Effective July 1, 2011, Maine adopted a new Limited Liability Company Act, located at Title 31, Chapter 21 of the Maine Revised Statutes. The new Act differs considerably from the prior Act in a number of important ways, many of which impact the field of commercial lending. Central to these changes is the increased role and flexibility of the LLC’s operating agreement, which governs the authority of an LLC’s members, managers, or officers to act on behalf of the LLC. Other issues important to commercial lenders are impacted by the new Act, such as the use of LLC interests as loan collateral.
Christopher McLoon, a partner at Verrill Dana, served as Co-Chair of the Maine State Bar Association’s LLC Drafting Committee, which was responsible for drafting the new Act. Chris and two other members of the committee co-wrote a series of articles published in the Maine Bar Journal regarding the new Act.