Withdrawal or reduction of participant's contribution to capital

  1. Law
  2. Mississippi Code
  3. Banks and Financial Institutions
  4. Multistate, State and Limited Liability Trust Institutions
  5. Additional Definitions; Ownership; Governance; Mergers
  6. Special Provisions for Limited Liability Trust Companies
  7. Withdrawal or reduction of participant's contribution to capital

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A participant may not receive from a limited liability trust company any part of the participant's contribution to capital until:

  1. All liabilities of the state trust company, except liabilities to participants on account of contribution to capital, have been paid or, if after the withdrawal or reduction, sufficient property of the state trust company will remain to pay all liabilities of the state trust company, except liabilities to participants on account of contribution to capital;
  2. All participants consent, unless the return of the contribution to capital may be demanded as provided by this article; or
  3. The articles of association are canceled or amended to set out the withdrawal or reduction.

A participant may demand the return of the participant's contribution to capital on the dissolution of the limited liability trust company and the failure by the full liability participants to exercise the right for the business of the limited liability trust company to be carried on by the remaining participants as provided by Section 81-27-6.307.

Unless allowed by the articles of association or by the unanimous consent of all participants of the limited liability trust company, a participant may demand the return of the participant's contribution to capital only in cash.


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