Winding up and termination

1. Law
2. Arkansas Code
3. Business and Commercial Law
4. Corporations and Associations
5. Nonprofit Organizations
6. Revised Uniform Unincorporated Nonprofit Association Act
7. Winding up and termination

Winding up and termination of an unincorporated nonprofit association must proceed in accordance with the following rules:

1. (1) All known debts and liabilities must be paid or adequately provided for.

2. (2) Any property subject to a condition requiring return to the person designated by the donor must be transferred to that person.

3. (3) Any property subject to a trust must be distributed in accordance with the trust agreement.

4. (4) Any remaining property must be distributed as follows:

   1. (A) as required by law other than this subchapter that requires assets of an association to be distributed to another person with similar nonprofit purposes;

   2. (B) in accordance with the association's governing principles or in the absence of applicable governing principles, to the members of the association per capita or as the members direct; or

   3. (C) if neither subparagraph (A) nor (B) applies, under the Unclaimed Property Act, § 18-28-201 et seq.

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