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362.481 Rights of judgment creditor.
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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 any judgment creditor of a
partner or a partner's transferee, the 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. A charging order does
not of itself constitute an assignment of the transferable interest.
The court may order a foreclosure upon the transferable interest subject to the
charging order at any time. The purchaser at the foreclosure sale has the rights of a
transferee.
At any time before foreclosure, an interest charged may be redeemed:
(a) By the judgment debtor;
(b) With property other than limited partnership property, by one (1) or more of
the other partners; or
(c) With limited partnership property, by the limited partnership with the consent
of all partners whose interests are not so charged.
This section does not deprive any partner or a partner's transferee of the benefit of
any exemption laws applicable to the partner's or transferee's transferable interest.
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History: Repealed, reenacted, and amended 2010 Ky.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. 50, 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. -- Amended 1998 Ky. Acts ch. 341, sec. 53, effective July 15, 1998.
-- Created 1988 Ky. Acts ch. 284, sec. 41, effective July 15, 1988.
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