Enforcement against nonassociated asset.

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489.14404 Enforcement against nonassociated asset.

1. As used in this section:

a. “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.

b. Subject to section 489.14608, subsection 2, “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. 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:

a. A judgment against the company may be enforced against an asset of a protected series of the company if any of the following applies:

(1) The asset was a nonassociated asset of the protected series on the incurrence date.

(2) The asset is a nonassociated asset of the protected series on the enforcement date.

b. A judgment against a protected series may be enforced against an asset of the company if any of the following apply:

(1) The asset was a nonassociated asset of the company on the incurrence date.

(2) The asset is a nonassociated asset of the company on the enforcement date.

c. A judgment against a protected series may be enforced against an asset of another protected series of the company if any of the following applies:

(1) The asset was a nonassociated asset of the other protected series on the incurrence date.

(2) The asset is a nonassociated asset of the other protected series on the enforcement date.

3. 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 article permits a prejudgment remedy by attachment, levy, or the like, the court may apply subsection 2 as a prejudgment remedy.

4. 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. This section applies to an asset of a foreign series limited liability company or foreign protected series if all of the following applies:

a. The asset is real or tangible property located in this state.

b. The claimant is a resident of this state or doing business or authorized to do business in this state, or the claim under section 489.14404 is to enforce a judgment, or to seek a prejudgment remedy, pertaining to a liability arising from law of this state other than this article or an act or omission in this state.

c. 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 section 489.14301.

2019 Acts, ch 26, §23, 41

Referred to in §489.801, 489.14107, 489.14401, 489.14608, 489.14701, 489.14703, 489.14803

Section takes effect July 1, 2020; 2019 Acts, ch 26, §41

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