Puerto Rico Charging Order Statutes And Opinions
Puerto Rico Charging Order Statutes
- GENERAL AND LIMITED CO-PARTNERSHIPS: 10 L.P.R. § 1435. Rights of creditors of partners
- LIMITED LIABILITY COMPANIES: 14 L.P.R. § 3994. Member's interest in an LLC subject to orders
GENERAL AND LIMITED CO-PARTNERSHIPS
10 L.P.R. § 1435. Rights of creditors of partners
As regards the partnership, creditors of a partner shall have no right, even in case of said partner's failure, other than the right to attach and receive such sums as may pertain to the debtor partner by reason of profits or liquidation.
LIMITED LIABILITY COMPANIES
14 L.P.R. § 3994. Member's interest in an LLC subject to orders
(a) On application by a judgment creditor of a member or of a member's assignee, a court with competent jurisdiction may charge against the LLC interest of the member subject to judgment to satisfy the same. 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 LLC interest. The court may appoint a trustee for the portion of the distributions payable or that shall become payable under the judgment against the member with respect to the LLC, whose trustee shall have the rights of the assignee, and the court may issue those orders, instructions, accounts and questions that the member subject to the judgment could have or that the circumstances of the case may require.
(b) A charging order constitutes a lien on the LLC interest of the member subject to judgment. The court may, at any time, order the execution of the interest in the LLC subject to the charging order. The buyer in the sale due to execution shall only have the rights of an assignee.
(c) Unless otherwise provided in an LLCA, at any time prior to execution, an interest in an LLC subject to a charging order may be redeemed:
(1) By the member subject to judgment;
(2) by property that is not owned by the LLC, by one (1) or more of the other members, or
(3) by the LLC with the consent of the members whose interest is not charged.
(d) This subtitle does not limit the rights of a member under exemption laws with respect to his/her interest in the LLC.
(e) This section provides the exclusive remedy by which a judgment creditor of a member or of a member's assignee may satisfy a judgment out of the LL C interest of the member subject to judgment.
(f) No creditor of a member shall have any right to obtain possession of, or otherwise exercise legal or equitable remedies with respect to the property of the LLC.