§428-504 - Rights of creditors.
[§428-504] Rights of creditors. (a) On application by a judgment creditor of a member of a limited liabilitycompany or a member's transferee, a court having jurisdiction may order thatthe distributional interest of the judgment debtor be used to satisfy thejudgment. The court may appoint a receiver to carry out the provisions of thecharging order.
(b) A charging order constitutes a lien on thejudgment debtor's distributional interest. The court may order a foreclosureof a lien on a distributional interest subject to the charging order at anytime. A purchaser at the foreclosure sale has the rights of a transferee.
(c) At any time before foreclosure, adistributional interest in a limited liability company which is charged may beredeemed:
(1) By the judgment debtor;
(2) With property other than the company's property,by one or more of the other members; or
(3) With the company's property, but only ifpermitted by the operating agreement.
(d) This chapter does not affect a member'sright under exemption laws with respect to the member's distributional interestin a limited liability company.
(e) This section provides the exclusive remedyby which a judgment creditor of a member or a transferee may satisfy a judgmentout of the judgment debtor's distributional interest in a limited liabilitycompany. [L 1996, c 92, pt of §1]