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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