Delaware § 17-703 Partner’s partnership interest subject to charging order

Delaware Statutes

§ 17-703 — Partner’s partnership interest subject to charging order

Delaware·Title 6·Ch. 17 LIMITED PARTNERSHIPS·Subch. Assignment of Partnership Interests

(a)On application by a judgment creditor of a partner or of a partner’s assignee, a court having jurisdiction may charge the partnership interest of the judgment debtor to satisfy the judgment. To the extent so charged, the judgment creditor has only the right to receive any distribution or distributions to which the judgment debtor would otherwise have been entitled in respect of such partnership interest.

(b)A charging order constitutes a lien on the judgment debtor’s partnership interest.

(c)This chapter does not deprive a partner or partner’s assignee of a right under exemption laws with respect to the judgment debtor’s partnership interest.

(d)The entry of a charging order is the exclusive remedy by which a judgment creditor of a partner or of a partner’s assignee may satisfy a

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(a) On application by a judgment creditor of a partner or of a partner’s assignee, a court having jurisdiction may charge the partnership interest of the judgment debtor to satisfy the judgment. To the extent so charged, the judgment creditor has only the right to receive any distribution or distributions to which the judgment debtor would otherwise have been entitled in respect of such partnership interest.

(b) A charging order constitutes a lien on the judgment debtor’s partnership interest.

(c) This chapter does not deprive a partner or partner’s assignee of a right under exemption laws with respect to the judgment debtor’s partnership interest.

(d) The entry of a charging order is the exclusive remedy by which a judgment creditor of a partner or of a partner’s assignee may satisfy a judgment out of the judgment debtor’s partnership interest and attachment, garnishment, foreclosure or other legal or equitable remedies are not available to the judgment creditor.

(e) No creditor of a partner or of a partner’s assignee shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to, the property of the limited partnership.

(f) The Court of Chancery shall have jurisdiction to hear and determine any matter relating to any such charging order.

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Legislative History

6 Del. C. 1953, § 1722; 59 Del. Laws, c. 105, § 1 ; 63 Del. Laws, c. 420, § 1 ; 65 Del. Laws, c. 188, § 1 ; 70 Del. Laws, c. 186, § 1 ; 72 Del. Laws, c. 386, § 23 ; 75 Del. Laws, c. 31, §§ 10-16 ; 79 Del. Laws, c. 73, § 9