                                 CODE OF VIRGINIA

ASSOCIATED ASSETS (§ 13.1-1099.2)

A. Only an asset of a protected series may be an associated asset of the
protected series. Only an asset of a series limited liability company may be an
associated asset of the series limited liability company.

B. An asset of a protected series is an associated asset of the protected series
only if the protected series creates and maintains records that state the name
of the protected series and describe the asset with sufficient specificity to
permit a disinterested, reasonable individual to:

   1. Identify the asset and distinguish it from any other assets of the
   protected series, any assets of the series limited liability company, and any
   assets of any other protected series of the series limited liability company;

   2. Determine when and from what person the protected series acquired the asset
   or how the asset otherwise became an asset of the protected series; and

   3. If the protected series acquired the asset from the series limited
   liability company or another protected series of the series limited liability
   company, determine any consideration paid, the payor, and the payee.

C. An asset of a series limited liability company is an associated asset of the
series limited liability company only if the series limited liability company
creates and maintains records that state the name of the series limited
liability company and describe the asset with sufficient specificity to permit a
disinterested, reasonable individual to:

   1. Identify the asset and distinguish it from any other assets of the series
   limited liability company and any assets of any protected series of the series
   limited liability company;

   2. Determine when and from what person the series limited liability company
   acquired the asset or how the asset otherwise became an asset of the series
   limited liability company; and

   3. If the series limited liability company acquired the asset from a protected
   series of the series limited liability company, determine any consideration
   paid, the payor, and the payee.

D. The records and recordkeeping required by subsections B and C may be
organized by specific listing, category, type, quantity, or computational or
allocational formula or procedure, including a percentage or share of any asset,
or in any other reasonable manner.

E. To the extent permitted by the law of the Commonwealth other than this
article, a series limited liability company or a protected series of the series
limited liability company may hold an associated asset directly or indirectly,
through a representative, nominee, or similar arrangement, except that:

   1. A protected series shall not hold an associated asset in the name of the
   series limited liability company or another protected series of the series
   limited liability company; and

   2. The series limited liability company may not hold an associated asset in
   the name of a protected series of the series limited liability company.

HISTORY: 2019, c. 636.