Rhode Island § 7-16-35 § 7-16-35. Assignment of membership interest.

Rhode Island Statutes

§ 7-16-35 — § 7-16-35. Assignment of membership interest.

Rhode Island § 7-16-35

Title 7Corporations, Associations and Partnerships

Ch. 7-16The Rhode Island Limited Liability Company Act

This text of Rhode Island § 7-16-35 (§ 7-16-35. Assignment of membership interest.) is published on Counsel Stack Legal Research, covering Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

R.I. Gen. Laws § 7-16-35 (2026).

Text

§ 7-16-35. Assignment of membership interest.
(a) Unless otherwise provided in the articles of organization or a written operating agreement:
         
(1) A membership interest is assignable in whole or in part;
         
(2) An assignment of a membership interest does not of itself dissolve a limited liability
            company or entitle the assignee to participate in the management and affairs of the
            limited liability company or to become a member or to exercise any rights or powers
            of a member;
         
(3) An assignment entitles the assignee to receive, to the exten

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§ 7-16-35. Assignment of membership interest.

(a) Unless otherwise provided in the articles of organization or a written operating agreement:

(1) A membership interest is assignable in whole or in part;

(2) An assignment of a membership interest does not of itself dissolve a limited liability company or entitle the assignee to participate in the management and affairs of the limited liability company or to become a member or to exercise any rights or powers of a member;

(3) An assignment entitles the assignee to receive, to the extent assigned, only the distributions to which the assignor would be entitled; and

(4) A member ceases to be a member and to have the power to exercise any rights or powers of a member on assignment of all of the member's membership interest.

(b) Unless otherwise provided in the articles of organization or an operating agreement, the pledge of or granting of a security interest, lien or other encumbrance in or against any or all of the membership interest of a member is not deemed an assignment of a membership interest.

(c) Unless otherwise provided in the articles of organization or an operating agreement and except to the extent provided in a written agreement signed by an assignee, until an assignee of a membership interest becomes a member, the assignee has no liability as a member solely as a result of the assignment.