13.1-1041.1 - Member's transferable interest subject to charging order. - Virginia Statutes

§ 13.1-1041.1. Member's transferable interest subject to charging order.

A. On application by a judgment creditor of a member or of a member'sassignee, a court having jurisdiction may charge the transferable interest ofthe judgment debtor to satisfy the judgment. To the extent so charged, thejudgment creditor has only the right to receive any distribution ordistributions to which the judgment debtor would otherwise have been entitledin respect of the interest.

B. A charging order constitutes a lien on the judgment debtor's transferableinterest in the limited liability company.

C. This chapter does not deprive a member or a member's assignee of a rightunder exemption laws with respect to the judgment debtor's interest in thelimited liability company.

D. The entry of a charging order is the exclusive remedy by which a judgmentcreditor of a member or of a member's assignee may satisfy a judgment out ofthe judgment debtor's transferable interest in the limited liability company.

E. No creditor of a member or of a member's assignee shall have any right toobtain possession of, or otherwise exercise legal or equitable remedies withrespect to, the property of the limited liability company.

(2004, c. 601; 2006, c. 912.)