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273.303 Distribution of assets.
The assets of a corporation in the process of dissolution shall be applied and
distributed as follows:
(1) All liabilities and obligations of the corporation shall be paid and discharged, or
adequate provisions shall be made therefor;
(2) Assets held by the corporation upon condition requiring return, transfer or
conveyance, which condition occurs by reason of the dissolution, shall be
returned, transferred or conveyed in accordance with such requirements;
(3) Assets received and held by the corporation subject to limitations permitting
their use only for charitable, religious, eleemosynary, benevolent, educational
or similar purposes, but not held upon a condition requiring return, transfer or
conveyance by reason of the dissolution, shall be transferred or conveyed to
one or more domestic or foreign nonprofit corporations, societies, or
organizations engaged in activities substantially similar to those of the
dissolving corporation, pursuant to a plan of distribution adopted as provided in
KRS 273.161 to 273.390;
(4) Other assets, if any, shall be distributed in accordance with the provisions of
the articles of incorporation or the bylaws to the extent that the articles of
incorporation or bylaws determine the distributive rights of members, or any
class or classes of members, or provide for distribution to others;
(5) Any remaining assets may be distributed to such nonprofit societies,
organizations or domestic or foreign corporations, as may be specified in a
plan of distribution adopted as provided in KRS 273.161 to 273.390.
History: Amended 1974 Ky. Acts ch. 156, sec. 1. -- Created 1968 Ky. Acts ch. 165,
sec. 45.
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