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Statutes » New York » NPC Law » Article 5

N.Y. NPC Law § 517

This is the official text of N.Y. NPC Law § 517, part of New York’s NPC Law — part of the compiled statutory law of New York, published by the state as "NPC Law." Browse the sections below, each linked to its official government source.

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Liabilities of members

Official statutory text

§ 517. Liabilities of members.\n (a) The members of a corporation shall not be personally liable for\nthe debts, liabilities or obligations of the corporation.\n (b) A member shall be liable to the corporation only to the extent of\nany unpaid portion of the initiation fees, membership dues or\nassessments which the corporation may have lawfully imposed upon him, or\nfor any other indebtedness owed by him to the corporation. No action\nshall be brought by any creditor of the corporation to reach and apply\nany such liability to any debt of the corporation until after final\njudgment shall have been rendered against the corporation in favor of\nthe creditor and execution thereon returned unsatisfied, or the\ncorporation shall have been adjudged bankrupt, or a receiver shall have\nbeen appointed with power to collect debts, and which receiver, on\ndemand of a creditor to bring suit thereon, has refused to sue for such\nunpaid amount, or the corporation shall have been dissolved or ceased\nits activities leaving debts unpaid. No such action shall be brought\nmore than three years after the happening of any one of such events.\n

Status: in_force · Read it on the official government site

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About this page: Statute text is reproduced from official government publishers via the Open US Law dataset (Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine (Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.