§ 23-18-6-3 — Assignment of interest; companies existing on or before June 30, 1999

Indiana § 23-18-6-3

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 18: LIMITED LIABILITY COMPANIES
• Ch. 6: Membership

Text

(a) Unless otherwise provided in a written
operating agreement, a limited liability company existing under this
article on or before June 30, 1999, is governed by this section.
(b) Except as provided in a written operating agreement:
(1) an interest is assignable in whole or in part;
(2) an assignment entitles the assignee to receive, to the extent
assigned, only the distributions to which the assignor would be
entitled;
(3) an assignment of an interest does not of itself dissolve the
limited liability company or entitle the assignee to participate in
the management and affairs of the limited liability company or to
become or exercise any rights of a member;
(4) until the assignee of an interest becomes a member, the
assignor continues to be a member and to have the power to
exercise any rights of a member, subject to the other members'
right to remove the assignor under section 5(a)(3)(B) of this
chapter;
(5) until an assignee of an interest becomes a member, the
assignee has no liability as a member solely as a result of the
assignment; and
(6) the assignor of an interest is not released from liability as a
member solely as a result of the assignment.
(c) Unless otherwise provided in an operating agreement, the pledge
of or granting of a security interest, lien, or other encumbrance in or
against any or all of the interest of a member is not an assignment and
does not cause the member to cease to be a member or to cease to have
the power to exercise any rights or powers of a member.

Legislative History

As added by P.L.8-1993, SEC.301. Amended by P.L.269-1999, SEC.7.