Section 10A-5A-11.14 - Application of assets in winding up series' activities and affairs Upon the winding up of a series, the assets of the series shall be applied as follows:
(a) Payment, or adequate provision for payment, shall be made to creditors of the series, including, to the extent permitted by law, members who are associated with the series and who are also creditors of the series, in satisfaction of liabilities of the series.(b) After a series complies with subsection (a), any surplus must be distributed: (1) first, to each person owning a transferable interest associated with that series that reflects contributions made on account of that transferable interest and not previously returned, an amount equal to the value of the unreturned contributions; and(2) then to each person owning a transferable interest associated with that series in the proportions in which the owners of transferable interests associated with that series share in distributions prior to the dissolution of the series.(c) If the series does not have sufficient surplus to comply with subsection (b)(1), any surplus must be distributed among the owners of transferable interests associated with that series in proportion to the value of their respective unreturned contributions.Ala. Code § 10A-5A-11.14 (1975)
Amended by Act 2021-299,§ 5, eff. 1/1/2022.Added by Act 2014-144,§ 1, eff. 1/1/2015.