Home Table of Contents

§ 9A-504. Partner's transferable interest subject to charging order

West's Annotated Code of MarylandCorporations and Associations

West's Annotated Code of Maryland
Corporations and Associations
Title 9a. Revised Uniform Partnership Act (Refs & Annos)
Subtitle 5. Transferees and Creditors of Partner
MD Code, Corporations and Associations, § 9A-504
§ 9A-504. Partner's transferable interest subject to charging order
Authority of court
(a) On application by a judgment creditor of a partner or of a partner's transferee, a court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy the judgment. The court may appoint a receiver of the share of the distributions due or to become due to the judgment debtor in respect of the partnership and make all other orders, directions, accounts, and inquiries the judgment debtor might have made or which the circumstances of the case may require.
Lien and foreclosure
(b) A charging order constitutes a lien on the judgment debtor's transferable interest in the partnership. The court may order a foreclosure of the interest subject to the charging order at any time. The purchaser at the foreclosure sale has the rights of a transferee.
Redeeming an interest charged
(c) At any time before foreclosure, an interest charged may 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 the other partners with the consent of all of the partners whose interests are not so charged.
Exemptions
(d) This title does not deprive a partner of a right under exemption laws with respect to the partner's interest in the partnership.
Exclusive remedy
(e) This section provides the exclusive remedy by which a judgment creditor of a partner or partner's transferee may satisfy a judgment out of the judgment debtor's transferable interest in the partnership.

Credits

Added as Corporations and Associations § 9-504 by Acts 1997, c. 654, § 2, eff. July 1, 1998. Renumbered as Corporations and Associations § 9A-504 by Acts 1998, c. 743, § 1, eff. June 1, 1998.

Editors' Notes

HISTORICAL AND STATUTORY NOTES
Uniform Law
This section is based upon § 504 of the Uniform Partnership Act (1997). See Vol. 6, Pt. I, Uniform Laws Annotated, Master Edition, or ULA Database on Westlaw.
Derivation:
Former Art. 73A, § 28, related to subjecting partner's interest to charging order, repealed by Acts 1975, c. 311, § 1, eff. July 1, 1975.
Corporations and Associations § 9-505, added by Acts 1975, c. 311, § 2, related to subjecting partner's interest to charging order, repealed by Acts 1998, c. 743, § 2, eff. Dec. 31, 2002.
MD Code, Corporations and Associations, § 9A-504, MD CORP & ASSNS § 9A-504
Current through legislation effective July 1, 2019, from the 2019 Regular Session of the General Assembly.
End of Document© 2019 Thomson Reuters. No claim to original U.S. Government Works.