New York Laws
Article 5 - Contributions and Distributions
508 - Limitations on Distributions.

(b) A member who receives a distribution in violation of subdivision
(a) of this section, and who knew at the time of distribution that the
distribution violated subdivision (a) of this section, shall be liable
to the limited liability company for the amount of the distribution. A
member who receives a distribution in violation of subdivision (a) of
this section, and who did not know at the time of the distribution that
the distribution violated subdivision (a) of this section, shall not be
liable for the amount of the distribution. Subject to subdivision (c) of
this section, this subdivision shall not affect any obligation or
liability of a member under the operating agreement or other applicable
law for the amount of a distribution.
(c) Unless otherwise agreed, a member who receives a wrongful
distribution from a limited liability company shall have no liability
under this article or other applicable law for the amount of the
distribution after the expiration of three years from the date of the
distribution.