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</v:background></xml><![endif]--><div class=WordSection1><p class=MsoNormal><span style='color:windowtext'>The holder of an economic interest (AKA ‘transferable interest’, FKA ‘assignee’) is only entitled to distributions if, as, and when made, to the extent that the transferor would be so entitled (RCW 25.15.251(2)). If no other provision is made, distributions must be pro rata, according to the ‘agreed value’ of the members’ contributions (RCW 25.15.206). If the LLC is going to be dissolved and liquidated following the sale of the principal asset, the economic interest holder probably is entitled to distribution of the net proceeds to be distributed; RCW 25.15.305(1)(b) refers to members and “former members”.<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>It is important to know whether the LLC is member- or manager-managed. If the latter, then the manager has discretion (up to a point) as to the timing and character (i.e. operating income vs. proceeds of a sale of assets) of distributions. All of these things can be modified by the operating agreement if there is one. The Act does not distinguish between distributions of income vs. sale proceeds, only distributions of money vs in-kind.<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>I have not had occasion to research any caselaw construing these provisions of the Act.<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'>Bob Pampell<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;color:#1F497D'>Robert Pampell, Attorney<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;color:#1F497D'>21st Century Law Office, PLLC<o:p></o:p></span></p><p class=MsoNormal style='text-autospace:none'><span style='font-size:10.0pt;color:#365F91'>19125 Northcreek Parkway, Suite 120<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;color:#365F91'>Bothell, WA 98011<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;color:#1F497D'>voice: 425-329-2629<br>fax: 877-640-6403<br>cell: 425-501-4784<br>email: </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="mailto:rpampell@swcp.com" title="mailto:rpampell@swcp.com"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>rpampell@swcp.com</span></a></span><span style='font-size:10.0pt;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.linkedin.com/in/robertpampell"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>http://www.linkedin.com/in/robertpampell</span></a></span><span style='font-size:10.0pt;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.21stlawoffice.com/"><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:blue'>www.21stLawOffice.com</span></a></span><span style='font-size:10.0pt;color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:windowtext'> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Ralph Maimon<br><b>Sent:</b> Wednesday, January 25, 2023 11:44 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] LLC economic interest<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Is anyone aware of any law or precedent that allows an economic interest member of an LLC to receive the proceeds of the income producing property itself on its sale or is he/she restricted to the regular income?. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:26.0pt;font-family:Mistral;color:#2F5496'>Ralph Maimon<o:p></o:p></span></b></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Law Office of Ralph Maimon, P.S.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>2811 E. Madison Street, Suite 202<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Seattle, WA 98112<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>(206) 323-0911<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>Fax: (206)462-1505<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><a href="http://www.maimonlaw.com/"><span style='color:#0563C1'>www.maimonlaw.com</span></a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><img border=0 width=84 height=120 style='width:.8727in;height:1.2545in' id="Picture_x0020_1" src="cid:image004.gif@01D930E5.63AEE2B0"></span><span style='font-family:"Times New Roman",serif;color:#1F3864'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>This email is confidential. If you have received it in error,<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>please notify me and delete it from your device <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>without reading. Thank you. <o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>