{"data":{"id":"us-ky/krs-272a.6-050","jurisdiction":"us-ky","citation":"KRS 272A.6-050","heading":"Charging order.","body":"(1) This section provides the exclusive remedy by which the judgment creditor of a\nmember  or the assignee of a member  may  satisfy a judgment out of the\njudgment debtor's limited financial rights in a limited cooperative association.\n(2) On  application to a court of competent jurisdiction by a judgment creditor of a\nmember  or a member's assignee, a court may charge the judgment debtor's\nfinancial rights in the association with payment of the unsatisfied amount of the\njudgment. To the extent so charged, the judgment creditor has only the rights\nof a transferee and shall have no right to participate in the management  or to\ncause the dissolution of the association. The court may appoint a receiver of\nthe share of the distributions due or to become  due to the judgment debtor in\nrespect of the financial rights and make all other orders, directions, accounts,\nand  inquiries the judgment  debtor might  have  made  or  which  the\ncircumstances of the case may require to give effect to the charging order.\n(3) A  charging order constitutes a lien on and the right to receive distributions\nmade  with respect to the judgment debtor's financial rights. A charging order\ndoes not of itself constitute an assignment of the financial rights.\n(4) The  court may  order a foreclosure upon the financial rights subject to the\ncharging order at any time. The  purchaser of the financial rights at the\nforeclosure sale has the rights of a transferee. At any time before foreclosure,\nthe charged financial rights may be redeemed:\n(a) By the judgment debtor;\n(b) With property other than property of the association, by one (1) or more of\nthe other members; and\n(c) With association property, by the association with the consent of all\nmembers  whose financial rights are not so charged.\n(5) This section does not deprive a member  or a member's assignee of the benefit\nof any exemption laws applicable to the member's or assignee's financial\nrights.\n(6) The association is not a necessary part to an application for a charging order.\nService of the charging order on an association may  be made  by the court\ngranting the charging order or as the court should otherwise direct.\n(7) This section does not apply to the enforcement of a judgment by a limited\ncooperative association against a member  of that association.\n(8) This section shall apply to the issuance of a charging order against the interest\nof a member  or assignee of a member  of a foreign limited cooperative\nassociation.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47079","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:22Z","sha256":"9a6ad14a278ef6d7e3ef565d14dc22a2217df8956cbdc8ce3a4304ab2bdd77cf","source_id":"us-ky","stale":false,"prev":"us-ky/krs-272a.6-040","next":"us-ky/krs-272a.7-010"},"notice":"GroundRules: Original legal text. Not legal advice."}