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
 
                         House Bill 2310
 
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 as
introduced.
 
  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 { + : + }
   { +  (a) + } 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. - }
   { +  (b) Appoint a receiver of the share of the distributions
due or to become due to the judgment debtor and make all other
orders, directions, accounts and inquiries the judgment debtor
might have made or that the circumstances of the case may
require.
  (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) The court may order a foreclosure of the distributional
interest subject to the charging order at any time. A purchaser
at the foreclosure sale has the rights of a transferee.
  (4) At any time before foreclosure, a distributional interest
charged may be redeemed by:
  (a) The judgment debtor;
  (b) One or more of the other members with property other than
the limited liability company's property; or
  (c) One or more of the other members with the limited liability
company's property, if permitted by the operating agreement.
 
 
  (5) 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.
  (6) This section provides the exclusive remedy by which a
judgment creditor of a member or member's transferee may satisfy
a judgment out of the judgment debtor's transferable interest in
the limited liability company. + }
  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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