Nebraska Clawback Guaranty

• Category: Guaranty - Equity Funds
• State: Multi-State
• Control #: US-PE-KAM
• Format: Word; Rich Text

Description

This is a sample private equity company form, a Clawback Guaranty. Available in Word format. Nebraska Clawback Guaranty is a legal term used to describe a specific provision in the Nebraska Uniform Limited Liability Company Act (NRS § 21-2608) that allows certain creditors to recover distributions made by a limited liability company (LLC) under certain circumstances. This provision helps protect creditors from fraudulent transfers or improper distributions that could jeopardize their ability to collect debts owed to them. Under the Nebraska Clawback Guaranty provision, creditors can seek recovery of distributions made to LLC members or managers if these distributions were made in violation of the Act. The provision serves as a safeguard against the misuse or abuse of LLC assets, ensuring that creditors' rights are respected and protected. It is important to note that the Nebraska Clawback Guaranty provision specifically applies to LCS and not other business entities such as corporations or partnerships. Furthermore, it is crucial to consult legal counsel or refer to the Nebraska Uniform Limited Liability Company Act to fully understand the scope, applicability, and specific requirements of this provision. While there is generally only one type of Nebraska Clawback Guaranty, it is important to distinguish certain scenarios in which this provision may come into play: 1. Fraudulent Transfers: The Nebraska Clawback Guaranty can be utilized when a distribution made by an LLC is deemed fraudulent, meaning it was made with the intent to hinder, delay, or defraud creditors. Creditors who can demonstrate fraudulent transfer can seek a clawback of those distributions to offset the loss they suffered. 2. Improper Distribution: If an LLC distributes its assets in a manner that violates the Nebraska Uniform Limited Liability Company Act, such as making unauthorized or excessive payments to members or managers, the Nebraska Clawback Guaranty can be invoked to recover those distributions. This provision ensures that LCS adhere to proper governance and follow the guidelines set forth in the Act. In summary, the Nebraska Clawback Guaranty is a legal tool that safeguards creditors' rights by allowing them to recover distributions made by LCS under certain circumstances. By deterring fraudulent transfers and unauthorized distributions, this provision helps maintain the integrity of LCS and protects creditors from unjust financial losses.

Nebraska Clawback Guaranty is a legal term used to describe a specific provision in the Nebraska Uniform Limited Liability Company Act (NRS § 21-2608) that allows certain creditors to recover distributions made by a limited liability company (LLC) under certain circumstances. This provision helps protect creditors from fraudulent transfers or improper distributions that could jeopardize their ability to collect debts owed to them. Under the Nebraska Clawback Guaranty provision, creditors can seek recovery of distributions made to LLC members or managers if these distributions were made in violation of the Act. The provision serves as a safeguard against the misuse or abuse of LLC assets, ensuring that creditors' rights are respected and protected. It is important to note that the Nebraska Clawback Guaranty provision specifically applies to LCS and not other business entities such as corporations or partnerships. Furthermore, it is crucial to consult legal counsel or refer to the Nebraska Uniform Limited Liability Company Act to fully understand the scope, applicability, and specific requirements of this provision. While there is generally only one type of Nebraska Clawback Guaranty, it is important to distinguish certain scenarios in which this provision may come into play: 1. Fraudulent Transfers: The Nebraska Clawback Guaranty can be utilized when a distribution made by an LLC is deemed fraudulent, meaning it was made with the intent to hinder, delay, or defraud creditors. Creditors who can demonstrate fraudulent transfer can seek a clawback of those distributions to offset the loss they suffered. 2. Improper Distribution: If an LLC distributes its assets in a manner that violates the Nebraska Uniform Limited Liability Company Act, such as making unauthorized or excessive payments to members or managers, the Nebraska Clawback Guaranty can be invoked to recover those distributions. This provision ensures that LCS adhere to proper governance and follow the guidelines set forth in the Act. In summary, the Nebraska Clawback Guaranty is a legal tool that safeguards creditors' rights by allowing them to recover distributions made by LCS under certain circumstances. By deterring fraudulent transfers and unauthorized distributions, this provision helps maintain the integrity of LCS and protects creditors from unjust financial losses.