Form Il-00llc-1 - Llc Operating Agreement Page 10
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21(c) A Member dies.
(d) There is an entry of an order by a court of competent jurisdiction
adjudicating the Member incompetent to manage his/her person or his/her estate.
(e) In the case of an estate that is a Member, the distribution by the fiduciary
of the estate's entire interest in the LLC.
(f) A Member, without the consent of a majority of the Members: (1) makes
an assignment for the benefit of creditors; (2) files a voluntary petition in bankruptcy; (3) is
adjudicated a bankrupt or insolvent; (4) files a petition or answer seeking for himself any
reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar
relief under any statute, law or regulation; (5) files an answer or other pleading admitting or
failing to contest the material allegations of a petition filed against him in any proceeding of
the nature described in this paragraph; (6) seeks, consents to, or acquiesces in the
appointment of a trustee, receiver, or liquidator of the Member or of all or any substantial
part of his properties; or (7) if any creditor permitted by law to do so should commence
foreclosure or take any other action to seize or sell any Member's interest in the LLC.
(g) If within one hundred twenty (120) days after the commencement of any
action against a Member seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any statute, law, or regulation, the action has
not been dismissed and/or has not been consented to by a majority of the members.
(h) If within ninety (90) days after the appointment, without a member’s
consent or acquiescence, of a trustee, receiver, or liquidator of the Member or of all or any
substantial part of the member’s properties, said appointment is not vacated or within ninety
(90) days after the expiration of any stay, the appointment is not vacated and/or has not been
consented to by a majority of the members.
(i) Any of the events provided in applicable code provisions that are not
inconsistent with the dissociation events identified above.
30.
Effect of Dissociation. Any dissociated Member shall not be entitled to
receive the fair value of his LLC interest solely by virtue of his dissociation. A dissociated
Member that still owns an interest in the LLC shall be entitled to continue to receive such
profits and losses, to receive such distribution or distributions, and to receive such
allocations of income, gain, loss, deduction, credit or similar items to which he would have
been entitled if still a Member. For all other purposes, a dissociated Member shall no longer
be considered a Member and shall have no rights of a Member.
ARTICLE VIII
RESTRICTIONS ON TRANSFERABILITY OF LLC INTEREST;
SET PRICE FOR LLC INTEREST
31.
LLC Interest. The LLC interest is personal property. A Member has no
interest in property owned by the LLC.
32.
Encumbrance. A Member can encumber his LLC interest by a security
interest or other form of collateral only with the consent of a majority of the other Members.
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