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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1710
Introduced 2/25/2005, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED:
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Amends the Limited Liability Company Act. Deletes language providing that a charging order is the exclusive remedy by which a judgment creditor of a member or a transferee may satisfy a judgement out of a debtor's distributional interest in a limited liability company.
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A BILL FOR
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SB1710 |
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LRB094 11365 RXD 42232 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 |
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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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