74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 300
 
                           A-Engrossed
 
                         House Bill 2310
                   Ordered by the House May 2
                Including House Amendments dated May 2
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Judiciary)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Establishes rights of judgment creditors and judgment debtors
relating to distributional interests in limited liability
companies.
 
                        A BILL FOR AN ACT
Relating to distributional interests in limited liability
  companies; creating new provisions; and amending ORS 63.259.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 63.259 is amended to read:
  63.259.  { + (1) + } On application to a court of competent
jurisdiction by any judgment creditor of a member, the court may
charge the membership interest of the member with payment of the
unsatisfied amount of the judgment with interest.   { - To the
extent so charged, the judgment creditor has only the rights of
an assignee of the membership interest. This chapter shall not
deprive any member of the benefit of any exemption laws
applicable to the member's membership interest. - }
   { +  (2) A charging order made under subsection (1) of this
section constitutes a lien on the judgment debtor's
distributional interest and has priority over other charging
order liens according to the date and time of entry of the
charging order.
  (3) This section does not deprive a member of a right under
exemption laws with respect to the member's distributional
interest in the limited liability company.
  (4) This section provides the exclusive remedy by which a
judgment creditor of a member may satisfy a judgment out of the
judgment debtor's membership interest in the limited liability
company.
  (5) For purposes of this section, 'distributional interest '
means a member's right to distributions from the member's
membership interest. + }
  SECTION 2.  { + The amendments to ORS 63.259 by section 1 of
this 2007 Act apply to charging orders entered on or after the
effective date of this 2007 Act. + }
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