Enforcement against non-associated asset

1. Law
2. Arkansas Code
3. Business and Commercial Law
4. Corporations and Associations
5. Uniform Protected Series Act
6. Limitation on Liability and Enforcement of Claims
7. Enforcement against non-associated asset

1. (a) In this section:

   1. (1) “Enforcement date” means 12:01 a.m. on the date on which a claimant first serves process on a series limited liability company or protected series in an action seeking to enforce under this section a claim against an asset of the company or protected series by attachment, levy, or the like.

   2. (2) Subject to § 4-37-608(b), “incurrence date” means the date on which a series limited liability company or protected series incurred the liability giving rise to a claim that a claimant seeks to enforce under this section.

2. (b) If a claim against a series limited liability company or a protected series of the company has been reduced to judgment, in addition to any other remedy provided by law or equity, the judgment may be enforced in accordance with the following rules:

   1. (1) A judgment against the company may be enforced against an asset of a protected series of the company if the asset:

      1. (A) was a non-associated asset of the protected series on the incurrence date; or

      2. (B) is a non-associated asset of the protected series on the enforcement date.

   2. (2) A judgment against a protected series may be enforced against an asset of the company if the asset:

      1. (A) was a non-associated asset of the company on the incurrence date; or

      2. (B) is a non-associated asset of the company on the enforcement date.

   3. (3) A judgment against a protected series may be enforced against an asset of another protected series of the company if the asset:

      1. (A) was a non-associated asset of the other protected series on the incurrence date; or

      2. (B) is a non-associated asset of the other protected series on the enforcement date.

3. (c) In addition to any other remedy provided by law or equity, if a claim against a series limited liability company or a protected series has not been reduced to a judgment and law other than this chapter permits a prejudgment remedy by attachment, levy, or the like, the court may apply subsection (b) as a prejudgment remedy.

4. (d) In a proceeding under this section, the party asserting that an asset is or was an associated asset of a series limited liability company or a protected series of the company has the burden of proof on the issue.

5. (e) This section applies to an asset of a foreign series limited liability company or foreign protected series if:

   1. (1) the asset is real or tangible property located in this state;

   2. (2) the claimant is a resident of this state or doing business or registered to do business in this state, or the claim under § 4-37-404 is to enforce a judgment, or to seek a prejudgment remedy, pertaining to a liability arising from law of this state other than this chapter or an act or omission in this state; and

   3. (3) the asset is not identified in the records of the foreign series limited liability company or foreign protected series in a manner comparable to the manner required by § 4-37-301.

Download our app to see the most-to-date content.