2005 Legislation
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SENATE BILL NO. 1040 – Judgment, limited liability company

SENATE BILL NO. 1040

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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