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S1040................................................by JUDICIARY AND RULES
JUDGMENTS - Amends existing law to provide that the charging order by a
court of competent jurisdiction is the exclusive remedy by which a judgment
creditor of the member of a limited liability company or transferee may
satisfy a judgment against the member's interest in a limited liability
company.
01/20 Senate intro - 1st rdg - to printing
01/21 Rpt prt - to Jud
02/01 Rpt out - rec d/p - to 2nd rdg
02/02 2nd rdg - to 3rd rdg
02/07 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai, Marley, McGee, McKenzie, Noble, Pearce, Richardson,
Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Hill
Floor Sponsor - Davis
Title apvd - to House
02/08 House intro - 1st rdg - to Jud
03/10 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Cannon, Chadderdon,
Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart(Jacobson), Harwood, Henbest,
Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ringo, Roberts, Rusche, Rydalch,
Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen,
Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Bradford, Martinez, Ring
Floor Sponsor - Smith(24)
Title apvd - to Senate
03/16 To enrol
03/17 Rpt enrol - Pres signed
03/18 Sp signed
03/21 To Governor
03/23 Governor signed
Session Law Chapter 111
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE SENATE
SENATE BILL NO. 1040
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO THE RIGHTS OF A JUDGMENT CREDITOR AGAINST A MEMBER OF A LIMITED
3 LIABILITY COMPANY; AMENDING SECTION 53-637, IDAHO CODE, TO PROVIDE THAT
4 THE CHARGING ORDER IS THE EXCLUSIVE REMEDY BY WHICH A JUDGMENT CREDITOR OF
5 THE MEMBER OR TRANSFEREE MAY SATISFY A JUDGMENT AGAINST THE MEMBER'S
6 INTEREST IN A LIMITED LIABILITY COMPANY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 53-637, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 53-637. RIGHTS OF JUDGMENT CREDITOR. On application to a court of compe-
11 tent jurisdiction by any judgment creditor of a member, the court may charge
12 the member's limited liability company interest with payment of the unsatis-
13 fied amount of judgment with interest. To the extent so charged, the judgment
14 creditor has only the rights of an assignee of the member's limited liability
15 company interest. The charging order is the exclusive remedy by which a judg-
16 ment creditor of the member or transferee may satisfy a judgment against the
17 member's interest in a limited liability company. The provisions of this chap-
18 ter do not deprive any member of the benefit of any exemption laws applicable
19 to his limited liability company interest.
STATEMENT OF PURPOSE
RS 14295
This legislation provides to limit the rights of a judgment
creditor in its collection efforts. This legislation would
provide that the charging order is exclusive remedy for
satisfying a judgment against a members LLC interests.
FISCAL IMPACT
None
Contact
Name: Bart Davis
Phone: 332-1305
STATEMENT OF PURPOSE/FISCAL NOTE S 1040