ENTITLED, An Act to
revise the rights of creditors of limited liability companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That
§
47-34A-504
be amended to read as follows:
47-34A-504.
(a) On application by a judgment creditor of a member of a limited liability
company or of a member's transferee, a court having jurisdiction may charge the distributional
interest of the judgment debtor to satisfy the judgment.
(b) A charging order constitutes a lien on the judgment debtor's distributional interest.
(c) A distributional interest in a limited liability company which is charged may be redeemed:
(1)
By the judgment debtor;
(2)
With property other than the company's property, by one or more of the other members;
or
(3)
With the company's property, but only if permitted by the operating agreement.
(d) This chapter does not affect a member's right under exemption laws with respect to the
member's distributional interest in a limited liability company.
(e) This section provides the exclusive remedy that a judgment creditor of a member's
distributional interest or a member's assignee may use to satisfy a judgment out of the judgment
debtor's interest in a limited liability company. No other remedy, including foreclosure on the
member's distributional interest or a court order for directions, accounts, and inquiries that the
debtor, member might have made, is available to the judgment creditor attempting to satisfy the
judgment out of the judgment debtor's interest in the limited liability company, and no other remedy
may be ordered by a court.
An Act to revise the rights of creditors of limited liability companies.
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I certify that the attached
Act
originated in the
SENATE as
Bill
No.
78
____________________________
Secretary of the Senate
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____________________________
President of the Senate
____________________________
Secretary of the Senate
____________________________
Speaker of the House
____________________________
Chief Clerk
Senate
Bill
No.
78
File No. ____
Chapter No. ______
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Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
By _________________________
for the Governor
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The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________
Governor
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STATE OF SOUTH DAKOTA,
ss.
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
____________________________
Secretary of State
By _________________________
Asst. Secretary of State
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