Business entities: limited liability companies.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Judiciary
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill allows limited liability companies (LLCs) to provide a certification of their existence and authority to licensed escrow agents, real estate brokers, title insurance companies, and other relevant parties. This certification would confirm key details about the LLC, such as its legal name, formation date, and authorized signers. The certification can be recorded with the county recorder, and relying on its accuracy is protected for those who lack actual knowledge of its incorrectness. The bill also addresses potential issues related to real property transactions and includes provisions for fees associated with recording the certification and clarifies that no state reimbursement is needed due to the creation of a new crime.
Key provisions
- LLCs can provide a certification of their existence and authority to specific parties.
- The certification must include details like the LLC’s legal name, formation date, and authorized signers.
- The certification must confirm that the LLC’s operating agreement hasn’t been altered in a way that would invalidate its representations.
- A person relying on the certification is protected from liability if they lack actual knowledge of its inaccuracy.
- The certification can be recorded with the county recorder.
- The bill creates a state-mandated local program.
- No state reimbursement is required for the program.
- The bill addresses potential issues related to real property transactions.
Who is affected
- Limited Liability Companies (LLCs)
Bill text
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Sponsors
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1 on record
Primary sponsor
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