Section 17Part 4 — Members and Managers
Remedies for breach of a limited liability company agreement
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A LLC agreement may provide that a member or manager who fails to perform in accordance with, or to comply with the terms and conditions of, the LLC agreement shall be subject to specified remedies, sanctions or consequences.
A LLC agreement may provide that upon the happening of an event specified in the LLC agreement, a member or manage r shall be subject to specified remedies, sanctions or consequences.
Any specified remedies, sanctions or consequences referred to in this section shall not be unenforceable solely on the basis that they are in the nature of a penalty or forfeiture.
For the purposes of this section, remedies, sanctions or consequences may include, without limitation, any one or more of the following —
reducing, eliminating or forfeiting the member’s LLC interest or any rights of the member under the LLC agreemen t;
subordinating the member’s LLC interest to the LLC interests of non - defaulting members;
effecting a forced sale or forfeiture of the member’s LLC interest;
arranging for the lending by other members or other persons to that member of the amo unt necessary to meet the member’s remaining contribution;
providing for the fixing of the value of the member’s LLC interest by appraisal or by a formula or otherwise and the redemption or sale of the member’s LLC interest at such value;
providing for the payment of default interest; or
exercising any other remedy or consequence specified in the LLC agreement or available under applicable laws.