§ 3179 Member Debt Liability Limit

Key Takeaways

•If you're part of a group (like a club or company), you don't have to pay more than what you still owe for your membership fee.
•If you promised to pay for your membership with a note (like an IOU) and haven't paid it all yet, that's the most you can be asked to pay.
•You won't be forced to pay the group's debts with your own money beyond what you still owe for your membership.

Example

You join a local gym that's run like a club. You agree to pay a $600 membership fee but only pay $200 upfront and sign a note to pay the rest later. The gym later owes money to a supplier.

If the gym can't pay its bills, the most you can be asked to pay is the $400 you still owe on your membership. You won't have to pay anything extra from your own pocket.

A member is not liable for the debts of the association in an amount which exceeds the sum which remains unpaid on the member’s or stockholder’s membership fee or subscription to the capital stock, including any unpaid balance on any promissory note which is given in payment of the membership fee or the subscription to the capital stock. (Added by Stats. 1987, Ch. 680, Sec. 1.)

Key Takeaways

•If you're part of a group (like a club or company), you don't have to pay more than what you still owe for your membership fee.
•If you promised to pay for your membership with a note (like an IOU) and haven't paid it all yet, that's the most you can be asked to pay.
•You won't be forced to pay the group's debts with your own money beyond what you still owe for your membership.

Example

You join a local gym that's run like a club. You agree to pay a $600 membership fee but only pay $200 upfront and sign a note to pay the rest later. The gym later owes money to a supplier.

If the gym can't pay its bills, the most you can be asked to pay is the $400 you still owe on your membership. You won't have to pay anything extra from your own pocket.

Key Takeaways

Example

Key Terms

References

§ 3179 Member Debt Liability Limit

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References