(1) A director who consents to a distribution that violates section 7-58-1007 is personally liable to the limited cooperative association for the amount of the distribution that exceeds the amount that could have been distributed without the violation if it is established that, in consenting to the distribution, the director failed to comply with section 7-58-818 or 7-58-819.
A member or transferee of financial rights that received a distribution knowing thatthe distribution was made in violation of section 7-58-1007 is personally liable to the limited cooperative association to the extent that the distribution exceeded the amount that could have been properly paid.
A director against whom an action is commenced under subsection (1) of this sectionmay:
Implead in the action any other director who is liable under subsection (1) of thissection and compel contribution from the director; and
Implead in the action any person that is liable under subsection (2) of this section andcompel contribution from the person in the amount the person received as described in subsection (2) of this section.
(4) An action under this section is barred if it is commenced later than three years after the distribution.
Source: L. 2011: Entire article added, (SB 11-191), ch. 197, p. 801, § 1, effective April 2, 2012.