Post by Cogency Global Inc.

What happens if a Delaware LLC used as a bankruptcy-remote entity loses its sole member? 📃 In real estate finance transactions, that scenario can create an unintended dissolution risk. Springing member provisions are commonly used to help prevent that outcome by allowing a designated person or company to automatically step into the membership role if the sole member ceases to be a member. In her latest article, Colleen DeVries explains why lenders often require springing member provisions for Delaware LLC single-purpose entities, how the role works, and why careful operating agreement drafting matters. Read the full article: https://hubs.li/Q04jRCfL0 #BankruptcyRemoteEntity #DelawareLLC #SpringingMember #RealEstateFinance #EntityCompliance #CogencyGlobal