2011 California Code
TITLE 2.5. LIMITED LIABILITY COMPANIES [17000 - 17656]
CHAPTER 7. Interest in Limited Liability Company: Assignment of Interests
(a) On application by a judgment creditor of a member or of a member s assignee, a court having jurisdiction may charge the assignable membership interest of the judgment debtor to satisfy the judgment. The court may appoint a receiver of the share of the distributions due or to become due to the judgment debtor in respect to the limited liability company and may make all other orders, directions, accounts, and inquiries that the judgment debtor might have made or that the circumstances of the case may require.
(b) A charging order constitutes a lien on the judgment debtor s assignable membership interest. The court may order a foreclosure on the membership interest subject to the charging order at any time. The purchaser at the foreclosure sale has the rights of an assignee.
(c) At any time before foreclosure, a membership interest charged may be redeemed in any of the following manners:
(1) By the judgment debtor.
(2) With property other than property of the limited liability company by one or more of the other members.
(3) With property of the limited liability company by one or more of the other members with the consent of all of the members whose membership interests are not so charged.
(d) This section does not deprive any member or assignee of a membership interest of the benefit of any exemption laws applicable to the membership interest in the limited liability company.
(e) This section provides the exclusive remedy by which a judgment creditor of a member or of a member s assignee may satisfy a judgment out of the judgment debtor s membership interest in the limited liability company.
(Amended by Stats. 2002, Ch. 451, Sec. 3. Effective January 1, 2003.)
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