Bill Text: IL HB3725 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Limited Liability Company Act. Eliminates language stating that the specified Section provides the exclusive remedy by which a judgment creditor of a member or a transferee may satisfy a judgment out of the judgment debtor's distributional interest in a limited liability company. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB3725 Detail]
Download: Illinois-2009-HB3725-Introduced.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Limited Liability Company Act is amended by | |||||||||||||||||||
5 | changing Section 30-20 as follows:
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6 | (805 ILCS 180/30-20)
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7 | Sec. 30-20.
Rights of creditor.
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8 | (a) On application by a judgment creditor of a member of a | |||||||||||||||||||
9 | limited
liability
company or of a member's transferee, a court | |||||||||||||||||||
10 | having
jurisdiction may charge the distributional interest of | |||||||||||||||||||
11 | the judgment debtor to
satisfy the judgment. The court may | |||||||||||||||||||
12 | appoint a receiver of the share of
the distributions due or to | |||||||||||||||||||
13 | become due to the judgment debtor and make all
other orders, | |||||||||||||||||||
14 | directions, accounts, and inquiries the judgment debtor
might | |||||||||||||||||||
15 | have made or which the circumstances may require to give effect | |||||||||||||||||||
16 | to the
charging order.
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17 | (b) A charging order constitutes a lien on the judgment | |||||||||||||||||||
18 | debtor's
distributional interest. The court may order a | |||||||||||||||||||
19 | foreclosure of a lien on a
distributional interest subject to | |||||||||||||||||||
20 | the charging order at any time. A purchaser
at the foreclosure | |||||||||||||||||||
21 | sale has the rights of a transferee.
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22 | (c) at any time before foreclosure, a distributional | |||||||||||||||||||
23 | interest in a limited
liability company that is charged may be |
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1 | redeemed:
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2 | (1) by the judgment debtor;
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3 | (2) with property other than the company's property, by | ||||||
4 | one or more of the
other members; or
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5 | (3) with the company's property, but only if permitted | ||||||
6 | by the operating
agreement.
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7 | (d) This Act does not affect a member's right under | ||||||
8 | exemption laws with
respect to the member's distributional | ||||||
9 | interest in a limited
liability company.
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10 | (e) (Blank). This Section provides the exclusive remedy by | ||||||
11 | which a judgment creditor
of a member or a transferee may | ||||||
12 | satisfy a judgment out of the judgment
debtor's distributional | ||||||
13 | interest in a limited liability company.
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14 | (Source: P.A. 90-424, eff. 1-1-98.)
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15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
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