Interim distributions

(1) A limited liability company may make distributions of cash or other property to its members before the dissolution and winding up of the limited liability company to the extent, and at the times, or on the occurrence of the events specified in an operating agreement, or if an operating agreement does not so specify, pursuant to the provisions of this Act. (2) Distributions of cash or other property to members from a limited liability company before the dissolution and winding up of a limited liability company shall be shared among the members and among classes of members in the manner provided in an operating agreement. If an operating agreement does not so provide, distributions shall be shared among the members in the following order, (a) distributions shall be shared among the members in proportion to their respective capital accounts; (b) other distributions shall be shared by the members in proportion to their respective membership interests. (3) For purposes of subsection (2) of this section, a capital contribution other than a cash contribution has the value determined in the manner prescribed in an operating agreement. If an operating agreement does not specify the value of any such capital contribution and does not prescribe the manner for determining its value, (a) the value of a capital contribution of a promise to perform services is zero; (b) the value of a capital contribution of real or personal property other than cash is the fair market value of the property at the time of its transfer to the limited liability company; (c) the value of a capital contribution of the use of property is the fair market value of the use of the property during the period that the limited liability company enjoyed possession or use of the property; (d) the value of a promise to make a cash contribution at some time in the future is 42 deemed to be zero until the cash is actually contributed; and (e) the value of any other capital contribution other than cash or as enumerated in this section is deemed to be zero. (4) For purposes of this section, the term “distribution” shall not include amounts constituting reasonable compensation for present or past services or reasonable payments made in the ordinary course of business pursuant to a bona fide retirement plan or other benefits program. kind.