Chapter 805 - Business Organizations - Uniform Limited Partnership Act. (2001) - Transferable Interests and Rights of Transferees and Creditors

(805 ILCS 215/Art. 7 heading)

ARTICLE 7

TRANSFERABLE INTERESTS AND RIGHTS

OF TRANSFEREES AND CREDITORS

(Source: P.A. 93-967, eff. 1-1-05.)

(805 ILCS 215/701)
Sec. 701. Partner's transferable interest. The only interest of a partner which is transferable is the partner's transferable interest. A transferable interest is personal property.
(Source: P.A. 93-967, eff. 1-1-05.)

    (805 ILCS 215/702)
    Sec. 702. Transfer of partner's transferable interest.
    (a) A transfer, in whole or in part, of a partner's transferable interest:
        (1) is permissible;
        (2) does not by itself cause the partner's

dissociation or a dissolution and winding up of the limited partnership's activities; and

(3) does not, as against the other partners or the

limited partnership, entitle the transferee to participate in the management or conduct of the limited partnership's activities, to require access to information concerning the limited partnership's transactions except as otherwise provided in subsection (c), or to inspect or copy the required information or the limited partnership's other records.

(b) A transferee has a right to receive, in accordance

with the transfer:

(1) distributions to which the transferor would

otherwise be entitled; and

(2) upon the dissolution and winding up of the

limited partnership's activities the net amount otherwise distributable to the transferor.

entitled to an account of the limited partnership's transactions only from the date of dissolution.

(d) Upon transfer, the transferor retains the rights of a

partner other than the interest in distributions transferred and retains all duties and obligations of a partner.

(e) A limited partnership need not give effect to a

transferee's rights under this Section until the limited partnership has notice of the transfer.

(f) A transfer of a partner's transferable interest in

the limited partnership in violation of a restriction on transfer contained in the partnership agreement is ineffective as to a person having notice of the restriction at the time of transfer.

(g) A transferee that becomes a partner with respect to a

transferable interest is liable for the transferor's obligations under Sections 502 and 509. However, the transferee is not obligated for liabilities unknown to the transferee at the time the transferee became a partner.

(Source: P.A. 93-967, eff. 1-1-05.)

    (805 ILCS 215/703)
    Sec. 703. Rights of creditor of partner or transferee.
    (a) On application to a court of competent jurisdiction by any judgment creditor of a partner or transferee, the court may charge the transferable interest of the judgment debtor with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of a transferee. 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 to give effect to the charging order.
    (b) A charging order constitutes a lien on the judgment debtor's transferable interest. The court may order a foreclosure upon the interest subject to the charging order at any time. The purchaser at the foreclosure sale has the rights of a transferee.
    (c) At any time before foreclosure, an interest charged may be redeemed:
        (1) by the judgment debtor;
        (2) with property other than limited partnership

property, by one or more of the other partners; or

(3) with limited partnership property, by the limited

partnership with the consent of all partners whose interests are not so charged.

(d) This Act does not deprive any partner or transferee

of the benefit of any exemption laws applicable to the partner's or transferee's transferable interest.

(e) This Section provides the exclusive remedy by which a

judgment creditor of a partner or transferee may satisfy a judgment out of the judgment debtor's transferable interest.

(Source: P.A. 93-967, eff. 1-1-05.)

(805 ILCS 215/704)
Sec. 704. Power of estate of deceased partner. If a partner dies, the deceased partner's personal representative or other legal representative may exercise the rights of a transferee as provided in Section 702 and, for the purposes of settling the estate, may exercise the rights of a current limited partner under Section 304.
(Source: P.A. 93-967, eff. 1-1-05.)