LD 1609
pg. 77
Page 76 of 148 An Act To Establish the Uniform Partnership Act Page 78 of 148
Download Bill Text
LR 1469
Item 1

 
debtor's consent is ineffective); Battista v. Carlo, 57 Misc. 2d
495, 293 N.Y.S.2d 227 (1968) (restriction on transfer of
partnership interest subject to rules against unreasonable
restraints on alienation of property) (dictum); Tupper v. Kroc, 88
Nev. 146, 494 P.2d 1275 (1972) (partnership interest subject to
charging order even if partnership agreement prohibits
assignments). Cf. TuVu Drive-In Corp. v. Ashkins, 61 Cal. 2d 283,
38 Cal. Rptr. 348, 391 P.2d 828 (1964) (restraints on transfer of
corporate stock must be reasonable). Even if a restriction on the
transfer of a partner's transferable interest in a partnership were
held to be unenforceable, the transfer might be grounds for
expelling the partner-transferor from the partnership under Section
601(5)(ii).

 
7. Other rules that apply in the case of transfers include
Section 601(4)(ii) (expulsion of partner who transfers
substantially all of partnership interest); Section 601(6)
(dissociation of partner who makes an assignment for benefit of
creditors); and Section 801(6) (transferee has standing to seek
judicial winding up).

 
§1054.__Partner's transferable interest subject to charging order

 
1.__Charging order; interest of judgment debtor.__On
application by a judgment creditor of a partner or of a partner's
transferee, a court having jurisdiction may charge the
transferable interest of the judgment debtor to satisfy the
judgment.__The court may appoint a receiver of the share of the
distributions due or to become due to the judgment debtor in
respect of the partnership and make all other orders, directions,
accounts and inquiries the judgment debtor might have made or
that the circumstances of the case may require.

 
2.__Charging order; lien.__A charging order constitutes a lien
on the judgment debtor's transferable interest in the
partnership.__The court may order a foreclosure of the interest
subject to the charging order at any time.__The purchaser at the
foreclosure sale has the rights of a transferee.

 
3.__Redemption of charged interest.__At any time before
foreclosure, an interest charged may be redeemed:

 
A.__By the judgment debtor;

 
B.__With property other than partnership property, by one or
more of the other partners; or

 
C.__With partnership property, by one or more of the other
partners with the consent of all of the partners whose
interests are not so charged.


Page 76 of 148 Top of Page Page 78 of 148