48-7A-505. Satisfaction of judgment out of judgment debtor's transferable interest in limited liability partnership.
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/sd/title-48/chapter-48-7/48-7a-505A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)On application by a judgment creditor of a partner in a limited liability partnership or of a partner's transferee, and following notice to the limited liability partnership of the application, a court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy the judgment.
(b)A charging order constitutes a lien on the judgment debtor's transferable interest in the limited liability partnership.
(c)An interest which is charged may be redeemed:
(1)By the judgment debtor;
(2)With property other than the limited liability partnership's property, by one or more of the other partners; or
(3)With the partnership's property, but only if permitted by the partnership agreement.
(d)This chapter does not deprive a partner of a right under exemption laws with respect to the partner's transferable interest in the partnership.
(e)This section provides the exclusive remedy by which a judgment creditor of a partner in a limited liability partnership or partner's transferee may satisfy a judgment out of the judgment debtor's transferable interest in the limited liability partnership. No other remedy, including foreclosure of the partner's transferable interest or a court order for directions, accounts, and inquiries that the debtor partner might have made, is available to the judgment creditor attempting to satisfy the judgment out of the judgment debtor's interest in the limited liability partnership.
(f)No creditor of a partner in a limited liability partnership, or a partner's assignee, has any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of a limited liability partnership.