Section 10.50.380. Rights of judgment creditors.

   (a) If a judgment creditor of a limited liability company member applies to a court of competent jurisdiction, the court may charge the member's limited liability company interest for payment of the unsatisfied amount of the judgment.
   (b) To the extent a limited liability company interest is charged under (a) of this section, the judgment creditor has only the rights of an assignee of the member's interest.
   (c) This section provides the exclusive remedy that a judgment creditor of a member or a member's assignee may use to satisfy a judgment out of the judgment debtor's interest in the limited liability company. Other legal or equitable remedies, including foreclosure on the member's limited liability company interest and a court order for directions, accounts, and inquiries that the debtor member might have made, are not available to the judgment creditor attempting to satisfy a judgment out of the judgment debtor's interest in the limited liability company and may not be ordered by a court.
   (d) This section does not deprive a member of the benefit of an exemption applicable to the member's membership interest.
   (e) This section applies to limited liability companies with only one member as well as to limited liability companies with more than one member.

Notes

History

(Sec. 1 ch 99 SLA 1994; am Sec. 1 ch 1 SLA 2000; am Sec. 4, 5 ch 45 SLA 2013)