362.285 Partner's interest subject to charging order.
405 words·~2 min read·
/ky/chapter-362/362-285A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)This section provides the exclusive remedy by which the judgment creditor of a
partner or the transferee of a partner may satisfy a judgment out of the
judgment debtor's transferable interest.
(2)On application to a court of competent jurisdiction by a judgment creditor of a
partner or a partner's transferee, a court may charge the transferable interest of
the judgment debtor with payment of the unsatisfied amount of the judgment.
To the extent so charged, the judgment creditor has only the rights of a
transferee and shall have no right to participate in the management of or to
cause the dissolution of the partnership. The court may appoint a receiver of
the share of the distributions due or to become due to the judgment debtor in
respect of the partnership and make all other orders, directions, accounts, and
inquiries the judgment debtor might have made or which the circumstances of
the case may require to give effect to the charging order.
(3)A charging order constitutes a lien on and the right to receive distributions
made with respect to the judgment debtor's transferable interest in the
partnership.
(4)The court may order a foreclosure of the interest subject to the charging order
at any time. The purchaser at the foreclosure sale has the rights of a
transferee. A charging order does not of itself constitute an assignment of the
transferable interest.
(5)At any time before foreclosure, an interest charged may be redeemed:
(a)By the judgment debtor;
(b)With property other than partnership property, by one
(1)or more of the
other partners; or
(c)With partnership property, by one
(1)or more of the other partners with
the consent of all of the partners whose interests are not so charged.
(6)This section does not deprive a partner of a right under exemption laws with
respect to the partner's interest in the partnership.
(7)The partnership is not a necessary party to an application for a charging order.
Service of the charging order on a partnership may be made by the court
granting the charging order or as the court may otherwise direct.
(8)This section shall not apply to the enforcement of a judgment by a partnership
against a partner of that partnership.
(9)This section shall apply to the issuance of a charging order against the interest
of a partner or assignee of a partner of a foreign partnership.