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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History: Repealed, reenacted, and amended 2010 Ky.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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