State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter21 > 21-142

21-142. Charging order.(ULLCA 503) (a) On application by a judgmentcreditor of a member or transferee, a court may enter a charging order againstthe transferable interest of the judgment debtor for the unsatisfied amountof the judgment. A charging order constitutes a lien on a judgment debtor'stransferable interest and requires the limited liability company to pay overto the person to which the charging order was issued any distribution thatwould otherwise be paid to the judgment debtor.(b) To the extent necessaryto effectuate the collection of distributions pursuant to a charging orderin effect under subsection (a) of this section, the court may:(1) appoint a receiverof the distributions subject to the charging order, with the power to makeall inquiries the judgment debtor might have made; and(2) make all other ordersnecessary to give effect to the charging order.(c) Upon a showing that distributionsunder a charging order will not pay the judgment debt within a reasonabletime, the court may foreclose the lien and order the sale of the transferableinterest. The purchaser at the foreclosure sale only obtains the transferableinterest, does not thereby become a member, and is subject to section 21-141.(d) At any time beforecompletion of the foreclosure sale under subsection (c) of this section, themember or transferee whose transferable interest is subject to a chargingorder under subsection (a) of this section may extinguish the charging orderby satisfying the judgment and filing a certified copy of the satisfactionwith the court that issued the charging order.(e) At any time before completionof the foreclosure sale under subsection (c) of this section, a limited liabilitycompany or one or more members whose transferable interests are not subjectto the charging order may pay to the judgment creditor the full amount dueunder the judgment and thereby succeed to the rights of the judgment creditor,including the charging order.(f) The Nebraska Uniform Limited Liability CompanyAct does not deprive any member or transferee of the benefit of any exemptionlaws applicable to the member's or transferee's transferable interest.(g) This section providesthe exclusive remedy by which a person seeking to enforce a judgment againsta member or transferee may, in the capacity of judgment creditor, satisfythe judgment from the judgment debtor's transferable interest. SourceLaws 2010, LB888, § 42.Operative Date: January 1, 2011