(a),
             7463      one of the following may bring an action in the district court of the county in which the
             7464      principal office or place of practice of the professional services company is located to enforce
             7465      Subsection (2):
             7466          (i) the personal representative of a deceased member;
             7467          (ii) the guardian or conservator of an incapacitated member; or
             7468          (iii) the disqualified member.
             7469          (b) A court in which an action is brought under this Subsection (3) may:
             7470          (i) award the person bringing the action the reasonable fair market value of the interest;
             7471      or
             7472          (ii) within its jurisdiction, order the liquidation of the professional services company.
             7473          (c) If a person described in Subsection (3)(a)(i) through (iii) is successful in an action
             7474      under this Subsection (3), the court shall award the person reasonable attorney fees and costs.
             7475          Section 286. Section 48-3-1112 is enacted to read:
             7476          48-3-1112. Conversion to nonprofessional company.
             7477          (1) A professional services company subject to this part converts into a limited liability


             7478      company subject to this chapter, but not subject to this part on the day on which:
             7479          (a) no member of the professional services company is licensed or registered for the
             7480      professional service for which the professional services company is organized; or
             7481          (b) members holding at least two-thirds interest in the profits of the professional
             7482      services company vote to not be subject to this part.
             7483          (2) A professional services company converted as provided in Subsection (1) shall
             7484      upon the event described in Subsection (1) operate as and be treated as a limited liability
             7485      company subject to this chapter, but not subject to this part.
             7486          (3) A limited liability company converted under this section may reconvert to a
             7487      professional services company:
             7488          (a) upon a member of the professional services company being licensed or registered
             7489      for the professional service for which the professional services company is organized; or
             7490          (b) by the vote of members holding at least two-thirds interests in the profits of the
             7491      professional services company, if at least one member of the professional services company is
             7492      licensed or registered for the professional service for which the professional services company
             7493      is organized.
             7494          (4) If a professional services company is converted or reconverted under this section,
             7495      the professional services company shall file a certificate of amendment to the certificate of
             7496      organization with the division within a reasonable time after the conversion or reconversion to
             7497      reflect the changes.
             7498          Section 287. Section 48-3-1201 is enacted to read:
             7499     
Part 12. Series Limited Liability Companies

             7500          48-3-1201. Application of this part.
             7501          If a conflict arises between this part and another provision of this chapter, this part
             7502      controls.
             7503          Section 288. Section 48-3-1202 is enacted to read:
             7504          48-3-1202. Series of transferable interests.
             7505          (1) (a) An operating agreement may establish or provide for the establishment of a


             7506      designated series of transferable interests having separate rights, powers, or duties with respect
             7507      to specified property or obligations of the limited liability company or profits and losses
             7508      associated with specified property or obligations, and, to the extent provided in the operating
             7509      agreement, any such series may have a separate business purpose or investment objective. The
             7510      name of each series must contain the name of the limited liability company and be
             7511      distinguishable from the name of any other series set forth in the certificate of organization.
             7512          (b) An operating agreement shall identify a separate right, power, or duty of a series
             7513      described in Subsection (1)(a).
             7514          (c) Notwithstanding the other provisions of this part, on and after January 1, 2014:
             7515          (i) a professional services company may not designate series of transferable interests;
             7516      and
             7517          (ii) a limited liability company may not form a professional services company as a
             7518      series of the limited liability company.
             7519          (2) A series may have a business purpose or investment objective different from the
             7520      limited liability company.
             7521          (3) Notwithstanding contrary provisions of this chapter, a series' debts, liabilities,
             7522      obligations, and expenses are enforceable against the assets of that series only and may not be
             7523      enforced against the assets of the limited liability company generally or another series if:
             7524          (a) the operating agreement provides for separate treatment of the series;
             7525          (b) separate and distinct records are maintained concerning the series;
             7526          (c) the assets associated with the series are held and accounted for separately from the
             7527      other assets of the limited liability company and any other series; and
             7528          (d) notice of the limitation on liability of a series is included in the limited liability
             7529      company's certificate of organization in accordance with Section 48-3-1203 .
             7530          (4) A debt, liability, obligation, or expense incurred, contracted for, or otherwise
             7531      existing with respect to the limited liability company generally or another series may not be
             7532      enforced against the assets of a series if:
             7533          (a) the operating agreement provides for separate treatment of the series;


             7534          (b) separate and distinct records are maintained concerning the series;
             7535          (c) the assets associated with the series are held and accounted for separately from the
             7536      other assets of the limited liability company and any other series; and
             7537          (d) notice of the limitation on liability of a series is included in the limited liability
             7538      company's certificate of organization in accordance with Section 48-3-1203 .
             7539          (5) A series may contract on its own behalf and in its own name, including through a
             7540      manager.
             7541          (6) Notwithstanding other provisions of this section:
             7542          (a) property and assets of a series may not be transferred to the limited liability
             7543      company generally or another series if the transfer impairs the ability of the series releasing the
             7544      property or assets to pay its debts existing at the time of the transfer unless fair value is given to
             7545      the transferring series for the property or assets transferred; and
             7546          (b) a tax or other liability of the limited liability company generally or of a series may
             7547      not be assigned by the series against which the tax or other liability is imposed to the limited
             7548      liability company generally or to another series within the limited liability company if the
             7549      assignment impairs a creditor's right and ability to fully collect an amount due when owed.
             7550          Section 289. Section 48-3-1203 is enacted to read:
             7551          48-3-1203. Notice of series -- Certificate of organization.
             7552          (1) Notice in a limited liability company's certificate of organization of the limitation
             7553      on liabilities of a series, as required by Section 48-3-1202 , is sufficient whether or not the
             7554      limited liability company has established a series at the time the notice is included in the
             7555      certificate of organization.
             7556          (2) The notice required by Section 48-3-1202 :
             7557          (a) is not required to reference a specific series; and
             7558          (b) for a certificate of organization or an amendment to a certificate of organization
             7559      made to include notice of series that is filed on or after May 11, 2010, notice in a company's
             7560      certificate of organization is sufficient for purposes of Subsection (1) only if the notice of series
             7561      appears immediately following the provision stating the name of the company.


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


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


             7618          (a) Except as otherwise expressly provided in this chapter, any matter relating to the
             7619      activities of the series is decided exclusively by the managers of the series.
             7620          (b) Each series manager has equal rights in the management and conduct of the
             7621      activities of the series.
             7622          (c) A difference arising among managers of a series as to a matter in the ordinary
             7623      course of the activities of the series shall be decided by a majority of the managers of the series.
             7624          (d) Unless modified pursuant to Section 48-3-1205 , the consent of all members of the
             7625      series is required to:
             7626          (i) sell, lease, exchange, or otherwise dispose of all, or substantially all, of the series'
             7627      property, with or without the goodwill, outside the ordinary course of the series' activities;
             7628          (ii) approve a merger, conversion, or domestication under Part 10, Merger, Conversion,
             7629      and Domestication;
             7630          (iii) undertake any other act outside the ordinary course of the series' activities; and
             7631          (iv) amend the operating agreement.
             7632          (e) A manager of the series may be chosen at any time by the consent of a majority of
             7633      the members of the series and remains a manager of the series until a successor has been
             7634      chosen, unless the series manager at an earlier time resigns, is removed, or dies, or, in the case
             7635      of a series manager that is not an individual, terminates. A series manager may be removed at
             7636      any time by the consent of a majority of the members without notice or cause.
             7637          (f) A person need not be a series member to be a manager of a series, but the
             7638      dissociation of a series member that is also a series manager removes the person as a manager
             7639      of the series. If a person that is both a series manager and a series member ceases to be a
             7640      manager of the series, that cessation does not by itself dissociate the person as a member of the
             7641      series.
             7642          (g) A person's ceasing to be a series manager does not discharge any debt, obligation,
             7643      or other liability to the series or members of the series which the person incurred while a
             7644      manager of the series.
             7645          (4) An action requiring the consent of members of a series under this chapter may be


             7646      taken without a meeting, and a member of a series may appoint a proxy or other agent to
             7647      consent or otherwise act for the series member by signing an appointing record, personally or
             7648      by the series member's agent.
             7649          (5) The dissolution of a series does not affect the applicability of this section.
             7650      However, a person that wrongfully causes dissolution of the series loses the right to participate
             7651      in management as a series member and a series manager.
             7652          (6) This chapter does not entitle a series member of a series to remuneration for
             7653      services performed for a member-managed series, except for reasonable compensation for
             7654      services rendered in winding up the activities of the series.
             7655          Section 293. Section 48-3-1207 is enacted to read:
             7656          48-3-1207. Distribution concerning a series.
             7657          (1) Except as otherwise provided in the operating agreement, any distribution made by
             7658      a series before its dissolution and winding up must be in equal shares among the series
             7659      members and dissociated series members, except to the extent necessary to comply with any
             7660      transfer effective under Section 48-3-502 and any charging order in effect under Section
             7661      48-3-503 .
             7662          (2) A person has a right to a distribution before the dissolution and winding up of a
             7663      series only if the series decides to make an interim distribution. A person's dissociation does
             7664      not entitle the person to a distribution.
             7665          (3) A person does not have a right to demand or receive a distribution from a series in
             7666      any form other than money. Except as otherwise provided in Subsection 48-3-709 (3), a series
             7667      may distribute an asset in kind if each part of the asset is fungible with each other part and each
             7668      person receives a percentage of the asset equal in value to the person's share of distributions.
             7669          (4) If a series member or transferee becomes entitled to receive a distribution, the series
             7670      member or transferee has the status of, and is entitled to all remedies available to, a creditor of
             7671      the series with respect to the distribution.
             7672          (5) A series may not make a distribution if after the distribution:
             7673          (a) the series would not be able to pay its debts as they become due in the ordinary


             7674      course of the series' activities; or
             7675          (b) the series' total assets would be less than the sum of its total liabilities plus the
             7676      amount that would be needed, if the series were to be dissolved, wound up, and terminated at
             7677      the time of the distribution, to satisfy the preferential rights upon dissolution, winding up, and
             7678      termination of members whose preferential rights are superior to those of persons receiving the
             7679      distribution.
             7680          (6) A series may base a determination that a distribution is not prohibited under
             7681      Subsection (5) on financial statements prepared on the basis of accounting practices and
             7682      principles that are reasonable in the circumstances or on a fair valuation or other method that is
             7683      reasonable under the circumstances.
             7684          (7) Except as otherwise provided in Subsection (9), the effect of a distribution under
             7685      Subsection (5) is measured:
             7686          (a) in the case of a distribution by purchase, redemption, or other acquisition of a
             7687      transferable interest in the series, as of the date money or other property is transferred or debt
             7688      incurred by the series; or
             7689          (b) in all other cases, as of the date:
             7690          (i) the distribution is authorized, if the payment occurs within 120 days after that date;
             7691      or
             7692          (ii) the payment is made, if the payment occurs more than 120 days after the
             7693      distribution is authorized.
             7694          (8) A series' indebtedness to a series member incurred by reason of a distribution made
             7695      in accordance with this section is at parity with the series' indebtedness to its general,
             7696      unsecured creditors.
             7697          (9) A series' indebtedness, including indebtedness issued in connection with or as part
             7698      of a distribution, is not a liability for purposes of Subsection (5) if the terms of the indebtedness
             7699      provide that payment of principal and interest are made only to the extent that a distribution
             7700      could be made to members of the series under this section. If such indebtedness is issued as a
             7701      distribution, each payment of principal or interest on the indebtedness is treated as a


             7702      distribution, the effect of which is measured on the date the payment is made.
             7703          (10) As used in Subsection (5) "distribution" does not include amounts constituting
             7704      reasonable compensation for present or past services or reasonable payments made in the
             7705      ordinary course of business under a bona fide retirement plan or other benefits program.
             7706          (11) (a) Except as otherwise provided in Subsection (11)(b), if a member of a
             7707      member-managed series or manager of a manager-managed series consents to a distribution
             7708      made in violation of this section and in consenting to the distribution fails to comply with
             7709      Section 48-3-409 , the member or manager is personally liable to the series for the amount of
             7710      the distribution that exceeds the amount that could have been distributed without the violation
             7711      of Section 48-3-405 .
             7712          (b) To the extent the operating agreement of a member-managed series expressly
             7713      relieves a series member of the authority and responsibility to consent to distributions and
             7714      imposes that authority and responsibility on one or more other members of the series, the
             7715      liability stated in Subsection (11)(a) applies to the other members of the series and not the
             7716      member of the series that the operating agreement relieves of authority and responsibility.
             7717          (12) A person that receives a distribution knowing that the distribution to that person
             7718      was made in violation of Section 48-3-405 is personally liable to the limited liability company
             7719      but only to the extent that the distribution received by the person exceeded the amount that
             7720      could have been properly paid under Section 48-3-405 .
             7721          (13) A person against which an action is commenced because the person is liable under
             7722      Subsection (11) may:
             7723          (a) implead any other person that is subject to liability under Subsection (11) and seek
             7724      to compel contribution from the person; and
             7725          (b) implead any person that received a distribution in violation of Subsection (12) and
             7726      seek to compel contribution from the person in the amount the person received in violation of
             7727      Subsection (12).
             7728          (14) An action under this section is barred if not commenced within two years after the
             7729      distribution.


             7730          Section 294. Section 48-3-1208 is enacted to read:
             7731          48-3-1208. Events causing dissociation from a series.
             7732          (1) Unless otherwise provided in the operating agreement, a member ceases to be
             7733      associated with a series and to have the power to exercise a right or power of a member with
             7734      respect to the series upon the assignment of all of the member's interest in the limited liability
             7735      company with respect to the series.
             7736          (2) Unless otherwise provided in an operating agreement, an event under this chapter
             7737      or the operating agreement that causes a member to cease to be associated with a series does
             7738      not, by itself:
             7739          (a) cause the member to cease to be associated with another series;
             7740          (b) terminate the continued membership of a member in the limited liability company;
             7741      or
             7742          (c) cause the termination of the series, regardless of whether the member is the last
             7743      remaining member associated with the series.
             7744          Section 295. Section 48-3-1209 is enacted to read:
             7745          48-3-1209. Termination of a series.
             7746          (1) Except to the extent otherwise provided in the operating agreement, a series may be
             7747      terminated and its affairs wound up without causing the dissolution of the limited liability
             7748      company.
             7749          (2) The termination of a series does not affect the limitation on liabilities of the series
             7750      under Section 48-3-1202 .
             7751          (3) A series is terminated and its affairs shall be wound up upon the dissolution of the
             7752      limited liability company under Section 48-3-701 or upon the occurrence of any of the events
             7753      described in Section 48-3-701 , as applied to the series.
             7754          (4) Notwithstanding Section 48-3-703 , unless otherwise provided in the operating
             7755      agreement, any of the following persons may wind up the affairs of a series:
             7756          (a) a manager associated with a series who has not wrongfully terminated the series;
             7757          (b) if there is no manager of a series, the members associated with the series or a


             7758      person approved by the members associated with the series; or
             7759          (c) if there is more than one class or group of members associated with the series, then
             7760      by each class or group of members associated with the series, in either case, by members who
             7761      own more than 50% of the transferable interests of the series owned by all of the members
             7762      associated with the series or by the members of each class or group associated with the series.
             7763          (5) The persons winding up the affairs of a series, in the name of the series and for and
             7764      on behalf of the series, may take all actions with respect to the series as are permitted under
             7765      Section 48-3-703 for a limited liability company. The persons winding up the affairs of a
             7766      series shall provide for the claims and obligations of the series as provided in Section 48-3-709
             7767      for a limited liability company and distribute the assets of the series as provided in Section
             7768      48-3-709 for a limited liability company. An action taken pursuant to this Subsection (5) may
             7769      not affect the liability of a member and may not impose liability on a liquidating trustee.
             7770          Section 296. Section 48-3-1210 is enacted to read:
             7771          48-3-1210. Foreign limited liability company -- Series.
             7772          (1) A foreign limited liability company that is authorized to do business in this state
             7773      that is governed by an operating agreement that establishes or provides for the establishment of
             7774      a series, shall indicate that fact on the application for a certificate of authority as a foreign
             7775      limited liability company.
             7776          (2) (a) A foreign limited liability company shall state on the application for a certificate
             7777      of authority as a foreign limited liability company which of the protections for the series and
             7778      foreign limited liability company found in Section 48-3-1202 apply to a series.
             7779          (b) If different protections found in Section 48-3-1202 apply to different series of a
             7780      foreign limited liability company, the application for authority to transact business in the state
             7781      shall state:
             7782          (i) the protections that apply to each existing series; and
             7783          (ii) the protections that will apply to any series after registering to do business.
             7784          Section 297. Section 48-3-1301 is enacted to read:
             7785     
Part 13. Low-profit Limited Liability Companies


             7786          48-3-1301. Application of this part.
             7787          If a conflict arises between this part and another provision of this chapter, this part
             7788      controls.
             7789          Section 298. Section 48-3-1302 is enacted to read:
             7790          48-3-1302. Requirements.
             7791          (1) To be a low-profit limited liability company, a limited liability company shall:
             7792          (a) contain in its name the abbreviation "L3C" or "l3c";
             7793          (b) state in its certificate of organization that it is a low-profit limited liability
             7794      company;
             7795          (c) organize under this chapter; and
             7796          (d) be organized for a business purpose that satisfies, and at all times operates to satisfy
             7797      each of the requirements under Subsection (2).
             7798          (2) A low-profit limited liability company:
             7799          (a) shall significantly further the accomplishment of one or more charitable or
             7800      educational purposes within the meaning of Section 170(c)(2)(B), Internal Revenue Code;
             7801          (b) shall demonstrate that it would not be formed but for the limited liability company's
             7802      relationship to the accomplishment of a charitable or educational purpose;
             7803          (c) subject to Subsection (3), may not have as a significant purpose the production of
             7804      income or the appreciation of property; and
             7805          (d) may not have as a purpose to accomplish one or more political or legislative
             7806      purposes within the meaning of Section 170(c)(2)(D), Internal Revenue Code.
             7807          (3) Notwithstanding Subsection (2), if a low-profit limited liability company produces
             7808      significant income or capital appreciation, in the absence of other factors, the fact that the
             7809      low-profit limited liability company produces significant income or capital appreciation is not
             7810      conclusive evidence of a significant purpose involving the production of income or the
             7811      appreciation of property.
             7812          Section 299. Section 48-3-1303 is enacted to read:
             7813          48-3-1303. Ceasing to be a low-profit limited liability company.


             7814          (1) If a company that is a low-profit limited liability company at its formation at any
             7815      time ceases to meet a requirement to be a low-profit limited liability company under Section
             7816      48-3-1302 , the limited liability company:
             7817          (a) ceases to be a low-profit limited liability company on the day on which the limited
             7818      liability company no longer meets the requirement; and
             7819          (b) if it continues to meet the requirements of this chapter to be a limited liability
             7820      company, continues to exist as a limited liability company that is not a low-profit limited
             7821      liability company.
             7822          (2) A low-profit limited liability company's failure to meet a requirement of Section
             7823      48-3-1302 may be:
             7824          (a) voluntary, in order to convert to a limited liability company that is not a low-profit
             7825      limited liability company; or
             7826          (b) involuntary.
             7827          (3) If a low-profit limited liability company ceases to be a low-profit limited liability
             7828      company in accordance with this section, the limited liability company shall:
             7829          (a) change its name to conform with Section 48-3-108 ; and
             7830          (b) amend its articles of organization in accordance with Section 48-3-202 .
             7831          Section 300. Section 48-3-1304 is enacted to read:
             7832          48-3-1304. Conversion or merger of a low-profit limited liability company.
             7833          A low-profit limited liability company may engage in the following to the same extent
             7834      as a limited liability company that is not a low-profit limited liability company may do so under
             7835      Part 10, Merger, Conversion, and Domestication:
             7836          (1) convert to another subject entity;
             7837          (2) convert from another subject entity; or
             7838          (3) participate in a merger.
             7839          Section 301. Section 48-3-1401 is enacted to read:
             7840     
Part 14. Miscellaneous Provisions

             7841          48-3-1401. Uniformity of application and construction.


             7842          In applying and construing this chapter, consideration must be given to the need to
             7843      promote uniformity of the law with respect to its subject matter among states that enact the
             7844      uniform act.
             7845          Section 302. Section 48-3-1402 is enacted to read:
             7846          48-3-1402. Relation to Electronic Signatures in Global and National Commerce
             7847      Act.
             7848          This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             7849      Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
             7850      supersede Section 101(c) of that act, 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
             7851      any of the notices described in Section 103(b) of that act, 15 U.S.C. Sec. 7003(b).
             7852          Section 303. Section 48-3-1403 is enacted to read:
             7853          48-3-1403. Severability clause.
             7854          If any provision of this chapter or its application to any person or circumstance is held
             7855      invalid, the invalidity does not affect other provisions or applications of this chapter which can
             7856      be given effect without the invalid provision or application, and to this end the provisions of
             7857      this chapter are severable.
             7858          Section 304. Section 48-3-1404 is enacted to read:
             7859          48-3-1404. Savings clause.
             7860          This chapter does not affect an action commenced, proceeding brought, or right accrued
             7861      before this chapter takes effect.
             7862          Section 305. Section 48-3-1405 is enacted to read:
             7863          48-3-1405. Application to existing relationships.
             7864          (1) Before January 1, 2014, this chapter governs only:
             7865          (a) a limited liability company formed on or after July 1, 2012; and
             7866          (b) subject to Subsection (3), a limited liability company formed before July 1, 2012,
             7867      which elects, in the manner provided in its operating agreement or by law for amending the
             7868      operating agreement, to be subject to this chapter.
             7869          (2) Subject to Subsection (3), on and after January 1, 2014, this chapter governs all


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


             7898          (iii) The administration shall classify the proposal pursuant to law if it decides to
             7899      proceed with the proposal.
             7900          (iv) Section 63G-2-403 does not apply during the review period.
             7901          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             7902      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             7903      63G-3-301 (6) and (7), and the director, with the board's approval, may establish a procedure
             7904      for the expedited approval of rules, based on written findings by the director showing:
             7905          (i) the changes in business opportunities affecting the assets of the trust;
             7906          (ii) the specific business opportunity arising out of those changes which may be lost
             7907      without the rule or changes to the rule;
             7908          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             7909      causing the loss of the specific opportunity;
             7910          (iv) approval by at least five board members; and
             7911          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             7912      reasons and justifications for its findings, with the Division of Administrative Rules and
             7913      notified interested parties as provided in Subsection 63G-3-301 (10).
             7914          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             7915      Management Act, except as provided in this Subsection (3)(d).
             7916          (ii) The board may approve, upon recommendation of the director, that exemption for
             7917      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             7918      the administration to efficiently fulfill its responsibilities under the law. The director shall
             7919      consult with the executive director of the Department of Human Resource Management prior
             7920      to making such a recommendation.
             7921          (iii) The positions of director, deputy director, associate director, assistant director,
             7922      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             7923      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             7924          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             7925      after consultation with the executive director of the Department of Human Resource


             7926      Management, within ranges approved by the board. The board and director shall consider
             7927      salaries for similar positions in private enterprise and other public employment when setting
             7928      salary ranges.
             7929          (v) The board may create an annual incentive and bonus plan for the director and other
             7930      administration employees designated by the board, based upon the attainment of financial
             7931      performance goals and other measurable criteria defined and budgeted in advance by the board.
             7932          (e) The administration shall comply with Title 63G, Chapter 6, Utah Procurement
             7933      Code, except where the board approves, upon recommendation of the director, exemption from
             7934      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             7935      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             7936      efficiently fulfill its responsibilities under the law.
             7937          (f) (i) The board and director shall review the exceptions under this Subsection (3) and
             7938      make recommendations for any modification, if required, which the Legislature would be asked
             7939      to consider during its annual general session.
             7940          (ii) The board and director may include in their recommendations any other proposed
             7941      exceptions from the usual executive and legislative controls the board and director consider
             7942      necessary to accomplish the purpose of this title.
             7943          (4) The administration is managed by a director of school and institutional trust lands
             7944      appointed by a majority vote of the board of trustees with the consent of the governor.
             7945          (5) (a) The board of trustees shall provide policies for the management of the
             7946      administration and for the management of trust lands and assets.
             7947          (b) The board shall provide policies for the ownership and control of Native American
             7948      remains that are discovered or excavated on school and institutional trust lands in consultation
             7949      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             7950      Native American Grave Protection and Repatriation Act. The director may make rules in
             7951      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             7952      policies provided by the board regarding Native American remains.
             7953          (6) In connection with joint ventures for the development of trust lands and minerals


             7954      approved by the board under Sections 53C-1-303 and 53C-2-401 , the administration may
             7955      become a member of a limited liability company under Title 48, Chapter [2c] 3, Utah Revised
             7956      Uniform Limited Liability Company Act, and is considered a person under Section [ 48-2c-102 ]
             7957      48-3-102 .
             7958          Section 307. Section 61-2b-25 is amended to read:
             7959           61-2b-25. Other law unaffected.
             7960          This chapter may not be considered to prohibit a person approved, licensed, certified, or
             7961      registered under this chapter from engaging in the practice of real estate appraising as a
             7962      professional corporation or a limited liability company in accordance with:
             7963          (1) Title 16, Chapter 11, Professional Corporation Act; or
             7964          (2) Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act.
             7965          Section 308. Section 61-2f-401 is amended to read:
             7966           61-2f-401. Grounds for disciplinary action.
             7967          The following acts are unlawful for a person required to be licensed under this chapter:
             7968          (1) (a) making a substantial misrepresentation;
             7969          (b) making an intentional misrepresentation;
             7970          (c) pursuing a continued and flagrant course of misrepresentation;
             7971          (d) making a false representation or promise through an agent, sales agent, advertising,
             7972      or otherwise; or
             7973          (e) making a false representation or promise of a character likely to influence,
             7974      persuade, or induce;
             7975          (2) acting for more than one party in a transaction without the informed consent of all
             7976      parties;
             7977          (3) (a) acting as an associate broker or sales agent while not affiliated with a principal
             7978      broker;
             7979          (b) representing or attempting to represent a principal broker other than the principal
             7980      broker with whom the person is affiliated; or
             7981          (c) representing as sales agent or having a contractual relationship similar to that of


             7982      sales agent with a person other than a principal broker;
             7983          (4) (a) failing, within a reasonable time, to account for or to remit money that belongs
             7984      to another and comes into the person's possession;
             7985          (b) commingling money described in Subsection (4)(a) with the person's own money;
             7986      or
             7987          (c) diverting money described in Subsection (4)(a) from the purpose for which the
             7988      money is received;
             7989          (5) paying or offering to pay valuable consideration, as defined by the commission, to a
             7990      person not licensed under this chapter, except that valuable consideration may be shared:
             7991          (a) with a principal broker of another jurisdiction; or
             7992          (b) as provided under:
             7993          (i) Title 16, Chapter 10a, Utah Revised Business Corporation Act;
             7994          (ii) Title 16, Chapter 11, Professional Corporation Act; or
             7995          (iii) Title 48, Chapter [2c] 3, Utah Revised Uniform Limited Liability Company Act;
             7996          (6) being incompetent to act as a principal broker, associate broker, or sales agent in
             7997      such manner as to safeguard the interests of the public;
             7998          (7) failing to voluntarily furnish a copy of a document to all parties before and after the
             7999      execution of a document;
             8000          (8) failing to keep and make available for inspection by the division a record of each
             8001      transaction, including:
             8002          (a) the names of buyers and sellers or lessees and lessors;
             8003          (b) the identification of real estate;
             8004          (c) the sale or rental price;
             8005          (d) money received in trust;
             8006          (e) agreements or instructions from buyers and sellers or lessees and lessors; and
             8007          (f) any other information required by rule;
             8008          (9) failing to disclose, in writing, in the purchase, sale, or rental of real estate, whether
             8009      the purchase, sale, or rental is made for that person or for an undisclosed principal;


             8010          (10) being convicted of a criminal offense involving moral turpitude within five years
             8011      of the most recent application:
             8012          (a) regardless of whether the criminal offense is related to real estate; and
             8013          (b) including:
             8014          (i) a conviction based upon a plea of nolo contendere; or
             8015          (ii) a plea held in abeyance to a criminal offense involving moral turpitude;
             8016          (11) advertising the availability of real estate or the services of a licensee in a false,
             8017      misleading, or deceptive manner;
             8018          (12) in the case of a principal broker or a licensee who is a branch manager, failing to
             8019      exercise reasonable supervision over the activities of the principal broker's or branch manager's
             8020      licensed or unlicensed staff;
             8021          (13) violating or disregarding:
             8022          (a) this chapter;
             8023          (b) an order of the commission; or
             8024          (c) the rules adopted by the commission and the division;
             8025          (14) breaching a fiduciary duty owed by a licensee to the licensee's principal in a real
             8026      estate transaction;
             8027          (15) any other conduct which constitutes dishonest dealing;
             8028          (16) unprofessional conduct as defined by statute or rule;
             8029          (17) having one of the following suspended, revoked, surrendered, or cancelled on the
             8030      basis of misconduct in a professional capacity that relates to character, honesty, integrity, or
             8031      truthfulness:
             8032          (a) a real estate license, registration, or certificate issued by another jurisdiction; or
             8033          (b) another license, registration, or certificate to engage in an occupation or profession
             8034      issued by this state or another jurisdiction;
             8035          (18) failing to respond to a request by the division in an investigation authorized under
             8036      this chapter, including:
             8037          (a) failing to respond to a subpoena;


             8038          (b) withholding evidence; or
             8039          (c) failing to produce documents or records;
             8040          (19) in the case of a dual licensed title licensee as defined in Section 31A-2-402 :
             8041          (a) providing a title insurance product or service without the approval required by
             8042      Section 31A-2-405 ; or
             8043          (b) knowingly providing false or misleading information in the statement required by
             8044      Subsection 31A-2-405 (2);
             8045          (20) violating an independent contractor agreement between a principal broker and a
             8046      sales agent or associate broker as evidenced by a final judgment of a court;
             8047          (21) (a) engaging in a foreclosure rescue if not licensed under this chapter;
             8048          (b) engaging in an act of loan modification assistance that requires licensure as a
             8049      mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act,
             8050      without being licensed under that chapter;
             8051          (c) requesting or requiring a person to pay a fee if:
             8052          (i) the person is required to pay the fee before entering into a written agreement
             8053      specifying what one or more acts of foreclosure rescue will be completed if the fee is paid; or
             8054          (ii) in a case when the financing that is the subject of the foreclosure rescue is
             8055      foreclosed within one year from the day on which the person enters into a written agreement,
             8056      the person is required to forfeit the fee for any reason;
             8057          (d) inducing a person who is at risk of foreclosure to hire the licensee to engage in an
             8058      act of foreclosure rescue by:
             8059          (i) suggesting to the person that the licensee has a special relationship with the person's
             8060      lender or loan servicer; or
             8061          (ii) falsely representing or advertising that the licensee is acting on behalf of:
             8062          (A) a government agency;
             8063          (B) the person's lender or loan servicer; or
             8064          (C) a nonprofit or charitable institution; or
             8065          (e) recommending or participating in a foreclosure rescue that requires a person to:


             8066          (i) transfer title to real property to the licensee or to a third party with whom the
             8067      licensee has a business relationship or financial interest;
             8068          (ii) make a mortgage payment to a person other than the person's loan servicer; or
             8069          (iii) refrain from contacting the person's:
             8070          (A) lender;
             8071          (B) loan servicer;
             8072          (C) attorney;
             8073          (D) credit counselor; or
             8074          (E) housing counselor; or
             8075          (22) for an agreement for foreclosure rescue entered into on or after May 11, 2010,
             8076      engaging in an act of foreclosure rescue without offering in writing to the person entering into
             8077      the agreement for foreclosure rescue a right to cancel the agreement within three business days
             8078      after the day on which the person enters the agreement.
             8079          Section 309. Section 75-7-1011 is amended to read:
             8080           75-7-1011. Interest as general partner.
             8081          (1) Except as otherwise provided in Subsection (3) or unless personal liability is
             8082      imposed in the contract, a trustee who holds an interest as a general partner in a general or
             8083      limited partnership is not personally liable on a contract entered into by the partnership after
             8084      the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in
             8085      a statement previously filed pursuant to Title 48, Chapter [2a, Utah Revised] 2d, Utah Uniform
             8086      Limited Partnership Act.
             8087          (2) Except as otherwise provided in Subsection (3), a trustee who holds an interest as a
             8088      general partner is not personally liable for torts committed by the partnership or for obligations
             8089      arising from ownership or control of the interest unless the trustee is personally at fault.
             8090          (3) The immunity provided by this section does not apply if an interest in the
             8091      partnership is held by the trustee in a capacity other than that of trustee or is held by the
             8092      trustee's spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse
             8093      of any of them.


             8094          (4) If the trustee of a revocable trust holds an interest as a general partner, the settlor is
             8095      personally liable for contracts and other obligations of the partnership as if the settlor were a
             8096      general partner.
             8097          Section 310. Repealer.
             8098          This bill repeals:
             8099          Section 48-1-1, Definition of terms.
             8100          Section 48-1-2, Interpretation of knowledge and notice.
             8101          Section 48-1-3,"Partnership" defined.
             8102          Section 48-1-3.1, Joint venture defined -- Application of chapter.
             8103          Section 48-1-4, Rules for determining the existence of a partnership.
             8104          Section 48-1-5, Partnership property.
             8105          Section 48-1-6, Partner agent of partnership as to partnership business.
             8106          Section 48-1-7, Conveyance of real property of partnership.
             8107          Section 48-1-8, Partnership bound by admission of partner.
             8108          Section 48-1-9, Partnership charged with knowledge of or notice to partner.
             8109          Section 48-1-10, Partnership bound by partner's wrongful act.
             8110          Section 48-1-11, Partnership bound by partner's breach of trust.
             8111          Section 48-1-12, Nature of partner's liability.
             8112          Section 48-1-13, Partner by estoppel.
             8113          Section 48-1-14, Liability of incoming partner.
             8114          Section 48-1-15, Rules determining rights and duties of partners.
             8115          Section 48-1-16, Partnership books.
             8116          Section 48-1-17, Duty of partners to render information.
             8117          Section 48-1-18, Partner accountable as a fiduciary.
             8118          Section 48-1-19, Right to an account.
             8119          Section 48-1-20, Continuation of partnership beyond fixed term.
             8120          Section 48-1-21, Extent of property rights of a partner.
             8121          Section 48-1-22, Nature of a partner's right in specific partnership property.


             8122          Section 48-1-23, Nature of partner's interest in the partnership.
             8123          Section 48-1-24, Assignment of partner's interest.
             8124          Section 48-1-25, Partner's interest subject to charging order.
             8125          Section 48-1-26,"Dissolution" defined.
             8126          Section 48-1-27, Partnership not terminated by dissolution.
             8127          Section 48-1-28, Causes of dissolution.
             8128          Section 48-1-29, Dissolution by decree of court.
             8129          Section 48-1-30, General effect of dissolution on authority of partner.
             8130          Section 48-1-31, Right of partner to contribution from copartners after dissolution.
             8131          Section 48-1-32, Power of partner to bind partnership to third persons after
             8132      dissolution.
             8133          Section 48-1-33, Effect of dissolution on partner's existing liability.
             8134          Section 48-1-34, Right to wind up.
             8135          Section 48-1-35, Rights of partners to application of partnership property.
             8136          Section 48-1-36, Rights where partnership is dissolved for fraud or
             8137      misrepresentation.
             8138          Section 48-1-37, Rules for distribution.
             8139          Section 48-1-38, Liability of persons continuing the business in certain cases.
             8140          Section 48-1-39, Rights of retiring or estate of deceased partner when the business
             8141      is continued.
             8142          Section 48-1-40, Accrual of actions.
             8143          Section 48-1-41, Title.
             8144          Section 48-1-42, Registration of limited liability partnerships.
             8145          Section 48-1-43, Scope of chapter -- Choice of law.
             8146          Section 48-1-44, Foreign limited liability partnerships.
             8147          Section 48-1-45, Name of registered limited liability partnership.
             8148          Section 48-1-46, Professional relationship -- Personal liability.
             8149          Section 48-1-47, Regulatory agency or board authority -- Prohibitions on


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


             8178          Section 48-2a-302, Voting.
             8179          Section 48-2a-303, Liability to third parties.
             8180          Section 48-2a-304, Person erroneously believing himself to be a limited partner.
             8181          Section 48-2a-305, Inspection of records -- Right to information.
             8182          Section 48-2a-401, Admission of additional general partners.
             8183          Section 48-2a-402, Events of withdrawal.
             8184          Section 48-2a-403, General powers and liabilities.
             8185          Section 48-2a-404, Contributions by general partners.
             8186          Section 48-2a-405, Voting.
             8187          Section 48-2a-501, Form of contribution.
             8188          Section 48-2a-502, Liability for contribution.
             8189          Section 48-2a-503, Sharing of profits and losses.
             8190          Section 48-2a-504, Sharing of distributions.
             8191          Section 48-2a-601, Interim distributions.
             8192          Section 48-2a-602, Withdrawal of general partner.
             8193          Section 48-2a-603, Withdrawal of limited partners.
             8194          Section 48-2a-604, Distribution upon withdrawal.
             8195          Section 48-2a-605, Distribution in kind.
             8196          Section 48-2a-606, Right to distribution.
             8197          Section 48-2a-607, Limitations on distributions.
             8198          Section 48-2a-608, Liability upon return of contribution.
             8199          Section 48-2a-701, Nature of partnership interest.
             8200          Section 48-2a-702, Assignment of partnership interest.
             8201          Section 48-2a-703, Rights of creditor.
             8202          Section 48-2a-704, Right of assignee to become limited partner.
             8203          Section 48-2a-705, Power of estate of deceased or incompetent partner.
             8204          Section 48-2a-801, Nonjudicial dissolution.
             8205          Section 48-2a-802, Judicial dissolution.


             8206          Section 48-2a-803, Winding up.
             8207          Section 48-2a-804, Distribution of assets.
             8208          Section 48-2a-901, Law governing.
             8209          Section 48-2a-902, Registration.
             8210          Section 48-2a-903, Issuance of registration.
             8211          Section 48-2a-904, Name.
             8212          Section 48-2a-905, Changes and amendments.
             8213          Section 48-2a-906, Cancellation of registration.
             8214          Section 48-2a-907, Transaction of business without registration.
             8215          Section 48-2a-908, Action by director of division.
             8216          Section 48-2a-1001, Right of action.
             8217          Section 48-2a-1002, Proper plaintiff.
             8218          Section 48-2a-1003, Pleading.
             8219          Section 48-2a-1004, Expenses.
             8220          Section 48-2a-1005, Security and costs.
             8221          Section 48-2a-1006, Indemnification of a general partner.
             8222          Section 48-2a-1101, Construction and application.
             8223          Section 48-2a-1102, Short title.
             8224          Section 48-2a-1103, Severability.
             8225          Section 48-2a-1104, Effective date -- Extended effective date -- Applicability of
             8226      former law.
             8227          Section 48-2a-1105, Rules for cases not provided for in this chapter.
             8228          Section 48-2a-1106, Savings clause.
             8229          Section 48-2a-1107, Fees.
             8230          Section 48-2c-101, Title.
             8231          Section 48-2c-102, Definitions.
             8232          Section 48-2c-103, Application of partnership provisions.
             8233          Section 48-2c-104, Separate legal entity.


             8234          Section 48-2c-105, Purpose.
             8235          Section 48-2c-106, Name -- Exclusive right.
             8236          Section 48-2c-107, Limited liability company name -- Limited rights.
             8237          Section 48-2c-108, Reservation of name.
             8238          Section 48-2c-109, Transaction of business outside state.
             8239          Section 48-2c-110, Powers.
             8240          Section 48-2c-113, Inspection of records by members and managers.
             8241          Section 48-2c-114, Scope of inspection right.
             8242          Section 48-2c-115, Court-ordered inspection.
             8243          Section 48-2c-116, Member or manager as a party to proceedings.
             8244          Section 48-2c-118, Waiver of notice.
             8245          Section 48-2c-119, Transaction of members or managers with company.
             8246          Section 48-2c-120, Articles of organization and operating agreement.
             8247          Section 48-2c-121, Scope of notice.
             8248          Section 48-2c-122, Statement of person named as manager or member.
             8249          Section 48-2c-201, Place for filings.
             8250          Section 48-2c-202, Record of filings.
             8251          Section 48-2c-203, Annual report.
             8252          Section 48-2c-204, Signing of documents filed with division.
             8253          Section 48-2c-205, Penalty for signing false documents.
             8254          Section 48-2c-206, Powers of the division.
             8255          Section 48-2c-207, Filing requirements.
             8256          Section 48-2c-208, Effective time and date of filed documents.
             8257          Section 48-2c-209, Correcting filed documents.
             8258          Section 48-2c-210, Filing duty of division.
             8259          Section 48-2c-211, Appeal from division's refusal to file document.
             8260          Section 48-2c-212, Evidentiary effect of copy of filed document.
             8261          Section 48-2c-213, Certificates issued by the division.


             8262          Section 48-2c-214, Fees.
             8263          Section 48-2c-305, Director of division as agent for service of process -- Records of
             8264      process served.
             8265          Section 48-2c-309, Service on withdrawn foreign company.
             8266          Section 48-2c-311, Venue for action against foreign company.
             8267          Section 48-2c-401, Organizer.
             8268          Section 48-2c-402, Formation of company.
             8269          Section 48-2c-403, Articles of organization.
             8270          Section 48-2c-404, Prefiling activities.
             8271          Section 48-2c-405, When amendment to articles of organization required.
             8272          Section 48-2c-406, Actions not requiring amendment.
             8273          Section 48-2c-407, Authority to amend articles of organization.
             8274          Section 48-2c-408, Certificate of amendment to articles of organization.
             8275          Section 48-2c-409, Restated articles of organization.
             8276          Section 48-2c-410, Transfer to other jurisdiction.
             8277          Section 48-2c-411, Domestication of foreign company.
             8278          Section 48-2c-412, Low-profit limited liability company.
             8279          Section 48-2c-501, Initial agreement.
             8280          Section 48-2c-502, General rules for operating agreements.
             8281          Section 48-2c-503, Timing.
             8282          Section 48-2c-504, Operating agreement for a one-member company.
             8283          Section 48-2c-505, Interpretation and enforcement.
             8284          Section 48-2c-506, Amendment.
             8285          Section 48-2c-601, General rule.
             8286          Section 48-2c-602, Exceptions to limited liability.
             8287          Section 48-2c-603, Waiver of exceptions to limited liability.
             8288          Section 48-2c-604, Waiver of protection of limited liability.
             8289          Section 48-2c-605, No formalities required to maintain limited liability.


             8290          Section 48-2c-606, Series of members, managers, or limited liability company
             8291      interests.
             8292          Section 48-2c-607, Notice of series -- Articles of organization.
             8293          Section 48-2c-608, Agreement to be liable.
             8294          Section 48-2c-609, Series related provisions in operating agreement.
             8295          Section 48-2c-610, Management of a series.
             8296          Section 48-2c-611, Distributions concerning a series.
             8297          Section 48-2c-612, Member removal from a series -- Effect.
             8298          Section 48-2c-613, Termination of series.
             8299          Section 48-2c-614, Court-decreed termination of series.
             8300          Section 48-2c-615, Participation in winding up.
             8301          Section 48-2c-616, Foreign limited liability company -- Series.
             8302          Section 48-2c-701, Nature of member interest.
             8303          Section 48-2c-702, Initial members.
             8304          Section 48-2c-703, Additional members.
             8305          Section 48-2c-704, Meetings of members.
             8306          Section 48-2c-705, Voting.
             8307          Section 48-2c-706, Action by members without a meeting.
             8308          Section 48-2c-707, Classes of members.
             8309          Section 48-2c-708, Cessation of membership.
             8310          Section 48-2c-709, Withdrawal of a member.
             8311          Section 48-2c-710, Expulsion of a member.
             8312          Section 48-2c-801, Management structure.
             8313          Section 48-2c-802, Agency authority of members and managers.
             8314          Section 48-2c-803, Management by members.
             8315          Section 48-2c-803.1, Individual profits interest.
             8316          Section 48-2c-804, Management by managers.
             8317          Section 48-2c-805, Delegation of authority and power to manage.


             8318          Section 48-2c-806, Reliance by member or manager on reports and information.
             8319          Section 48-2c-807, Duties of managers and members.
             8320          Section 48-2c-808, Actions by multiple managers.
             8321          Section 48-2c-809, Removal by judicial proceeding.
             8322          Section 48-2c-901, Form of contribution.
             8323          Section 48-2c-902, Assessments for additional contributions.
             8324          Section 48-2c-903, Capital accounts.
             8325          Section 48-2c-904, Valuation of member's interest in the company.
             8326          Section 48-2c-905, Redemption of interest.
             8327          Section 48-2c-906, Allocation of profits and losses.
             8328          Section 48-2c-1001, Allocation of current distributions.
             8329          Section 48-2c-1002, Timing of distributions.
             8330          Section 48-2c-1003, Liquidating distributions.
             8331          Section 48-2c-1004, Right to distributions.
             8332          Section 48-2c-1005, Limitations on distributions.
             8333          Section 48-2c-1006, Duty to return wrongful distributions.
             8334          Section 48-2c-1007, Distribution in kind.
             8335          Section 48-2c-1008, Unclaimed distributions.
             8336          Section 48-2c-1101, Assignment of interests.
             8337          Section 48-2c-1102, Rights of assignee.
             8338          Section 48-2c-1103, Rights of creditor of member.
             8339          Section 48-2c-1104, Right of assignee to become member.
             8340          Section 48-2c-1105, Liability of assignor continues.
             8341          Section 48-2c-1106, Invalid transfers.
             8342          Section 48-2c-1201, Events of dissolution.
             8343          Section 48-2c-1202, Voluntary cancellation of certificate.
             8344          Section 48-2c-1203, Effect of dissolution.
             8345          Section 48-2c-1204, Articles of dissolution.


             8346          Section 48-2c-1205, Revocation of voluntary dissolution.
             8347          Section 48-2c-1206, Grounds for administrative dissolution.
             8348          Section 48-2c-1207, Procedure for and effect of administrative dissolution.
             8349          Section 48-2c-1208, Reinstatement following administrative dissolution.
             8350          Section 48-2c-1209, Appeal from denial of reinstatement.
             8351          Section 48-2c-1210, Grounds for judicial dissolution.
             8352          Section 48-2c-1211, Procedure for judicial dissolution.
             8353          Section 48-2c-1212, Receivership or custodianship.
             8354          Section 48-2c-1213, Decree of dissolution.
             8355          Section 48-2c-1214, Election to purchase in lieu of dissolution.
             8356          Section 48-2c-1301, Winding up defined.
             8357          Section 48-2c-1302, Powers of company in winding up.
             8358          Section 48-2c-1303, Persons authorized to wind up.
             8359          Section 48-2c-1304, Payment of claims and obligations.
             8360          Section 48-2c-1305, Disposition of known claims by notification.
             8361          Section 48-2c-1306, Disposition of claims by publication.
             8362          Section 48-2c-1307, Enforcement of claims against dissolved company in winding
             8363      up.
             8364          Section 48-2c-1308, Distribution of assets on winding up.
             8365          Section 48-2c-1309, Deposit with state treasurer.
             8366          Section 48-2c-1401, Conversion of certain entities to a domestic company.
             8367          Section 48-2c-1402, Articles of conversion.
             8368          Section 48-2c-1403, Effect of conversion.
             8369          Section 48-2c-1404, Approval of conversion.
             8370          Section 48-2c-1405, No limitation on other changes.
             8371          Section 48-2c-1406, Approval of company conversion to other entity.
             8372          Section 48-2c-1407, Merger.
             8373          Section 48-2c-1408, Approval of merger.


             8374          Section 48-2c-1409, Articles of merger.
             8375          Section 48-2c-1410, Effect of merger.
             8376          Section 48-2c-1411, Conversion or merger of a low-profit limited liability
             8377      company.
             8378          Section 48-2c-1501, Purpose of Part 15.
             8379          Section 48-2c-1502, Definitions.
             8380          Section 48-2c-1503, Rendering professional services.
             8381          Section 48-2c-1504, No limits on regulating board.
             8382          Section 48-2c-1505, Name limitations.
             8383          Section 48-2c-1506, Activity limitations.
             8384          Section 48-2c-1507, Limit of one profession.
             8385          Section 48-2c-1508, Members and managers restricted to professionals.
             8386          Section 48-2c-1509, Additional requirements for articles of organization.
             8387          Section 48-2c-1510, Restrictions on transfers by members.
             8388          Section 48-2c-1511, Purchase of interest upon death, incapacity, or disqualification
             8389      of members.
             8390          Section 48-2c-1512, Conversion to nonprofessional company.
             8391          Section 48-2c-1513, Application of Part 15.
             8392          Section 48-2c-1601, Law governing foreign companies.
             8393          Section 48-2c-1602, Authority to transact business required.
             8394          Section 48-2c-1603, Consequences of transacting business without authority.
             8395          Section 48-2c-1604, Application for authority to transact business.
             8396          Section 48-2c-1605, Amended application for authority to transact business.
             8397          Section 48-2c-1606, Effect of filing an application for authority to transact
             8398      business.
             8399          Section 48-2c-1607, Company name and assumed company name of foreign
             8400      company.
             8401          Section 48-2c-1608, Registered name of foreign company.


             8402          Section 48-2c-1609, Amendment of articles of organization of foreign company.
             8403          Section 48-2c-1610, Merger of foreign company authorized to transact business in
             8404      this state.
             8405          Section 48-2c-1611, Withdrawal of foreign company.
             8406          Section 48-2c-1612, Grounds for revocation.
             8407          Section 48-2c-1613, Procedure for and effect of revocation.
             8408          Section 48-2c-1614, Appeal from revocation.
             8409          Section 48-2c-1615, Actions to restrain transaction of business in state.
             8410          Section 48-2c-1701, Right of action.
             8411          Section 48-2c-1702, Proper plaintiff.
             8412          Section 48-2c-1703, Pleading.
             8413          Section 48-2c-1704, Stay of proceedings.
             8414          Section 48-2c-1705, Expenses.
             8415          Section 48-2c-1706, Security and costs.
             8416          Section 48-2c-1801, Definitions.
             8417          Section 48-2c-1802, Authority to indemnify.
             8418          Section 48-2c-1803, Mandatory indemnification of managers.
             8419          Section 48-2c-1804, Advancement of expenses.
             8420          Section 48-2c-1805, Court-ordered indemnification.
             8421          Section 48-2c-1806, Determination and authorization of indemnification.
             8422          Section 48-2c-1807, Indemnification of members, employees, fiduciaries, and
             8423      agents.
             8424          Section 48-2c-1808, Insurance.
             8425          Section 48-2c-1809, Limitations on indemnification.
             8426          Section 48-2c-1901, Legislative intent -- Freedom of contract.
             8427          Section 48-2c-1902, Transitional provisions.
             8428          Section 311. Effective date.
             8429          This bill takes effect on July 1, 2012.


             8430     


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