Source: https://www.vuwriter.com/en/underwriting-manuals/2008-9/UM00000170.html
Timestamp: 2019-12-15 22:28:09
Document Index: 384004863

Matched Legal Cases: ['§18', '§29', '§490', '§347', '§35', '§86', '§10', '§2005', '§48', '§101', '§ 48', '§183']

Limited Liability Companies | 2008-9 | Underwriting Manual | www.vuwriter.com Limited Liability Companies
Several states have adopted statutes permitting organization of "series limited liability companies" and it is unclear whether the limited liability features of each series will be recognized as to federal liens or by states which have not adopted statutes permitting "series" llcs. The statutes governing limited liability companies, particularly "series" llcs, vary from state to state.
States and territories where a Series LLC can be formed:
Alabama Code of Alabama Section 10A-5A-11.
Delaware (Limited Liability Company Act) ^ 6 Del. Code Ann. §18-215.
District of Columbia Code Ann. §29-802.06.
Illinois 805 ILCS 180/37-40.
Indiana Code Section 23-18.1-1-1 to 23-18.1-7-4.
Iowa Code Ann. §490A.305.
Kansas K.S.A. 17-76,143 (2012).
Missouri Mo. Rev. Stat §347.186.1.
Montana (Montana Limited Liability Act) Montana Ann. Code §35-8-304 et seq.
Nevada (Nevada Revised Statutes) Nevada Rev. Stat. Montana Ann. Code §86.296.
North Dakota N.D. Cent. Code §§10-32-17.5, 10-32-48, 10-32-56.5.a, 10-32-56.7. North Dakota allows series LLCs, but does not specifically provide for a liability shield between the different series.
Oklahoma 18 Okla. St. Ann. §§2005(B), 2054.4.
Tennessee T.C.A. §48-249-309.
Texas Business Organizations Code §§101.601 to 101.621, 21.152(A),(C),(D), 21.153(A), 21.361(A)(2).
Utah Revised Limited Liability Company Act § 48-2c-606.
Virginia House Bill 2272 which will be effective 7/1/19 provides for creation of series LLCs and is apparently based on the Uniform Protected Series Act.
Wisconsin Wis. Stat. Ann. §183.0504. Wisconsin allows series LLCs, but does not specifically provide for a liability shield between the different series.
Wyoming Wyo. Code Section 17-29-211.
Considerations in review of a Series LLC include:
Is the Series LLC created and domiciled in the state where the land is located;
Does the law of the state in which the land is located authorize domestic Series LLCs;
Does the Series LLC strictly comply with the legal requirements for a Series LLC;
Does the certificate of formation set forth the name of the Series LLC (e.g. the name of the asset);
Does the certificate of formation designate managers or members for each specific Series LLC;
Is the certificate of formation amended when a new Series LLC is established;
Does the LLC Agreement contain provisions creating a Series LLC structure;
Do contemporaneous internal records document the separateness of the Series LLC assets from other Series LLC assets;
Does the law of the state where the series is formed provide for authorization of a series in the company agreement or certificate of formation;
Does the law of the state where the series is formed provide for the determination of the governing authority of a series;
If the Mother LLC is manager managed, the Series LLC must be manager managed, and if the Mother LLC is member managed, the Series LLC should be member managed;
Do not issue a policy insuring title in a Series LLC if the law of the state of the land does not authorize a Series LLC;
Do not disregard a lien or bankruptcy against the Mother LLC and do not disregard a bankruptcy or federal lien against another Series LLC.
Transactions involving a Series LLC require approval by a Senior Underwriter.