§ 704. Distribution of assets. Upon the winding up of a limited
liability company, the assets shall be distributed as follows:

(a) to creditors, including members who are creditors, to the extent
permitted by law, in satisfaction of liabilities of the limited
liability company, whether by payment or by establishment of adequate
reserves, other than liabilities for distributions to members and former
members under section five hundred seven or section five hundred nine of
this chapter;

(b) except as provided in the operating agreement, to members and
former members in satisfaction of liabilities for distributions under
section five hundred seven or section five hundred nine of this chapter;
and

(c) except as provided in the operating agreement, to members first
for the return of their contributions, to the extent not previously
returned, and second respecting their membership interests, in the
proportions in which the members share in distributions in accordance
with section five hundred four of this chapter.