Also known as: § 504 · Section 504 · §504 · Rehabilitation Act § 504
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A federal antidiscrimination statute that prohibits discrimination against individuals with disabilities by programs or activities receiving federal financial assistance. The statute extends protections similar to those in other civil rights laws to qualified persons with disabilities in employment and other contexts.
Urban Roots, the general partner of Community Homes LP, seeks to distribute one million dollars to itself while HopeBridge holds an eight million dollar priority return of capital. After the proposed distribution the partnership's assets would fall below the sum of its liabilities plus the amount needed to satisfy HopeBridge's superior rights on a hypothetical dissolution. The distribution is therefore prohibited.
After dissociation from the LLC, a former member attempts to participate in management decisions and to exercise rights beyond those of a mere transferee. The dissociation terminates the former member's management rights and limits the interest to that of a transferee, subject to any applicable charging order provisions.
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A limited partnership or partnership may not make a distribution if after the distribution the entity would be unable to pay its debts as they become due in the ordinary course or if total assets would be less than total liabilities plus the amount needed to satisfy superior preferential rights on a hypothetical dissolution.
No. Dissociation ends the person's right to participate in management and the person's duties under the relevant section for future matters, but it does not of itself discharge any debt, obligation, or liability incurred while a member.
No. A creditor cannot force distributions from a purely discretionary interest even when the trust instrument references a support standard or contains a spendthrift clause. Only after a court finds abuse of discretion or failure to follow a standard may certain support creditors reach amounts that should have been distributed.