Mont. Code Ann. » TITLE 35. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS · CHAPTER 8. MONTANA LIMITED LIABILITY COMPANY ACT · Part 7. Ownership and Transfer of Property

Mont. Code Ann. § 35-8-705

Rights Of Judgment Creditor

Find cases: SyfertCases citing this section MT-LEGleg.mt.gov JustiaTitle on Justia CornellLII Search CasesGoogle Scholar
  1. MCA Contents
  2. TITLE 35
  3. CHAPTER 8
  4. Part 7
  5. 35-8-705 Rights of judgment creditor

TITLE 35. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS

CHAPTER 8. MONTANA LIMITED LIABILITY COMPANY ACT

Part 7. Ownership and Transfer of Property

Rights Of Judgment Creditor

35-8-705. Rights of judgment creditor. (1) On application to a court of competent jurisdiction by any judgment creditor of a member, the court may charge the distributional interest of the member with payment of the unsatisfied amount of judgment, with interest. To the extent charged, the judgment creditor has only the rights of an assignee of the distributional interest. This chapter does not deprive a member of the benefit of any exemption laws applicable to a distributional interest.

(2) The court may appoint a receiver of the share of the distributions due or to become due to a judgment debtor and make all other orders, directions, accounts, and inquiries that the judgment debtor may have made or that the circumstances require to give effect to the charging order.

(3) A charging order constitutes a lien on the judgment debtor's distributional interest. The court may order a foreclosure of a lien on a distributional interest subject to the charging order at any time. A purchaser of the distributional interest at a foreclosure sale has the rights of a transferee.

(4) At any time before foreclosure, a distributional interest that is charged may be redeemed:

(a) by the judgment debtor;

(b) by one or more of the other members with property other than the company's; or

(c) with the company's property if permitted by the operating agreement.

(5) This 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.

History: En. Sec. 42, Ch. 120, L. 1993; amd. Sec. 28, Ch. 302, L. 1999.

Notes of Decisions
Cited in 3 cases, 2002–2012 · leading case: Kay Yew Koh v. Inno-Pacific Holdings, Ltd.
Sort: Relevance Newest Treatment
Kay Yew Koh v. Inno-Pacific Holdings, Ltd. (2002) washctapp “§ 10:4A-504 (West 1998) (noting that the section is similar to section 504 of Uniform Partnership Act (1997)); Mont. Code Ann. § 35-8-705 (1993); N.J. Stat.”
Koh v. Inno-Pacific Holdings, Ltd. (2002) washctapp “504 (West 1998) (noting that the section is similar to § 504 of Uniform Partnership Act (1997)); Mont.Code Ann. § 35-8-705 (1993); N.J. Stat.”
Jonas v. Jonas (2012) mont “On February 3, 2010, the District Court issued a Charging Order, and Order for Appointment of Receiver, Foreclosure of Lien, and of Sale of Property against Edwin pursuant to §§ 35-8-705 and -902, MCA (2009), to enforce the 2006 Judgment and the accrued interest and alimony.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.