56a-504. Partner's transferable interest subject to charging order. - Kansas Statutes

56a-504

Chapter 56a.--KANSAS UNIFORM PARTNERSHIP ACT Article 5.--TRANSFEREES AND CREDITORS OF PARTNER

      56a-504.   Partner's transferable interest subject tocharging order.(a) On application by a judgment creditor of apartner or of a partner's transferee, a court having jurisdictionmay charge the transferable interest of the judgment debtor tosatisfy the judgment. The court may appoint a receiver of theshare of the distributions due or to become due to the judgmentdebtor in respect of the partnership and make all other orders,directions, accounts, and inquiries the judgment debtor might havemade or which the circumstances of the case may require.

      (b)   A charging order constitutes a lien on the judgmentdebtor's transferable interest in the partnership. The court mayorder a foreclosure of the interest subject to the charging orderat any time. The purchaser at the foreclosure sale has the rightsof a transferee.

      (c)   At any time before foreclosure, an interest chargedmay be redeemed:

      (1)   By the judgment debtor;

      (2)   with property other than partnership property,by one or more of the other partners; or

      (3)   with partnership property, by one or more of theother partners with the consent of all of the partners whoseinterests are not so charged.

      (d)   This act does not deprive a partner of a rightunder exemption laws with respect to the partner's interest in thepartnership.

      (e)   This section provides the exclusive remedy by whicha judgment creditor of a partner or partner's transferee maysatisfy a judgment out of the judgment debtor's transferableinterest in the partnership.

      History:   L. 1998, ch. 93, § 29; Jan. 1, 1999.