Utah Code 16-6a-607. Creditor’s action against member

A proceeding may not be brought by a creditor to reach the liability, if any, of a member to the nonprofit corporation unless:

(1)

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Terms Used In Utah Code 16-6a-607

Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Member: includes :

(i)	"voting member"; and

(ii)

a shareholder in a water company. See Utah Code 16-6a-102

Proceeding: includes :

(a)	a civil suit;

(b)	arbitration;

(c)	mediation;

(d)	a criminal action;

(e)	an administrative action; or

(f)	an investigatory action. See Utah Code 16-6a-102
(a)	final judgment has been rendered in favor of the creditor against the nonprofit corporation; and

(b)	execution has been returned unsatisfied in whole or in part; or

(2)	a proceeding described in Subsection (1) would be useless.

Enacted by Chapter 300, 2000 General Session

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