State Codes and Statutes

Statutes > Nebraska > Chapter21 > 21-2654

21-2654. Charging order;authorized; procedure; effect;powers of court.(1) On applicationto a court of competent jurisdiction by any judgment creditor of a memberor transferee, the court may charge the transferable interest of the judgmentdebtor in the limited liability company with payment of the unsatisfied amountof the judgment with interest. To the extent of the amounts so charged, thejudgment creditor has only the rights of the transferee to receive any distributionto which the judgment debtor would otherwise have been entitled with respectto the interest of the judgment debtor in the limited liability company.(2) A charging order entered pursuant to this section constitutesa lien on the judgment debtor's transferable interest in the limited liabilitycompany.(3) To theextent necessary to effectuate the collection of distributions pursuant toa charging order in effect under subsection (1) of this section, the courtmay (a) appoint a receiver of the distribution subject to the charging order,and the receiver shall have the power to make all inquiries the judgment debtormight have made, and (b) make all other orders necessary to give effect tothe charging order.(4) Upon a showing that distributions under a charging order willnot pay the judgment debt within a reasonable time, the court may foreclosethe lien and order the sale of the transferable interest. The purchaser atthe foreclosure sale only obtains the transferable interest and does not becomea member of the limited liability company.(5) At any time before completion of theforeclosure sale under subsection (4) of this section, the member or transfereewhose transferable interest is subject to a charging order under subsection(1) of this section may extinguish the charging order by satisfying the judgmentand filing a certified copy of the satisfaction with the court that issuedthe charging order.(6) At any time before completion of the foreclosure sale undersubsection (4) of this section, a limited liability company or one or moremembers whose transferable interests are not subject to the charging ordermay pay to the judgment creditor the full amount due under the judgment andthereby succeed to the rights of the judgment creditor, including the chargingorder.(7) This section does notdeprive any member or transferee of the benefit of any exemption laws applicableto the member's or transferee's interest in the limited liability company.(8) This sectionprovides the exclusive remedy by which a person seeking to enforce a judgmentagainst a member or transferee may, in the capacity of judgment creditor,satisfy the judgment from the judgment debtor's transferable interest. SourceLaws 2009, LB35, § 1; Laws 2010, LB888, § 100.Operative Date: January 1, 2011Termination Date: January 1, 2013