New Hampshire Revised Statutes 304-C:91 – Distribution, Etc.-Definitions
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Unless the operating agreement provides otherwise, the following terms shall have the following meanings:
I.
Distribution. A distribution by the limited liability company to a member shall mean any transfer of its cash or other assets to the member except:
(a) Payments to a member relating to a transaction between the limited liability company and a member acting in a capacity other than as a member;
(b) Payments to a member made without regard to the limited liability company’s profit or loss for services to or for the limited liability company or for the limited liability company’s use of the member’s capital; and
(c) Payments to a member under a limited liability company’s indemnification obligations as referenced in N.H. Rev. Stat. § 304-C:116 or a limited liability company’s obligation to advance expenses as referenced in N.H. Rev. Stat. § 304-C:117.
II.
Interim Distribution. An interim distribution to a member shall mean any distribution except a liquidating distribution, as defined in paragraph III.
III.
Liquidating Distribution. A liquidating distribution shall mean a distribution in connection with:
(a) The limited liability company’s partial or complete redemption of a member’s membership rights; or
(b) The limited liability company’s dissolution and liquidation.
I.
Terms Used In New Hampshire Revised Statutes 304-C:91
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Distribution. A distribution by the limited liability company to a member shall mean any transfer of its cash or other assets to the member except:
(a) Payments to a member relating to a transaction between the limited liability company and a member acting in a capacity other than as a member;
(b) Payments to a member made without regard to the limited liability company’s profit or loss for services to or for the limited liability company or for the limited liability company’s use of the member’s capital; and
(c) Payments to a member under a limited liability company’s indemnification obligations as referenced in N.H. Rev. Stat. § 304-C:116 or a limited liability company’s obligation to advance expenses as referenced in N.H. Rev. Stat. § 304-C:117.
II.
Interim Distribution. An interim distribution to a member shall mean any distribution except a liquidating distribution, as defined in paragraph III.
III.
Liquidating Distribution. A liquidating distribution shall mean a distribution in connection with:
(a) The limited liability company’s partial or complete redemption of a member’s membership rights; or
(b) The limited liability company’s dissolution and liquidation.