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<section article="gca" article_name="Corporations and Associations" number="4A-502" title_number="4A" title_name="Limited Liability Company Act" subtitle_number="5" subtitle_name="Finance">
  <level label="a">
    <level label="1">
      <text>Unless otherwise agreed, a member is obligated to the limited liability company to perform any promises set forth in the articles of organization or operating agreement to contribute cash or property or to perform services, even if the member is unable to perform because of death, disability, or other reason.</text>
    </level>
    <level label="2">
      <text>If a member does not make the required contribution of property or services, the member is obligated, at the option of the limited liability company, to contribute cash equal to the value of that portion of the capital contribution that has not been made.</text>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>The obligation of a member to make a capital contribution or return money or other property paid or distributed in violation of this title may be compromised only:</text>
      <level label="i">
        <text>In compliance with the operating agreement; or</text>
      </level>
      <level label="ii">
        <text>If the operating agreement does not so provide, with the unanimous consent of the members.</text>
      </level>
    </level>
    <level label="2">
      <text>Any compromise does not affect the rights, if any, of any creditor of a limited liability company to enforce the obligation or to require the obligation to be enforced.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>An operating agreement may provide that a member who fails to make any capital contribution or other payment that the member is required to make shall be subject to specified remedies for, or specified consequences of, the failure.</text>
    </level>
    <level label="2">
      <text>The remedy or consequence may take the form of:</text>
      <level label="i">
        <text>Reduction of the defaulting member’s membership interest in the limited liability company;</text>
      </level>
      <level label="ii">
        <text>Subordination of the defaulting member’s membership interest in the limited liability company to that of the nondefaulting members;</text>
      </level>
      <level label="iii">
        <text>A forced sale of the defaulting member’s membership interest in the limited liability company;</text>
      </level>
      <level label="iv">
        <text>Forfeiture of the defaulting member’s membership interest in the limited liability company;</text>
      </level>
      <level label="v">
        <text>A loan by the nondefaulting members of the amount necessary to meet the commitment;</text>
      </level>
      <level label="vi">
        <text>A determination of the value of the member’s membership interest in the limited liability company by appraisal or by formula and redemption and sale of the defaulting member’s membership interest in the limited liability company at that value; or</text>
      </level>
      <level label="vii">
        <text>Any other remedy or consequences.</text>
      </level>
    </level>
  </level>
</section>
