Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB649 Compare Versions

Version 1 (Old)

Version 2 (New)

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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 59th Legislature (2023)
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35	28		ENGROSSED SENATE
36	29		BILL NO. 649 By: Montgomery of the Senate
37	30
38	31		and
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40	33		Echols of the House
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45	38		An Act relating to limited liability companies;
46	39		amending 18 O.S. 2021, Section 1006, which relates to
47	40		certificates of incorporation; clarifying
48	41		requirements for designation of corporate names in
49	42		certificate of incorporation; amending 18 O.S. 2021,
50	43		Sections 2001, 2005, 2006, 2008 , 2010, 2012, 2012.1,
51	44		2012.2, 2054.1, 2054.2, 2054.3, and 2054.4, which
52	45		relate to the Oklahoma Limited Liability Company Act;
53	46		modifying and adding definitions; conforming
54	47		language; clarifying execution requirements for
55	48		certain articles; clarifying requirements for
56	49		designation of names of limited liability companies
57	50		in articles of organization; requiring registered
58	51		series to maintain registered office and agent for
59	52		service of process; establishing procedures for
60	53		filing of corrected documents; requiring cancellation
61	54		of articles of registered series under certain
62	55		circumstances; authorizing amendment to certain
63	56		operating agreements; autho rizing entity to convert
64	57		to a protected or registered series; modifying
65	58		definition; authorizing conversion of certain
66	59		entities to a limited liability company; authorizing
67	60		contractual appraisal rights for conversions to
68	61		certain entities; authorizing establi shment of
69	62		protected series by contract; clarifying requirements
70	63		for operating agreement or articles of organization
71	64		of protected series; establishing requirements
72	65		applicable to protected series; authorizing
73	66		establishment of registered series; clarifying
74	67		requirements for operating agreement or articles of
75	68		organization or registered series; establishing
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103	69		requirements applicable to registered s eries;
104	70		authorizing certain actions by registered series;
105	71		requiring filing of articles of organization of
106	72		registered series with the Secretary of State;
107	73		requiring inclusion of certain information in
108	74		articles of registered series; providing for articles
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109	101		of dissolution of articles of registered series;
110	102		authorizing conversion of protected series to
111	103		registered series; establish ing procedures for
112	104		conversion of protected series to registered series;
113	105		authorizing conversion of registered series to
114	106		protected series; establishing procedures for
115	107		conversion of registered series to protected series;
116	108		authorizing merger or consolidation of one or more
117	109		registered series; es tablishing procedures for merger
118	110		or consolidation of one or more registered series;
119	111		defining terms; authorizing division of limited
120	112		liability companies; establishing procedures for
121	113		division of limited liability companies; requiring
122	114		filing of articles of di vision; amending 18 O.S.
123	115		2021, Sections 2055, 2055.1, 2055.2, and 2055.3,
124	116		which relate to fees, annual certific ate, and
125	117		reinstatement of limited liability company; imposing
126	118		certain filing fees on registered series and divi ding
127	119		limited liability companies; requirin g annual fee by
128	120		registered series to Secretary of State for certain
129	121		purposes; requiring registered seri es to file certain
130	122		annual certificate; requiring payment of certain
131	123		annual fee by registered series; providing for
132	124		reinstatement of registered series und er certain
133	125		circumstances; authorizing manual or electronic
134	126		signature and delivery of certain documents;
135	127		providing exceptions to applicability of certain
136	128		provisions; updating statutory references; providing
137	129		for codification; and providing an effective date.
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141	133		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
142	134		SECTION 1. AMENDATORY 18 O.S. 2021, Section 1006, is
143	135		amended to read as follows:
144	136		Section 1006.
145	137		CERTIFICATE OF INCORPORATION; CONTENTS
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173	138		A. The certificate of incorp oration shall set forth:
174	139		1. The name of the corporation which shall contain one of the
175	140		words “association”, “company”, “corporation”, “club”, “foundation”,
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176	167		“fund”, “incorporated”, “institute”, “society”, “union”,
177	168		“syndicate”, or “limited” or abbreviations thereof, with or without
178	169		punctuation, or words or abbreviatio ns thereof, with or without
179	170		punctuation, of like import of foreign countr ies or jurisdictions;
180	171		provided that such abbreviations are written in Ro man characters or
181	172		letters, and which shall be suc h as to distinguish it upo n the
182	173		records in the Office of the S ecretary of State from:
183	174		a. names of other corporations, whether domestic or
184	175		foreign, then existing or which existed at any time
185	176		during the preceding three (3) years,
186	177		b. names of partnerships whe ther general or limited, o r
187	178		domestic or foreign, then in good standing or
188	179		registered or which were in good standing or
189	180		registered at any time during the preceding three (3)
190	181		years,
191	182		c. names of limited liabili ty companies, whether domestic
192	183		or foreign, then in good standing or registe red or
193	184		which were in good standing o r registered at any time
194	185		during the preceding three (3) years,
195	186		d. names of registered seri es of a limited liabil ity
196	187		company,
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224	188		e. trade names or fictitious names filed with the
225	189		Secretary of State, or
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226	216		e. corporate, limited liability company or limited
227	217		partnership names
228	218		f. names of corporations , limited liability companies,
229	219		limited partnerships, or registered series of limited
230	220		liability companies reserved with the Secretary of
231	221		State;
232	222		2. The address, including the street, number, city and postal
233	223		code, of the corporation’s registered office in this state, and the
234	224		name of the corporation ’s registered agent at such address;
235	225		3. The nature of the business or purposes to be conducted or
236	226		promoted. It shall be sufficient to state, either alone or with
237	227		other businesses or purposes, that the purpose of the corporation is
238	228		to engage in any lawful act or activity for which corporations may
239	229		be organized under the gen eral corporation law of Oklahoma, and by
240	230		such statement all lawful acts and activities shall be within the
241	231		purposes of the corporation, except for express limitations, if any;
242	232		4. If the corporation is to be authorized to issue only one
243	233		class of stock, the total number of shares of stock which the
244	234		corporation shall have authority to issue and the par value of eac h
245	235		of such shares, or a statement that all such shares are to be
246	236		without par value. If the corporation is to be authorized to issue
247	237		more than one class of stock, the certificate of incorporation shall
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275	238		set forth the total number of shares of all classes of stock which
276	239		the corporation shall have authority to issue and the number of
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277	266		shares of each class, and shall specify each class the shares of
278	267		which are to be without par value and each class the shares of which
279	268		are to have par value and the par value of the shares of each such
280	269		class. The provisions of this paragraph shall not apply to
281	270		corporations which are not organized for profit and which are not to
282	271		have authority to issue capital stock. In t he case of such
283	272		corporations, the fact that they are not to ha ve authority to issue
284	273		capital stock shall be stated in the certificate of incorporation.
285	274		The provisions of this paragraph shall not apply to nonst ock
286	275		corporations. In the case of nonstock corp orations, the fact that
287	276		they are not authorized to issue capit al stock shall be stated in
288	277		the certificate of incorporation. The conditions of membership, or
289	278		other criteria for identifying members, of nonstock corporations
290	279		shall likewise be stated in the c ertificate of incorporation or the
291	280		bylaws. Nonstock corporati ons shall have members, but the failure
292	281		to have members shall not affect otherwise valid corporate acts or
293	282		work a forfeiture or dissolution of the corporation. Nonstock
294	283		corporations may provide for classes or groups of members having
295	284		relative rights, powe rs and duties, and may make provision for the
296	285		future creation of additional classes or groups of members having
297	286		such relative rights, powers and du ties as may from time to time be
298	287		established, including rights, powers and duties senior to existing
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326	288		classes and groups of members. Except as otherwise provided in the
327	289		Oklahoma General Corporation Act, nonstock corporations may also
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328	316		provide that any membe r or class or group of members shall have
329	317		full, limited, or no voting rights or powers, including that any
330	318		member or class or group of members shall have the right to vote on
331	319		a specified transaction even if that member or class or group of
332	320		members does not have the right to vote for the election of mem bers
333	321		of the governing body of the corporation. Voting by memb ers of a
334	322		nonstock corporation may be on a per capita, number, financial
335	323		interest, class, group, or any other basis set forth. The
336	324		provisions referred to in the three preceding sentences may be set
337	325		forth in the certificate of incorporation or the bylaws. If neither
338	326		the certificate of incorporation nor the bylaws of a nonstock
339	327		corporation state the conditions of membership, or other criteria
340	328		for identifying members, the members of the corporation shall be
341	329		deemed to be those entitled to vote for the election of the members
342	330		of the governing body pursuant to the certificate of incorporation
343	331		or bylaws of such corporation or otherwise until thereafter
344	332		otherwise provided by the certificate of incorporat ion or the
345	333		bylaws;
346	334		5. The name and mailing address of the inc orporator or
347	335		incorporators;
348	336		6. If the powers of the incorporator or incorporators are to
349	337		terminate upon the filing of the certificate of incorpora tion, the
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377	338		names and mailing addresses of the pe rsons who are to serve as
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378	365		directors until the first annual mee ting of shareholders or until
379	366		their successors are elected and qualify;
380	367		7. If the corporation is not for profit:
381	368		a. that the corporation does not afford pecuniary gain,
382	369		incidentally or otherwis e, to its members as such,
383	370		b. the name and mailing address of each member of the
384	371		governing body,
385	372		c. the number of members of the governing body to be
386	373		elected at the first meeting, and
387	374		d. in the event the corpo ration is a church, the street
388	375		address of the location of the church.
389	376		The restriction on affording pecuniary gain to members shall not
390	377		prevent a not-for-profit corporation operating as a cooperative from
391	378		rebating excess revenues to patrons who may also be members; and
392	379		8. If the corporation is a charit able nonstock and does not
393	380		otherwise provide in its certificat e of incorporation:
394	381		a. that the corporation is organized exclusively for
395	382		charitable, religious, educational, and scientific
396	383		purposes including, for such purposes, the making of
397	384		distributions to organizations that qualify as exempt
398	385		organizations under section Section 501(c)(3) of the
399	386		Internal Revenue Code, or the corresponding section of
400	387		any future federal tax code,
401	388
402		-	SB649 HFLR Page 8
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428	414		b. that upon the dissolution of the corpo ration, its
429	415		assets shall be distributed f or one or more exempt
430	416		purposes within the meaning of section Section
431	417		501(c)(3) of the Internal Revenue Code, or the
432	418		corresponding section of any future federal tax code,
433	419		for a public purpose, and
434	420		c. that the corporation complies with the requirements in
435	421		paragraph 7 of this subsection.
436	422		B. In addition to the matters r equired to be set forth i n the
437	423		certificate of incorporation pursuant to the provisions of
438	424		subsection A of this section, the certificate of incorporation may
439	425		also contain any or all of the follow ing matters:
440	426		1. Any provision for the management of the busin ess and for the
441	427		conduct of the affairs of the corporation, and any provision
442	428		creating, defining, limiting and regulating the powers of the
443	429		corporation, the directors, and the shareholders, or an y class of
444	430		the shareholders, or the governing body, the member s, or any class
445	431		or group of the members of a nonstock corporation, if such
446	432		provisions are not contrary to the laws of this state. Any
447	433		provision which is required or permitted by any provision o f the
448	434		Oklahoma General Corporation Act to be stated in the byl aws may
449	435		instead be stated in the certificate of incorporation;
450	436		2. The following provisions, in substantially the following
451	437		form:
452	438
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479	464		a. for a corporation, o ther than a nonstock corporation:
480	465		“Whenever a compromise or arrangement is proposed
481	466		between this corporation and its creditors o r any
482	467		class of them and/or between this corporation and its
483	468		shareholders or any class of them, any court of
484	469		equitable jurisdicti on within the State of Oklahoma,
485	470		on the application in a summary way of this
486	471		corporation or of any cred itor or shareholder there of
487	472		or on the application of any receiver or receivers
488	473		appointed for this corporation under the provisions of
489	474		Section 1106 of this title or on the application of
490	475		trustees in dissolution or of any receiver or
491	476		receivers appointed for this corporation under th e
492	477		provisions of Section 1100 of this title, may order a
493	478		meeting of the creditors or class of creditors, and/or
494	479		of the shareholders or class of shareholders of this
495	480		corporation, as the case may be, to be summoned in
496	481		such manner as the court directs. If a m ajority in
497	482		number representing three -fourths (3/4) in value of
498	483		the creditors or class of creditors, and/or of the
499	484		shareholders or class of shareholders of this
500	485		corporation, as the case may be, agree to any
501	486		compromise or arrangement and to any reorganizatio n of
502	487		this corporation as a consequence of such compromise
503	488
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512	496		8
513	497		9
514	498		10
515	499		11
516	500		12
517	501		13
518	502		14
519	503		15
520	504		16
521	505		17
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523	507		19
524	508		20
525	509		21
526	510		22
527	511		23
528	512		24
529	513
530	514		or arrangement, the compromise or arrangement and the
531	515		reorganization, if sanctioned by the court to which
532	516		the application has been made, shall be binding on all
533	517		the creditors or class of creditors, and/or on all the
534	518		shareholders or class of shareholders, of this
535	519		corporation, as the case may be, and also on this
536	520		corporation”, and
537	521		b. for a nonstock corporation:
538	522		“Whenever a compromise or arrangement is proposed
539	523		between this corporation and its creditors or any
540	524		class of them and/or between this corporation and its
541	525		members or any class of them, any court of equitable
542	526		jurisdiction within the State of Oklahoma may, on the
543	527		application in a summary way of this corporation or of
544	528		any creditor or member thereof o r on the application
545	529		of any receiver or receivers appointed for this
546	530		corporation under the provisions of Section 110 6 of
547	531		this title or on the application of trustees in
548	532		dissolution or of any receiver or receivers appointed
549	533		for this corporation under the pr ovisions of Section
550	534		1100 of this title, order a meeting of the creditors
551	535		or class of creditors, and/or of the member s or class
552	536		of members of this corporation, as the case may be, to
553	537		be summoned in such manner as the court directs. If a
554	538
555		-	SB649 HFLR Page 11
556		-	BOLD FACE denotes Committee Amendments. 1
	539	+	ENGR. S. B. NO. 649 Page 11 1
557	540		2
558	541		3
559	542		4
560	543		5
561	544		6
562	545		7
563	546		8
564	547		9
565	548		10
566	549		11
567	550		12
568	551		13
569	552		14
570	553		15
571	554		16
572	555		17
573	556		18
574	557		19
575	558		20
576	559		21
577	560		22
578	561		23
579	562		24
580	563
581	564		majority in number representing three-fourths (3/4) in
582	565		value of the creditors or class of creditors, and/or
583	566		of the members or class of members of this
584	567		corporation, as the case may be, agree to any
585	568		compromise or arrangement and to any reorganization o f
586	569		this corporation as a c onsequence of such compromise
587	570		or arrangement, the compromise or arrangement and the
588	571		reorganization, if sanctioned by the court to which
589	572		the application has been made, shall be binding on all
590	573		the creditors or class of creditors, and /or on all the
591	574		members or class of members, of this corporation, as
592	575		the case may be, and also on this corporation ”;
593	576		3. Such provisions as ma y be desired granting to the holders of
594	577		the stock of the corporation, or the holders of any class or series
595	578		of a class thereof, the preempti ve right to subscribe to any or all
596	579		additional issues of stock of the corporation of any or all classes
597	580		or series thereof, or to any securities of the corporation
598	581		convertible into such stock. No shareholder shall have any
599	582		preemptive right to subscribe to an additional issue of stock or to
600	583		any security convertible into such stock unless, and except to the
601	584		extent that, such right is expressly granted to him in the
602	585		certificate of incorporation. Preemptive rights, if granted, shall
603	586		not extend to fractional sh ares;
604	587
605		-	SB649 HFLR Page 12
606		-	BOLD FACE denotes Committee Amendments. 1
	588	+	ENGR. S. B. NO. 649 Page 12 1
607	589		2
608	590		3
609	591		4
610	592		5
611	593		6
612	594		7
613	595		8
614	596		9
615	597		10
616	598		11
617	599		12
618	600		13
619	601		14
620	602		15
621	603		16
622	604		17
623	605		18
624	606		19
625	607		20
626	608		21
627	609		22
628	610		23
629	611		24
630	612
631	613		4. Provisions requiring, for any corporate action, the vote of
632	614		a larger portion of the stock or of any class or series thereof, or
633	615		of any other securities having voting power, or a larger number of
634	616		the directors, than is req uired by the provisions o f the Oklahoma
635	617		General Corporation Act;
636	618		5. A provision limiting the duration of the corporation ’s
637	619		existence to a specified date; otherwise, the corporation shall have
638	620		perpetual existence;
639	621		6. A provision imposing personal liabilit y for the debts of the
640	622		corporation on its shareholders to a specified extent and upon
641	623		specified conditions; otherwise, the shareholders of a corporation
642	624		shall not be personally liable for the payment of the corporation’s
643	625		debts, except as they may be liable by reason of their own c onduct
644	626		or acts;
645	627		7. A provision eliminating or limiting the personal liability
646	628		of a director to the corporation or i ts shareholders for monetary
647	629		damages for breach of fiduciary duty as a director, provided that
648	630		such provision shall not eliminate or limit t he liability of a
649	631		director:
650	632		a. for any breach of the director ’s duty of loyalty to
651	633		the corporation or its shareholde rs,
652	634		b. for acts or omissions not in good faith or which
653	635		involve intentional misconduct or a knowing violation
654	636		of law,
655	637
656		-	SB649 HFLR Page 13
657		-	BOLD FACE denotes Committee Amendments. 1
	638	+	ENGR. S. B. NO. 649 Page 13 1
658	639		2
659	640		3
660	641		4
661	642		5
662	643		6
663	644		7
664	645		8
665	646		9
666	647		10
667	648		11
668	649		12
669	650		13
670	651		14
671	652		15
672	653		16
673	654		17
674	655		18
675	656		19
676	657		20
677	658		21
678	659		22
679	660		23
680	661		24
681	662
682	663		c. under Section 1053 of this title, or
683	664		d. for any transaction from which the director derived an
684	665		improper personal benefit.
685	666		No such provision shall eliminate or limit the liability of a
686	667		director for any act or omission occurring before the date when su ch
687	668		provision becomes effe ctive.
688	669		C. It shall not be necessary to set forth in the certificate of
689	670		incorporation any of the powers conferred on corporations by the
690	671		provisions of the Oklahoma General Corporation Act.
691	672		D. Except for provisions included under p aragraphs 1, 2, 5, 6
692	673		and 7 of subsection A of this section and paragraphs 2, 5 and 7 of
693	674		subsection B of this section, and provisions included under
694	675		paragraph 4 of subsection A of this section specifying the classes,
695	676		number of shares and par value of shares a corporation other than a
696	677		nonstock corporation is authorized to issue, any provision of the
697	678		certificate of incorporation may be made depend ent upon facts
698	679		ascertainable outside the instrument, provided that the manner in
699	680		which the facts shall operate upon the provision is clearly and
700	681		explicitly set forth therein. As used in this subsection, the term
701	682		“facts” includes, but is not limited to, th e occurrence of any
702	683		event, including a determination or action by any person or body,
703	684		including the corporation.
704	685		SECTION 2. AMENDATORY 18 O.S. 2021, Section 2001, is
705	686		amended to read as follows:
706	687
707		-	SB649 HFLR Page 14
708		-	BOLD FACE denotes Committee Amendments. 1
	688	+	ENGR. S. B. NO. 649 Page 14 1
709	689		2
710	690		3
711	691		4
712	692		5
713	693		6
714	694		7
715	695		8
716	696		9
717	697		10
718	698		11
719	699		12
720	700		13
721	701		14
722	702		15
723	703		16
724	704		17
725	705		18
726	706		19
727	707		20
728	708		21
729	709		22
730	710		23
731	711		24
732	712
733	713		Section 2001.
734	714		DEFINITIONS
735	715		As used in the Oklahom a Limited Liability Company Act, unless
736	716		the context otherwise requires:
737	717		1. “Articles of organizati on” means documents filed for t he
738	718		purpose of forming a limited liability company, and the articles as
739	719		amended;
740	720		2. “Bankrupt” means bankrupt under the United States Bankruptcy
741	721		Code, as amended, or insolvent under any state insolvency act;
742	722		3. “Business” means any trade, occupation, prof ession or other
743	723		activity regardless of whether engaged in for gain, profit or
744	724		livelihood;
745	725		4. “Capital contribution ” means anything of value that a person
746	726		contributes to the limited liability company as a prerequisite for,
747	727		or in connection with, membership including cash, property, services
748	728		rendered or a promissory note o r other binding obligat ion to
749	729		contribute cash or property o r to perform services;
750	730		5. “Capital interest” means the fair market value as of the
751	731		date contributed of a member’s capital contribution as adjusted for
752	732		any additional capital contributions or withd rawals, a person’s
753	733		share of the profits and losses of a lim ited liability company and a
754	734		person’s right to receive distributions of the limited liability
755	735		company’s assets;
756	736
757		-	SB649 HFLR Page 15
758		-	BOLD FACE denotes Committee Amendments. 1
	737	+	ENGR. S. B. NO. 649 Page 15 1
759	738		2
760	739		3
761	740		4
762	741		5
763	742		6
764	743		7
765	744		8
766	745		9
767	746		10
768	747		11
769	748		12
770	749		13
771	750		14
772	751		15
773	752		16
774	753		17
775	754		18
776	755		19
777	756		20
778	757		21
779	758		22
780	759		23
781	760		24
782	761
783	762		6. “Charitable entity” means any nonprofit limited liability
784	763		company or other entity that is exempt from ta xation under Section
785	764		501(c)(3) of the United States Internal Revenue Code, 26 U.S.C.,
786	765		Section 501(c)(3), or any successor provisions ;
787	766		7. “Corporation” means a corporation organized under the laws
788	767		of this state or the l aws of any jurisdiction other than t his state;
789	768		7. 8. “Court” includes every court and judge having
790	769		jurisdiction in the case;
791	770		8. 9. “Document” means:
792	771		a. any tangible medium on which information is inscribed
793	772		including handwritten, typed, printed, or similar
794	773		instruments and copies of such i nstruments, and
795	774		b. an electronic transm ission;
796	775		10. “Electronic transmission” means any form of communication
797	776		not directly involving the physical transmission of pape r including
798	777		the use of or participation in one or more elec tronic networks or
799	778		databases, including one or more distributed electr onic networks or
800	779		databases, that creates a record that may be retained, retrieved,
801	780		and reviewed by a recipient thereof and tha t may be directly
802	781		reproduced in paper form by such a recipient through an au tomated
803	782		process;
804	783		11. “Foreign corporation” means a corporation organized under
805	784		the laws of any jurisdiction other than this state;
806	785		9. 12. “Foreign limited liability company” means:
807	786
808		-	SB649 HFLR Page 16
809		-	BOLD FACE denotes Committee Amendments. 1
	787	+	ENGR. S. B. NO. 649 Page 16 1
810	788		2
811	789		3
812	790		4
813	791		5
814	792		6
815	793		7
816	794		8
817	795		9
818	796		10
819	797		11
820	798		12
821	799		13
822	800		14
823	801		15
824	802		16
825	803		17
826	804		18
827	805		19
828	806		20
829	807		21
830	808		22
831	809		23
832	810		24
833	811
834	812		a. an unincorporated association,
835	813		b. formed under the laws of any jurisdiction other th an
836	814		this state, and
837	815		c. formed under a statute pursuant to which an
838	816		association may be formed that affords to each of its
839	817		members limited liability with respect to the
840	818		liabilities of the entity;
841	819		10. 13. “Foreign limited partnership ” means a limited
842	820		partnership formed under the laws of any jurisdi ction other than
843	821		this state;
844	822		11. 14. “Jurisdiction”, when used to refer to a political
845	823		entity, means the United States, a state, a tribal government, a
846	824		foreign country or a political subdivision of a foreign country ;
847	825		12. 15. “Limited liability company ” or “domestic limited
848	826		liability company” means an entity formed under the Oklahoma Limited
849	827		Liability Company Act and existing under the laws of this state;
850	828		13. 16. “Limited partnership” means a limited partnership
851	829		formed under the laws of this state or a fo reign limited partnership
852	830		as defined in this section;
853	831		14. 17. “Manager” or “managers” means a person or persons
854	832		designated by the members of a limited liability company to manage
855	833		the limited liability company as pro vided in the articles of
856	834		organization or an operating agreement and includes a manager of the
857	835		limited liability company generally and a manager associated with a
858	836
859		-	SB649 HFLR Page 17
860		-	BOLD FACE denotes Committee Amendments. 1
	837	+	ENGR. S. B. NO. 649 Page 17 1
861	838		2
862	839		3
863	840		4
864	841		5
865	842		6
866	843		7
867	844		8
868	845		9
869	846		10
870	847		11
871	848		12
872	849		13
873	850		14
874	851		15
875	852		16
876	853		17
877	854		18
878	855		19
879	856		20
880	857		21
881	858		22
882	859		23
883	860		24
884	861
885	862		series of the limited liability company. Unless the context
886	863		otherwise requires, references in this act to a manager shall be
887	864		deemed to be references to a manager of the limited liability
888	865		company generally and to a manager assoc iated with a series with
889	866		respect to such series ;
890	867		15. 18. “Member” means a person with an ownership interest in a
891	868		limited liability company, with the rights and obligations specified
892	869		under the Oklahoma Limited Liability Company Act and includes a
893	870		member of the limited liability company ge nerally and a member
894	871		associated with a series of the limited liability company . Unless
895	872		the context otherwise requires, reference s in this act to a member
896	873		shall be deemed to be references to a member of the l imited
897	874		liability company generally and to a member as sociated with a series
898	875		with respect to such series;
899	876		16. 19. “Membership interest” or “interest” means a member’s
900	877		rights in the limited liability company, collectively including the
901	878		member’s share of the profits and lo sses of the limited liability
902	879		company, the right to receive distributions of the limited liability
903	880		company’s assets and capital interest, any right to vote or
904	881		participate in management and such other rights accorded to members
905	882		under the articles of organiz ation, operating agreement or the
906	883		Oklahoma Limited Liability Company Act;
907	884		17. 20. “Operating agreement”, regardless of whether referred
908	885		to as an operating agreem ent and whether oral, in a record, implied
909	886
910		-	SB649 HFLR Page 18
911		-	BOLD FACE denotes Committee Amendments. 1
	887	+	ENGR. S. B. NO. 649 Page 18 1
912	888		2
913	889		3
914	890		4
915	891		5
916	892		6
917	893		7
918	894		8
919	895		9
920	896		10
921	897		11
922	898		12
923	899		13
924	900		14
925	901		15
926	902		16
927	903		17
928	904		18
929	905		19
930	906		20
931	907		21
932	908		22
933	909		23
934	910		24
935	911
936	912		or in any combination thereof, means any agreement of the members,
937	913		including a sole member, as to the affairs of a limited liability
938	914		company including any protected series o r registered series the reof
939	915		and the conduct of its business including the agreement as amended
940	916		or restated;
941	917		18. 21. “Person” means an individual, a general partnership, a
942	918		limited partnership, a limited liability company, a trust, an
943	919		estate, an association , a corporation or any other legal or
944	920		commercial entity;
945	921		19. 22. “Protected series” means a designated series of
946	922		members, managers, m embership interests, or assets that is
947	923		established in accordance with Section 2054.4 of this title;
948	924		23. “Registered series” means a designated series of members,
949	925		managers, membership interests, or assets that is formed in
950	926		accordance with Section 14 of this act; an d
951	927		24. “State” means a state, territory or possession of the
952	928		United States, the District o f Columbia or the Commonwealth of
953	929		Puerto Rico; and
954	930		20. “Charitable entity” means any nonprofit limited liability
955	931		company or other entity that is exempt from taxation under Section
956	932		501(c)(3) of the United States Internal Revenue Code (26 U.S.C.,
957	933		Section 501(c)(3)), or any successor provis ions.
958	934		SECTION 3. AMENDATORY 18 O.S. 2021, Sec tion 2005, is
959	935		amended to read as follows:
960	936
961		-	SB649 HFLR Page 19
962		-	BOLD FACE denotes Committee Amendments. 1
	937	+	ENGR. S. B. NO. 649 Page 19 1
963	938		2
964	939		3
965	940		4
966	941		5
967	942		6
968	943		7
969	944		8
970	945		9
971	946		10
972	947		11
973	948		12
974	949		13
975	950		14
976	951		15
977	952		16
978	953		17
979	954		18
980	955		19
981	956		20
982	957		21
983	958		22
984	959		23
985	960		24
986	961
987	962		Section 2005. A. The articles of organization shall set forth:
988	963		1. The name of the limited l iability company;
989	964		2. The term of the existence of the limited liability c ompany
990	965		which may be perpetual; and
991	966		3. The street address of its principal place of business,
992	967		wherever located, and the name and street address of its reg istered
993	968		agent which shall be identical to its registered office in this
994	969		state.
995	970		B. If the limited liab ility company is to establish two or more
996	971		series of members, managers or membership interests having separat e
997	972		rights, powers or duties as provided under S ection 2054.4 of this
998	973		title or Section 14 of this act and the debts, liabilities and
999	974		obligations incurred, contracted for or otherwise existing with
1000	975		respect to a particular series are to be enforceable against the
1001	976		assets of the series only, the articles of organization shall set
1002	977		forth a notice of the limitation on liabilities of the series.
1003	978		C. The articles of organization may set forth any other matt ers
1004	979		the members determine to include. It is not necessary to set out in
1005	980		the articles of organization any of the powers enumerated in this
1006	981		act Section 2000 et seq. of this title .
1007	982		SECTION 4. AMENDATORY 18 O.S. 2021, Section 2006, is
1008	983		amended to read as follows:
1009	984
1010		-	SB649 HFLR Page 20
1011		-	BOLD FACE denotes Committee Amendments. 1
	985	+	ENGR. S. B. NO. 649 Page 20 1
1012	986		2
1013	987		3
1014	988		4
1015	989		5
1016	990		6
1017	991		7
1018	992		8
1019	993		9
1020	994		10
1021	995		11
1022	996		12
1023	997		13
1024	998		14
1025	999		15
1026	1000		16
1027	1001		17
1028	1002		18
1029	1003		19
1030	1004		20
1031	1005		21
1032	1006		22
1033	1007		23
1034	1008		24
1035	1009
1036	1010		Section 2006. A. Articles required by this act Section 2000 et
1037	1011		seq. of this title to be filed with the Office of the Secretary of
1038	1012		State shall be executed in the following manner :
1039	1013		1. Articles of organization must be signed b y at least one
1040	1014		person who need not be a member of the limited liability company;
1041	1015		and
1042	1016		2. Articles of amendment, registered series, merger,
1043	1017		consolidation, conversion, division, or dissolution must be signed
1044	1018		by a manager.
1045	1019		B. Any person may sign any articles by an attorney in fact. A
1046	1020		person who executes articles as an attorney-in-fact, agent or
1047	1021		fiduciary is not required to exhibit evidence of his or her
1048	1022		authority as a prerequisite to filing.
1049	1023		C. The execution of any articles under this act the Oklahoma
1050	1024		Limited Liability Company Act constitutes an affirmation under the
1051	1025		penalties of perjury that the facts stated therein are true.
1052	1026		D. Any signature on articles or any other instrument a uthorized
1053	1027		by this act the Oklahoma Limited Liability Company Act may be a
1054	1028		facsimile signature, a conformed signature or an electronically
1055	1029		transmitted signature.
1056	1030		SECTION 5. AMENDATORY 18 O.S. 2021, Section 200 8, is
1057	1031		amended to read as follows:
1058	1032		Section 2008. A. The name of each limited liability company as
1059	1033		set forth in its articles of organization :
1060	1034
1061		-	SB649 HFLR Page 21
1062		-	BOLD FACE denotes Committee Amendments. 1
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1063	1036		2
1064	1037		3
1065	1038		4
1066	1039		5
1067	1040		6
1068	1041		7
1069	1042		8
1070	1043		9
1071	1044		10
1072	1045		11
1073	1046		12
1074	1047		13
1075	1048		14
1076	1049		15
1077	1050		16
1078	1051		17
1079	1052		18
1080	1053		19
1081	1054		20
1082	1055		21
1083	1056		22
1084	1057		23
1085	1058		24
1086	1059
1087	1060		1. Shall shall contain either the words “limited liability
1088	1061		company” or “limited company” or the abbreviations “LLC”, “LC”,
1089	1062		“L.L.C.”, or “L.C.” The word “limited” may be abbreviated as “LTD.”
1090	1063		and the word “Company” may be abbreviated as “CO.”; and
1091	1064		2. a. May.
1092	1065		B. The name of each registered series as set forth in its
1093	1066		articles of registered series shall set forth the n ame of the
1094	1067		limited liability company including any word, ab breviation, or
1095	1068		designation required by s ubsection A of this section, and the name
1096	1069		of the registered ser ies.
1097	1070		C. The name of the limited liability company or regis tered
1098	1071		series may not be the same as or indistinguishable from:
1099	1072		(1) names
1100	1073		1. Names upon the records in the Office of the Secretary of
1101	1074		State of limited liability companies, whether organized pursua nt to
1102	1075		the laws of this state or licensed or registered as f oreign limited
1103	1076		liability companies, then in good standing or registered or which
1104	1077		were in good standing or registered at any time durin g the preceding
1105	1078		three (3) years, or
1106	1079		(2) names;
1107	1080		2. Names upon the records in the Office of the Secretary of
1108	1081		State of corporations organized under the laws of this state or of
1109	1082		foreign corporations registered in accordance with the laws of this
1110	1083
1111		-	SB649 HFLR Page 22
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1113	1085		2
1114	1086		3
1115	1087		4
1116	1088		5
1117	1089		6
1118	1090		7
1119	1091		8
1120	1092		9
1121	1093		10
1122	1094		11
1123	1095		12
1124	1096		13
1125	1097		14
1126	1098		15
1127	1099		16
1128	1100		17
1129	1101		18
1130	1102		19
1131	1103		20
1132	1104		21
1133	1105		22
1134	1106		23
1135	1107		24
1136	1108
1137	1109		state then existing or which existed at any time during the
1138	1110		preceding three (3) years, or
1139	1111		(3) names;
1140	1112		3. Names upon the records in the O ffice of the Secretar y of
1141	1113		State of general or limited partnerships, whether formed under the
1142	1114		laws of this state or registered as foreign general or limited
1143	1115		partnerships, then in good standing or registered or which were in
1144	1116		good standing or registered at an y time during the pre ceding three
1145	1117		(3) years, or
1146	1118		(4) trade;
1147	1119		4. Names upon the records in th e Office of the Secretary of
1148	1120		State of registered series, whether formed under the laws of this
1149	1121		state or registered as foreign registered series, then in good
1150	1122		standing or registered or w hich were in good standing or registered
1151	1123		at any time during the precedi ng three (3) years; or
1152	1124		5. Trade names, fictitious names, or other names reserved with
1153	1125		the Secretary of State.
1154	1126		b. D. The provisions of subparagraph a subsection C of this
1155	1127		paragraph section shall not apply if one of the following is filed
1156	1128		with the Secretary of State:
1157	1129		(1) the
1158	1130		1. The written consent of the other limited liability company,
1159	1131		registered series, corporation, limited partnership, or holder of
1160	1132		the trade name, fictitious name or other r eserved name to use the
1161	1133
1162		-	SB649 HFLR Page 23
1163		-	BOLD FACE denotes Committee Amendments. 1
	1134	+	ENGR. S. B. NO. 649 Page 23 1
1164	1135		2
1165	1136		3
1166	1137		4
1167	1138		5
1168	1139		6
1169	1140		7
1170	1141		8
1171	1142		9
1172	1143		10
1173	1144		11
1174	1145		12
1175	1146		13
1176	1147		14
1177	1148		15
1178	1149		16
1179	1150		17
1180	1151		18
1181	1152		19
1182	1153		20
1183	1154		21
1184	1155		22
1185	1156		23
1186	1157		24
1187	1158
1188	1159		same or indistinguishable name with the addition of one or more
1189	1160		words, numerals, numbers or letters to make that name
1190	1161		distinguishable upon the records of the Secretary of State, except
1191	1162		that the addition of words, numerals, numbers o r letters to make the
1192	1163		name distinguishable shall not be required where such written
1193	1164		consent states that t he consenting entity is about to change its
1194	1165		name, cease to do business, withdraw from the state or be wound u p,;
1195	1166		or
1196	1167		(2) a
1197	1168		2. A certified copy of a fi nal decree of a court of competent
1198	1169		jurisdiction establishing the prior right of such limited liability
1199	1170		company or holder of a limited liability company name to the use of
1200	1171		such name in this state.
1201	1172		SECTION 6. AMENDATORY 18 O.S. 2021 , Section 2010, is
1202	1173		amended to read as follows:
1203	1174		Section 2010. A. Every domestic limited liability company and
1204	1175		registered series shall continuously maintain in this sta te:
1205	1176		1. A registered office which may be, but need not be, the same
1206	1177		as its principal place of business; and
1207	1178		2. A registered agent for service of process on the limited
1208	1179		liability company or registered series that may be the domestic
1209	1180		limited liability compa ny or registered series itself, an individual
1210	1181		resident of this state or a domestic or qualified foreign
1211	1182		corporation, limited liability company or general or limited
1212	1183
1213		-	SB649 HFLR Page 24
1214		-	BOLD FACE denotes Committee Amendments. 1
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1215	1185		2
1216	1186		3
1217	1187		4
1218	1188		5
1219	1189		6
1220	1190		7
1221	1191		8
1222	1192		9
1223	1193		10
1224	1194		11
1225	1195		12
1226	1196		13
1227	1197		14
1228	1198		15
1229	1199		16
1230	1200		17
1231	1201		18
1232	1202		19
1233	1203		20
1234	1204		21
1235	1205		22
1236	1206		23
1237	1207		24
1238	1208
1239	1209		partnership including a limit ed liability partnership or a limited
1240	1210		liability limited partne rship. Each registered agent shall maintain
1241	1211		a business office id entical with the registered office which is open
1242	1212		during regular business hours to accept service of process and
1243	1213		otherwise perform the functions of a registered agent.
1244	1214		B. 1. A limited liabil ity company or registered series may
1245	1215		designate or change its registered agent, re gistered office or
1246	1216		principal office by filing with the Office of th e Secretary of State
1247	1217		a statement authorizing the designation or change and signed by any
1248	1218		manager.
1249	1219		2. A limited liability company or registered series may change
1250	1220		the street address of its r egistered office by filing with the
1251	1221		Office of the Secretary of State a s tatement of the change signed by
1252	1222		any manager.
1253	1223		3. A designation or change of a principal office or regi stered
1254	1224		agent or street address of the registered office for a limited
1255	1225		liability company or registered series under this subsection is
1256	1226		effective when the Office of the Secretary of State file s the
1257	1227		statement, unless a later effectiv e date or time, which shall be a
1258	1228		specified date or time not later than a time on the ninetieth day
1259	1229		after the filing, is provided in the statement.
1260	1230		C. 1. A registered agent who c hanges its, his or her name or
1261	1231		street address in the state may notify the Office of the Se cretary
1262	1232		of State of the change by filing with the Office of the Secretary of
1263	1233
1264		-	SB649 HFLR Page 25
1265		-	BOLD FACE denotes Committee Amendments. 1
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1266	1235		2
1267	1236		3
1268	1237		4
1269	1238		5
1270	1239		6
1271	1240		7
1272	1241		8
1273	1242		9
1274	1243		10
1275	1244		11
1276	1245		12
1277	1246		13
1278	1247		14
1279	1248		15
1280	1249		16
1281	1250		17
1282	1251		18
1283	1252		19
1284	1253		20
1285	1254		21
1286	1255		22
1287	1256		23
1288	1257		24
1289	1258
1290	1259		State a statement of the change signed by the agent or on the
1291	1260		agent’s behalf.
1292	1261		2. The statement shall include:
1293	1262		a. the name of the limited liability company or
1294	1263		registered series for which the change is effective,
1295	1264		b. the new name or street address, or both, of the
1296	1265		registered agent, and
1297	1266		c. the date on which the change is effective, if to be
1298	1267		effective after the filing date.
1299	1268		3. If the new address of the registered agent is the same as
1300	1269		the new address of the principal office of the limited liability
1301	1270		company or registered series , the statement may include a change of
1302	1271		address of the principal office i f:
1303	1272		a. the registered agent notifies the l imited liability
1304	1273		company or registered series of the change in writing,
1305	1274		and
1306	1275		b. the statement recites that the registered agent has
1307	1276		done so.
1308	1277		4. The change of address of the registered agent or principal
1309	1278		office is effective when the Office of the Secretary of State files
1310	1279		the statement, unless a later effective date or time, which shall be
1311	1280		a specified date or time not later than a time on the ninetieth day
1312	1281		after the filing, is provided in the statement.
1313	1282
1314		-	SB649 HFLR Page 26
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1316	1284		2
1317	1285		3
1318	1286		4
1319	1287		5
1320	1288		6
1321	1289		7
1322	1290		8
1323	1291		9
1324	1292		10
1325	1293		11
1326	1294		12
1327	1295		13
1328	1296		14
1329	1297		15
1330	1298		16
1331	1299		17
1332	1300		18
1333	1301		19
1334	1302		20
1335	1303		21
1336	1304		22
1337	1305		23
1338	1306		24
1339	1307
1340	1308		D. 1. A registered agent may resign by filing with the Office
1341	1309		of the Secretary of State a copy of the resignation, s igned and
1342	1310		acknowledged by the registered agent, which contains a sta tement
1343	1311		that notice of the resignation was given to the limited liability
1344	1312		company or registered series at least thirty (30) day s before the
1345	1313		filing of the resignation by mailing or delivering the notice to the
1346	1314		limited liability company or registered series at its address last
1347	1315		known to the registered agent and specifying the address therein.
1348	1316		2. The resignation is effective thirty ( 30) days after it is
1349	1317		filed, unless a later effective date or t ime, which shall be a
1350	1318		specified date or time not later than a time on the ninetieth day
1351	1319		after the filing, is provided in the resignation.
1352	1320		3. If a domestic limited liability company or registered series
1353	1321		fails to obtain and designate a new registered agent before the
1354	1322		resignation is effective, the Secretary of State shall be deemed to
1355	1323		be the registered agent of the limited liability com pany or
1356	1324		registered series until a new registered agent is desig nated.
1357	1325		E. If a limited liability company or registered series has no
1358	1326		registered agent or the registered agent cannot be found, then
1359	1327		service of process on the limited liability company or registered
1360	1328		series may be made by serving the Secretary of State as i ts agent as
1361	1329		provided in Section 2004 of Title 12 of the Oklaho ma Statutes.
1362	1330		SECTION 7. AMENDATORY 18 O.S. 2021, Section 2012, is
1363	1331		amended to read as follows:
1364	1332
1365		-	SB649 HFLR Page 27
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1367	1334		2
1368	1335		3
1369	1336		4
1370	1337		5
1371	1338		6
1372	1339		7
1373	1340		8
1374	1341		9
1375	1342		10
1376	1343		11
1377	1344		12
1378	1345		13
1379	1346		14
1380	1347		15
1381	1348		16
1382	1349		17
1383	1350		18
1384	1351		19
1385	1352		20
1386	1353		21
1387	1354		22
1388	1355		23
1389	1356		24
1390	1357
1391	1358		Section 2012. A. If any document filed with the Office of the
1392	1359		Secretary of State under this act contains any typographical error,
1393	1360		error of transcription, or other technical error or has been
1394	1361		defectively executed Section 2000 et seq. of this title is an
1395	1362		inaccurate record of the action referred to or was defectively or
1396	1363		erroneously executed, the document may be corrected by the filing of
1397	1364		articles of correction.
1398	1365		B. Articles of correction shall set fort h:
1399	1366		1. The title of the document being c orrected;
1400	1367		2. The date that the document being corrected was filed; and
1401	1368		3. The provision in the document as previously file d and as
1402	1369		corrected and, if execution of the document was defective, the
1403	1370		manner in which it w as defective.
1404	1371		C. Articles of correction may not make any othe r change or
1405	1372		amendment which would not have complied in all respects w ith the
1406	1373		requirements of this act the Oklahoma Limited Liabilit y Company Act
1407	1374		at the time the document being corrected was filed.
1408	1375		D. Articles of correction shall be exec uted in the same manner
1409	1376		in which the document being corrected was required to be executed.
1410	1377		E. Articles of correction may not:
1411	1378		1. Change the effective date of the document being corrected;
1412	1379		or
1413	1380		2. Affect any right or liability accrued or incurred before it s
1414	1381		filing, except that any right or liabi lity accrued or incurred by
1415	1382
1416		-	SB649 HFLR Page 28
1417		-	BOLD FACE denotes Committee Amendments. 1
	1383	+	ENGR. S. B. NO. 649 Page 28 1
1418	1384		2
1419	1385		3
1420	1386		4
1421	1387		5
1422	1388		6
1423	1389		7
1424	1390		8
1425	1391		9
1426	1392		10
1427	1393		11
1428	1394		12
1429	1395		13
1430	1396		14
1431	1397		15
1432	1398		16
1433	1399		17
1434	1400		18
1435	1401		19
1436	1402		20
1437	1403		21
1438	1404		22
1439	1405		23
1440	1406		24
1441	1407
1442	1408		reason of the error or defect being corrected shall be extinguishe d
1443	1409		by the filing if the person having the right has not detrimentally
1444	1410		relied on the original document.
1445	1411		F. Notwithstanding that any instrument authorized to be fil ed
1446	1412		with the Secretary of State pursuant to the provisions of this act
1447	1413		the Oklahoma Limited Liability Company A ct is, when filed
1448	1414		inaccurately, defectively, or erroneous ly executed, sealed or
1449	1415		acknowledged, or otherwise defective in any respect, the Secretary
1450	1416		of State shall not be liable to any person for the preclearance for
1451	1417		filing, or the filing and indexing of the instrument by the
1452	1418		Secretary of State.
1453	1419		G. In lieu of filing articles of correction, a document may be
1454	1420		corrected by filing with the Secretary of Stat e a corrected document
1455	1421		which shall be executed and filed as if the corrected document were
1456	1422		the document being corrected, and a fee equal to the fee payable to
1457	1423		the Secretary of State for articles of correction as prescribed by
1458	1424		Section 2055 of this title shall be paid to the Secretary of State.
1459	1425		The corrected document shall be specifically designated as such in
1460	1426		its heading, shall specify the inaccuracy or defect to be corrected ,
1461	1427		and shall set forth the entire document in corrected form. A
1462	1428		document corrected in accordance with this section shall be
1463	1429		effective as of the date the original document was filed, except as
1464	1430		to those persons who are substantially and adversely affected by the
1465	1431
1466		-	SB649 HFLR Page 29
1467		-	BOLD FACE denotes Committee Amendments. 1
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1468	1433		2
1469	1434		3
1470	1435		4
1471	1436		5
1472	1437		6
1473	1438		7
1474	1439		8
1475	1440		9
1476	1441		10
1477	1442		11
1478	1443		12
1479	1444		13
1480	1445		14
1481	1446		15
1482	1447		16
1483	1448		17
1484	1449		18
1485	1450		19
1486	1451		20
1487	1452		21
1488	1453		22
1489	1454		23
1490	1455		24
1491	1456
1492	1457		correction and as to those persons the document as corrected shall
1493	1458		be effective from the filing date.
1494	1459		SECTION 8. AMENDATORY 18 O.S. 2021, Section 2012.1, is
1495	1460		amended to read as follows:
1496	1461		Section 2012.1.
1497	1462		CANCELLATION OF ARTICLES OF ORGANIZATION
1498	1463		A. The articles of organization or registered series shall be
1499	1464		canceled upon:
1500	1465		1. Upon the dissolution and the completion of winding up of a
1501	1466		limited liability company, or as or registered series;
1502	1467		2. As provided in subsection B of this section , or upon;
1503	1468		3. Upon the filing of a certificate of merger or consolidation
1504	1469		if the domestic limited liability company or registered series is
1505	1470		not the surviving or resulting entity in a merger or consolidation ,
1506	1471		or upon;
1507	1472		4. Upon the conversion of a domestic limited liability company
1508	1473		approved in accordance with Section 2054.2 o f this title;
1509	1474		5. Upon the filing of articles of division if the limited
1510	1475		liability company is a dividing company that is not a surviving
1511	1476		company; or
1512	1477		6. Upon the future effective date or time of the articles of
1513	1478		division if the limi ted liability company is a dividing co mpany that
1514	1479		is not a surviving company.
1515	1480
1516		-	SB649 HFLR Page 30
1517		-	BOLD FACE denotes Committee Amendments. 1
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1518	1482		2
1519	1483		3
1520	1484		4
1521	1485		5
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1523	1487		7
1524	1488		8
1525	1489		9
1526	1490		10
1527	1491		11
1528	1492		12
1529	1493		13
1530	1494		14
1531	1495		15
1532	1496		16
1533	1497		17
1534	1498		18
1535	1499		19
1536	1500		20
1537	1501		21
1538	1502		22
1539	1503		23
1540	1504		24
1541	1505
1542	1506		B. The articles of organization of a domestic limited liability
1543	1507		company or articles of registered series of a registered series
1544	1508		shall be deemed to be canceled if the domestic lim ited liability
1545	1509		company or registered series fails to file the annual certificate
1546	1510		and pay the annual fee provided in Section 2055.2 of this title or
1547	1511		pay the registered agent fee to the Secretary of State due under
1548	1512		Section 2055 of this title within three (3) years from the date the
1549	1513		certificate or fee is due, the cancellation to be effective on the
1550	1514		third anniversary of the due date.
1551	1515		C. A limited liability company whose articles of organization
1552	1516		or registered series whose articles of r egistered series have been
1553	1517		canceled under subsection B of this s ection may apply for
1554	1518		reinstatement under subsection G A of Section 2055.2 2055.3 of this
1555	1519		title.
1556	1520		SECTION 9. AMENDATORY 18 O.S. 2021, Section 2012.2, is
1557	1521		amended to read as foll ows:
1558	1522		Section 2012.2.
1559	1523		OPERATING AGREEMENT OF LLC
1560	1524		A. The operating agreement of the limited liability company
1561	1525		governs generally:
1562	1526		1. Relations among the members as members and between the
1563	1527		members and the limited li ability company;
1564	1528		2. The rights and duties under the Oklahoma Limited Liability
1565	1529		Company Act of a person in the capacity of manager;
1566	1530
1567		-	SB649 HFLR Page 31
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1569	1532		2
1570	1533		3
1571	1534		4
1572	1535		5
1573	1536		6
1574	1537		7
1575	1538		8
1576	1539		9
1577	1540		10
1578	1541		11
1579	1542		12
1580	1543		13
1581	1544		14
1582	1545		15
1583	1546		16
1584	1547		17
1585	1548		18
1586	1549		19
1587	1550		20
1588	1551		21
1589	1552		22
1590	1553		23
1591	1554		24
1592	1555
1593	1556		3. The activities of the company and the conduct of those
1594	1557		activities; and
1595	1558		4. The means and conditions for amending the ope rating
1596	1559		agreement.
1597	1560		If the operating agreement does not otherwis e provide, the
1598	1561		Oklahoma Limited Liability Company Act governs the matter. The
1599	1562		operating agreement may not vary the rights, privileges, duti es and
1600	1563		obligations imposed specifically under the Oklahoma Limited
1601	1564		Liability Company Act.
1602	1565		B. A limited liability co mpany, including any protected series
1603	1566		or registered series thereof, is bound by its operating agreement
1604	1567		regardless of whether it executes th e operating agreement. A member
1605	1568		or manager of a limited liability compa ny, or any protected series
1606	1569		or registered series ther eof, or an assignee of a capital interest
1607	1570		is bound by the operating agreement regardless of whether the
1608	1571		member, manager or assignee executes the operating agreement.
1609	1572		C. An operating agreement of a limit ed liability company having
1610	1573		only one member is not unenforceable because th ere is only one
1611	1574		person who is a party to the operating agreement.
1612	1575		D. The obligations of a limited liability company and its
1613	1576		members to an assignee or dissociated member are governe d by the
1614	1577		operating agreement. Subject only to any court order to effectuat e
1615	1578		a charging order, an amendment to the operating agreement made after
1616	1579		a person becomes an assignee or dissoc iated member is effective with
1617	1580
1618		-	SB649 HFLR Page 32
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1628	1590		10
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1630	1592		12
1631	1593		13
1632	1594		14
1633	1595		15
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1635	1597		17
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1637	1599		19
1638	1600		20
1639	1601		21
1640	1602		22
1641	1603		23
1642	1604		24
1643	1605
1644	1606		regard to any debt, obligation, or other liability of the limited
1645	1607		liability company or its members to the assignee o r dissociated
1646	1608		member.
1647	1609		E. If an operating agreement does not provide for the manner in
1648	1610		which it may be amende d, the operating agreement may be amended with
1649	1611		the approval of members h olding a majority of the mem bership
1650	1612		interest entitled to vote.
1651	1613		SECTION 10. AMENDATORY 18 O.S. 2021, Section 2054.1, is
1652	1614		amended to read as follows:
1653	1615		Section 2054.1.
1654	1616		CONVERSION OF AN ENTITY TO A LIMITED LIABILITY COMPANY
1655	1617		A. As used in this section, the term “entity” means a foreign
1656	1618		limited liability company, a do mestic or foreign public benefit
1657	1619		limited liability company, a domestic or foreign corporation, a
1658	1620		domestic or foreign partnership whether general or limited, and
1659	1621		including a limited liability partnership and a limit ed liability
1660	1622		limited partnership, and any domestic or foreign unincorporated
1661	1623		nonprofit or for-profit association, trust or enterprise having
1662	1624		members or having outstanding shares of stock or other evidences of
1663	1625		financial, beneficial or membership interest th erein, whether formed
1664	1626		by agreement or unde r statutory authority or otherwise.
1665	1627		B. Any entity may convert to a domestic limited liability
1666	1628		company, including a protected or regis tered series of a limited
1667	1629		liability company, by complying with subsection H of t his section
1668	1630
1669		-	SB649 HFLR Page 33
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1671	1632		2
1672	1633		3
1673	1634		4
1674	1635		5
1675	1636		6
1676	1637		7
1677	1638		8
1678	1639		9
1679	1640		10
1680	1641		11
1681	1642		12
1682	1643		13
1683	1644		14
1684	1645		15
1685	1646		16
1686	1647		17
1687	1648		18
1688	1649		19
1689	1650		20
1690	1651		21
1691	1652		22
1692	1653		23
1693	1654		24
1694	1655
1695	1656		and filing with the Secretary of State in accordance with Section
1696	1657		2007 of this title the statutes applicable to the converting enti ty
1697	1658		articles of conversion to a limited liability company that have been
1698	1659		executed in accordance with Section 2006 of this title the statutes
1699	1660		applicable to the converting entity, to which shall be attached
1700	1661		articles of organization that comply with Sections 200 5 and 2008 of
1701	1662		this title and have been ex ecuted by one or more authorized per sons
1702	1663		in accordance with Se ction 2006 of this title.
1703	1664		C. The articles of conversion to a limited liability company
1704	1665		shall state:
1705	1666		1. The date on which the entity was first formed;
1706	1667		2. The name, jurisdiction of formation of the entity, and type
1707	1668		of entity when formed and, if changed, i ts name, jurisdiction and
1708	1669		type of entity immediately before filing of the articles of
1709	1670		conversion to limited liability company;
1710	1671		3. The name of the limite d liability company as set forth in
1711	1672		its articles of organization filed in acc ordance with subsection B
1712	1673		of this section; and
1713	1674		4. The future effective date or time of the conversion to a
1714	1675		limited liability company, which shall be a date or time certain not
1715	1676		later than ninety (90) days after the filin g, if it is not to be
1716	1677		effective upon the filing of the article s of conversion to a limited
1717	1678		liability company and the articles of organization.
1718	1679
1719		-	SB649 HFLR Page 34
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1721	1681		2
1722	1682		3
1723	1683		4
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1726	1686		7
1727	1687		8
1728	1688		9
1729	1689		10
1730	1690		11
1731	1691		12
1732	1692		13
1733	1693		14
1734	1694		15
1735	1695		16
1736	1696		17
1737	1697		18
1738	1698		19
1739	1699		20
1740	1700		21
1741	1701		22
1742	1702		23
1743	1703		24
1744	1704
1745	1705		D. Upon the effective date or time of the articles of
1746	1706		conversion to limited liability company and the articles o f
1747	1707		organization, the entity shall be converted to a domestic li mited
1748	1708		liability company and the limited liability company shall thereafter
1749	1709		be subject to all of the provisions of the Oklahoma Limited
1750	1710		Liability Company Act, except that notwithstanding Section 2004 of
1751	1711		this title, the existence of the limited liability com pany shall be
1752	1712		deemed to have commenced o n the date the entity was formed.
1753	1713		E. The conversion of any entity into a domestic limited
1754	1714		liability company shal l not be deemed to affect any obligations or
1755	1715		liabilities of the entity incurr ed before its conversion t o a
1756	1716		domestic limited liability company o r the personal liability of any
1757	1717		person incurred before the conversion.
1758	1718		F. When an entity has converted to a dome stic limited liability
1759	1719		company under this section, the domestic limited liabi lity company
1760	1720		shall be deemed to be the same entity as the converti ng entity. All
1761	1721		of the rights, privileges and powers of the entity that has
1762	1722		converted, and all property, real, pe rsonal and mixed, and all debts
1763	1723		due to the entity, as well as all other thing s and causes of action
1764	1724		belonging to the entity, shall remain veste d in the domestic limited
1765	1725		liability company and shall be the property of the domestic limited
1766	1726		liability company, and the title to any real property vested by deed
1767	1727		or otherwise in the entity shall not revert or be in any way
1768	1728		impaired by reason of the conver sion, but all rights of creditors
1769	1729
1770		-	SB649 HFLR Page 35
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1772	1731		2
1773	1732		3
1774	1733		4
1775	1734		5
1776	1735		6
1777	1736		7
1778	1737		8
1779	1738		9
1780	1739		10
1781	1740		11
1782	1741		12
1783	1742		13
1784	1743		14
1785	1744		15
1786	1745		16
1787	1746		17
1788	1747		18
1789	1748		19
1790	1749		20
1791	1750		21
1792	1751		22
1793	1752		23
1794	1753		24
1795	1754
1796	1755		and all liens upon any property of the entity shall be preserved
1797	1756		unimpaired, and all debts, liabilities and duties of th e entity that
1798	1757		has converted shall re main attached to the domes tic limited
1799	1758		liability company and may be enforced against it to the same extent
1800	1759		as if the debts, liabilities and duties had been incurred or
1801	1760		contracted by it in its capacity as a domestic limite d liability
1802	1761		company. The rights, pr ivileges, powers and inter ests in property
1803	1762		of the entity, as well as the debts, liabilities and duties of the
1804	1763		entity, shall not be deemed, as a consequence of the conversion, to
1805	1764		have been transferred to the domestic limi ted liability company to
1806	1765		which the entity has converted for an y purpose of the laws of this
1807	1766		state.
1808	1767		G. Unless otherwise agreed or otherwise provided by any laws of
1809	1768		this state applicable to the converting entity, the converting
1810	1769		entity shall not be required to wind up its affairs or pay its
1811	1770		liabilities and distribute i ts assets, and the conversion shall not
1812	1771		be deemed to constitute a dissolution of the entity and shall
1813	1772		constitute a continuation of the existence of the c onverting entity
1814	1773		in the form of a domesti c limited liability company.
1815	1774		H. Before filing the articles of conversion to a domestic
1816	1775		limited liability company with the Office of the Secretary of State,
1817	1776		the conversion shall be approved in the manner provided fo r by the
1818	1777		document, instrument, agreement or other writing, as the case may
1819	1778		be, governing the internal a ffairs of the entity and the conduct of
1820	1779
1821		-	SB649 HFLR Page 36
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1823	1781		2
1824	1782		3
1825	1783		4
1826	1784		5
1827	1785		6
1828	1786		7
1829	1787		8
1830	1788		9
1831	1789		10
1832	1790		11
1833	1791		12
1834	1792		13
1835	1793		14
1836	1794		15
1837	1795		16
1838	1796		17
1839	1797		18
1840	1798		19
1841	1799		20
1842	1800		21
1843	1801		22
1844	1802		23
1845	1803		24
1846	1804
1847	1805		its business or by applicable law, as appropriate, and articles of
1848	1806		organization shall be approved by the same aut horization required to
1849	1807		approve the conversion.
1850	1808		I. In a conversion of an enti ty to a domestic limited l iability
1851	1809		company under this section, rig hts or securities of or memberships
1852	1810		or membership, economic or ownership interests in the entity that is
1853	1811		to be converted to a domestic limited liability c ompany may be
1854	1812		exchanged for or conve rted into cash, property, or rights or
1855	1813		securities of or interests in the domestic limited liability company
1856	1814		or, in addition to or in lieu thereof, may be exchanged for or
1857	1815		converted into cash, property or rights or securi ties of or
1858	1816		memberships or membership , economic or ownership in terests in
1859	1817		another domestic limited liab ility company or other entity.
1860	1818		J. The provisions of this section shall not be construed to
1861	1819		limit the accomplishm ent of a change in the law governing, or the
1862	1820		domicile of, an entity to this s tate by any other means pr ovided for
1863	1821		in an operating agreement or other agreement or as otherwise
1864	1822		permitted by law including by the amendment of an operating
1865	1823		agreement or other ag reement.
1866	1824		K. Nothing in this section shal l be deemed to authorize the
1867	1825		conversion of a charitable entity into a domestic limited liability
1868	1826		company, if the charitable status of such entity would thereby be
1869	1827		lost or impaired.
1870	1828
1871		-	SB649 HFLR Page 37
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1873	1830		2
1874	1831		3
1875	1832		4
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1877	1834		6
1878	1835		7
1879	1836		8
1880	1837		9
1881	1838		10
1882	1839		11
1883	1840		12
1884	1841		13
1885	1842		14
1886	1843		15
1887	1844		16
1888	1845		17
1889	1846		18
1890	1847		19
1891	1848		20
1892	1849		21
1893	1850		22
1894	1851		23
1895	1852		24
1896	1853
1897	1854		SECTION 11. AMENDATORY 18 O.S. 2021, Section 2054.2, is
1898	1855		amended to read as follows:
1899	1856		Section 2054.2.
1900	1857		CONVERSION OF A LIMITED LIABIL ITY COMPANY TO AN ENTITY
1901	1858		A. A domestic limited liability company may convert to an
1902	1859		entity upon the authorization of such conversion in accordance with
1903	1860		this section. As used in this section, the term “entity” means a
1904	1861		domestic or foreign protected or registered series of a limited
1905	1862		liability company, a foreign limited liability company, a domestic
1906	1863		or foreign public benefit limited liabilit y company, a domestic or
1907	1864		foreign corporation including a public benefit co rporation, a
1908	1865		domestic or foreign partnership whether general or limit ed, and
1909	1866		including a limited liability partnership and a limited liability
1910	1867		limited partnership, and any domestic or foreign unincorporated
1911	1868		nonprofit or for-profit association, trust or enterprise having
1912	1869		members or having outstanding shares of stock or other evidences of
1913	1870		financial, beneficial or membership interest therein, whether formed
1914	1871		by agreement or under statutory authority or otherwise.
1915	1872		B. If the operating agreement specifies the manner of
1916	1873		authorizing a conversion of the limited liability company, the
1917	1874		conversion shall be authorized as specified in the operating
1918	1875		agreement.
1919	1876		C. If the operating agreemen t does not specify the manner of
1920	1877		authorizing a convers ion of the limited liability company and does
1921	1878
1922		-	SB649 HFLR Page 38
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1924	1880		2
1925	1881		3
1926	1882		4
1927	1883		5
1928	1884		6
1929	1885		7
1930	1886		8
1931	1887		9
1932	1888		10
1933	1889		11
1934	1890		12
1935	1891		13
1936	1892		14
1937	1893		15
1938	1894		16
1939	1895		17
1940	1896		18
1941	1897		19
1942	1898		20
1943	1899		21
1944	1900		22
1945	1901		23
1946	1902		24
1947	1903
1948	1904		not prohibit a conversion of the limited liability com pany, the
1949	1905		conversion shall be authorized in the same manner as is specified in
1950	1906		the operating agreement for authorizing a merger or consolidation
1951	1907		that involves the limited liability company as a constituent party
1952	1908		to a merger or consolidation.
1953	1909		D. If the operating agreement does not specify the manner of
1954	1910		authorizing a conversion of the limited liability comp any or a
1955	1911		merger or consolidation that involves the lim ited liability company
1956	1912		as a constituent party and does not prohibit a conversion of the
1957	1913		limited liability company, the conversion shall be authorized by the
1958	1914		approval of a majority of the membership inte rest or, if there is
1959	1915		more than one class or group of m embers, then by a majority of the
1960	1916		membership interest in each class or group of members.
1961	1917		Notwithstanding the foregoing, in addition to any other
1962	1918		authorization required by this section, if the entity in to which the
1963	1919		limited liability company is to convert d oes not afford all of its
1964	1920		interest holders protection against personal liability for the debts
1965	1921		of the entity, the conversion must be authorized by any and all
1966	1922		members who would be exposed to personal li ability.
1967	1923		E. Unless otherwise agreed, the conversion o f a domestic
1968	1924		limited liability company to another entity pursuant to this section
1969	1925		shall not require the limited liability company to wind up its
1970	1926		affairs or pay its liabilities and distribute its assets, and the
1971	1927
1972		-	SB649 HFLR Page 39
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1974	1929		2
1975	1930		3
1976	1931		4
1977	1932		5
1978	1933		6
1979	1934		7
1980	1935		8
1981	1936		9
1982	1937		10
1983	1938		11
1984	1939		12
1985	1940		13
1986	1941		14
1987	1942		15
1988	1943		16
1989	1944		17
1990	1945		18
1991	1946		19
1992	1947		20
1993	1948		21
1994	1949		22
1995	1950		23
1996	1951		24
1997	1952
1998	1953		conversion shall not constitute a dissolution of the limited
1999	1954		liability company.
2000	1955		F. In a conversion of a domestic limited liability company to
2001	1956		an entity under this section, rights or securities of or interests
2002	1957		in the domestic limited liability com pany which are to be converted
2003	1958		may be exchanged for or converted into cash, property, rights or
2004	1959		securities of or memberships or membership, economic or ow nership
2005	1960		interests in the entity to which the domestic limited liability
2006	1961		company is being converted or, in addition to or in lieu thereof,
2007	1962		may be exchanged for or converted into cash, property, rights or
2008	1963		securities of or memberships or membership, economic or ownership
2009	1964		interests in another entity or may be canceled.
2010	1965		G. If the governing act of a domestic en tity to which the
2011	1966		limited liability company is convert ing does not provide for the
2012	1967		filing of a conversion notice with the Secretary of State or the
2013	1968		limited liability company is converting to a foreign entity,
2014	1969		articles of conversion executed in accordance w ith Section 2006 of
2015	1970		this title, shall be filed in the Office of the Secretary of State
2016	1971		in accordance with Section 2007 of this title. The articles of
2017	1972		conversion shall state:
2018	1973		1. The name of the limited liability company and, if it has
2019	1974		been changed, the na me under which its articles of organization were
2020	1975		originally filed;
2021	1976
2022		-	SB649 HFLR Page 40
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2024	1978		2
2025	1979		3
2026	1980		4
2027	1981		5
2028	1982		6
2029	1983		7
2030	1984		8
2031	1985		9
2032	1986		10
2033	1987		11
2034	1988		12
2035	1989		13
2036	1990		14
2037	1991		15
2038	1992		16
2039	1993		17
2040	1994		18
2041	1995		19
2042	1996		20
2043	1997		21
2044	1998		22
2045	1999		23
2046	2000		24
2047	2001
2048	2002		2. The date of filing of its original articles of organization
2049	2003		with the Secretary of S tate;
2050	2004		3. The name and type of entity to which the limited liability
2051	2005		company is converting and its jur isdiction of formation, if a
2052	2006		foreign entity;
2053	2007		4. The future effective date or time of the conversion, which
2054	2008		shall be a date or time certain not later than ninety (90) days
2055	2009		after the filing, if it is not to be effective upon the filing of
2056	2010		the articles of conversion;
2057	2011		5. That the conversion has been approved in accordance with
2058	2012		this section;
2059	2013		6. The agreement of the foreign entity that it may be served
2060	2014		with process in this state in any action, suit or proceeding for
2061	2015		enforcement of any obligation of the foreign entity arising while it
2062	2016		was a domestic limited liabil ity company, and that it irrevocably
2063	2017		appoints the Secretary of State as its agent to accept service of
2064	2018		process in any such action, suit or proceeding, and its street
2065	2019		address to which a copy of the proce ss shall be mailed to it by the
2066	2020		Secretary of State; an d
2067	2021		7. If the domestic entity to which the domestic limited
2068	2022		liability company is converting was requi red to make a filing with
2069	2023		the Secretary of State as a condition of its formation, the type and
2070	2024		date of such filing.
2071	2025
2072		-	SB649 HFLR Page 41
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2074	2027		2
2075	2028		3
2076	2029		4
2077	2030		5
2078	2031		6
2079	2032		7
2080	2033		8
2081	2034		9
2082	2035		10
2083	2036		11
2084	2037		12
2085	2038		13
2086	2039		14
2087	2040		15
2088	2041		16
2089	2042		17
2090	2043		18
2091	2044		19
2092	2045		20
2093	2046		21
2094	2047		22
2095	2048		23
2096	2049		24
2097	2050
2098	2051		H. Upon the filing of a conversion noti ce with the Secretary of
2099	2052		State, whether under subsection G of this section or under the
2100	2053		governing act of the domestic entity to which the limited liability
2101	2054		company is converting, the filing of any forma tion document required
2102	2055		by the governing act of the dom estic entity to which the limited
2103	2056		liability company is converting, and payment to the Secretary of
2104	2057		State of all prescribed fees, the Secretary of State shall certify
2105	2058		that the limited liability company h as filed all documents and paid
2106	2059		all required fees, and thereupon the domestic limited liability
2107	2060		company shall cease to exist as a limited liability compan y of this
2108	2061		state. The Secretary of State’s certificate shall be prima facie
2109	2062		evidence of the conversion by the domestic limited liability
2110	2063		company.
2111	2064		I. The conversion of a domestic limited liability company to an
2112	2065		entity under this section and the resulting c essation of its
2113	2066		existence as a domestic limited liability company shall not be
2114	2067		deemed to affect any ob ligations or liabilities of the limited
2115	2068		liability company incurred before the conversion or the personal
2116	2069		liability of any person incurred before the conve rsion, nor shall it
2117	2070		be deemed to affect the choice of law applicable to the limited
2118	2071		liability company with respect to matters arising before the
2119	2072		conversion.
2120	2073		J. When a domestic limited liability company has converted to
2121	2074		an entity under this section, the en tity shall be deemed to be the
2122	2075
2123		-	SB649 HFLR Page 42
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2125	2077		2
2126	2078		3
2127	2079		4
2128	2080		5
2129	2081		6
2130	2082		7
2131	2083		8
2132	2084		9
2133	2085		10
2134	2086		11
2135	2087		12
2136	2088		13
2137	2089		14
2138	2090		15
2139	2091		16
2140	2092		17
2141	2093		18
2142	2094		19
2143	2095		20
2144	2096		21
2145	2097		22
2146	2098		23
2147	2099		24
2148	2100
2149	2101		same entity as the limited liability company. All of the rights,
2150	2102		privileges and powers of the domestic limited liability com pany that
2151	2103		has converted, and all property, real, personal and mixed, and all
2152	2104		debts due to the limite d liability company, as well as all other
2153	2105		things and causes of action belonging to the limited liabili ty
2154	2106		company, shall remain vested in the entity to which the domestic
2155	2107		limited liability company has converted and shall be the property of
2156	2108		the entity, and the title to any real property vested by deed or
2157	2109		otherwise in the domestic limited liability company sh all not revert
2158	2110		or be in any way impaired by reason of the conversion; but all
2159	2111		rights of creditors and all liens upon any property of the limited
2160	2112		liability company shall be preserved unimpaired, and all debts,
2161	2113		liabilities and duties of the limited liability company that has
2162	2114		converted shall remain attached to t he entity to which the domestic
2163	2115		limited liability company has converted, and may be enforced against
2164	2116		it to the same extent as if the debts, liabilities and duties had
2165	2117		originally been incurred or contrac ted by it in its capacity as the
2166	2118		entity. The rights, privileges, powers and interests in property of
2167	2119		the domestic limited liability company that has conv erted, as well
2168	2120		as the debts, liabilities and duties of the limited liability
2169	2121		company, shall not be dee med, as a consequence of the conversion, to
2170	2122		have been transferred to the entity to which the limited liability
2171	2123		company has converted for any purpose of th e laws of this state.
2172	2124
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2176	2127		3
2177	2128		4
2178	2129		5
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2182	2133		9
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2184	2135		11
2185	2136		12
2186	2137		13
2187	2138		14
2188	2139		15
2189	2140		16
2190	2141		17
2191	2142		18
2192	2143		19
2193	2144		20
2194	2145		21
2195	2146		22
2196	2147		23
2197	2148		24
2198	2149
2199	2150		K. Nothing in this section shall be deemed to authorize the
2200	2151		conversion of a charitable domestic limited liability company into
2201	2152		another entity, if the charitable status of such domestic limited
2202	2153		liability company would thereby be lost or impaired.
2203	2154		SECTION 12. AMENDATORY 18 O.S. 2021, Section 2054.3, is
2204	2155		amended to read as follows:
2205	2156		Section 2054.3. An operating agreement or other agreement may
2206	2157		provide that contractual appraisal rights with respect to a
2207	2158		membership interest o r another interest in a limited liability
2208	2159		company shall be available for any class or group of members or
2209	2160		membership interests in connection with any amendment of an
2210	2161		operating agreement, any merger or consolidation to which the
2211	2162		limited liability company is a constituent party, any conversion of
2212	2163		the limited liability company to another business entity, any
2213	2164		conversion of a protected series to a registered series or a
2214	2165		registered series to a protected series, any di vision of the limited
2215	2166		liability company, any plan of division, any transfer to or
2216	2167		domestication in any jurisdiction by the lim ited liability company,
2217	2168		or the sale of all or substantially all of the limited liability
2218	2169		company’s assets. The district court shall have jurisdiction to
2219	2170		hear and determine any matter relating to any such contractual
2220	2171		appraisal rights.
2221	2172		SECTION 13. AMENDATORY 18 O.S. 2021, Section 2054.4, is
2222	2173		amended to read as follows:
2223	2174
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2226	2176		2
2227	2177		3
2228	2178		4
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2231	2181		7
2232	2182		8
2233	2183		9
2234	2184		10
2235	2185		11
2236	2186		12
2237	2187		13
2238	2188		14
2239	2189		15
2240	2190		16
2241	2191		17
2242	2192		18
2243	2193		19
2244	2194		20
2245	2195		21
2246	2196		22
2247	2197		23
2248	2198		24
2249	2199
2250	2200		Section 2054.4.
2251	2201		SERIES OF MEMBERS, MANAGERS, OR MEMBERSHIP INTERESTS HAVING SEPARATE
2252	2202		RIGHTS - PERSONAL OBLIGATION OF MEMBER OR MANAGER
2253	2203		A. An operating agreement may establish or provide for the
2254	2204		establishment of one o r more designated series of members, managers ,
2255	2205		membership interests or assets. Any such series may have sep arate
2256	2206		rights, powers or duties with respect to specified property or
2257	2207		obligations of the limited liability company or profi ts and losses
2258	2208		associated with specified property or obligations, and any such
2259	2209		series may have a sepa rate business purpose or investmen t objective.
2260	2210		No provision of subsection B of this section or Section 14 of this
2261	2211		act shall be construed to limit the application of the principle of
2262	2212		freedom of contract to a series that is not a protected or
2263	2213		registered series. Other than under Sections 15 , 16, and 17 of this
2264	2214		act, a series may not merge, consolidate, or convert under any
2265	2215		section of this title or any other statute of this state.
2266	2216		B. A series established in accor dance with this subsection is a
2267	2217		protected series. Notwithstanding anything to th e contrary set
2268	2218		forth in the Oklahoma Limited Liability Company Act or under other
2269	2219		applicable law, if an operating agreemen t establishes or provides
2270	2220		for the establishment of one or more series, and if to the extent
2271	2221		the records maintained for any such series account for the assets
2272	2222		associated with such series separately from the other assets of the
2273	2223		limited liability company, or any other series thereof, and if the
2274	2224
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2277	2226		2
2278	2227		3
2279	2228		4
2280	2229		5
2281	2230		6
2282	2231		7
2283	2232		8
2284	2233		9
2285	2234		10
2286	2235		11
2287	2236		12
2288	2237		13
2289	2238		14
2290	2239		15
2291	2240		16
2292	2241		17
2293	2242		18
2294	2243		19
2295	2244		20
2296	2245		21
2297	2246		22
2298	2247		23
2299	2248		24
2300	2249
2301	2250		operating agreement so provides, and if notice of the limitatio n on
2302	2251		liabilities of a series as referenced in this subsection is set
2303	2252		forth in the articles of organization of the limited liability
2304	2253		company, then the debts, liabilities, obligations and expenses
2305	2254		incurred, contracted for or otherwise existing with respect t o a
2306	2255		particular such series shall be enforceable against the assets of
2307	2256		such series only, and not against the assets of the limited
2308	2257		liability company generally or any other series ther eof, and, unless
2309	2258		otherwise provided in the operating agreement, none of th e debts,
2310	2259		liabilities, obligations and expenses incurred, contracted for or
2311	2260		otherwise existing with respect to the limited liability company
2312	2261		generally or any other series thereof shal l be enforceable against
2313	2262		the assets of the series. Neither the provisions of this subsection
2314	2263		nor any provision pursuant thereto in an operating agreement or
2315	2264		articles of organization shall (i) restrict a protected series or
2316	2265		limited liability company on beh alf of a protected series from
2317	2266		agreeing in the operating agreement or othe rwise that any or all of
2318	2267		the debts, liabilities, obligations, and expenses incurred,
2319	2268		contracted for, or otherwise existing with resp ect to the limited
2320	2269		liability company generally or an y other series thereof shall be
2321	2270		enforceable against the assets of such pro tected series; or (ii)
2322	2271		restrict a limited liability company from agreeing in the operati ng
2323	2272		agreement or otherwise that any or all of th e debts, liabilities,
2324	2273		obligations, and expenses incurred, contracted for, or otherwise
2325	2274
2326		-	SB649 HFLR Page 46
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2328	2276		2
2329	2277		3
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2331	2279		5
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2333	2281		7
2334	2282		8
2335	2283		9
2336	2284		10
2337	2285		11
2338	2286		12
2339	2287		13
2340	2288		14
2341	2289		15
2342	2290		16
2343	2291		17
2344	2292		18
2345	2293		19
2346	2294		20
2347	2295		21
2348	2296		22
2349	2297		23
2350	2298		24
2351	2299
2352	2300		existing with respect to a protected series shall be enforceable
2353	2301		against the assets of the limited liability company general ly.
2354	2302		Assets associated with a protected series may be held directly or
2355	2303		indirectly, including i n the name of such series, in the name of the
2356	2304		limited liability company , through a nominee or otherwise. Re cords
2357	2305		maintained for a protected series that reasonabl y identify its
2358	2306		assets, including by specific li sting, category, type, quantity,
2359	2307		computational or allocational formula or pr ocedure, including a
2360	2308		percentage or share of a ny asset or assets, or by any other method
2361	2309		where the identity of such assets is objectiv ely determinable, will
2362	2310		be deemed to account for the assets associated with such series
2363	2311		separately from the other assets of the limited liability company,
2364	2312		or any other series thereof. Notice in articles of organization of
2365	2313		the limitation on liabilities of a protected series as referenced in
2366	2314		this subsection shall be sufficient for all purposes regardless of
2367	2315		whether the limited liability c ompany has established any protected
2368	2316		series when the notice is included in the articles of organization,
2369	2317		and there shall be no requirement that any specific protected series
2370	2318		of the limited liability company be referen ced in the notice or that
2371	2319		the notice use the term “protected”. The fact that articles of
2372	2320		organization containing the foregoing notice of the limitation on
2373	2321		liabilities of a protected series are on file in the office Office
2374	2322		of the Secretary of State shall constitu te notice of the limitation
2375	2323		on liabilities of a protected series. As used in this act, a
2376	2324
2377		-	SB649 HFLR Page 47
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2379	2326		2
2380	2327		3
2381	2328		4
2382	2329		5
2383	2330		6
2384	2331		7
2385	2332		8
2386	2333		9
2387	2334		10
2388	2335		11
2389	2336		12
2390	2337		13
2391	2338		14
2392	2339		15
2393	2340		16
2394	2341		17
2395	2342		18
2396	2343		19
2397	2344		20
2398	2345		21
2399	2346		22
2400	2347		23
2401	2348		24
2402	2349
2403	2350		reference to assets of a protected series includes assets associate d
2404	2351		with such series, and a reference to assets assoc iated with a
2405	2352		protected series includes assets o f such series. A reference to
2406	2353		members or managers of a protected series incl udes members or
2407	2354		managers associated with such series, and a reference to members or
2408	2355		managers associated with a protected series include s members or
2409	2356		managers of such series. The following shall apply to a protected
2410	2357		series:
2411	2358		C. 1. A protected series established in accordance with
2412	2359		subsection B of this section may carry on any lawful busi ness,
2413	2360		purpose or activity, regardless of whether or not for profit, with
2414	2361		the exception of the busines s of a domestic insurer that a limited
2415	2362		liability company may conduct in th is state. Unless otherwise
2416	2363		provided in the an operating agreement, a protected series
2417	2364		established in accordanc e with subsection B of this section shall
2418	2365		have the power and cap acity to, in its own name, contract, hold
2419	2366		title to assets, including real, personal and intangible property,
2420	2367		grant liens and security interests, and sue and be sued.;
2421	2368		D. 2. Except as otherwis e provided by this act, no member or
2422	2369		manager of a protected series shal l be obligated personally for any
2423	2370		debt, obligation, or liability of such se ries, whether arising in
2424	2371		contract, tort, or otherwise, solely by reason of being a member or
2425	2372		acting as manager of such series. Notwithstanding Section 2022 of
2426	2373		this title paragraph, under an operating agreement or under anot her
2427	2374
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2431	2377		3
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2436	2382		8
2437	2383		9
2438	2384		10
2439	2385		11
2440	2386		12
2441	2387		13
2442	2388		14
2443	2389		15
2444	2390		16
2445	2391		17
2446	2392		18
2447	2393		19
2448	2394		20
2449	2395		21
2450	2396		22
2451	2397		23
2452	2398		24
2453	2399
2454	2400		agreement, a member or manage r may agree to be obligated person ally
2455	2401		for any or all of the debts, obligations and liabilities of one or
2456	2402		more protected series.;
2457	2403		E. 3. An operating agreement may provide for classe s or groups
2458	2404		of members or managers associated with a protected series having
2459	2405		such relative rights, powers an d duties as the operating agreement
2460	2406		may provide, and may make provision for t he future creation in th e
2461	2407		manner provided in the operating agreement of additional classes or
2462	2408		groups of members or managers associated w ith the series having such
2463	2409		relative rights, powers and duties as may from time to time b e
2464	2410		established, including rights, powers and duties senio r to existing
2465	2411		classes and groups of members or managers associated with the
2466	2412		series. An operating agreement may provide for the taking of an
2467	2413		action, including the amendment of the operating agreement, without
2468	2414		the vote or approval of any member or manager o r class or group of
2469	2415		members or managers, includ ing an action to create under the
2470	2416		provisions of the operating agr eement a class or group of the a
2471	2417		protected series of membership interests that was not p reviously
2472	2418		outstanding. An opera ting agreement may provi de that any member or
2473	2419		class or group of members associated with a protected series shall
2474	2420		have no voting rights.;
2475	2421		F. 4. An operating agreement may grant to all or certain
2476	2422		identified members or manager s or a specified class or group of the
2477	2423		members or managers associated with a protected series the right to
2478	2424
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2481	2426		2
2482	2427		3
2483	2428		4
2484	2429		5
2485	2430		6
2486	2431		7
2487	2432		8
2488	2433		9
2489	2434		10
2490	2435		11
2491	2436		12
2492	2437		13
2493	2438		14
2494	2439		15
2495	2440		16
2496	2441		17
2497	2442		18
2498	2443		19
2499	2444		20
2500	2445		21
2501	2446		22
2502	2447		23
2503	2448		24
2504	2449
2505	2450		vote separately or with all or any class or g roup of the members or
2506	2451		managers associated with the series, on any matter. Voting by
2507	2452		members or managers associated with a protected series may be on a
2508	2453		per capita, number, financial interest, class, group o r any other
2509	2454		basis.;
2510	2455		G. 5. Unless otherwise provided in an oper ating agreement, the
2511	2456		management of a protected series shall be vested in the members
2512	2457		associated with the series in proport ion to their membership
2513	2458		interest, with the decision of members owning a majority of the
2514	2459		membership interest controlling; provided, however, that if an
2515	2460		operating agreement provides for the management of the a protected
2516	2461		series, in whole or in part, by a mana ger, the management of the
2517	2462		series, to the extent so provided, shall be vested in the manager
2518	2463		who shall be chosen in the manner provided in the op erating
2519	2464		agreement. The manager of the a protected series shall also hold
2520	2465		the offices and have the responsibili ties accorded to the man ager as
2521	2466		set forth in an operating agreement. A protected series may have
2522	2467		more than one manager. Subjec t to paragraph 3 of Section 2014 of
2523	2468		this title, a manager shall cease to be a manager with respe ct to a
2524	2469		protected series as provided in an operating agr eement. Except as
2525	2470		otherwise provided in an ope rating agreement, any event under this
2526	2471		chapter or in an operating a greement that causes a manager to cease
2527	2472		to be a manager with respect to a protected series shall not, in
2528	2473
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2531	2475		2
2532	2476		3
2533	2477		4
2534	2478		5
2535	2479		6
2536	2480		7
2537	2481		8
2538	2482		9
2539	2483		10
2540	2484		11
2541	2485		12
2542	2486		13
2543	2487		14
2544	2488		15
2545	2489		16
2546	2490		17
2547	2491		18
2548	2492		19
2549	2493		20
2550	2494		21
2551	2495		22
2552	2496		23
2553	2497		24
2554	2498
2555	2499		itself, cause the manager to cease to be a manager of the limited
2556	2500		liability company or with respect to any other series thereof .;
2557	2501		H. 6. Subject to subsections I and L paragraphs 7 and 10 of
2558	2502		this section subsection, and unless otherwise provided in an
2559	2503		operating agreement, at the time a member associated with a series
2560	2504		that has been establi shed in accordance with subsection B of this
2561	2505		section of a protected series becomes entitled to receive a
2562	2506		distribution with respect to the series, the member has the status
2563	2507		of, and is entitled to all remedies available to, a creditor of the
2564	2508		series, with respect to the distribution. An operating agreement
2565	2509		may provide for the esta blishment of a record date with re spect to
2566	2510		allocations and distributions with respect to a protected series.;
2567	2511		I. 7. Notwithstanding Section 2040 of this title, a limited
2568	2512		liability company may make a distribution with respect to a
2569	2513		protected series that has been established in accordance wi th
2570	2514		subsection B of this section. A limited liability company shall not
2571	2515		make a distribution with res pect to a protected series that has been
2572	2516		established in accordance with subsection B of this section to a
2573	2517		member to the extent that at the time of the distr ibution, after
2574	2518		giving effect to the distribut ion, all liabilities of the series,
2575	2519		other than liabiliti es to members on account of their membership
2576	2520		interests with respect to the series and liabilities for which the
2577	2521		recourse of creditors is limited to specifi ed property of the
2578	2522		series, exceed the fair va lue of the assets associated with the
2579	2523
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2582	2525		2
2583	2526		3
2584	2527		4
2585	2528		5
2586	2529		6
2587	2530		7
2588	2531		8
2589	2532		9
2590	2533		10
2591	2534		11
2592	2535		12
2593	2536		13
2594	2537		14
2595	2538		15
2596	2539		16
2597	2540		17
2598	2541		18
2599	2542		19
2600	2543		20
2601	2544		21
2602	2545		22
2603	2546		23
2604	2547		24
2605	2548
2606	2549		series, except that the fair value of property of the series that is
2607	2550		subject to a liability for which the recourse of creditors is
2608	2551		limited shall be included in the assets as sociated with the series
2609	2552		only to the extent t hat the fair value of that property exceeds that
2610	2553		liability. For purposes of the immediately preceding sentence, the
2611	2554		term “distribution” shall not include amounts constituting
2612	2555		reasonable compensation for present or past services or reasonable
2613	2556		payments made in the ordinary course of business pursuant to a bona
2614	2557		fide retirement plan or other benefits program. A member who
2615	2558		receives a distribution in violation of this subsection paragraph,
2616	2559		and who knew or should have kno wn at the time of the distribution
2617	2560		that the distribution violated this subsection paragraph, shall be
2618	2561		liable to a the protected series for the amount of the distribution.
2619	2562		A member who receive s a distribution in violation of this subsection
2620	2563		paragraph, and who did not know and had no reason to know at the
2621	2564		time of the distribution that t he distribution violated this
2622	2565		subsection paragraph, shall not be liable for the amount of the
2623	2566		distribution. Subject to subsection C of Section 2040 of this
2624	2567		title, which shall apply to any distribution made with respect to a
2625	2568		protected series under this subsection paragraph, this subsection
2626	2569		paragraph shall not affect any obligation or liability of a member
2627	2570		under an agreement or other applicable law for the amount o f a
2628	2571		distribution.;
2629	2572
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2632	2574		2
2633	2575		3
2634	2576		4
2635	2577		5
2636	2578		6
2637	2579		7
2638	2580		8
2639	2581		9
2640	2582		10
2641	2583		11
2642	2584		12
2643	2585		13
2644	2586		14
2645	2587		15
2646	2588		16
2647	2589		17
2648	2590		18
2649	2591		19
2650	2592		20
2651	2593		21
2652	2594		22
2653	2595		23
2654	2596		24
2655	2597
2656	2598		J. 8. Unless otherwise provided in the operating agreement, a
2657	2599		member shall cease to be associated with a protected series and to
2658	2600		have the power to exercise any rights or powers of a member with
2659	2601		respect to the series upon the assignment of all of the member’s
2660	2602		capital interest with respect to the series. Except as otherwise
2661	2603		provided in an operating agr eement, any event under this c hapter or
2662	2604		an operating agreement that causes a member to cease to be
2663	2605		associated with a protected series shall not, in itsel f, cause the
2664	2606		member to cease to be associated with any other series or terminate
2665	2607		the continued membersh ip of a member in the limited liability
2666	2608		company or cause the termination of the protected series, regardless
2667	2609		of whether the member was the last remaining member associated with
2668	2610		the series.;
2669	2611		K. 9. Subject to Section 2037 of this title, except to the
2670	2612		extent otherwise provided in the ope rating agreement, a protected
2671	2613		series may be terminated and its affairs wound up without causing
2672	2614		the dissolution of the limited liability company. The termination
2673	2615		of a protected series established in accordance with subsection B of
2674	2616		this section shall not affect the limitation on liabilities of the
2675	2617		series provided by subsection B of this section. A protected series
2676	2618		is terminated and its affairs shall be wound up upon the dissolution
2677	2619		of the limited liability company under Sectio n 2037 of this title or
2678	2620		otherwise upon the first to oc cur of the following:
2679	2621		1. At
2680	2622
2681		-	SB649 HFLR Page 53
2682		-	BOLD FACE denotes Committee Amendments. 1
	2623	+	ENGR. S. B. NO. 649 Page 53 1
2683	2624		2
2684	2625		3
2685	2626		4
2686	2627		5
2687	2628		6
2688	2629		7
2689	2630		8
2690	2631		9
2691	2632		10
2692	2633		11
2693	2634		12
2694	2635		13
2695	2636		14
2696	2637		15
2697	2638		16
2698	2639		17
2699	2640		18
2700	2641		19
2701	2642		20
2702	2643		21
2703	2644		22
2704	2645		23
2705	2646		24
2706	2647
2707	2648		a. at the time specified in the operating agreement ;,
2708	2649		2. Upon
2709	2650		b. upon the happening of events specified in the
2710	2651		operating agreement;,
2711	2652		3. Unless
2712	2653		c. unless otherwise provided in the operating agreement,
2713	2654		upon the affirmative vote or written consent of the
2714	2655		members of the limited liability company associate d
2715	2656		with the series or, if there is more than one class or
2716	2657		group of members associated with the series, then by
2717	2658		each class or group of members associated w ith the
2718	2659		series, in either case, by members associated with the
2719	2660		series who own more than two -thirds (2/3) of the then-
2720	2661		current membership interest owned by all of the
2721	2662		members associated with the series or by the members
2722	2663		in each class or group of the series, as appropriate;,
2723	2664		or
2724	2665		4. The
2725	2666		d. the termination of the series under subsection M
2726	2667		paragraph 11 of this section. subsection;
2727	2668		L. 10. Unless otherwise provided in the op erating agreement, a
2728	2669		manager associated with a protected series who has not wrongfully
2729	2670		terminated the series or, if none, the members associated with the
2730	2671		series or a person approved by the members associated with th e
2731	2672
2732		-	SB649 HFLR Page 54
2733		-	BOLD FACE denotes Committee Amendments. 1
	2673	+	ENGR. S. B. NO. 649 Page 54 1
2734	2674		2
2735	2675		3
2736	2676		4
2737	2677		5
2738	2678		6
2739	2679		7
2740	2680		8
2741	2681		9
2742	2682		10
2743	2683		11
2744	2684		12
2745	2685		13
2746	2686		14
2747	2687		15
2748	2688		16
2749	2689		17
2750	2690		18
2751	2691		19
2752	2692		20
2753	2693		21
2754	2694		22
2755	2695		23
2756	2696		24
2757	2697
2758	2698		series or, if there is more than one class or group of members
2759	2699		associated with the series, then by each class or group of members
2760	2700		associated with the series, in either case, by a majority of the
2761	2701		membership interest owned by all of the members associated with the
2762	2702		series or by the members in each class or group associated with the
2763	2703		series, as appropriate, may wind up the affairs of the series; but,
2764	2704		if the series has been established in accordance with s ubsection B
2765	2705		of this section, the district court, upon ca use shown, may wind up
2766	2706		the affairs of the a protected series upon application of any mem ber
2767	2707		or manager associated with the series, o r the member’s personal
2768	2708		representative or assignee, and in connectio n therewith, may appoint
2769	2709		a liquidating trustee. The per sons winding up the affairs of a
2770	2710		protected series may, in the name of the limited liability compan y
2771	2711		and for and on behalf of the lim ited liability company and the
2772	2712		series, take all actions with respect to the series as are permitted
2773	2713		under subsection A of Se ction 2039 of this title. The persons
2774	2714		winding up the affairs of a protected series shall provide for t he
2775	2715		claims and obligations of the series and distri bute the assets of
2776	2716		the series as provided in Se ction 2040 of this title, which section
2777	2717		shall apply to the winding up and distribution of assets of a
2778	2718		protected series. Actions taken in accordance with this subsection
2779	2719		shall not affect the liability of membe rs and shall not impose
2780	2720		liability on a liquidating trustee.;
2781	2721
2782		-	SB649 HFLR Page 55
2783		-	BOLD FACE denotes Committee Amendments. 1
	2722	+	ENGR. S. B. NO. 649 Page 55 1
2784	2723		2
2785	2724		3
2786	2725		4
2787	2726		5
2788	2727		6
2789	2728		7
2790	2729		8
2791	2730		9
2792	2731		10
2793	2732		11
2794	2733		12
2795	2734		13
2796	2735		14
2797	2736		15
2798	2737		16
2799	2738		17
2800	2739		18
2801	2740		19
2802	2741		20
2803	2742		21
2804	2743		22
2805	2744		23
2806	2745		24
2807	2746
2808	2747		M. 11. On application by or for a member or manager associated
2809	2748		with a protected series established in accordance with subsec tion B
2810	2749		of this section, the district court may de cree termination of the
2811	2750		series whenever it is not rea sonably practicable to carry on the
2812	2751		business of the series in conformit y with an operating agreement;
2813	2752		and
2814	2753		12. For all purposes of the laws of this state, a pro tected
2815	2754		series is an association, regardless of the number of mem bers or
2816	2755		managers, if any, of such series. An operating agreement does not
2817	2756		need to use the term “protected” when referencing series or to refer
2818	2757		to this section.
2819	2758		N. C. If a foreign limited liability company that is
2820	2759		registering to do business in this state in accordance with Section
2821	2760		2043 of this title i s governed by an operating agreement that
2822	2761		establishes or provides for the establishment of design ated series
2823	2762		of members, managers, membership interests or asse ts having separate
2824	2763		rights, powers or duties with r espect to specified property or
2825	2764		obligations of the foreign limited liability company or profits and
2826	2765		losses associated with specified property or obligations, that fact
2827	2766		shall be so stated on the application for registration as a foreign
2828	2767		limited liability co mpany. In addition, the foreign limited
2829	2768		liability company shall state on the application whether the d ebts,
2830	2769		liabilities and obligations incurre d, contracted for or otherwise
2831	2770		existing with respect to a part icular series, if any, shall be
2832	2771
2833		-	SB649 HFLR Page 56
2834		-	BOLD FACE denotes Committee Amendments. 1
	2772	+	ENGR. S. B. NO. 649 Page 56 1
2835	2773		2
2836	2774		3
2837	2775		4
2838	2776		5
2839	2777		6
2840	2778		7
2841	2779		8
2842	2780		9
2843	2781		10
2844	2782		11
2845	2783		12
2846	2784		13
2847	2785		14
2848	2786		15
2849	2787		16
2850	2788		17
2851	2789		18
2852	2790		19
2853	2791		20
2854	2792		21
2855	2793		22
2856	2794		23
2857	2795		24
2858	2796
2859	2797		enforceable against the assets of the series only, and not agains t
2860	2798		the assets of the foreign limited liability company ge nerally or any
2861	2799		other series thereof, and whether any of the debts, liabilities,
2862	2800		obligations and expense s incurred, contracted for or otherwise
2863	2801		existing with respect to the foreign limited liability co mpany
2864	2802		generally or any other series thereof shall be enf orceable against
2865	2803		the assets of the series .
2866	2804		SECTION 14. NEW LAW A new section of law to be codified
2867	2805		in the Oklahoma Statutes as Section 2054.5 of Title 18, unless there
2868	2806		is created a duplication in numbering, reads as follows:
2869	2807		REGISTERED SERIES OF MEMBERS, MANAGERS, MEMBERSHIP INTERESTS, OR
2870	2808		ASSETS
2871	2809		A. If an operating agreement provides for the establishment or
2872	2810		formation of one or more series, then a registered series may be
2873	2811		formed by complying with this section. An operating agreement does
2874	2812		not need to use the term “registered” when referencing series or to
2875	2813		refer to this section, and a reference in an operating agreemen t for
2876	2814		a registered series, including a registered series resulting from
2877	2815		the conversion of a protec ted series to a registered series, may
2878	2816		continue to refer to Sec tion 2054.4 of Title 18 of the Oklahoma
2879	2817		Statutes, which reference is deemed a reference to this section with
2880	2818		respect to the registered series. A registered seri es is formed by
2881	2819		the filing of articles of regist ered series in the Office of the
2882	2820		Secretary of State.
2883	2821
2884		-	SB649 HFLR Page 57
2885		-	BOLD FACE denotes Committee Amendments. 1
	2822	+	ENGR. S. B. NO. 649 Page 57 1
2886	2823		2
2887	2824		3
2888	2825		4
2889	2826		5
2890	2827		6
2891	2828		7
2892	2829		8
2893	2830		9
2894	2831		10
2895	2832		11
2896	2833		12
2897	2834		13
2898	2835		14
2899	2836		15
2900	2837		16
2901	2838		17
2902	2839		18
2903	2840		19
2904	2841		20
2905	2842		21
2906	2843		22
2907	2844		23
2908	2845		24
2909	2846
2910	2847		B. Notice of the limitation on liabilities of a registe red
2911	2848		series as referenced in subse ction C of this section shall be set
2912	2849		forth in the articles of organization of the limited liability
2913	2850		company. Notice in articles of organization of the limitatio n on
2914	2851		liabilities of a registered series as referenced in subse ction C of
2915	2852		this section shall be sufficient for all purposes of this subsection
2916	2853		whether or not the limited liability company has fo rmed any
2917	2854		registered series when the notice is included in the a rticles of
2918	2855		organization, and there shall be no requirement tha t (i) any
2919	2856		specific registered ser ies of the limited liability company be
2920	2857		referenced in the notice, (ii) the notice use the term “registered”
2921	2858		when referencing series or include a reference to thi s section, or
2922	2859		(iii) the articles of organization be amended if it includes a
2923	2860		reference to Section 2054.4 of Title 18 of the Oklahoma Statutes.
2924	2861		Any reference to Section 2054.4 of Title 18 of the Oklahoma S tatutes
2925	2862		in the articles of organization of a limited liability company that
2926	2863		has one or more registered series is deemed a reference to this
2927	2864		section with respect to the registered series. The fact that
2928	2865		articles of organization that contain the foregoing notice of the
2929	2866		limitation on liabilities of a series i s on file in the Office of
2930	2867		the Secretary of State shall consti tute notice of the limitation on
2931	2868		liabilities of a registered series.
2932	2869		C. Notwithstanding anything to the contrary set forth in this
2933	2870		act or under other ap plicable law, to the extent the records
2934	2871
2935		-	SB649 HFLR Page 58
2936		-	BOLD FACE denotes Committee Amendments. 1
	2872	+	ENGR. S. B. NO. 649 Page 58 1
2937	2873		2
2938	2874		3
2939	2875		4
2940	2876		5
2941	2877		6
2942	2878		7
2943	2879		8
2944	2880		9
2945	2881		10
2946	2882		11
2947	2883		12
2948	2884		13
2949	2885		14
2950	2886		15
2951	2887		16
2952	2888		17
2953	2889		18
2954	2890		19
2955	2891		20
2956	2892		21
2957	2893		22
2958	2894		23
2959	2895		24
2960	2896
2961	2897		maintained for a registered series account for the assets assoc iated
2962	2898		with the series separately from the other assets of the limited
2963	2899		liability company, or any ot her series thereof, then the debts,
2964	2900		liabilities, obligations, and expenses incurred, contracted for, or
2965	2901		otherwise existing with respect to the series shall be enforceable
2966	2902		against the assets of the series only, and not against the assets of
2967	2903		the limited liability company generally or any other series thereof,
2968	2904		and, unless otherwise provided in the opera ting agreement, none of
2969	2905		the debts, liabilities, obligations , and expenses incurred,
2970	2906		contracted for, or otherwise existing with respect to the limited
2971	2907		liability company generally or any other series thereof shall be
2972	2908		enforceable against the assets of the series. Neither the
2973	2909		provisions of this subsection nor any provision pursuant thereto in
2974	2910		an operating agreement, articles of organization , or articles of
2975	2911		registered series shall (i) restrict a registered series or limi ted
2976	2912		liability company on behalf of a registered series from agreeing in
2977	2913		the operating agreement or othe rwise that any or all of the debts,
2978	2914		liabilities, obligations , and expenses incurred, contracted for , or
2979	2915		otherwise existing with respect to the limited li ability company
2980	2916		generally or any other series thereof shall be enforceable against
2981	2917		the assets of the registered series; or (ii) restrict a limi ted
2982	2918		liability company from agreeing in the operating agreement or
2983	2919		otherwise that any or all of the debts, liabili ties, obligations,
2984	2920		and expenses incurred, contracted for, or otherwise existing with
2985	2921
2986		-	SB649 HFLR Page 59
2987		-	BOLD FACE denotes Committee Amendments. 1
	2922	+	ENGR. S. B. NO. 649 Page 59 1
2988	2923		2
2989	2924		3
2990	2925		4
2991	2926		5
2992	2927		6
2993	2928		7
2994	2929		8
2995	2930		9
2996	2931		10
2997	2932		11
2998	2933		12
2999	2934		13
3000	2935		14
3001	2936		15
3002	2937		16
3003	2938		17
3004	2939		18
3005	2940		19
3006	2941		20
3007	2942		21
3008	2943		22
3009	2944		23
3010	2945		24
3011	2946
3012	2947		respect to a registered series shall b e enforceable against the
3013	2948		assets of the limited liability company generally. Assets
3014	2949		associated with a registered series may be held directly or
3015	2950		indirectly, including in the name of the series, in the name of the
3016	2951		limited liability compa ny, through a nomine e, or otherwise. Recor ds
3017	2952		maintained for a registered series that reasonably identify its
3018	2953		assets, including by specific listing, cate gory, type, quantity,
3019	2954		computational or allocational formula or procedure including a
3020	2955		percentage or share of any asset or ass ets, or by any other method
3021	2956		where the identity of the assets is objectively determinable , will
3022	2957		be deemed to account for the assets a ssociated with the series
3023	2958		separately from the other assets of the limited liability company,
3024	2959		or any other series thereof. A s used in this act, a reference to
3025	2960		assets of a registered series includes assets associa ted with the
3026	2961		series, a reference to assets a ssociated with a registered series
3027	2962		includes assets of the series, a reference to members or managers of
3028	2963		a registered series includes members or ma nagers associated with the
3029	2964		series, and a reference to members or m anagers associated with a
3030	2965		registered series includes members or managers of the series. The
3031	2966		following shall apply to a registered series:
3032	2967		1. A registered series may c arry on any lawful bus iness,
3033	2968		purpose, or activity, regardless of whether for profit, that a
3034	2969		limited liability company may conduct in this state. Unless
3035	2970		otherwise provided in an operating agreement, a reg istered series
3036	2971
3037		-	SB649 HFLR Page 60
3038		-	BOLD FACE denotes Committee Amendments. 1
	2972	+	ENGR. S. B. NO. 649 Page 60 1
3039	2973		2
3040	2974		3
3041	2975		4
3042	2976		5
3043	2977		6
3044	2978		7
3045	2979		8
3046	2980		9
3047	2981		10
3048	2982		11
3049	2983		12
3050	2984		13
3051	2985		14
3052	2986		15
3053	2987		16
3054	2988		17
3055	2989		18
3056	2990		19
3057	2991		20
3058	2992		21
3059	2993		22
3060	2994		23
3061	2995		24
3062	2996
3063	2997		shall have the power and capacity to, in its own name, contract,
3064	2998		hold title to assets, including real, personal , and intangible
3065	2999		property, grant liens and security intere sts, and sue and be sued;
3066	3000		2. Except as otherwise provided by this act, no member or
3067	3001		manager of a registered series shall be obligate d personally for any
3068	3002		debt, obligation, or liability of the series, whether arising in
3069	3003		contract, tort, or otherwise, solely by reason of being a member or
3070	3004		acting as manager of the series. Notwithsta nding the preceding
3071	3005		sentence, under an operating agreement o r under another agreem ent, a
3072	3006		member or manager may agree to be obligated personally for any or
3073	3007		all of the debts, obligati ons, and liabilities of one or more
3074	3008		registered series;
3075	3009		3. An operating agreement may provide for class es or groups of
3076	3010		members or managers associated with a registered series having the
3077	3011		relative rights, powers , and duties as the operating agreement may
3078	3012		provide, and may make a provision for the future creation, in the
3079	3013		manner provided in the operating agreement, of additional classes or
3080	3014		groups of members or managers a ssociated with the series having the
3081	3015		relative rights, powers , and duties as may from time to time be
3082	3016		established, including rights, powers, and duties senior to existing
3083	3017		classes and groups of members or managers associated with the
3084	3018		series. An operating agre ement may provide for the taking of an
3085	3019		action, including the amend ment of the operating agreement, without
3086	3020		the vote or approval of any member, manager, or class or group of
3087	3021
3088		-	SB649 HFLR Page 61
3089		-	BOLD FACE denotes Committee Amendments. 1
	3022	+	ENGR. S. B. NO. 649 Page 61 1
3090	3023		2
3091	3024		3
3092	3025		4
3093	3026		5
3094	3027		6
3095	3028		7
3096	3029		8
3097	3030		9
3098	3031		10
3099	3032		11
3100	3033		12
3101	3034		13
3102	3035		14
3103	3036		15
3104	3037		16
3105	3038		17
3106	3039		18
3107	3040		19
3108	3041		20
3109	3042		21
3110	3043		22
3111	3044		23
3112	3045		24
3113	3046
3114	3047		members or managers, including an action to create under the
3115	3048		provisions of the ope rating agreement a class or group of a
3116	3049		registered series of membership interests that was not previously
3117	3050		outstanding. An operating agreement may provide that any member or
3118	3051		class or group of members associated with a registered series shall
3119	3052		have no voting rights;
3120	3053		4. An operating agreement may grant to all or certain
3121	3054		identified members or managers or a specified class or group of the
3122	3055		members or managers associated with a regis tered series the right to
3123	3056		vote separately or with all or any class or group of the members or
3124	3057		managers associated with the series, on any matter. V oting by
3125	3058		members or managers associated with a registered series may be on a
3126	3059		per capita, number, financial i nterest, class, group, or any other
3127	3060		basis;
3128	3061		5. Unless otherwise provided in an oper ating agreement, the
3129	3062		management of a registered series shall be vested in the members
3130	3063		associated with the series in proportion to t he then current
3131	3064		percentage or other interes t of members in the profits of the series
3132	3065		owned by all of the members associated w ith the series, the decision
3133	3066		of members owning a majority of the percentage or other interest in
3134	3067		the profits controlling; provided, however, that if an operating
3135	3068		agreement provides for the manag ement of a registered series, in
3136	3069		whole or in part, by a m anager, the management of the series, to the
3137	3070		extent so provided, s hall be vested in the manager who shall be
3138	3071
3139		-	SB649 HFLR Page 62
3140		-	BOLD FACE denotes Committee Amendments. 1
	3072	+	ENGR. S. B. NO. 649 Page 62 1
3141	3073		2
3142	3074		3
3143	3075		4
3144	3076		5
3145	3077		6
3146	3078		7
3147	3079		8
3148	3080		9
3149	3081		10
3150	3082		11
3151	3083		12
3152	3084		13
3153	3085		14
3154	3086		15
3155	3087		16
3156	3088		17
3157	3089		18
3158	3090		19
3159	3091		20
3160	3092		21
3161	3093		22
3162	3094		23
3163	3095		24
3164	3096
3165	3097		chosen in the manner provided in the operating agreement. The
3166	3098		manager of a registered ser ies shall also hold the offices and have
3167	3099		the responsibilities accorded to the manager as set forth in an
3168	3100		operating agreement. A registered series may have more than one
3169	3101		manager. Subject to Sec tion 2014 of Title 18 of the Oklahoma
3170	3102		Statutes, a manager shall cease to be a manager with respec t to a
3171	3103		registered series as provided in an operating agreement. Except as
3172	3104		otherwise provided in an operating agreement, any event under this
3173	3105		act or in an operating agreement that causes a manager to cease to
3174	3106		be a manager with respect to a registered serie s shall not, in
3175	3107		itself, cause the manager to cease to be a manager of the limited
3176	3108		liability company or with respect to any other series thereof;
3177	3109		6. Notwithstanding Section 2029 of Title 18 of the Oklahoma
3178	3110		Statutes, but subject to paragraphs 7 and 10 of this subsection, and
3179	3111		unless otherwise provided in an operating agreement, at the time a
3180	3112		member of a registered series becomes entitled to receive a
3181	3113		distribution with respect to the series, the membe r has the status
3182	3114		of, and is entitled to all remedies availab le to, a creditor of the
3183	3115		series, with respect to the distribution. An operating agreeme nt
3184	3116		may provide for the establishment of a record date with respect to
3185	3117		allocations and distributions with res pect to a registered seri es;
3186	3118		7. Notwithstanding subsection A of Section 2030 of Title 18 of
3187	3119		the Oklahoma Statutes, a limited liability company may make a
3188	3120		distribution with respect to a registered series. A limited
3189	3121
3190		-	SB649 HFLR Page 63
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3192	3123		2
3193	3124		3
3194	3125		4
3195	3126		5
3196	3127		6
3197	3128		7
3198	3129		8
3199	3130		9
3200	3131		10
3201	3132		11
3202	3133		12
3203	3134		13
3204	3135		14
3205	3136		15
3206	3137		16
3207	3138		17
3208	3139		18
3209	3140		19
3210	3141		20
3211	3142		21
3212	3143		22
3213	3144		23
3214	3145		24
3215	3146
3216	3147		liability company shall not make a distribution with respect to a
3217	3148		registered series to a member to the extent that at the time of the
3218	3149		distribution, after giving effect to the distribution, all
3219	3150		liabilities of the series, other than liabilities to members on
3220	3151		account of their membership interests with respect to the series and
3221	3152		liabilities for which the recourse of creditors is l imited to
3222	3153		specified property of the series, exceed the fair value of the
3223	3154		assets associated with the series, except that the fair value of
3224	3155		property of the series that is subject to a liability for whi ch the
3225	3156		recourse of creditors is limited shall be included in the assets
3226	3157		associated with the series only to the extent that the fair value of
3227	3158		that property exceeds that liability. For purposes o f the
3228	3159		immediately preceding sent ence, the term “distribution” shall not
3229	3160		include amounts constitut ing reasonable compens ation for present or
3230	3161		past services or reasonable payments made in the ordinary course of
3231	3162		business pursuant to a bona fide retirement plan or other benefits
3232	3163		program. A member who receives a distribution in violation of this
3233	3164		paragraph, and who knew at the time of the distribution that the
3234	3165		distribution violated this paragraph, shall be liable to the
3235	3166		registered series for the amount of the dis tribution. A member who
3236	3167		receives a distribution in violation of this paragraph, and who did
3237	3168		not know at the time of the distribution that the distribution
3238	3169		violated this paragraph, shall not be liable for the amount of the
3239	3170		distribution. Subject to Sectio n 2031 of Title 18 of the Oklahoma
3240	3171
3241		-	SB649 HFLR Page 64
3242		-	BOLD FACE denotes Committee Amendments. 1
	3172	+	ENGR. S. B. NO. 649 Page 64 1
3243	3173		2
3244	3174		3
3245	3175		4
3246	3176		5
3247	3177		6
3248	3178		7
3249	3179		8
3250	3180		9
3251	3181		10
3252	3182		11
3253	3183		12
3254	3184		13
3255	3185		14
3256	3186		15
3257	3187		16
3258	3188		17
3259	3189		18
3260	3190		19
3261	3191		20
3262	3192		21
3263	3193		22
3264	3194		23
3265	3195		24
3266	3196
3267	3197		Statutes, which shall apply to any distribution made with r espect to
3268	3198		a registered series under this paragraph, this paragraph shall not
3269	3199		affect any obligation or liability of a membe r under an agreement or
3270	3200		other applicable law for the amount of a distrib ution;
3271	3201		8. Unless otherwise provided in the operating agreem ent, a
3272	3202		member shall cease to be associated with a registered series and to
3273	3203		have the power to exercise any rights or powers o f a member with
3274	3204		respect to the series upon the assignment of all of the member’s
3275	3205		membership interest with respect to the series. Ex cept as otherwise
3276	3206		provided in an operating agreement, any event under this act or an
3277	3207		operating agreement that causes a member to cease to be associated
3278	3208		with a registered series shall not, in itsel f, cause the member to
3279	3209		cease to be associated with any other series or terminate t he
3280	3210		continued membership of a member in the limited liability compa ny or
3281	3211		cause the dissolution of the r egistered series, regardless of
3282	3212		whether the member was the last remainin g member associated with the
3283	3213		series;
3284	3214		9. Subject to Section 2037 of Title 18 of the Oklahoma
3285	3215		Statutes, except to the extent otherwise provided in th e operating
3286	3216		agreement, a registered series may be dissolved and its affair s
3287	3217		wound up without causing the dis solution of the limited liability
3288	3218		company. The dissolution of a registered series shall not affect
3289	3219		the limitation on liabilities of the series prov ided by this
3290	3220		subsection. A registered series is dissolved and its affairs shall
3291	3221
3292		-	SB649 HFLR Page 65
3293		-	BOLD FACE denotes Committee Amendments. 1
	3222	+	ENGR. S. B. NO. 649 Page 65 1
3294	3223		2
3295	3224		3
3296	3225		4
3297	3226		5
3298	3227		6
3299	3228		7
3300	3229		8
3301	3230		9
3302	3231		10
3303	3232		11
3304	3233		12
3305	3234		13
3306	3235		14
3307	3236		15
3308	3237		16
3309	3238		17
3310	3239		18
3311	3240		19
3312	3241		20
3313	3242		21
3314	3243		22
3315	3244		23
3316	3245		24
3317	3246
3318	3247		be wound up upon the dissol ution of the limited liability company
3319	3248		under Section 2037 of Title 18 of the Oklahoma Statutes or otherwise
3320	3249		upon the first to occur of the following :
3321	3250		a. at the time specified in the op erating agreement,
3322	3251		b. upon the happening of events specified in the
3323	3252		operating agreement,
3324	3253		c. unless otherwise provided in the operating agreement,
3325	3254		upon the vote or consent of members associated with
3326	3255		the series who own more than two-thirds of the then-
3327	3256		current percentage or other interest in the profits of
3328	3257		the series of the li mited liability company owned by
3329	3258		all of the members associated with the series, or
3330	3259		d. the dissolution of the series under paragraph 11 of
3331	3260		this subsection;
3332	3261		10. Notwithstanding Section 203 9 of Title 18 of the Oklahoma
3333	3262		Statutes, unless otherwise provided in the operating agreement, a
3334	3263		manager associated with a registered series who has not wr ongfully
3335	3264		dissolved the series or, if none, the members associated with the
3336	3265		series or a person approved by the members associated with the
3337	3266		series, in either case, by members who own a majority of the then
3338	3267		current percentage or other interest in the profits of the series
3339	3268		owned by all of the members associated with the series, may wind up
3340	3269		the affairs of the s eries; but the district court, upon cause shown,
3341	3270		may wind up the affairs of a registered series upon ap plication of
3342	3271
3343		-	SB649 HFLR Page 66
3344		-	BOLD FACE denotes Committee Amendments. 1
	3272	+	ENGR. S. B. NO. 649 Page 66 1
3345	3273		2
3346	3274		3
3347	3275		4
3348	3276		5
3349	3277		6
3350	3278		7
3351	3279		8
3352	3280		9
3353	3281		10
3354	3282		11
3355	3283		12
3356	3284		13
3357	3285		14
3358	3286		15
3359	3287		16
3360	3288		17
3361	3289		18
3362	3290		19
3363	3291		20
3364	3292		21
3365	3293		22
3366	3294		23
3367	3295		24
3368	3296
3369	3297		any member or manager associated with the series, or the member ’s
3370	3298		personal representative or assigne e, and in connection therewith,
3371	3299		may appoint a liquidating trustee. The persons winding up the
3372	3300		affairs of a registered series may, in the name of the limited
3373	3301		liability company and for and on behalf of the limited liability
3374	3302		company and the series, take all actions with respect to the series
3375	3303		as are permitted under subsection A of Section 2039 of Title 18 of
3376	3304		the Oklahoma Statutes. The persons windi ng up the affairs of a
3377	3305		registered series shall provide for the claims and obligations of
3378	3306		the series and distribut e the assets of the series as provided i n
3379	3307		Section 2039 of Title 18 of the Oklahoma Statutes, which section
3380	3308		shall apply to the winding up and di stribution of assets of a
3381	3309		registered series. Actio ns taken in accordance with this paragraph
3382	3310		shall not affect the liability of members and shall not imp ose
3383	3311		liability on a liquidating trustee;
3384	3312		11. On application by or for a member or manager associated
3385	3313		with a registered series, the district court may decree dissolution
3386	3314		of the series whenever it is not reasonably pr acticable to carry on
3387	3315		the business of the series in conformity with an operating
3388	3316		agreement; and
3389	3317		12. For all purposes of the laws of th is state, a registered
3390	3318		series is an association, regardless of the number of members or
3391	3319		managers, if any, of the series.
3392	3320
3393		-	SB649 HFLR Page 67
3394		-	BOLD FACE denotes Committee Amendments. 1
	3321	+	ENGR. S. B. NO. 649 Page 67 1
3395	3322		2
3396	3323		3
3397	3324		4
3398	3325		5
3399	3326		6
3400	3327		7
3401	3328		8
3402	3329		9
3403	3330		10
3404	3331		11
3405	3332		12
3406	3333		13
3407	3334		14
3408	3335		15
3409	3336		16
3410	3337		17
3411	3338		18
3412	3339		19
3413	3340		20
3414	3341		21
3415	3342		22
3416	3343		23
3417	3344		24
3418	3345
3419	3346		D. To form a registered series of a limi ted liability company,
3420	3347		articles of registered series must be filed in accordance with this
3421	3348		subsection.
3422	3349		1. The articles of registered series:
3423	3350		a. shall set forth:
3424	3351		(1) the name of the limited liability company ,
3425	3352		(2) the name of the registered series , and
3426	3353		(3) the street address of its principal place of
3427	3354		business, wherever located, and the name and
3428	3355		street address of its registered agent which
3429	3356		shall be identical to its registered office in
3430	3357		this state, and
3431	3358		b. may include any other matter that the members of the
3432	3359		registered series determine to include therein.
3433	3360		2. Articles of registered series shall be executed in
3434	3361		accordance with Section 2006 of Title 18 of the Okla homa Statutes
3435	3362		and shall be filed in the Office of the Secretary of State in
3436	3363		accordance with Section 200 7 of Title 18 of the Oklahoma Statutes.
3437	3364		Articles of registered series shall be effective as of the eff ective
3438	3365		time of the filing un less a later effective date or time, which
3439	3366		shall be a date or time certain , is provided for in the articles of
3440	3367		registered series. The articles of registered series are not an
3441	3368		amendment to the articles of organization of the lim ited liability
3442	3369		company. The filing of articles of registered series in the office
3443	3370
3444		-	SB649 HFLR Page 68
3445		-	BOLD FACE denotes Committee Amendments. 1
	3371	+	ENGR. S. B. NO. 649 Page 68 1
3446	3372		2
3447	3373		3
3448	3374		4
3449	3375		5
3450	3376		6
3451	3377		7
3452	3378		8
3453	3379		9
3454	3380		10
3455	3381		11
3456	3382		12
3457	3383		13
3458	3384		14
3459	3385		15
3460	3386		16
3461	3387		17
3462	3388		18
3463	3389		19
3464	3390		20
3465	3391		21
3466	3392		22
3467	3393		23
3468	3394		24
3469	3395
3470	3396		of the Secretary of State shall make it unnecessary to file any
3471	3397		other documents under this act.
3472	3398		3. The articles of registered series are amended by filing
3473	3399		articles of amendment in the Office of the Secretary of State. The
3474	3400		articles of amendment of the articles of registered series shall set
3475	3401		forth:
3476	3402		a. the name of the limited liability company,
3477	3403		b. the name of the registered series, and
3478	3404		c. the amendment to the articles of regis tered series.
3479	3405		4. A manager of a registered series or, if there is no manager,
3480	3406		then any member of a registered series who becomes aware that any
3481	3407		statement in the articles of registered series fi led with respect to
3482	3408		the registered series was false when made, or that any matter
3483	3409		described therein has changed making the articles of registered
3484	3410		series false in any material respect, shall promptly amend the
3485	3411		articles of registered series.
3486	3412		5. The articles of registered series may be amended at any time
3487	3413		for any other proper purpose.
3488	3414		6. Unless otherwise provided in this act or unless a later
3489	3415		effective date or time , which shall be a date or time certain, is
3490	3416		provided for in the articles of amendment of the articles of
3491	3417		registered series, the articles of amendment shall b e effective at
3492	3418		the time of filing with the Secretary of State.
3493	3419
3494		-	SB649 HFLR Page 69
3495		-	BOLD FACE denotes Committee Amendments. 1
	3420	+	ENGR. S. B. NO. 649 Page 69 1
3496	3421		2
3497	3422		3
3498	3423		4
3499	3424		5
3500	3425		6
3501	3426		7
3502	3427		8
3503	3428		9
3504	3429		10
3505	3430		11
3506	3431		12
3507	3432		13
3508	3433		14
3509	3434		15
3510	3435		16
3511	3436		17
3512	3437		18
3513	3438		19
3514	3439		20
3515	3440		21
3516	3441		22
3517	3442		23
3518	3443		24
3519	3444
3520	3445		7. The articles of registered serie s shall be canceled upon the
3521	3446		cancellation of the artic les of organization of the limited
3522	3447		liability company named in the articles of registered series, or
3523	3448		upon the filing of articles of dissolution of the articles of
3524	3449		registered series or upon the future eff ective date or time of the
3525	3450		articles of dissolution of the articles of registered series, or as
3526	3451		provided in subsection B of Section 2012.1 of Title 18 of the
3527	3452		Oklahoma Statutes, or upon the filing of articles of merger or
3528	3453		consolidation of the registered series if the registered series is
3529	3454		not the surviving or re sulting registered series in a merger or
3530	3455		consolidation, or upon the future effective date or time of the
3531	3456		articles of merger or conso lidation of the registered series if the
3532	3457		registered series is not the s urviving or resulting registered
3533	3458		series in a merger o r consolidation, or upon the filing of th e
3534	3459		articles of conversion of the registered series to a protected
3535	3460		series, or upon the future effective date or time of the articles of
3536	3461		conversion of the registered series to a protected series. Articles
3537	3462		of dissolution of the articles of registered series may be filed at
3538	3463		any time, and shall be filed, in the Office of the Secretary of
3539	3464		State to accomplish the cancellation of the articles of registered
3540	3465		series upon the dissolution of a registered series for which the
3541	3466		articles of registered series were filed and completion of the
3542	3467		winding up of the registere d series. Articles of dissolution of the
3543	3468		articles of registered seri es shall set forth:
3544	3469
3545		-	SB649 HFLR Page 70
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	3470	+	ENGR. S. B. NO. 649 Page 70 1
3547	3471		2
3548	3472		3
3549	3473		4
3550	3474		5
3551	3475		6
3552	3476		7
3553	3477		8
3554	3478		9
3555	3479		10
3556	3480		11
3557	3481		12
3558	3482		13
3559	3483		14
3560	3484		15
3561	3485		16
3562	3486		17
3563	3487		18
3564	3488		19
3565	3489		20
3566	3490		21
3567	3491		22
3568	3492		23
3569	3493		24
3570	3494
3571	3495		a. the name of the limited l iability company,
3572	3496		b. the name of the registered serie s,
3573	3497		c. the date of filing of the articles of registered
3574	3498		series,
3575	3499		d. the future effective date or time, which shall be a
3576	3500		date or time certain, of cancellation if it is not to
3577	3501		be effective upon the filing of the articles of
3578	3502		dissolution, and
3579	3503		e. any other information the person filing the articles
3580	3504		of dissolution of the articles of registered series
3581	3505		determines.
3582	3506		8. Articles of dissolution that are filed in the Office of the
3583	3507		Secretary of State before the diss olution or the completion of
3584	3508		winding up of a registered s eries may be corrected as an erroneously
3585	3509		executed articles of dissolution by fili ng with the Office of the
3586	3510		Secretary of State article s of correction of the articles of
3587	3511		dissolution of the articles of registered series in accordance with
3588	3512		Section 2012 of Title 18 of the Oklahoma Statutes.
3589	3513		9. The Secretary of State shall not issue articles of good
3590	3514		standing with respect to a registered series if its articles of
3591	3515		registered series are canceled or the li mited liability company has
3592	3516		ceased to be in good standing.
3593	3517
3594		-	SB649 HFLR Page 71
3595		-	BOLD FACE denotes Committee Amendments. 1
	3518	+	ENGR. S. B. NO. 649 Page 71 1
3596	3519		2
3597	3520		3
3598	3521		4
3599	3522		5
3600	3523		6
3601	3524		7
3602	3525		8
3603	3526		9
3604	3527		10
3605	3528		11
3606	3529		12
3607	3530		13
3608	3531		14
3609	3532		15
3610	3533		16
3611	3534		17
3612	3535		18
3613	3536		19
3614	3537		20
3615	3538		21
3616	3539		22
3617	3540		23
3618	3541		24
3619	3542
3620	3543		SECTION 15. NEW LAW A new section of law to be codified
3621	3544		in the Oklahoma Statutes a s Section 2054.6 of Title 18, unless there
3622	3545		is created a duplication in numbering, reads as follows:
3623	3546		CONVERSION OF A PROTECTED SERIES TO A REGISTERED SERIES
3624	3547		A. A protected series of a domestic l imited liability company
3625	3548		may convert to a registered series o f the domestic limited liability
3626	3549		company by complying with this section and filing in the Office of
3627	3550		the Secretary of State in accordance with Section 2007 of Title 18
3628	3551		of the Oklahoma Statutes:
3629	3552		1. Articles of conversion of protected series to registered
3630	3553		series that have been ex ecuted in accordance with S ection 2006 of
3631	3554		Title 18 of the Oklahoma S tatutes; and
3632	3555		2. Articles of registered series that comply with subsection D
3633	3556		of Section 14 of this act and have been executed by one or more
3634	3557		authorized persons in acco rdance with Section 20 06 of Title 18 of
3635	3558		the Oklahoma Statutes. Each of the articles required by this
3636	3559		subsection shall be filed simultaneously in the Office of the
3637	3560		Secretary of State and, if the articles are not to become effective
3638	3561		upon their filing as per mitted by subsection C of Section 2007 of
3639	3562		Title 18 of the Oklahoma Statutes, then each of the articles shall
3640	3563		provide for the same effective date or time in accordance with
3641	3564		subsection C of Sectio n 2007 of Title 18 of the Oklahoma S tatutes.
3642	3565		Upon the filing of a certificate of c onversion of protected serie s
3643	3566		to registered series, or upon the future effective date or time of a
3644	3567
3645		-	SB649 HFLR Page 72
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3647	3569		2
3648	3570		3
3649	3571		4
3650	3572		5
3651	3573		6
3652	3574		7
3653	3575		8
3654	3576		9
3655	3577		10
3656	3578		11
3657	3579		12
3658	3580		13
3659	3581		14
3660	3582		15
3661	3583		16
3662	3584		17
3663	3585		18
3664	3586		19
3665	3587		20
3666	3588		21
3667	3589		22
3668	3590		23
3669	3591		24
3670	3592
3671	3593		certificate of conversion of prot ected series to registered series,
3672	3594		the protected series with respect to which such fili ng is made is
3673	3595		converted to a register ed series with the effect pr ovided in this
3674	3596		section. An existing series may not become a registered series
3675	3597		other than under this section.
3676	3598		B. If the operating agreement spec ifies the manner of
3677	3599		authorizing a conversion of a protected series of the limited
3678	3600		liability company to a regist ered series of the limited liability
3679	3601		company, the conversion of a protected series to a registered serie s
3680	3602		shall be authorized as specified in the operating agreement. If the
3681	3603		operating agreement does not spe cify the manner of au thorizing a
3682	3604		conversion of a protected series of the limited liability company to
3683	3605		a registered series of the limited liability compan y and does not
3684	3606		prohibit a conversion of a protected series to a registered series,
3685	3607		the conversion shall be authorized by mem bers of the protected
3686	3608		series who own a majority of the then current per centage or other
3687	3609		interest in the profits of the protected ser ies owned by all of the
3688	3610		members of the protected series.
3689	3611		C. Unless otherwise agreed, the conversion of a protected
3690	3612		series of a limited liability compan y to a registered series of the
3691	3613		limited liability company under this section shall not require the
3692	3614		limited liability company or the protected series of the limited
3693	3615		liability company to wind up its affairs un der Section 2039 or
3694	3616		Section 2054.4 of Title 18 of the Oklahoma Statutes or pay its
3695	3617
3696		-	SB649 HFLR Page 73
3697		-	BOLD FACE denotes Committee Amendments. 1
	3618	+	ENGR. S. B. NO. 649 Page 73 1
3698	3619		2
3699	3620		3
3700	3621		4
3701	3622		5
3702	3623		6
3703	3624		7
3704	3625		8
3705	3626		9
3706	3627		10
3707	3628		11
3708	3629		12
3709	3630		13
3710	3631		14
3711	3632		15
3712	3633		16
3713	3634		17
3714	3635		18
3715	3636		19
3716	3637		20
3717	3638		21
3718	3639		22
3719	3640		23
3720	3641		24
3721	3642
3722	3643		liabilities and distribute its assets under Section 2040 or Section
3723	3644		2054.4 of Title 18 of the Oklahoma Statutes, and the conversion of a
3724	3645		protected series of a limited liability company to a registered
3725	3646		series of the limited liability company shall not constitute a
3726	3647		dissolution of the limited liability company or a termination of the
3727	3648		protected series. When a protecte d series of a limited liability
3728	3649		company has converted to a reg istered series of the limited
3729	3650		liability company under this section, for all purposes of the laws
3730	3651		of this state, the registered series is deemed to be the same series
3731	3652		as the converting protected series and the conversion shall
3732	3653		constitute a continuation of t he existence of the protected series
3733	3654		in the form of the registered series.
3734	3655		D. In connection with a conversion of a protected series of a
3735	3656		limited liability company to a registered series of the limited
3736	3657		liability company under this section, rights or securi ties of or
3737	3658		interests in the protected series whic h is to be converted may be
3738	3659		exchanged for or converted into cash, property, rights , or
3739	3660		securities of, or interests in, the registered series into which the
3740	3661		protected series is bei ng converted or, in addition to or in lieu
3741	3662		thereof, may be exchanged for or converted into cash, property,
3742	3663		rights, or securities of, or interests in, any other business
3743	3664		entity, may remain outstanding, or may be canceled.
3744	3665		E. If a protected series shall convert to a registered series
3745	3666		in accordance with this sect ion, articles of conversion of a
3746	3667
3747		-	SB649 HFLR Page 74
3748		-	BOLD FACE denotes Committee Amendments. 1
	3668	+	ENGR. S. B. NO. 649 Page 74 1
3749	3669		2
3750	3670		3
3751	3671		4
3752	3672		5
3753	3673		6
3754	3674		7
3755	3675		8
3756	3676		9
3757	3677		10
3758	3678		11
3759	3679		12
3760	3680		13
3761	3681		14
3762	3682		15
3763	3683		16
3764	3684		17
3765	3685		18
3766	3686		19
3767	3687		20
3768	3688		21
3769	3689		22
3770	3690		23
3771	3691		24
3772	3692
3773	3693		protected series to a registered serie s executed in accordance with
3774	3694		Section 2006 of Title 18 of the Oklahoma Statutes shall be filed in
3775	3695		the Office of the Secretary of State in accordance with Section 2007
3776	3696		of Title 18 of the Oklahoma Statutes. The articles of conversion of
3777	3697		a protected series to a registered series shall state:
3778	3698		1. The name of the limited liability company and, if it has
3779	3699		been changed, the name under which its articles of organizati on were
3780	3700		originally filed;
3781	3701		2. The name of the protected series and, if it has been
3782	3702		changed, the name of the protected series as originally established;
3783	3703		3. The name of the registered series as s et forth in its
3784	3704		articles of registered series filed in accorda nce with subsection A
3785	3705		of this section;
3786	3706		4. The date of filing of the original articles of organizat ion
3787	3707		of the limited liability company with the Secretar y of State;
3788	3708		5. The date on which the pro tected series was established;
3789	3709		6. The future effective date o r time, which shall be a date or
3790	3710		time certain, of the co nversion if it is not to be effective upon
3791	3711		the filing of the articles of conversion of a protected series to a
3792	3712		registered series; and
3793	3713		7. That the conversion has been approved in accordance with
3794	3714		this section.
3795	3715		F. A copy of the articles of conversion of a protected series
3796	3716		to a registered series cert ified by the Secretary of State shall be
3797	3717
3798		-	SB649 HFLR Page 75
3799		-	BOLD FACE denotes Committee Amendments. 1
	3718	+	ENGR. S. B. NO. 649 Page 75 1
3800	3719		2
3801	3720		3
3802	3721		4
3803	3722		5
3804	3723		6
3805	3724		7
3806	3725		8
3807	3726		9
3808	3727		10
3809	3728		11
3810	3729		12
3811	3730		13
3812	3731		14
3813	3732		15
3814	3733		16
3815	3734		17
3816	3735		18
3817	3736		19
3818	3737		20
3819	3738		21
3820	3739		22
3821	3740		23
3822	3741		24
3823	3742
3824	3743		prima facie evidence of the conversion by the protecte d series to a
3825	3744		registered series of the limited liability compa ny.
3826	3745		G. When any conversion shall have become effective under this
3827	3746		section, for all purposes of the laws of this state, all of the
3828	3747		rights, privileges, and powers of the protected series that has
3829	3748		converted, and all property, real, personal, and mixed, and all
3830	3749		debts due to the protected series, as well as all other things and
3831	3750		causes of action belonging to the protected series, shall remain
3832	3751		vested in the registered series to which the protected series has
3833	3752		converted and shall be the property of the registered s eries. The
3834	3753		title to any real property vested by deed o r otherwise in the
3835	3754		protected series shall not revert or be in any way impaired by
3836	3755		reason of this act; but all rights of creditors and all l iens upon
3837	3756		any property of the protected series shall be preserved unimpaired,
3838	3757		and all debts, liabilities, and duties of the protected series that
3839	3758		has converted shall remain attached to the registered series to
3840	3759		which the protected series has converted, and may be enforced
3841	3760		against it to the same extent as if the debts, liabilities, and
3842	3761		duties had originally been incurred or contracted by it in its
3843	3762		capacity as the registered series. The rights, privileges, powers ,
3844	3763		and interests in property of the protected series that has
3845	3764		converted, as well as the debts, liabilities , and duties of the
3846	3765		protected series, shall not be deemed, as a consequence of the
3847	3766		conversion, to have be en transferred to the registered series to
3848	3767
3849		-	SB649 HFLR Page 76
3850		-	BOLD FACE denotes Committee Amendments. 1
	3768	+	ENGR. S. B. NO. 649 Page 76 1
3851	3769		2
3852	3770		3
3853	3771		4
3854	3772		5
3855	3773		6
3856	3774		7
3857	3775		8
3858	3776		9
3859	3777		10
3860	3778		11
3861	3779		12
3862	3780		13
3863	3781		14
3864	3782		15
3865	3783		16
3866	3784		17
3867	3785		18
3868	3786		19
3869	3787		20
3870	3788		21
3871	3789		22
3872	3790		23
3873	3791		24
3874	3792
3875	3793		which the protected series of the limited liability company has
3876	3794		converted for any purpose of the laws of th is state.
3877	3795		H. An operating agreemen t may provide that a protect ed series
3878	3796		of a limited liability company sh all not have the power to convert
3879	3797		to a registered series of the limited liability company as set forth
3880	3798		in this section.
3881	3799		SECTION 16. NEW LAW A new section of law t o be codified
3882	3800		in the Oklahoma Statutes as Section 2054.7 of Title 18, unless there
3883	3801		is created a duplica tion in numbering, reads as follows:
3884	3802		CONVERSION OF A REGISTERED SERIES TO A PROTECTED SERIES
3885	3803		A. Upon compliance with this section, a registered series of a
3886	3804		domestic limited liabili ty company may convert to a protected series
3887	3805		of the domestic limited liability company. An existing registered
3888	3806		series may not become a protected series other than under this
3889	3807		section.
3890	3808		B. If the operating agreement specifies the manner of
3891	3809		authorizing a conversion of a registered series of the limited
3892	3810		liability company to a protected series of the limited liability
3893	3811		company, the conversion of a registered series to a protected series
3894	3812		shall be authorized as specified in the operating agreement. If the
3895	3813		operating agreement does not specify the manner of authorizing a
3896	3814		conversion of a registered series of the limited liability company
3897	3815		to a protected series of the limited liability company and does not
3898	3816		prohibit a conversion of a registere d series to a protecte d series,
3899	3817
3900		-	SB649 HFLR Page 77
3901		-	BOLD FACE denotes Committee Amendments. 1
	3818	+	ENGR. S. B. NO. 649 Page 77 1
3902	3819		2
3903	3820		3
3904	3821		4
3905	3822		5
3906	3823		6
3907	3824		7
3908	3825		8
3909	3826		9
3910	3827		10
3911	3828		11
3912	3829		12
3913	3830		13
3914	3831		14
3915	3832		15
3916	3833		16
3917	3834		17
3918	3835		18
3919	3836		19
3920	3837		20
3921	3838		21
3922	3839		22
3923	3840		23
3924	3841		24
3925	3842
3926	3843		the conversion shall be authorized by members of the registered
3927	3844		series who own a majority of the then current percentage or other
3928	3845		interest in the profits of the registered series owned by all o f the
3929	3846		members of the registered series.
3930	3847		C. Unless otherwise agreed, the conversion of a register ed
3931	3848		series of a limited liability company to a protected series of the
3932	3849		limited liability company under this section shall not require the
3933	3850		limited liability comp any or the registered series of the limited
3934	3851		liability company to wind up its affairs under Section 2039 of Title
3935	3852		18 of the Oklahoma S tatutes or Section 14 of this act or pay its
3936	3853		liabilities and distribute its assets under Section 2040 of Title 18
3937	3854		of the Oklahoma Statutes or Section 14 of this act, and the
3938	3855		conversion of a registered series of a l imited liability company to
3939	3856		a protected series of the limited liability company shall not
3940	3857		constitute a dissolution of the limited liability company or of the
3941	3858		registered series. When a registered series of a limited liability
3942	3859		company has converted to a protected series of the limited liability
3943	3860		company under this section, for all purposes of the laws of this
3944	3861		state, the protected series is deemed to be the same series a s the
3945	3862		converting registered series and t he conversion shall constitute a
3946	3863		continuation of the existence of the registered series in the form
3947	3864		of the protected series.
3948	3865		D. In connection with a conversion of a registered series of a
3949	3866		limited liability company t o protected series of the limited
3950	3867
3951		-	SB649 HFLR Page 78
3952		-	BOLD FACE denotes Committee Amendments. 1
	3868	+	ENGR. S. B. NO. 649 Page 78 1
3953	3869		2
3954	3870		3
3955	3871		4
3956	3872		5
3957	3873		6
3958	3874		7
3959	3875		8
3960	3876		9
3961	3877		10
3962	3878		11
3963	3879		12
3964	3880		13
3965	3881		14
3966	3882		15
3967	3883		16
3968	3884		17
3969	3885		18
3970	3886		19
3971	3887		20
3972	3888		21
3973	3889		22
3974	3890		23
3975	3891		24
3976	3892
3977	3893		liability company under this section, rights or sec urities of or
3978	3894		interests in the registered series which is to be conv erted may be
3979	3895		exchanged for or converted into cash, property, rights, or
3980	3896		securities of, or interests in, the protected series into which the
3981	3897		registered series is being converted or, in additio n to or in lieu
3982	3898		thereof, may be exchanged for or converted into c ash, property,
3983	3899		rights, or securities of, or interests in, any other business
3984	3900		entity, may remain outstanding or may be cancele d.
3985	3901		E. If a registered series shall convert to a protected series
3986	3902		in accordance with this section, articles of conversion of
3987	3903		registered series to protected series executed in accordance with
3988	3904		Section 2006 of Title 18 of the Oklahoma S tatutes shall be filed in
3989	3905		the Office of the Secretary of State in accordance with Section 2007
3990	3906		of Title 18 of the Oklahoma S tatutes. The articles of conversion of
3991	3907		registered series to protected series shall state:
3992	3908		1. The name of the limited liability comp any and, if it has
3993	3909		been changed, the name under which its articles of organization were
3994	3910		originally filed;
3995	3911		2. The date of filing of the original articles of organization
3996	3912		of the limited liability company with the Secretary of State;
3997	3913		3. The name of the regi stered series and, if i t has been
3998	3914		changed, the name under which its articles of registered series were
3999	3915		originally filed;
4000	3916
4001		-	SB649 HFLR Page 79
4002		-	BOLD FACE denotes Committee Amendments. 1
	3917	+	ENGR. S. B. NO. 649 Page 79 1
4003	3918		2
4004	3919		3
4005	3920		4
4006	3921		5
4007	3922		6
4008	3923		7
4009	3924		8
4010	3925		9
4011	3926		10
4012	3927		11
4013	3928		12
4014	3929		13
4015	3930		14
4016	3931		15
4017	3932		16
4018	3933		17
4019	3934		18
4020	3935		19
4021	3936		20
4022	3937		21
4023	3938		22
4024	3939		23
4025	3940		24
4026	3941
4027	3942		4. The date of filing of its or iginal articles of registered
4028	3943		series with the Secretary of State;
4029	3944		5. The future effective date or time , which shall be a date or
4030	3945		time certain, of the conversion if it is not to be effective upon
4031	3946		the filing of the articles of conversion of registered serie s to
4032	3947		protected series; and
4033	3948		6. That the conversion has been approved in accordance with
4034	3949		this section.
4035	3950		F. Upon the filing of a certificate of convers ion of registered
4036	3951		series to protected series, or upon the future effective date or
4037	3952		time of a certificate of conversion of registered series to
4038	3953		protected series, the registered series filing the certificate is
4039	3954		converted to a protected series with the effec t provided in this
4040	3955		section. A copy of the articles of conversion of registered series
4041	3956		to protected series c ertified by the Secretary of State shall be
4042	3957		prima facie evidence of the conversion by the registered series to a
4043	3958		protected series of the limited liability company.
4044	3959		G. When any conversion shall have b ecome effective under this
4045	3960		section, for all purposes of the laws of this state, all of the
4046	3961		rights, privileges, and powers of the regis tered series that has
4047	3962		converted, and all proper ty, real, personal, and mixed, and all
4048	3963		debts due to the registered series, a s well as all other things and
4049	3964		causes of action belongi ng to the registered series, shall remain
4050	3965		vested in the protected series to w hich the registered series has
4051	3966
4052		-	SB649 HFLR Page 80
4053		-	BOLD FACE denotes Committee Amendments. 1
	3967	+	ENGR. S. B. NO. 649 Page 80 1
4054	3968		2
4055	3969		3
4056	3970		4
4057	3971		5
4058	3972		6
4059	3973		7
4060	3974		8
4061	3975		9
4062	3976		10
4063	3977		11
4064	3978		12
4065	3979		13
4066	3980		14
4067	3981		15
4068	3982		16
4069	3983		17
4070	3984		18
4071	3985		19
4072	3986		20
4073	3987		21
4074	3988		22
4075	3989		23
4076	3990		24
4077	3991
4078	3992		converted and shall be the property o f the protected series. The
4079	3993		title to any real pro perty vested by deed or otherwise in the
4080	3994		registered series sh all not revert or be in any way impaired by
4081	3995		reason of this act; but all rights of creditors and all lie ns upon
4082	3996		any property of the registered series shall be preserved unimpaired,
4083	3997		and all debts, liabilities, and duties of the registered series that
4084	3998		has converted shall remain attached to the prote cted series to which
4085	3999		the registered series has converted, and may be enforced against it
4086	4000		to the same extent as if the debts, liabilities, and duties had
4087	4001		originally been incurred or contracted by it in its capacity a s the
4088	4002		protected series. The rights, privileges, powers, and interests in
4089	4003		property of the registered se ries that has converted, as well as the
4090	4004		debts, liabilities, and duties of the registered series, shall not
4091	4005		be deemed, as a consequence of the conversion, to have been
4092	4006		transferred to the protect ed series to which the registered series
4093	4007		of the limited liability company has converted for any p urpose of
4094	4008		the laws of this state.
4095	4009		H. An operating agreement may provide that a registered series
4096	4010		of a limited liabilit y company shall not have the power to convert
4097	4011		to a protected series of the limited liability company as set forth
4098	4012		in this section.
4099	4013		SECTION 17. NEW LAW A new section of law to be codified
4100	4014		in the Oklahoma Statutes as Section 2054.8 of Title 18, unless there
4101	4015		is created a duplication in numbering, reads as follows:
4102	4016
4103		-	SB649 HFLR Page 81
4104		-	BOLD FACE denotes Committee Amendments. 1
	4017	+	ENGR. S. B. NO. 649 Page 81 1
4105	4018		2
4106	4019		3
4107	4020		4
4108	4021		5
4109	4022		6
4110	4023		7
4111	4024		8
4112	4025		9
4113	4026		10
4114	4027		11
4115	4028		12
4116	4029		13
4117	4030		14
4118	4031		15
4119	4032		16
4120	4033		17
4121	4034		18
4122	4035		19
4123	4036		20
4124	4037		21
4125	4038		22
4126	4039		23
4127	4040		24
4128	4041
4129	4042		MERGER AND CONSOLIDATIO N OF REGISTERED SERIES
4130	4043		A. Under an agreement of merger or consolidation, one or more
4131	4044		registered series may merge or consolidate with or into one or more
4132	4045		other registered series of the same limi ted liability company with
4133	4046		such registered series as the agree ment shall provide being the
4134	4047		surviving or resulting registered series. Unless otherwise provided
4135	4048		in the operating agreement, an agreement of merger or consolidation
4136	4049		shall be approved by each re gistered series which is to merge or
4137	4050		consolidate by members of the registered series who own a majority
4138	4051		of the then current percentage or other inte rest in the profits o f
4139	4052		the registered series owned by all of the me mbers of the registered
4140	4053		series. In connection with a merger or consolidation hereunder,
4141	4054		rights or securities of, or interests in, a registered series which
4142	4055		is a constituent party to the merger or consolidati on may be
4143	4056		exchanged for or converted into cash, property, rights, or
4144	4057		securities of, or interests in, the surviving or resulting
4145	4058		registered series or, i n addition to or in lieu thereo f, may be
4146	4059		exchanged for or converted into cash, proper ty, rights, or
4147	4060		securities of, or interests in, a domestic limited liability company
4148	4061		or other business entity which is not the surviving or resulting
4149	4062		registered series in t he merger or consolidation, may remain
4150	4063		outstanding, or may be canceled. Notwithstanding prior approval, an
4151	4064		agreement of merger or conso lidation may be terminated or amended
4152	4065
4153		-	SB649 HFLR Page 82
4154		-	BOLD FACE denotes Committee Amendments. 1
	4066	+	ENGR. S. B. NO. 649 Page 82 1
4155	4067		2
4156	4068		3
4157	4069		4
4158	4070		5
4159	4071		6
4160	4072		7
4161	4073		8
4162	4074		9
4163	4075		10
4164	4076		11
4165	4077		12
4166	4078		13
4167	4079		14
4168	4080		15
4169	4081		16
4170	4082		17
4171	4083		18
4172	4084		19
4173	4085		20
4174	4086		21
4175	4087		22
4176	4088		23
4177	4089		24
4178	4090
4179	4091		under a provision for such termination or amendment contained in the
4180	4092		agreement of merger or consolidation.
4181	4093		B. If a registered series is merging or consolidating under
4182	4094		this section, the regi stered series surviving or re sulting in or
4183	4095		from the merger or consolidation shall file articles of merger or
4184	4096		consolidation of registered series exec uted by one or more
4185	4097		authorized persons on behalf of the registered series when it is th e
4186	4098		surviving or resulting registered series in the Office of the
4187	4099		Secretary of State. The articles of merger or consolidation of
4188	4100		registered series shall state:
4189	4101		1. The name of each registered series whic h is to merge or
4190	4102		consolidate and the name of the limit ed liability company that
4191	4103		formed the registered series;
4192	4104		2. That an agreement of merger or consolidation ha s been
4193	4105		approved and executed by or on behalf of each registere d series
4194	4106		which is to merge or co nsolidate;
4195	4107		3. The name of the surviving or resulting registered series;
4196	4108		4. Such amendment, if any, to the articles of registered series
4197	4109		of the registered series that is the surviving registered series to
4198	4110		change the name of the surviving registered series , as is desired to
4199	4111		be effected by the merger;
4200	4112		5. The future effective date or time, which shall be a date or
4201	4113		time certain, of the merger or consolidation if it i s not to be
4202	4114
4203		-	SB649 HFLR Page 83
4204		-	BOLD FACE denotes Committee Amendments. 1
	4115	+	ENGR. S. B. NO. 649 Page 83 1
4205	4116		2
4206	4117		3
4207	4118		4
4208	4119		5
4209	4120		6
4210	4121		7
4211	4122		8
4212	4123		9
4213	4124		10
4214	4125		11
4215	4126		12
4216	4127		13
4217	4128		14
4218	4129		15
4219	4130		16
4220	4131		17
4221	4132		18
4222	4133		19
4223	4134		20
4224	4135		21
4225	4136		22
4226	4137		23
4227	4138		24
4228	4139
4229	4140		effective upon the filing of the articles of merger or consolidation
4230	4141		of registered series;
4231	4142		6. That the agreement of merger or consolida tion is on file at
4232	4143		a place of business of the surviving o r resulting registered series
4233	4144		or the limited liabil ity company that formed such registered series,
4234	4145		and shall state the address thereof; and
4235	4146		7. That a copy of the agreement of merger or consolidation will
4236	4147		be furnished by the surviving or resulting registere d series, on
4237	4148		request and without cost, to any memb er of any registered series
4238	4149		which is to merge or consolidate.
4239	4150		C. Unless a future effective da te or time is provided in
4240	4151		articles of merger or consolidation of registered series, a merger
4241	4152		or consolidation under this section shall be effective upon the
4242	4153		filing in the Office of the Secretary of State of articles of merger
4243	4154		or consolidation of registered series.
4244	4155		D. Articles of merger or consolidation of re gistered series
4245	4156		cancel the articles of registered series of the registered series
4246	4157		which is not the surviving or resulting registered series in the
4247	4158		merger or consolidation . Articles of merger or consoli dation of
4248	4159		registered series that set forth any amendment in accordance wit h
4249	4160		paragraph 4 of subsection B of this section is deemed to be an
4250	4161		amendment to the articles of registered series of the surviving
4251	4162		registered series, an d no further action shall be required to amend
4252	4163		the articles of registered series of the surviving regist ered series
4253	4164
4254		-	SB649 HFLR Page 84
4255		-	BOLD FACE denotes Committee Amendments. 1
	4165	+	ENGR. S. B. NO. 649 Page 84 1
4256	4166		2
4257	4167		3
4258	4168		4
4259	4169		5
4260	4170		6
4261	4171		7
4262	4172		8
4263	4173		9
4264	4174		10
4265	4175		11
4266	4176		12
4267	4177		13
4268	4178		14
4269	4179		15
4270	4180		16
4271	4181		17
4272	4182		18
4273	4183		19
4274	4184		20
4275	4185		21
4276	4186		22
4277	4187		23
4278	4188		24
4279	4189
4280	4190		under Section 14 of this act with respect to such amendments set
4281	4191		forth in such articles of merger or consolidation. Whenever this
4282	4192		section requires the filing of articles of merger or consolidation
4283	4193		of registered series, suc h requirement is deemed satisfied by the
4284	4194		filing of an agreement of mer ger or consolidation containing the
4285	4195		information required by this section to be set forth in such
4286	4196		articles of merger or consolidation .
4287	4197		E. An agreement of merger or consolidation approved in
4288	4198		accordance with subsection A of this section may effect any
4289	4199		amendment to the operating agreement relating solely to the
4290	4200		registered series that are constituent parties to the merger or
4291	4201		consolidation. Any amendment to an operating agreement relating
4292	4202		solely to the registered series that are constituent parties to the
4293	4203		merger or consolidation made under this subsection shall be
4294	4204		effective at the effective time or date of the m erger or
4295	4205		consolidation and sh all be effective notwithstanding any provision
4296	4206		of the operating agreement relating to amendment o f the operating
4297	4207		agreement, other than a provision that by its ter ms applies to an
4298	4208		amendment to the operating agreement in connection with a merger or
4299	4209		consolidation. The provisions of this subsection shall not be
4300	4210		construed to limit th e accomplishment of a m erger or of any of the
4301	4211		matters referred to herein by any other m eans provided for in an
4302	4212		operating agreement or other agreement or as otherwise permitted by
4303	4213		law, including that the operating agreement relating to any
4304	4214
4305		-	SB649 HFLR Page 85
4306		-	BOLD FACE denotes Committee Amendments. 1
	4215	+	ENGR. S. B. NO. 649 Page 85 1
4307	4216		2
4308	4217		3
4309	4218		4
4310	4219		5
4311	4220		6
4312	4221		7
4313	4222		8
4314	4223		9
4315	4224		10
4316	4225		11
4317	4226		12
4318	4227		13
4319	4228		14
4320	4229		15
4321	4230		16
4322	4231		17
4323	4232		18
4324	4233		19
4325	4234		20
4326	4235		21
4327	4236		22
4328	4237		23
4329	4238		24
4330	4239
4331	4240		constituent registered series to the mer ger or consolidation ,
4332	4241		including a registered series formed for t he purpose of consummating
4333	4242		a merger or consolidation , shall be the operating agreement of the
4334	4243		surviving or resulting registered series.
4335	4244		F. When any merger or consolidat ion shall have become ef fective
4336	4245		under this section, for all purposes of the laws of th is state, all
4337	4246		of the rights, privileges , and powers of each of the registered
4338	4247		series that have merged or consolidated, and all property, real,
4339	4248		personal, and mixed, and all debts due to any of the registered
4340	4249		series, as well as all other things and causes of a ction belonging
4341	4250		to each of the registered series, shall be veste d in the surviving
4342	4251		or resulting registered series, and shall thereafter be the prop erty
4343	4252		of the surviving or resulting registered series as they were of e ach
4344	4253		of the registered series that have merged or consolidated. The
4345	4254		title to any real property vested b y deed or otherwise, under the
4346	4255		laws of this state, in any of the registered series, shall not
4347	4256		revert or be in any way impaired by reason of this act; but all
4348	4257		rights of creditors and all liens upon any property of any of the
4349	4258		registered series shall be prese rved unimpaired, and all debts,
4350	4259		liabilities, and duties of each of the registered series that have
4351	4260		merged or consolidated shall remain attached to the surviving or
4352	4261		resulting registered series, and may be enforced against it to the
4353	4262		same extent as if the debts, liabilities, and duties had been
4354	4263		incurred or contracted by it. Unless otherwise agreed , a merger or
4355	4264
4356		-	SB649 HFLR Page 86
4357		-	BOLD FACE denotes Committee Amendments. 1
	4265	+	ENGR. S. B. NO. 649 Page 86 1
4358	4266		2
4359	4267		3
4360	4268		4
4361	4269		5
4362	4270		6
4363	4271		7
4364	4272		8
4365	4273		9
4366	4274		10
4367	4275		11
4368	4276		12
4369	4277		13
4370	4278		14
4371	4279		15
4372	4280		16
4373	4281		17
4374	4282		18
4375	4283		19
4376	4284		20
4377	4285		21
4378	4286		22
4379	4287		23
4380	4288		24
4381	4289
4382	4290		consolidation of a registered series of a limited liability company,
4383	4291		including a registered series which is not the surviving or
4384	4292		resulting registered series in the merger or consolidation, shall
4385	4293		not require the registered series to wind up its affairs under
4386	4294		Section 14 of this act, or pay its liabilities and distribute its
4387	4295		assets under Section 14 of this act, and the merger or consolidation
4388	4296		shall not constitute a dissolution of the registered series.
4389	4297		G. An operating agreement may provide that a registered series
4390	4298		of a limited liability company shall not have the power to merge or
4391	4299		consolidate as set forth in this section.
4392	4300		SECTION 18. NEW LAW A new section of law to be codified
4393	4301		in the Oklahoma Statutes as Section 2054.9 of Title 18, unless there
4394	4302		is created a duplication in numbering, reads as follows:
4395	4303		DIVISION OF A LIMITED LIABILITY COMPANY
4396	4304		A. As used in this act:
4397	4305		1. “Dividing company” means the domestic limited liability
4398	4306		company that is effecting a division in the manner provided in this
4399	4307		section;
4400	4308		2. “Division” means the division of a dividing company into two
4401	4309		or more domestic limited liability companies in accordance with this
4402	4310		section;
4403	4311		3. “Division company” means a surviving company, if any, and
4404	4312		each resulting company ;
4405	4313
4406		-	SB649 HFLR Page 87
4407		-	BOLD FACE denotes Committee Amendments. 1
	4314	+	ENGR. S. B. NO. 649 Page 87 1
4408	4315		2
4409	4316		3
4410	4317		4
4411	4318		5
4412	4319		6
4413	4320		7
4414	4321		8
4415	4322		9
4416	4323		10
4417	4324		11
4418	4325		12
4419	4326		13
4420	4327		14
4421	4328		15
4422	4329		16
4423	4330		17
4424	4331		18
4425	4332		19
4426	4333		20
4427	4334		21
4428	4335		22
4429	4336		23
4430	4337		24
4431	4338
4432	4339		4. “Division contact” means, in connection with any division, a
4433	4340		natural person who is a resident of this state, any division company
4434	4341		in the division or any other domestic limited liability company, or
4435	4342		other entity as defined in Section 2054 of Title 18 of the Oklahoma
4436	4343		Statutes formed or organized under the laws of this state, which
4437	4344		division contact shall maintain a copy of the plan of division for a
4438	4345		period of six (6) years from the effective date of the division and
4439	4346		shall comply with paragraph 3 of subsection G of this section;
4440	4347		5. “Organizational docume nts” means the articles of
4441	4348		organization and operating agreement of a domestic limited liability
4442	4349		company;
4443	4350		6. “Resulting company” means a domestic limited liability
4444	4351		company formed as a consequence of a division ; and
4445	4352		7. “Surviving company” means a dividing company that survives
4446	4353		the division.
4447	4354		B. Under a plan of division, any domestic limited liability
4448	4355		company may, in the manner provided in this section, be divided into
4449	4356		two or more domestic limited liability companies. The division of a
4450	4357		domestic limited liab ility company in accordance with this section
4451	4358		and, if applicable, the resulting cessation of the existence of the
4452	4359		dividing company under articles of division shall not be deemed to
4453	4360		affect the personal liability of any person incurred before the
4454	4361		division with respect to matters arising before the division, nor
4455	4362		shall it be deemed to affect the validity or enforc eability of any
4456	4363
4457		-	SB649 HFLR Page 88
4458		-	BOLD FACE denotes Committee Amendments. 1
	4364	+	ENGR. S. B. NO. 649 Page 88 1
4459	4365		2
4460	4366		3
4461	4367		4
4462	4368		5
4463	4369		6
4464	4370		7
4465	4371		8
4466	4372		9
4467	4373		10
4468	4374		11
4469	4375		12
4470	4376		13
4471	4377		14
4472	4378		15
4473	4379		16
4474	4380		17
4475	4381		18
4476	4382		19
4477	4383		20
4478	4384		21
4479	4385		22
4480	4386		23
4481	4387		24
4482	4388
4483	4389		obligations or liabilities of the dividing company incurred before
4484	4390		the division; provided, that the obligations and liabilities of the
4485	4391		dividing company shall be allocated to and vested in, and valid and
4486	4392		enforceable obligations of, the divis ion company or companies to
4487	4393		which the obligations and liabilities have been allocated under the
4488	4394		plan of division, as provided in subsection H of this section. Each
4489	4395		resulting company in a division shall be formed in compliance with
4490	4396		the requirements of this act and subsection H of this section.
4491	4397		C. If the operating agreement of the dividing company specifies
4492	4398		the manner of adopting a plan of division, the plan of division
4493	4399		shall be adopted as specified in the operating agreement. If the
4494	4400		operating agreement of the dividing company does not specify the
4495	4401		manner of adopting a plan of divi sion and does not prohibit a
4496	4402		division of the limited liability company, th e plan of division
4497	4403		shall be adopted in the same manner as is specified in the operating
4498	4404		agreement for authorizing a merger or consolidation that involves
4499	4405		the limited liability company as a constituent party to the merger
4500	4406		or consolidation. If the operating agreement of the dividing
4501	4407		company does not specify the manner of adopting a plan of division
4502	4408		or authorizing a merger or consolidation that involves the limited
4503	4409		liability company as a constituent party and does not prohibit a
4504	4410		division of the limited liabil ity company, the adoption of a plan of
4505	4411		division shall be authorized by the approval of members who own a
4506	4412		majority of the then current percentage or other interest in the
4507	4413
4508		-	SB649 HFLR Page 89
4509		-	BOLD FACE denotes Committee Amendments. 1
	4414	+	ENGR. S. B. NO. 649 Page 89 1
4510	4415		2
4511	4416		3
4512	4417		4
4513	4418		5
4514	4419		6
4515	4420		7
4516	4421		8
4517	4422		9
4518	4423		10
4519	4424		11
4520	4425		12
4521	4426		13
4522	4427		14
4523	4428		15
4524	4429		16
4525	4430		17
4526	4431		18
4527	4432		19
4528	4433		20
4529	4434		21
4530	4435		22
4531	4436		23
4532	4437		24
4533	4438
4534	4439		profits of the dividing company owned by all of the members.
4535	4440		Notwithstanding prior ap proval, a plan of division may be terminated
4536	4441		or amended under a provision for the termination or amendment
4537	4442		contained in the plan of division.
4538	4443		D. Unless otherwise provided in a plan of division, the
4539	4444		division of a domestic limited liability company under this section
4540	4445		shall not require the limited liability company to wind up its
4541	4446		affairs under Section 2039 of Title 18 of the Oklahoma Statutes or
4542	4447		pay its liabilities and distribute its as sets under Section 2040 of
4543	4448		Title 18 of the Oklahoma S tatutes, and the division shall not
4544	4449		constitute a dissolution of the limited liability company.
4545	4450		E. In connection with a divisio n under this section, rights or
4546	4451		securities of, or interests in, the dividing company may be
4547	4452		exchanged for or converted into cash, property, rights , or
4548	4453		securities of, or interests in, the surviving company or any
4549	4454		resulting company or, in addition to or in li eu thereof, may be
4550	4455		exchanged for or converted into cash, property, rights, or
4551	4456		securities of, or interests in, a domestic limited liability company
4552	4457		or any other business entity which is not a division company or may
4553	4458		be canceled or remain outstanding , if the dividing company is a
4554	4459		surviving company.
4555	4460		F. A plan of division adopted in a ccordance with subsection C
4556	4461		of this section:
4557	4462
4558		-	SB649 HFLR Page 90
4559		-	BOLD FACE denotes Committee Amendments. 1
	4463	+	ENGR. S. B. NO. 649 Page 90 1
4560	4464		2
4561	4465		3
4562	4466		4
4563	4467		5
4564	4468		6
4565	4469		7
4566	4470		8
4567	4471		9
4568	4472		10
4569	4473		11
4570	4474		12
4571	4475		13
4572	4476		14
4573	4477		15
4574	4478		16
4575	4479		17
4576	4480		18
4577	4481		19
4578	4482		20
4579	4483		21
4580	4484		22
4581	4485		23
4582	4486		24
4583	4487
4584	4488		1. May effect any amendment to the operating agreement of the
4585	4489		dividing company if it is a surviving company in the division; or
4586	4490		2. May effect the adoption of a new operating agreement for the
4587	4491		dividing company if it is a surviving company in the division; and
4588	4492		3. Shall effect the adoption of an operating agreement for each
4589	4493		resulting company. Any amendment to an operating agreement or
4590	4494		adoption of a new operating agreement for the dividin g company, if
4591	4495		it is a surviving company in the division, or adoption of a n
4592	4496		operating agreement for each resulting company made under the
4593	4497		foregoing sentence shall be effective at the effective time or date
4594	4498		of the division. Any amendment to an operating agreement or
4595	4499		adoption of an operating agreement for the dividing company, if it
4596	4500		is a surviving company in the division, shall be effective
4597	4501		notwithstanding any provision in the operating agreement of the
4598	4502		dividing company relating to amendment or adoption of a new
4599	4503		operating agreement, other than a provision that by its terms
4600	4504		applies to an amendment to the operating agreement or the adoption
4601	4505		of a new operating agreement, in either case, in connection with a
4602	4506		division, merger, or consolidation.
4603	4507		G. If a domestic limited liability company is dividing under
4604	4508		this section, the dividing company shall adopt a plan of division
4605	4509		which shall set forth:
4606	4510		1. The terms and conditions of the division, including:
4607	4511
4608		-	SB649 HFLR Page 91
4609		-	BOLD FACE denotes Committee Amendments. 1
	4512	+	ENGR. S. B. NO. 649 Page 91 1
4610	4513		2
4611	4514		3
4612	4515		4
4613	4516		5
4614	4517		6
4615	4518		7
4616	4519		8
4617	4520		9
4618	4521		10
4619	4522		11
4620	4523		12
4621	4524		13
4622	4525		14
4623	4526		15
4624	4527		16
4625	4528		17
4626	4529		18
4627	4530		19
4628	4531		20
4629	4532		21
4630	4533		22
4631	4534		23
4632	4535		24
4633	4536
4634	4537		a. any conversion or exchange of the membership interests
4635	4538		of the dividing company into or for membership
4636	4539		interests or other securities or obligations of any
4637	4540		division company or cash, property, or rights or
4638	4541		securities or obligations of or interests in any other
4639	4542		business entity or domestic limited liability company
4640	4543		which is not a division company, or that the
4641	4544		membership interests of the dividing company shall
4642	4545		remain outstanding or be canceled, or any combination
4643	4546		of the foregoing, and
4644	4547		b. the allocation of assets, property, right s, series,
4645	4548		debts, liabilities, and duties of the dividing company
4646	4549		among the division companies;
4647	4550		2. The name of each resulting company and, if the di viding
4648	4551		company will survive the division, the name of the surviving
4649	4552		company;
4650	4553		3. The name and business addre ss of a division contact which
4651	4554		shall have custody of a copy of the plan of division. The division
4652	4555		contact, or any successor division contact, shall serve for a period
4653	4556		of six (6) years following the effective date of the division.
4654	4557		During the six-year period the division contact shall provide,
4655	4558		without cost, to any creditor of the dividing company, within thirty
4656	4559		(30) days following the division con tact’s receipt of a written
4657	4560		request from any creditor of the dividing company, the name and
4658	4561
4659		-	SB649 HFLR Page 92
4660		-	BOLD FACE denotes Committee Amendments. 1
	4562	+	ENGR. S. B. NO. 649 Page 92 1
4661	4563		2
4662	4564		3
4663	4565		4
4664	4566		5
4665	4567		6
4666	4568		7
4667	4569		8
4668	4570		9
4669	4571		10
4670	4572		11
4671	4573		12
4672	4574		13
4673	4575		14
4674	4576		15
4675	4577		16
4676	4578		17
4677	4579		18
4678	4580		19
4679	4581		20
4680	4582		21
4681	4583		22
4682	4584		23
4683	4585		24
4684	4586
4685	4587		business address of the division company to which the claim of the
4686	4588		creditor was allocated under the plan of division; and
4687	4589		4. Any other matters that the dividing co mpany determines to
4688	4590		include therein.
4689	4591		H. If a domestic limited liability company divides under this
4690	4592		section, the dividing company shall file articles of division
4691	4593		executed by one or m ore authorized persons on behalf of the dividing
4692	4594		company in the Office of the Secretary of State in accordance with
4693	4595		Section 2006 of Title 18 of the Oklahoma Statutes and articles of
4694	4596		organization that comply with Section 2005 of Title 18 of the
4695	4597		Oklahoma Statutes for each resulting company executed by one or more
4696	4598		authorized persons in accordance with Section 2006 of Title 18 of
4697	4599		the Oklahoma Statutes. The articles of division shall state:
4698	4600		1. The name of the dividing company and, if it has been
4699	4601		changed, the name under which its articles of organization were
4700	4602		originally filed and whether the dividing company is a surviving
4701	4603		company;
4702	4604		2. The date of filing of the dividing company ’s original
4703	4605		articles of organization with the Secretary of State;
4704	4606		3. The name of each div ision company;
4705	4607		4. The name and business address of the division contact
4706	4608		required by paragraph 3 of subsection G of this section;
4707	4609
4708		-	SB649 HFLR Page 93
4709		-	BOLD FACE denotes Committee Amendments. 1
	4610	+	ENGR. S. B. NO. 649 Page 93 1
4710	4611		2
4711	4612		3
4712	4613		4
4713	4614		5
4714	4615		6
4715	4616		7
4716	4617		8
4717	4618		9
4718	4619		10
4719	4620		11
4720	4621		12
4721	4622		13
4722	4623		14
4723	4624		15
4724	4625		16
4725	4626		17
4726	4627		18
4727	4628		19
4728	4629		20
4729	4630		21
4730	4631		22
4731	4632		23
4732	4633		24
4733	4634
4734	4635		5. The future effective date or time , which shall be a date or
4735	4636		time certain, of the division if it is not to be effective upon the
4736	4637		filing of the articles of division;
4737	4638		6. That the division has been a pproved in accordance with this
4738	4639		section;
4739	4640		7. That the plan of division is on file at a place of business
4740	4641		of the division company as is specified therein, and shall state the
4741	4642		address thereof;
4742	4643		8. That a copy of the plan of division will be furnished by the
4743	4644		division company as is specified therein, on request and without
4744	4645		cost, to any member of the dividing company ; and
4745	4646		9. Any other information the dividing company determines to
4746	4647		include therein.
4747	4648		I. The articles of division and each of the articles of
4748	4649		organization for each resulting company required by subsection H of
4749	4650		this section shall be filed simultaneously in t he Office of the
4750	4651		Secretary of State and, if the articles are not to become effective
4751	4652		upon their filing as permitted by subsection C of Section 2007 of
4752	4653		Title 18 of the Oklahoma Statutes, then each of the articles shall
4753	4654		provide for the same effective date or time in accordance with
4754	4655		subsection C of Section 2007 of Title 18 of the Oklahoma Statutes.
4755	4656		Concurrently with the effective date or time of a division, the
4756	4657		operating agreement of each resulting company shall become
4757	4658		effective.
4758	4659
4759		-	SB649 HFLR Page 94
4760		-	BOLD FACE denotes Committee Amendments. 1
	4660	+	ENGR. S. B. NO. 649 Page 94 1
4761	4661		2
4762	4662		3
4763	4663		4
4764	4664		5
4765	4665		6
4766	4666		7
4767	4667		8
4768	4668		9
4769	4669		10
4770	4670		11
4771	4671		12
4772	4672		13
4773	4673		14
4774	4674		15
4775	4675		16
4776	4676		17
4777	4677		18
4778	4678		19
4779	4679		20
4780	4680		21
4781	4681		22
4782	4682		23
4783	4683		24
4784	4684
4785	4685		J. The articles of division shall act as a cancellation of the
4786	4686		articles of organization for a dividing company which is not a
4787	4687		surviving company.
4788	4688		K. An operating agreement may provide that a domestic limited
4789	4689		liability company shall not have the power to divide a s set forth in
4790	4690		this section.
4791	4691		L. Upon the division of a domestic limited liability company
4792	4692		becoming effective:
4793	4693		1. The dividing company shall be divided into the distinct and
4794	4694		independent resulting companies named in the plan of division, and,
4795	4695		if the dividing company is not a surviving company, the existence of
4796	4696		the dividing company shall cease;
4797	4697		2. For all purposes of the laws of th is state, all of the
4798	4698		rights, privileges, and powers, and all the property, real,
4799	4699		personal, and mixed, of the dividing company and all debts due on
4800	4700		whatever account to it, and all other things and other causes of
4801	4701		action belonging to it, shall without further action be allocated to
4802	4702		and vested in the applicable division company in the manner and
4803	4703		basis and with the effect as is specified in the plan of divi sion,
4804	4704		and the title to any real property or interest therein allocated to
4805	4705		and vested in any division company shall not revert or be in any way
4806	4706		impaired by reason of the division;
4807	4707		3. Each division company shall, from and after effectiveness of
4808	4708		the articles of division, be liable as a separate and distinct
4809	4709
4810		-	SB649 HFLR Page 95
4811		-	BOLD FACE denotes Committee Amendments. 1
	4710	+	ENGR. S. B. NO. 649 Page 95 1
4812	4711		2
4813	4712		3
4814	4713		4
4815	4714		5
4816	4715		6
4817	4716		7
4818	4717		8
4819	4718		9
4820	4719		10
4821	4720		11
4822	4721		12
4823	4722		13
4824	4723		14
4825	4724		15
4826	4725		16
4827	4726		17
4828	4727		18
4829	4728		19
4830	4729		20
4831	4730		21
4832	4731		22
4833	4732		23
4834	4733		24
4835	4734
4836	4735		domestic limited liabil ity company for the debts, liabilities , and
4837	4736		duties of the dividing company as are allocated to the division
4838	4737		company under the plan of division in the manner and on the basis
4839	4738		provided in subparagraph b of paragraph 1 of subsection G of this
4840	4739		section;
4841	4740		4. Each of the debts, liabilities , and duties of the dividing
4842	4741		company shall withou t further action be allocated to and be the
4843	4742		debts, liabilities, and duties of the division company as is
4844	4743		specified in the plan of division as having the debts, liabilities,
4845	4744		and duties allocated to it, in the manner and basis and with the
4846	4745		effect as is specified in the plan of division, and no other
4847	4746		division company shall be liable therefor, so long as the plan of
4848	4747		division does not constitute a fraudulent transfer under applicable
4849	4748		law, and all liens upon any property of the dividing company shall
4850	4749		be preserved unimpaired, and all debts, liabilities, and duties of
4851	4750		the dividing company shall remain attached to the divi sion company
4852	4751		to which the debts, liabilities, and duties have been allocated in
4853	4752		the plan of division, and may be enforced against the division
4854	4753		company to the same extent as if the debts, liabilities, and duties
4855	4754		had originally been incurred or contracted by it in its capacity as
4856	4755		a domestic limited liability company ;
4857	4756		5. In the event that any allocation of assets, debts,
4858	4757		liabilities, and duties to division companies in accordance with a
4859	4758		plan of division is determined by a court of competent jurisdiction
4860	4759
4861		-	SB649 HFLR Page 96
4862		-	BOLD FACE denotes Committee Amendments. 1
	4760	+	ENGR. S. B. NO. 649 Page 96 1
4863	4761		2
4864	4762		3
4865	4763		4
4866	4764		5
4867	4765		6
4868	4766		7
4869	4767		8
4870	4768		9
4871	4769		10
4872	4770		11
4873	4771		12
4874	4772		13
4875	4773		14
4876	4774		15
4877	4775		16
4878	4776		17
4879	4777		18
4880	4778		19
4881	4779		20
4882	4780		21
4883	4781		22
4884	4782		23
4885	4783		24
4886	4784
4887	4785		to constitute a fraudulent transfer, each division company shall be
4888	4786		jointly and severally liable on account of the fraudulent transfer
4889	4787		notwithstanding the allocations made in the plan of division;
4890	4788		provided, however, the validity and effectiveness of the division
4891	4789		are not otherwise affected thereby;
4892	4790		6. Debts and liabilities of the divid ing company that are not
4893	4791		allocated by the plan of division shall be the joint and several
4894	4792		debts and liabilities of all of the division companies;
4895	4793		7. It shall not be necessary for a plan of division to list
4896	4794		each individual asset, property, right, series, d ebt, liability, or
4897	4795		duty of the dividing company to be allocated to a divisi on company
4898	4796		so long as the assets, property, rights, series, debts, liabilities,
4899	4797		or duties so allocated are re asonably identified by any method where
4900	4798		the identity of the assets, proper ty, rights, series, debts,
4901	4799		liabilities, or duties is objectively determinab le;
4902	4800		8. The rights, privileges, powers, and interests in property of
4903	4801		the dividing company that have been al located to a division company,
4904	4802		as well as the debts, liabilities, and duties of the dividing
4905	4803		company that have been allocated to the division company under a
4906	4804		plan of division, shall remain vested in the division company and
4907	4805		shall not be deemed, as a result of the division, to have been
4908	4806		assigned or transferred to the division c ompany for any purpose of
4909	4807		the laws of this state; and
4910	4808
4911		-	SB649 HFLR Page 97
4912		-	BOLD FACE denotes Committee Amendments. 1
	4809	+	ENGR. S. B. NO. 649 Page 97 1
4913	4810		2
4914	4811		3
4915	4812		4
4916	4813		5
4917	4814		6
4918	4815		7
4919	4816		8
4920	4817		9
4921	4818		10
4922	4819		11
4923	4820		12
4924	4821		13
4925	4822		14
4926	4823		15
4927	4824		16
4928	4825		17
4929	4826		18
4930	4827		19
4931	4828		20
4932	4829		21
4933	4830		22
4934	4831		23
4935	4832		24
4936	4833
4937	4834		9. Any action or pr oceeding pending against a dividing company
4938	4835		may be continued against the surviving company as if the divisio n
4939	4836		did not occur, but subject to paragraph 4 of subsection L of this
4940	4837		section and against any resulting company to which the asset,
4941	4838		property, right, series, debt, liability, or duty associated with
4942	4839		the action or proceeding was allocated under the plan of division by
4943	4840		adding or substituting the resulting company as a party in the
4944	4841		action or proceeding.
4945	4842		M. In applying the provisions of this act on distributions, a
4946	4843		direct or indirect allocation of property or liabilities in a
4947	4844		division is not deemed a distribution for purposes of this act.
4948	4845		N. The provisions of this section shall not be construed to
4949	4846		limit the means of accomplishing a division by any other means
4950	4847		provided for in an operating agreement or other agreement or as
4951	4848		otherwise permitted by this act or as otherwise permitted by law.
4952	4849		O. All limited liability companies formed on or a fter November
4953	4850		1, 2023, shall be governed by this section. All limited liability
4954	4851		companies formed before November 1, 2023, shall be governed by this
4955	4852		section; provided, that if the di viding company is a party to any
4956	4853		written contract, indenture , or other agreement entered into before
4957	4854		November 1, 2023, that, by its terms, restricts, conditions, or
4958	4855		prohibits the consummation of a merger or consolidation by the
4959	4856		dividing company with or into another party, or the transfer of
4960	4857		assets by the dividing company to anothe r party, then the
4961	4858
4962		-	SB649 HFLR Page 98
4963		-	BOLD FACE denotes Committee Amendments. 1
	4859	+	ENGR. S. B. NO. 649 Page 98 1
4964	4860		2
4965	4861		3
4966	4862		4
4967	4863		5
4968	4864		6
4969	4865		7
4970	4866		8
4971	4867		9
4972	4868		10
4973	4869		11
4974	4870		12
4975	4871		13
4976	4872		14
4977	4873		15
4978	4874		16
4979	4875		17
4980	4876		18
4981	4877		19
4982	4878		20
4983	4879		21
4984	4880		22
4985	4881		23
4986	4882		24
4987	4883
4988	4884		restriction, condition , or prohibition is deemed to apply to a
4989	4885		division as if it were a merger, consolidation, or transfer of
4990	4886		assets, as applicable.
4991	4887		SECTION 19. AMENDATORY 18 O.S. 2021, Section 2055, is
4992	4888		amended to read as follows:
4993	4889		Section 2055. The Secretary of State shall charge and colle ct
4994	4890		the following fees:
4995	4891		1. For filing the original articles of organization, a fee of
4996	4892		One Hundred Dollars ($100.00);
4997	4893		2. For filing amended, corrected or restated articles of
4998	4894		organization, including amended and restated articles of
4999	4895		organization, a fee of Fifty Dollars ($50.00);
5000	4896		3. For filing articles of correction, amendment , merger or
5001	4897		consolidation, registered series, conversion, or divi sion and
5002	4898		issuing a certificate of correction, amendment, merger or
5003	4899		consolidation or filing articles of, registered series, conversion,
5004	4900		or division, a fee of One Hundred Dollars ($100.00);
5005	4901		4. For filing articles of dissolut ion and issuing a certificate
5006	4902		of cancellation, a fee of Fifty Dollars ($50.00);
5007	4903		5. For filing a certificate of cor rection of statements in an
5008	4904		application for registration of a foreign limited liability company,
5009	4905		a fee of One Hundred Dollars ($100.00);
5010	4906		6. For issuing a certificate for any purpose wha tsoever, a fee
5011	4907		of Ten Dollars ($10.0 0);
5012	4908
5013		-	SB649 HFLR Page 99
5014		-	BOLD FACE denotes Committee Amendments. 1
	4909	+	ENGR. S. B. NO. 649 Page 99 1
5015	4910		2
5016	4911		3
5017	4912		4
5018	4913		5
5019	4914		6
5020	4915		7
5021	4916		8
5022	4917		9
5023	4918		10
5024	4919		11
5025	4920		12
5026	4921		13
5027	4922		14
5028	4923		15
5029	4924		16
5030	4925		17
5031	4926		18
5032	4927		19
5033	4928		20
5034	4929		21
5035	4930		22
5036	4931		23
5037	4932		24
5038	4933
5039	4934		7. For filing an application for reservation of a name, or for
5040	4935		filing a notice of the transfer or cancellation of any name
5041	4936		reservation, a fee of Ten Dollars ($10.00);
5042	4937		8. For filing a statement of change of address of the principal
5043	4938		office or change of resident agent, or both, a fee of Twenty-five
5044	4939		Dollars ($25.00);
5045	4940		9. For filing a change of address for an individual,
5046	4941		corporation, limited li ability company or limited partne rship
5047	4942		designated by a limited liability compa ny as its registered agent
5048	4943		for service of process, for change of name of registered agent or
5049	4944		for the resignation of a registered agent, a fee of Twenty-five
5050	4945		Dollars ($25.00) for the first forty corporations and Five Dollars
5051	4946		($5.00) for each additional corp oration within any bulk filing;
5052	4947		10. For filing an application for reg istration as a foreign
5053	4948		limited liability company, a fee of Three Hundred Dollars ($300.00);
5054	4949		11. For filing an application of withdrawal as p rovided in
5055	4950		Section 2047 of this title, a fee of One Hundred Dollars ($100.00);
5056	4951		12. For any service of notice, dema nd, or process upon the
5057	4952		Secretary of State as resident agent of a limited liability company
5058	4953		or registered series, a fee of Twenty-five Dollars ($25.00), which
5059	4954		amount may be recovered as taxable costs by the party to be sued,
5060	4955		action, or proceeding causing s uch service to be made if such party
5061	4956		prevails therein; and
5062	4957
5063		-	SB649 HFLR Page 100
5064		-	BOLD FACE denotes Committee Amendments. 1
	4958	+	ENGR. S. B. NO. 649 Page 100 1
5065	4959		2
5066	4960		3
5067	4961		4
5068	4962		5
5069	4963		6
5070	4964		7
5071	4965		8
5072	4966		9
5073	4967		10
5074	4968		11
5075	4969		12
5076	4970		13
5077	4971		14
5078	4972		15
5079	4973		16
5080	4974		17
5081	4975		18
5082	4976		19
5083	4977		20
5084	4978		21
5085	4979		22
5086	4980		23
5087	4981		24
5088	4982
5089	4983		13. For acting as the registered agent of a limited liability
5090	4984		company or registered series, a fee of Forty Dollars ($40.00) shall
5091	4985		be paid on July 1 each year to the Office of the Secretary of Stat e.
5092	4986		All fees shall be properly accounte d for and shall be paid into
5093	4987		the State Treasury monthly. All fees rec eived by the Secretary of
5094	4988		State pursuant to the provisions of this section shall be p aid to
5095	4989		the credit of the Revolving Fund for the Office of the S ecretary of
5096	4990		State created pursuant to Section 276.1 of Title 62 of the Oklahoma
5097	4991		Statutes.
5098	4992		SECTION 20. AMENDATORY 18 O.S. 2021, Section 2055.1, is
5099	4993		amended to read as follows:
5100	4994		Section 2055.1.
5101	4995		FAILURE TO PAY REGISTERED AGENT FEES
5102	4996		A domestic or foreign limi ted liability company or registered
5103	4997		series for which the Secretary of State acts as the registered agent
5104	4998		that fails to pay the registered agent fee by the due dat e as
5105	4999		provided in paragraph 12 of Section 2055 of this title shall be
5106	5000		subject to the provisions of Sections 29 2012.1 and 39 2055.2 of
5107	5001		this act title.
5108	5002		SECTION 21. AMENDATORY 18 O.S. 2021, S ection 2055.2, is
5109	5003		amended to read as follows:
5110	5004		Section 2055.2.
5111	5005		ANNUAL CERTIFICATE FOR DOMESTIC LIMITED LIABILITY COMPANY AND
5112	5006		REGISTERED SERIES AND FOREIGN LIMITED LIABILITY COMPANY
5113	5007
5114		-	SB649 HFLR Page 101
5115		-	BOLD FACE denotes Committee Amendments. 1
	5008	+	ENGR. S. B. NO. 649 Page 101 1
5116	5009		2
5117	5010		3
5118	5011		4
5119	5012		5
5120	5013		6
5121	5014		7
5122	5015		8
5123	5016		9
5124	5017		10
5125	5018		11
5126	5019		12
5127	5020		13
5128	5021		14
5129	5022		15
5130	5023		16
5131	5024		17
5132	5025		18
5133	5026		19
5134	5027		20
5135	5028		21
5136	5029		22
5137	5030		23
5138	5031		24
5139	5032
5140	5033		A. Every domestic limited liability compa ny and every foreign
5141	5034		limited liability company registered to do business in this state
5142	5035		shall file a certificate e ach year in the Office of the Secretary of
5143	5036		State, which confirms it is an active business and includes its
5144	5037		principal place of business address, and shall pay an annual
5145	5038		certificate fee of Twenty-five Dollars ($25.00).
5146	5039		B. The annual certificate shall be due on the anniversary date
5147	5040		of filing the articles of organization , articles of registered
5148	5041		series, or registration, as the case may be, until canc ellation of
5149	5042		the articles of organi zation or articles of registered series or
5150	5043		withdrawal of the registration.
5151	5044		C. The Secretary of State shall, at least sixty (60) days
5152	5045		before the anniversary date of each year, cause a notice of the
5153	5046		annual certificate to be sent to each domestic limited lia bility
5154	5047		company and registered series and each foreign limited liability
5155	5048		company and registered series required to comply with the provisions
5156	5049		of this section to its last known electronic mail address of record
5157	5050		with the Secretary of State.
5158	5051		D. A domestic limited liability company or registered series or
5159	5052		foreign limited liability compan y or registered series that fails to
5160	5053		file the annual certificate and pay t he annual certificate fee
5161	5054		within sixty (60) days after the date due s hall cease to be in good
5162	5055		standing as a domestic limited liability company or registered
5163	5056
5164		-	SB649 HFLR Page 102
5165		-	BOLD FACE denotes Committee Amendments. 1
	5057	+	ENGR. S. B. NO. 649 Page 102 1
5166	5058		2
5167	5059		3
5168	5060		4
5169	5061		5
5170	5062		6
5171	5063		7
5172	5064		8
5173	5065		9
5174	5066		10
5175	5067		11
5176	5068		12
5177	5069		13
5178	5070		14
5179	5071		15
5180	5072		16
5181	5073		17
5182	5074		18
5183	5075		19
5184	5076		20
5185	5077		21
5186	5078		22
5187	5079		23
5188	5080		24
5189	5081
5190	5082		series or registered as a foreign limited liability company or
5191	5083		registered series in this state.
5192	5084		E. Except for accepting a resignation of a registered agent
5193	5085		when a successor registered agent is not bein g appointed or an
5194	5086		application for reinstatemen t, the Secretary of State shall n ot
5195	5087		accept for filing any certificate or articles, or issue any
5196	5088		certificate of good standing, in respect to any domestic limited
5197	5089		liability company or registered series that has ceased to be in good
5198	5090		standing or foreign limite d liability company or registered series
5199	5091		that has ceased to be registered, unless or until the domestic
5200	5092		limited liability company or registered series has been reinstated
5201	5093		as a domestic limited liability company in good standing or the
5202	5094		foreign limited liability company or registered series has been
5203	5095		reinstated as a foreign limited liability company or registered
5204	5096		series duly registered in this state.
5205	5097		F. A domestic limited liability company or registered series
5206	5098		that has ceased to be in good standing or a foreign limited
5207	5099		liability company or registered series that has ceased to be
5208	5100		registered in this state may not ma intain any action, suit or
5209	5101		proceeding in any court of this state unti l the domestic limited
5210	5102		liability company or registered series has been reinstated as a
5211	5103		domestic limited liabilit y company in good standing or the foreign
5212	5104		limited liability company or registered series has been reinstated
5213	5105		as a foreign limited liability comp any or registered series duly
5214	5106
5215		-	SB649 HFLR Page 103
5216		-	BOLD FACE denotes Committee Amendments. 1
	5107	+	ENGR. S. B. NO. 649 Page 103 1
5217	5108		2
5218	5109		3
5219	5110		4
5220	5111		5
5221	5112		6
5222	5113		7
5223	5114		8
5224	5115		9
5225	5116		10
5226	5117		11
5227	5118		12
5228	5119		13
5229	5120		14
5230	5121		15
5231	5122		16
5232	5123		17
5233	5124		18
5234	5125		19
5235	5126		20
5236	5127		21
5237	5128		22
5238	5129		23
5239	5130		24
5240	5131
5241	5132		registered in this state. An action, suit or proc eeding may not be
5242	5133		maintained in any court of this state by any successor or assignee
5243	5134		of the domestic limite d liability company or registered series or
5244	5135		foreign limited liability company or registered series on any right,
5245	5136		claim or demand arising out of the t ransaction of business by the
5246	5137		domestic limited liability company or registered series after it has
5247	5138		ceased to be in good standing or a foreign limited liability company
5248	5139		or registered series that has ceased to be registered in this state
5249	5140		until the domestic l imited liability company or registered series or
5250	5141		foreign limited liability company or registered series, or any
5251	5142		person that has acquired all or substantially all of its assets, has
5252	5143		caused the limited liability company or registered series to be
5253	5144		reinstated as a domestic limited liability company in good standing
5254	5145		or as a foreign limited liability company or registered series duly
5255	5146		registered in this state, as applicable.
5256	5147		SECTION 22. AMENDATORY 18 O.S. 2021, Section 2055.3, is
5257	5148		amended to read as follows:
5258	5149		Section 2055.3.
5259	5150		REINSTATEMENT OF A L IMITED LIABILITY COMPANY OR REGISTERED SERIES
5260	5151		A. A domestic limited liability company or registered series
5261	5152		not in good standing for failure to file an annual certificate and
5262	5153		pay the annual certificate fees or register ed agent fees, including
5263	5154		a domestic limited liability company or registered series whose
5264	5155		articles of organization or registered series have been canceled
5265	5156
5266		-	SB649 HFLR Page 104
5267		-	BOLD FACE denotes Committee Amendments. 1
	5157	+	ENGR. S. B. NO. 649 Page 104 1
5268	5158		2
5269	5159		3
5270	5160		4
5271	5161		5
5272	5162		6
5273	5163		7
5274	5164		8
5275	5165		9
5276	5166		10
5277	5167		11
5278	5168		12
5279	5169		13
5280	5170		14
5281	5171		15
5282	5172		16
5283	5173		17
5284	5174		18
5285	5175		19
5286	5176		20
5287	5177		21
5288	5178		22
5289	5179		23
5290	5180		24
5291	5181
5292	5182		under subsection B of Section 2012.1 of Title 18 of the Oklahoma
5293	5183		Statutes this title, or a foreign limited liability c ompany or
5294	5184		registered series whose registration was withdra wn for failure to
5295	5185		file an annual certificate and pay the annual certificate fees or
5296	5186		registered agent fees may apply to the Secretary of Sta te for
5297	5187		reinstatement by:
5298	5188		1. Filing all delinquent annual certificates with the S ecretary
5299	5189		of State and paying all del inquent annual certificate fees or paying
5300	5190		all delinquent registered agent fees to the Secretary of State; and
5301	5191		2. Filing an application for reinstatement with the Secretary
5302	5192		of State stating its na me at the time it ceased to be in good
5303	5193		standing or was withd rawn, the date it ceased to be in good standing
5304	5194		or was withdrawn, and its current nam e, if its name at th e time it
5305	5195		ceased to be in good sta nding or was withdrawn is no longer
5306	5196		available under Secti on 2008 or 2045 of Title 18 of the Oklahoma
5307	5197		Statutes this title.
5308	5198		If the Secretary of State determines that the application
5309	5199		contains the required information, the inf ormation is correct, all
5310	5200		delinquent certificates or other filings are submitted, all
5311	5201		delinquent fees are paid, and the name satisfies the requirements of
5312	5202		Section 2008 or 2045 of Title 18 of the Oklahoma Statutes this
5313	5203		title, the Secretary of State shall acc ept the application for
5314	5204		reinstatement and issue a certificate of reinstatement in the manner
5315	5205		provided in Section 2007 of Title 18 of the Oklahoma Statutes this
5316	5206
5317		-	SB649 HFLR Page 105
5318		-	BOLD FACE denotes Committee Amendments. 1
	5207	+	ENGR. S. B. NO. 649 Page 105 1
5319	5208		2
5320	5209		3
5321	5210		4
5322	5211		5
5323	5212		6
5324	5213		7
5325	5214		8
5326	5215		9
5327	5216		10
5328	5217		11
5329	5218		12
5330	5219		13
5331	5220		14
5332	5221		15
5333	5222		16
5334	5223		17
5335	5224		18
5336	5225		19
5337	5226		20
5338	5227		21
5339	5228		22
5340	5229		23
5341	5230		24
5342	5231
5343	5232		title for domestic limited liability companies, Section 14 of this
5344	5233		act for domestic registered s eries, or Section 2044 of Title 18 of
5345	5234		the Oklahoma Statutes this title for foreign limited li ability
5346	5235		companies or foreign registered series . If the limited liabili ty
5347	5236		company or registered series is required to change its name because
5348	5237		its name at the time it ceased to be in good standing o r was
5349	5238		withdrawn is no longer available, acceptance of the reinstatement
5350	5239		shall constitute an amendment to the domestic limited liab ility
5351	5240		company’s articles of organization or the domestic registered
5352	5241		series’ articles of registered series to change its name o r the
5353	5242		adoption of a fictitious name by the foreign limited liability
5354	5243		company or registered series, as applicable. The application for
5355	5244		reinstatement may amend the articles of organization of the domesti c
5356	5245		limited liability company or the articles of registered series of
5357	5246		the registered series or the application for registration of the
5358	5247		foreign limited liability company or registered series, subject in
5359	5248		either case to the payment of the additional fee require d in Section
5360	5249		2055 of Title 18 of the Oklahoma Statutes this title for amendments;
5361	5250		provided, that the application may not extend the ter m of a limited
5362	5251		liability company or registered series that had expired before the
5363	5252		application for reinstatement. For pur poses of this section, a
5364	5253		foreign limited liability company or registered series applying for
5365	5254		reinstatement is dee med to have done busin ess continually in the
5366	5255		state following the admini strative withdrawal.
5367	5256
5368		-	SB649 HFLR Page 106
5369		-	BOLD FACE denotes Committee Amendments. 1
	5257	+	ENGR. S. B. NO. 649 Page 106 1
5370	5258		2
5371	5259		3
5372	5260		4
5373	5261		5
5374	5262		6
5375	5263		7
5376	5264		8
5377	5265		9
5378	5266		10
5379	5267		11
5380	5268		12
5381	5269		13
5382	5270		14
5383	5271		15
5384	5272		16
5385	5273		17
5386	5274		18
5387	5275		19
5388	5276		20
5389	5277		21
5390	5278		22
5391	5279		23
5392	5280		24
5393	5281
5394	5282		B. When reinstatement under this section has becom e effective,
5395	5283		the reinstatement relates back to and tak es effect as if the
5396	5284		domestic limited liability company or registered series had never
5397	5285		ceased to be in good standing and as if its articles of organization
5398	5286		or articles of registered series, as the case m ay be, had never been
5399	5287		canceled, or as if the foreign limited liability company’s or
5400	5288		registered series registration was never withdrawn.
5401	5289		C. The failure of a domestic lim ited liability company or
5402	5290		registered series or foreign limited liability company or registered
5403	5291		series to file an annual certificate and pay a n annual certificate
5404	5292		fee or a registered agent fee to t he Secretary of State shal l not
5405	5293		impair the validity on any c ontract, deed, mortgage, security
5406	5294		interest, lien or act of the domestic limited liabili ty company or
5407	5295		registered series or foreign limited liability company or registered
5408	5296		series or prevent the domestic limited liability com pany or
5409	5297		registered series or foreign limited liability company or registered
5410	5298		series from defending any action, suit or proceeding with any co urt
5411	5299		of this state.
5412	5300		D. All real and personal property, and all rights and
5413	5301		interests, which belonged to the domestic limited liability company
5414	5302		or registered series at the time its articles of organization or
5415	5303		articles of registered series , as the case may be , were canceled or
5416	5304		which were acquired by the limited liability company or registered
5417	5305		series after cancellation, an d which were not disposed of before its
5418	5306
5419		-	SB649 HFLR Page 107
5420		-	BOLD FACE denotes Committee Amendments. 1
	5307	+	ENGR. S. B. NO. 649 Page 107 1
5421	5308		2
5422	5309		3
5423	5310		4
5424	5311		5
5425	5312		6
5426	5313		7
5427	5314		8
5428	5315		9
5429	5316		10
5430	5317		11
5431	5318		12
5432	5319		13
5433	5320		14
5434	5321		15
5435	5322		16
5436	5323		17
5437	5324		18
5438	5325		19
5439	5326		20
5440	5327		21
5441	5328		22
5442	5329		23
5443	5330		24
5444	5331
5445	5332		reinstatement, shall be vested in the limited liability company or
5446	5333		registered series after its reinstatement as fully as they were held
5447	5334		by the limited liability company or registered series at, and after,
5448	5335		as the case may be, the time its articles of organiza tion or
5449	5336		articles of registered series were canceled.
5450	5337		E. A member or manager of a domestic limited liability company
5451	5338		or registered series or foreign limited liability company or
5452	5339		registered series is not liable for the debts, obligations or
5453	5340		liabilities of the dome stic limited liability company or registered
5454	5341		series or foreign limited l iability company or registered series
5455	5342		solely by reason of the failure of the domestic limited liability
5456	5343		company or registered series or foreign limited liability company or
5457	5344		registered series to file an annual certificate and pay an annual
5458	5345		certificate fee or a registered agent fee to the Secretary of State
5459	5346		or by reason of the domestic limited liability company or registered
5460	5347		series ceasing to be in good standing or its articles of
5461	5348		organization or articles of registered series being canceled or the
5462	5349		foreign limited liability compa ny or registered series ceasing to be
5463	5350		duly registered.
5464	5351		SECTION 23. NEW LAW A new section of law to be codified
5465	5352		in the Oklahoma Statutes as Secti on 2058.1 of Title 18, unless there
5466	5353		is created a duplication in numb ering, reads as follows:
5467	5354		DOCUMENT FORM, SIGNATURE, AND DELIVERY.
5468	5355
5469		-	SB649 HFLR Page 108
5470		-	BOLD FACE denotes Committee Amendments. 1
	5356	+	ENGR. S. B. NO. 649 Page 108 1
5471	5357		2
5472	5358		3
5473	5359		4
5474	5360		5
5475	5361		6
5476	5362		7
5477	5363		8
5478	5364		9
5479	5365		10
5480	5366		11
5481	5367		12
5482	5368		13
5483	5369		14
5484	5370		15
5485	5371		16
5486	5372		17
5487	5373		18
5488	5374		19
5489	5375		20
5490	5376		21
5491	5377		22
5492	5378		23
5493	5379		24
5494	5380
5495	5381		A. Except as provided in subsection B of this sec tion, without
5496	5382		limiting the manner in which any act or transaction m ay be
5497	5383		documented, or the manner in which a document may be signed or
5498	5384		delivered:
5499	5385		1. Any act or transaction contemplated or governed by the
5500	5386		Oklahoma Limited Liability Company Act or an operating agreement may
5501	5387		be provided for in a document, and an electronic transmission is the
5502	5388		equivalent of a written document;
5503	5389		2. Whenever the Oklahoma Limited Liability Company Act or an
5504	5390		operating agreement r equires or permits a signature, the signat ure
5505	5391		may be a manual, facsimile, conformed , or electronic signature.
5506	5392		“Electronic signature” means an electronic symbol or p rocess that is
5507	5393		attached to, or logical ly associated with, a document and executed
5508	5394		or adopted by a person with an intent to execute, authenticate, or
5509	5395		adopt the document. A person may execute a document with such
5510	5396		person’s signature;
5511	5397		3. Unless otherwise pro vided in an operating agreement or
5512	5398		agreed upon between the sender and recipient, an electronic
5513	5399		transmission is deliver ed to a person for p urposes of this title and
5514	5400		an operating agreement when it enters an info rmation processing
5515	5401		system that the person has d esignated for the purpose of receiving
5516	5402		electronic transmissions of the type delivered, so long a s the
5517	5403		electronic transmission is in a for m capable of being processed by
5518	5404		that system and such person is able to r etrieve the electronic
5519	5405
5520		-	SB649 HFLR Page 109
5521		-	BOLD FACE denotes Committee Amendments. 1
	5406	+	ENGR. S. B. NO. 649 Page 109 1
5522	5407		2
5523	5408		3
5524	5409		4
5525	5410		5
5526	5411		6
5527	5412		7
5528	5413		8
5529	5414		9
5530	5415		10
5531	5416		11
5532	5417		12
5533	5418		13
5534	5419		14
5535	5420		15
5536	5421		16
5537	5422		17
5538	5423		18
5539	5424		19
5540	5425		20
5541	5426		21
5542	5427		22
5543	5428		23
5544	5429		24
5545	5430
5546	5431		transmission. Whether a person has so designated an information
5547	5432		processing system is determined by the operating agreem ent or from
5548	5433		the context and surrounding c ircumstances, including the party’s
5549	5434		conduct. An electronic transmissio n is delivered under this section
5550	5435		even if no person is aware of its receipt. Receipt of a n electronic
5551	5436		acknowledgement from an information proc essing system establi shes
5552	5437		that an electronic transmission was received but, by itself, does
5553	5438		not establish that th e content sent corresponds to the content
5554	5439		received.
5555	5440		This section shall not prohibit one or mor e persons from
5556	5441		conducting a transaction in accordance with the Uniform Electronic
5557	5442		Transactions Act so long as the part or parts of the transaction
5558	5443		that are governed by the Oklahoma Limited Liability Company Act or
5559	5444		an operating agreement are documented, signed , and delivered in
5560	5445		accordance with this subse ction or otherwise in accordance with this
5561	5446		section. This subsection shall apply solely for purposes of
5562	5447		determining whether an act or transaction has been documen ted, and
5563	5448		the document has been signed and delivered, in accord ance with the
5564	5449		Oklahoma Limited Liability Company Act or an operating agreement.
5565	5450		B. Subsection A of this section shal l not apply to a docu ment
5566	5451		filed with or submitted to the Secretary of State, a county clerk,
5567	5452		or a court or other judicial or governmental body of this state.
5568	5453		This subsection shall not create any presump tion about the lawful
5569	5454		means to document a matter addr essed by this subsect ion, or the
5570	5455
5571		-	SB649 HFLR Page 110
5572		-	BOLD FACE denotes Committee Amendments. 1
	5456	+	ENGR. S. B. NO. 649 Page 110 1
5573	5457		2
5574	5458		3
5575	5459		4
5576	5460		5
5577	5461		6
5578	5462		7
5579	5463		8
5580	5464		9
5581	5465		10
5582	5466		11
5583	5467		12
5584	5468		13
5585	5469		14
5586	5470		15
5587	5471		16
5588	5472		17
5589	5473		18
5590	5474		19
5591	5475		20
5592	5476		21
5593	5477		22
5594	5478		23
5595	5479		24
5596	5480
5597	5481		lawful means to sign or deliver a document addressed by this
5598	5482		subsection. A provision of an operating agreement shall not limit
5599	5483		the application of subsection A of this s ection unless the provision
5600	5484		expressly restricts one o r more of the means o f documenting an act
5601	5485		or transaction, or of signing or delivering a document, permitted by
5602	5486		subsection A of this section.
5603	5487		C. If any provision of this section is deemed to modify, limi t,
5604	5488		or supersede the Electronic Signatures in Global an d National
5605	5489		Commerce Act, 15 U.S.C. Section 7001 et. seq., the provisions of
5606	5490		this section shall control to the fullest e xtent permitted by
5607	5491		Section 7002(a)(2) of such act.
5608	5492		SECTION 24. This act shall become effective November 1, 2023.
5609		-
5610		-	COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
5611		-	04/05/2023 - DO PASS.
	5493	+	Passed the Senate the 8th day of March, 2023.
	5494	+
	5495	+
	5496	+
	5497	+	Presiding Officer of the Senate
	5498	+
	5499	+
	5500	+	Passed the House of Representatives the ____ day of __________ ,
	5501	+	2023.
	5502	+
	5503	+
	5504	+
	5505	+	Presiding Officer of the House
	5506	+	of Representatives
	5507	+