§ 7-64-504 — Partner's transferable interest subject to charging order

Colorado § 7-64-504

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Colorado Uniform Partnership Act (1997)

Text

(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.

(2) A charging order constitutes a lien on the judgment debtor's transferable
interest in the 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.

(3) At any time before foreclosure, a transferable interest charged may be
redeemed:

(a) By the judgment debtor;

(b) With property other than partnership property, by one or more of the
other partners; or

(c) By the partnership with the consent of all of the partners whose
transferable interests are not so charged or with such lesser consent as may be
permitted by the partnership agreement.

(4) This article does not deprive a partner of a right under exemption laws
with respect to the partner's transferable interest in the partnership.

(5) This section provides the exclusive remedy by which a judgment creditor
of a partner or partner's transferee may satisfy a judgment out of the judgment
debtor's transferable interest in the partnership.

Legislative History

Source: L. 97: Entire article added, p. 884, � 1, effective January 1, 1998.