§ 45-10.2-64 — (703) Charging order

North Dakota § 45-10.2-64

• Jurisdiction: North Dakota
• Title 45: Partnerships
• Ch. 45-10.2: Uniform Limited Partnership Act

Text

1. On application by a judgment creditor of a partner or of a partner's transferee, and
following notice to the partnership of the application, a court of competent jurisdiction
may enter a charging order against the transferable interest of the judgment debtor for
the unsatisfied amount of the judgment.
2. A charging order constitutes a lien on the transferable interest of the judgment debtor
and requires the partnership to pay to the person to which the charging order was
issued any distribution that otherwise would be paid to the judgment debtor.
3. The partner or transferee having a transferable interest subject to a charging order
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.
4. A partnership or partner having any transferable interest not subject to the charging
order may pay the full amount due under the judgment to the judgment creditor and
succeed to the rights of the judgment creditor, including the charging order.
5. This chapter does not deprive any partner or transferee of the benefit of any
exemption laws applicable to the transferable interest of the partner or transferee.
6. This section provides the exclusive remedy by which a person seeking to enforce a
judgment against a partner or transferee may satisfy, in the capacity of a judgment
creditor, the judgment from the transferable interest of the judgment debtor.
a. No other remedy, including foreclosure of the transferable interest or a court order
for directions, accounts, and inquiries the debtor partner may have made, is
available to the judgment creditor attempting to satisfy the judgment from the
judgment debtor's interest in the partnership.
b. No creditor of a partner or transferee has a right to obtain possession or
otherwise exercise legal or equitable remedies with respect to property of the
partnership.