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362.285 Partner's interest subject to charging order.
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This section provides the exclusive remedy by which the judgment creditor of a
partner or the transferee of a partner may satisfy a judgment out of the
judgment debtor's transferable interest.
On application to a court of competent jurisdiction by a judgment creditor of a
partner or a partner's transferee, a court may charge the transferable interest of
the judgment debtor with payment of the unsatisfied amount of the judgment.
To the extent so charged, the judgment creditor has only the rights of a
transferee and shall have no right to participate in the management of or to
cause the dissolution of the partnership. The court may appoint a receiver of
the share of the distributions due or to become due to the judgment debtor in
respect of the partnership and make all other orders, directions, accounts, and
inquiries the judgment debtor might have made or which the circumstances of
the case may require to give effect to the charging order.
A charging order constitutes a lien on and the right to receive distributions
made with respect to the judgment debtor's transferable interest in the
partnership.
The court may order a foreclosure of the interest subject to the charging order
at any time. The purchaser at the foreclosure sale has the rights of a
transferee. A charging order does not of itself constitute an assignment of the
transferable interest.
At any time before foreclosure, an interest charged may be redeemed:
(a) By the judgment debtor;
(b) With property other than partnership property, by one (1) or more of the
other partners; or
(c) With partnership property, by one (1) or more of the other partners with
the consent of all of the partners whose interests are not so charged.
This section does not deprive a partner of a right under exemption laws with
respect to the partner's interest in the partnership.
The partnership is not a necessary party to an application for a charging order.
Service of the charging order on a partnership may be made by the court
granting the charging order or as the court may otherwise direct.
Effective:July 15, 2010
History: Repealed, reenacted, and amended 2010 Ky. Acts ch. 133, sec. 49,
effective July 15, 2010. -- Repeal the prior repeal contained in 2006 Ky. Acts
ch. 149, sec. 239, which was to have been effective January 1, 2008, 2007 Ky.
Acts ch. 137, sec. 180, effective June 26, 2007. -- Repealed 2006 Ky. Acts
ch. 149, sec. 239, effective January 1, 2008. -- Created 1954 Ky. Acts ch. 38,
sec. 28, effective June 17, 1954.
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