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17-29-503. Charging
order.
(a) On application by a judgment creditor of a member or transferee, a
court may enter a charging order against the transferable interest of
the judgment debtor for the unsatisfied amount of the judgment. A
charging order requires the limited liability company to pay over to the
person to which the charging order was issued any distribution that
would otherwise be paid to the judgment debtor.
(b) Reserved.
(c) Reserved.
(d) The member or transferee whose transferable interest is subject to
a charging order under subsection (a) of this section may extinguish the
charging order by satisfying the judgment and filing a certified copy of
the satisfaction with the court that issued the charging order.
(e) A limited liability company or one (1) or more members whose
transferable interests are not subject to the charging order may pay to
the judgment creditor the full amount due under the judgment and thereby
succeed to the rights of the judgment creditor, including the charging
order.
(f) This article does not deprive any member or transferee of the
benefit of any exemption laws applicable to the member's or transferee's
transferable interest.
(g) This section provides the exclusive
remedy by which a
person seeking to enforce a judgment against a judgment debtor,
including any judgment debtor who may be the sole member, dissociated
member or transferee, may, in the capacity of the judgment creditor, satisfy the judgment from the
judgment debtor's transferable interest or from the assets of the
limited liability company. Other
remedies, including foreclosure on the judgment debtor's limited
liability interest and a
court order for directions, accounts and inquiries that the
judgment debtor might have made are not available to the judgment creditor attempting to satisfy a
judgment out of the judgment debtor's interest in the limited liability
company and may not be ordered by the court.
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