§ 8454. Charging order.
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/pa/title-15/chapter-84/8454A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 8454. Charging order.
(a)General rule.-- On application by a judgment creditor of a partner or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. A charging order constitutes a lien on a judgment debtor's transferable interest and requires the partnership to pay over to the person to which the charging order was issued any distribution that otherwise would be paid to the judgment debtor.
(b)Available relief.-- To the extent necessary to effectuate the collection of distributions pursuant to a charging order in effect under subsection (a), the court may:
(1)appoint a receiver of the distributions subject to the charging order, with the power to make all inquiries the judgment debtor might have made; and
(2)make all other orders necessary to give effect to the charging order.
(c)Foreclosure.-- Upon a showing that distributions under a charging order will not pay the judgment debt within a reasonable time, the court may foreclose the lien and order the sale of the transferable interest. The purchaser at the foreclosure sale obtains only the transferable interest, does not thereby become a partner and is subject to section 8453 (relating to transfer of transferable interest).
(d)Satisfaction of judgment.-- At any time before foreclosure under subsection (c), the partner or transferee whose transferable interest is subject to a charging order under subsection
(a)may extinguish the charging order by satisfying the judgment and filing a certified copy of the satisfaction with the court that issued the charging order.
(e)Purchase of rights.-- At any time before foreclosure under subsection (c), a partnership or one or more partners whose transferable interests are not subject to the charging order may pay to the judgment creditor the full amount due under the judgment and thereby succeed to the rights of the judgment creditor, including the charging order.
(f)Exemption laws preserved.-- This chapter shall not deprive any partner or transferee of the benefit of any exemption law applicable to the transferable interest of the partner or transferee.
(g)Exclusive remedy.-- This section provides the exclusive remedy by which a person seeking, in the capacity of a judgment creditor, to enforce a judgment against a partner or transferee may satisfy the judgment from the judgment debtor's transferable interest.
15c8454v
Cross References. Section 8454 is referred to in sections 8417, 8445, 8461, 8486 of this title.
15c8455s