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§ 4A-603. Interest assignment

West's Annotated Code of MarylandCorporations and AssociationsEffective: October 1, 2022

West's Annotated Code of Maryland
Corporations and Associations
Title 4a. Limited Liability Company Act (Refs & Annos)
Subtitle 6. Membership
Effective: October 1, 2022
MD Code, Corporations and Associations, § 4A-603
§ 4A-603. Interest assignment
Currentness
Assignable interests
(a) Unless otherwise agreed:
(1) Only an economic interest in a limited liability company may be assigned; and
(2) An economic interest is wholly or partly assignable.
Effect of assignment
(b) An assignment of an economic interest in a limited liability company does not:
(1) Dissolve the limited liability company; or
(2) Entitle the assignee to:
(i) Become a member; or
(ii) Exercise any rights of a member, including the noneconomic interest of the assignor.
Release from liability
(c) If an assignee of an economic interest in a limited liability company becomes a member of the limited liability company, the assignor is not released from the assignor's liability under § 4A-502 of this title to the limited liability company.
Forfeiture
(d) Unless otherwise agreed, on assignment of all of a member's economic interest in a limited liability company, the member ceases to be a member of the limited liability company and forfeits the member's noneconomic interest in the limited liability company.
Encumbrance on interest
(e) The pledge or grant of a security interest, lien, or other encumbrance in or against all or a part of the economic interest of a member does not cause the member to cease to be a member or affect the member's noneconomic interest in the limited liability company.

Credits

Added by Acts 1992, c. 536. Amended by Acts 2011, c. 597, § 1, eff. June 1, 2011; Acts 2012, c. 599, § 1, eff. Oct. 1, 2012; Acts 2012, c. 600, § 1, eff. Oct. 1, 2012; Acts 2013, c. 42, § 1, eff. April 9, 2013; Acts 2022, c. 294, § 1, eff. Oct. 1, 2022; Acts 2022, c. 295, § 1, eff. Oct. 1, 2022.
MD Code, Corporations and Associations, § 4A-603, MD CORP & ASSNS § 4A-603
Current through legislation effective through July 1, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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