362.481 Rights of judgment creditor.
403 words·~2 min read·
/ky/chapter-362/362-481A 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 any judgment creditor of
a partner or a partner's transferee, the 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. A charging
order does not of itself constitute an assignment of the transferable interest.
(4)The court may order a foreclosure upon the transferable interest subject to the
charging order at any time. The purchaser at the foreclosure sale has the rights
of a transferee.
(5)At any time before foreclosure, an interest charged may be redeemed:
(a)By the judgment debtor;
(b)With property other than limited partnership property, by one
(1)or more
of the other partners; or
(c)With limited partnership property, by the limited partnership with the
consent of all partners whose interests are not so charged.
(6)This section does not deprive any partner or a partner's transferee of the
benefit of any exemption laws applicable to the partner's or transferee's
transferable interest.
(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 limited
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.