Winding up of a nonprofit association must proceed in accordance with the following rules:
(1) All known debts and liabilities shall be paid or adequately provided for.
(2) Any property subject to a condition requiring return to the person designated by the donor shall be transferred to that person.
(3) Any property subject to a trust shall be distributed in accordance with the trust agreement.
(4) Any property committed to a charitable purpose shall be distributed in accordance with that purpose unless the nonprofit association obtains a court order under 20 Pa.C.S. Ch. 77 (relating to trusts) specifying the disposition of the property.
(5) Any remaining property shall be distributed as follows:
(i) Distribution shall be made:
(A) in accordance with the governing principles of the nonprofit association; or
(B) in the absence of applicable governing principles, to the members of the nonprofit association:
(I) per capita; or
(II) as the members direct.
(ii) If subparagraph (i) does not apply, distribution shall be made under Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
(July 9, 2013, P.L.476, No.67, eff. 60 days)
2013 Amendment. Act 67 added section 9135.
Cross References. Section 9135 is referred to in sections 9132, 9134 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 91 - Unincorporated Nonprofit Associations
Section 9101 - Customary parliamentary law applicable (Repealed)
Section 9102 - Funeral and similar benefits (Repealed)
Section 9103 - Nontransferable membership interests (Repealed)
Section 9111 - Short title and application of chapter
Section 9115 - Ownership and transfer of property
Section 9116 - Statement of authority as to real property
Section 9118 - Assertion and defense of claims
Section 9119 - Effect of judgment or order
Section 9120 - Appointment of agent to receive service of process
Section 9121 - Action or proceeding not abated by change of members or managers
Section 9122 - Member not agent
Section 9123 - Approval by members
Section 9124 - Action by members
Section 9125 - Duties of member
Section 9127 - Member's interest not transferable
Section 9128 - Selection and management rights of managers
Section 9129 - Duties of managers
Section 9130 - Action by managers
Section 9131 - Right of member or manager to information
Section 9132 - Distributions prohibited; compensation and other permitted payments
Section 9133 - Reimbursement, indemnification and advancement of expenses