(1) On application by a judgment creditor of a partner or of a partner's transferee, a court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy the judgment. 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.
A charging order constitutes a lien on the judgment debtor's transferable interest inthe partnership. The court may order a foreclosure of the transferable interest subject to the charging order at any time. The purchaser at the foreclosure sale has the rights of a transferee.
At any time before foreclosure, a transferable interest charged may be redeemed:
By the judgment debtor;
With property other than partnership property, by one or more of the other partners;or
By the partnership with the consent of all of the partners whose transferable interestsare not so charged or with such lesser consent as may be permitted by the partnership agreement.
This article does not deprive a partner of a right under exemption laws with respectto the partner's transferable interest in the partnership.
This section provides the exclusive remedy by which a judgment creditor of a partneror partner's transferee may satisfy a judgment out of the judgment debtor's transferable interest in the partnership.
Source: L. 97: Entire article added, p. 884, § 1, effective January 1, 1998.