(1)On application by a judgment creditor of a member or transferee, a court may
enter a charging order against the financial rights of the judgment debtor for the
unsatisfied amount of the judgment. A charging order issued under this subsection
(1)constitutes a lien on the judgment debtor's financial rights and requires the
limited cooperative association to pay over to the creditor or receiver, to the extent
necessary to satisfy the judgment, any distribution that would otherwise be paid to
the judgment debtor.
(2)To the extent necessary to effectuate the collection of distributions
pursuant to a charging order under subsection (1) of this section, the court may:
(a)Appoint a receiver of the share of the distributions due or to become due
to the judgment debtor under the jud
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(1) On application by a judgment creditor of a member or transferee, a court may
enter a charging order against the financial rights of the judgment debtor for the
unsatisfied amount of the judgment. A charging order issued under this subsection
(1) constitutes a lien on the judgment debtor's financial rights and requires the
limited cooperative association to pay over to the creditor or receiver, to the extent
necessary to satisfy the judgment, any distribution that would otherwise be paid to
the judgment debtor.
(2) To the extent necessary to effectuate the collection of distributions
pursuant to a charging order under subsection (1) of this section, the court may:
(a) Appoint a receiver of the share of the distributions due or to become due
to the judgment debtor under the judgment debtor's financial rights, with the power
to make all inquiries the judgment debtor might have made; and
(b) Make all other orders that the circumstances of the case may require to
give effect to the charging order.
(3) Upon a showing that distributions under a charging order will not pay the
judgment debt within a reasonable time, the court may foreclose the lien and order
the sale of the financial rights. The purchaser at the foreclosure sale obtains only
the financial rights that are subject to the charging order, does not thereby become
a member, and is subject to section 7-58-603.
(4) At any time before a sale pursuant to a foreclosure, a member or
transferee whose financial rights are subject to a charging order under subsection
(1) of this section may extinguish the charging order by satisfying the judgment and
filing a certified copy of the satisfaction with the court that issued the charging
order.
(5) At any time before sale pursuant to a foreclosure, the limited cooperative
association or one or more members whose financial rights are not subject to the
charging order may pay to the judgment creditor the full amount due under the
judgment and succeed to the rights of the judgment creditor, including the
charging order. Unless the articles or bylaws otherwise provide, the association
may act under this subsection (5) only with the consent of all members whose
financial rights are not subject to the charging order.
(6) This article does not deprive any member or transferee of the benefit of
any exemption laws applicable to the member's or transferee's financial rights.
(7) This section provides the exclusive remedy by which a judgment creditor
of a member or transferee may satisfy the judgment from the member's or
transferee's financial rights.