§ 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.
History of Section.
P.L. 1992, ch. 280, § 1.