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4-28-626. Distributions prohibited; Compensation and other permitted payments.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-28-626. Distributions prohibited; Compensation and other permitted payments.
(a) Except as otherwise provided in subsection (b), an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager.
(b) An unincorporated nonprofit association may:
(1) pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;
(2) confer benefits on a member or manager in conformity with its nonprofit purposes;
(3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; or
(4) make distributions of property to members upon winding up and termination to the extent permitted by § 4-28-629.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-28-626
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:4-28-626
Source file: gov.ar.code.title.04.odt
Pages: Not recorded – Not recorded
Passage SHA-256: bd12ce26507b94e491326198969e93cae8b69c067cb25b7caba8ef8075505fb3
Source location: content.xml paragraph 19541
Stored source content
4-28-626. Distributions prohibited; Compensation and other permitted payments.
(a) Except as otherwise provided in subsection (b), an unincorporated nonprofit association may not pay dividends or make distributions to a member or manager.
(b) An unincorporated nonprofit association may:
(1) pay reasonable compensation or reimburse reasonable expenses to a member or manager for services rendered;
(2) confer benefits on a member or manager in conformity with its nonprofit purposes;
(3) repurchase a membership and repay a capital contribution made by a member to the extent authorized by its governing principles; or
(4) make distributions of property to members upon winding up and termination to the extent permitted by § 4-28-629.
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Arkansas Code — all titles (historical 2020) · legal_authorities
4-28-629. Winding up and termination.
Winding up and termination of an unincorporated nonprofit association must proceed in accordance with the following rules:
(1) All known debts and liabilities must be paid or adequately provided for.
(2) Any property subject to a condition requiring return to the person designated by the donor must be transferred to that person.
(3) Any property subject to a trust must be distributed in accordance with the trust agreement.
(4) Any remaining property must be distributed as follows:
(A) as required by law other than this subchapter that requires assets of an association to be distributed to another person with similar nonprofit purposes;
(B) in accordance with the association's governing principles or in the absence of applicable governing principles, to the members of the association per capita or as the members direct; or
(C) if neither subparagraph (A) nor (B) applies, under the Unclaimed Property Act, § 18-28-201 et seq.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-28-629
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-28-629. This identifies an authority to review, not proof of applicability.