{"id":10058,"date":"2018-05-09T10:55:51","date_gmt":"2018-05-09T17:55:51","guid":{"rendered":"https:\/\/www.keytlaw.com\/azllclaw\/?page_id=10058"},"modified":"2018-05-24T10:06:43","modified_gmt":"2018-05-24T17:06:43","slug":"ars-section-29-3707-disposition-of-assets-in-winding-up","status":"publish","type":"page","link":"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3707-disposition-of-assets-in-winding-up\/","title":{"rendered":"ARS Section 29-3707 Disposition of Assets in Winding Up"},"content":{"rendered":"<p style=\"text-align: justify;\">A. In winding up its activities and affairs, a limited liability company shall apply its assets to discharge the company&#8217;s obligations to creditors, including members that are creditors.<\/p>\n<p style=\"text-align: justify;\">B. After a limited liability company complies with subsection A of this Section, any surplus assets must be distributed in the following order, subject to any charging order in effect under <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3503\/\" target=\"_blank\" rel=\"noopener\">Section 29-3503<\/a>:<\/p>\n<p style=\"text-align: justify; padding-left: 30px;\">1. to each person owning a transferable interest that reflects contributions made and not previously returned, an amount equal to the value of the unreturned contributions.<\/p>\n<p style=\"text-align: justify; padding-left: 30px;\">2. among persons owning transferable interests in proportion to their respective rights to share in distributions immediately before the dissolution of the company.<\/p>\n<p style=\"text-align: justify;\">C. If a limited liability company does not have sufficient surplus assets to comply with subsection B, paragraph 1 of this Section, any surplus must be distributed among the owners of transferable interests in proportion to the value of the respective unreturned contributions.<\/p>\n<p style=\"text-align: justify;\">D. All distributions made under subsections b and c of this Section must be paid in money.<\/p>\n<p style=\"text-align: justify;\"><strong>Note<\/strong>:\u00a0 As of September 1, 2020, this statute applies to all Arizona LLCs .\u00a0 The text above shows the statute as of January 1, 2025.\u00a0 To see if the Arizona legislature modified this statute after January 1, 2025, go the the Arizona legislature's website for <a href=\"https:\/\/www.azleg.gov\/arsDetail\/?title=29\" target=\"_blank\" rel=\"noopener noreferrer\">Title 29, Chapter 7<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A. In winding up its activities and affairs, a limited liability company shall apply its assets to discharge the company&#8217;s obligations to creditors, including members that are creditors. B. After a limited liability company complies with subsection A of this Section, any surplus assets must be distributed in the following order, subject to any charging order in effect under Section 29-3503: 1. to each person owning a transferable interest that reflects contributions made and not previously returned, an amount equal to the value of the unreturned contributions. 2. among persons owning transferable interests in proportion to their respective rights to share in distributions immediately before the dissolution of the company. C. If a limited liability company does not have sufficient surplus assets to comply with subsection B, paragraph 1 of this Section, any surplus must be distributed among the owners of transferable interests in proportion to the value of the respective unreturned contributions. D. All distributions made under subsections b and c of this Section must be paid in money.<\/p>\n","protected":false},"author":158,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-10058","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>ARS Section 29-3707 Disposition of Assets in Winding Up - Arizona LLC Law<\/title>\n<meta name=\"description\" content=\"The complete text of Arizona Revised Statutes Section 29-3707 of Arizona&#039;s new LLC law that is effective September 1, 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3707-disposition-of-assets-in-winding-up\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARS Section 29-3707 Disposition of Assets in Winding Up\" \/>\n<meta property=\"og:description\" content=\"The complete text of Arizona Revised Statutes Section 29-3707 of Arizona&#039;s new LLC law that is effective September 1, 2019.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3707-disposition-of-assets-in-winding-up\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:modified_time\" content=\"2018-05-24T17:06:43+00:00\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/\"},\"author\":{\"name\":\"Katie Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/745ac248a7f18e1ef5455f0dcee1f591\"},\"headline\":\"ARS Section 29-3707 Disposition of Assets in Winding Up\",\"datePublished\":\"2018-05-09T17:55:51+00:00\",\"dateModified\":\"2018-05-24T17:06:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/\"},\"wordCount\":181,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/\",\"name\":\"ARS Section 29-3707 Disposition of Assets in Winding Up - Arizona LLC Law\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\"},\"datePublished\":\"2018-05-09T17:55:51+00:00\",\"dateModified\":\"2018-05-24T17:06:43+00:00\",\"description\":\"The complete text of Arizona Revised Statutes Section 29-3707 of Arizona's new LLC law that is effective September 1, 2019.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3707-disposition-of-assets-in-winding-up\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"ARS Section 29-3707 Disposition of Assets in Winding Up\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\",\"name\":\"Arizona LLC Law\",\"description\":\"Information about Forming &amp; 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