96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB3725


 
Introduced 2/25/2009, by Rep. Sidney H. Mathias
 
SYNOPSIS AS INTRODUCED:
 		














805 ILCS 180/30-20









    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. 
















LRB096 09357 KTG 19514 b

















 


 


A BILL FOR









 











HB3725

LRB096 09357 KTG 19514 b






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    AN ACT concerning business.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Limited Liability Company Act is amended  by 
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changing Section 30-20 as follows:
 



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    (805 ILCS 180/30-20)



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    Sec. 30-20. 
Rights of creditor.

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    (a) On application by a judgment creditor of a member of a 
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limited
liability
company or of a member's transferee, a court 
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having
jurisdiction may charge the distributional interest of 
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the judgment debtor to
satisfy the judgment.  The court may 
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appoint a receiver of the share of
the distributions due or to 
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become due to the judgment debtor and make all
other orders, 
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directions, accounts, and inquiries the judgment debtor
might 
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have made or which the circumstances may require to give effect 
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to the
charging order.

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

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    (c) at any time before foreclosure, a distributional 
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interest in a limited
liability company that is charged may be 
 


 






HB3725
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LRB096 09357 KTG 19514 b




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redeemed:


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        (1) by the judgment debtor;


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


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        (3) with the company's property, but only if permitted 
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    by the operating
agreement.

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    (d) This Act does not affect a member's right under 
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exemption laws with
respect to the member's distributional 
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interest in a limited
liability company.

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    (e) (Blank). This Section provides the exclusive remedy by 
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which a judgment creditor
of a member or a transferee may 
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satisfy a judgment out of the judgment
debtor's distributional 
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interest in a limited liability company.

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(Source: P.A. 90-424, eff. 1-1-98.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.