Section 10.50.375. Assignment of interest in company.

   (a) A person may assign a limited liability company interest in whole or in part.
   (b) The assignment of a limited liability company interest entitles the assignee to receive, to the extent assigned, only the distributions to which the assignor is entitled.
   (c) The assignment of a limited liability company interest does not dissolve the company or entitle the assignee to participate in the management and affairs of the company, to become a member, or to exercise the rights of a member. Unless the assignee of the interest becomes a member with respect to the interest, the assignor continues to be a member and may exercise the rights of a member, subject to the members' right to remove the assignor under AS 10.50.205.
   (d) Unless the assignee becomes a member, an assignee of a limited liability company interest is not liable as a member solely as a result of the assignment.
   (e) The assignor of a limited liability company interest is not released, solely as a result of the assignment, from the assignor's liability as a member.
   (f) An operating agreement may establish terms different from those in (a) - (e) of this section.
   (g) Unless otherwise provided in an operating agreement of the company, the pledge of, or granting of a security interest, lien, or other encumbrance in or against, a part or all of a member's limited liability company interest is not an assignment under this section and does not terminate the membership or the rights and powers of the member.

Notes

History

(Sec. 1 ch 99 SLA 1994)