{"data":{"id":"us-ky/krs-275.255","jurisdiction":"us-ky","citation":"KRS 275.255","heading":"Assignment of interest.","body":"(1) Unless otherwise provided in a written operating agreement:\n(a) A limited liability company interest shall be assignable in whole or in part;\n(b) An assignment shall entitle the assignee to receive, to the extent assigned,\nonly the distributions to which the assignor would be entitled;\n(c) An assignment of a limited liability company interest shall not dissolve the\nlimited liability company or entitle the assignee to participate in the\nmanagement and affairs of the limited liability company or to become or\nexercise any rights of a member other than the right to receive distributions\npursuant to subsection (1)(b) of this section;\n(d) Until the assignee of a limited liability company interest becomes a member\npursuant to KRS 275.265(1), the assignor shall cont inue to be a member and\nto have the power to exercise any rights of a member, subject to the members'\nright to remove the assignor pursuant to KRS 275.280(1)(c)2.;\n(e) Until an assignee of a limited liability company interest becomes a member,\nthe assignee  shall have no liability as a member solely as a result of the\nassignment; and\n(f) The assignor of a limited liability company interest shall not be released from\nliability as a member solely as result of the assignment.\n(2) A written operating agreement m ay provide that a member's limited liability\ncompany interest may be evidenced by a certificate of limited liability company\ninterest issued by the limited liability company and may also provide for the\nassignment or transfer of any interest represented by the certificate.\n(3) Unless otherwise provided in a written operating agreement, the pledge of or\ngranting of a security interest, lien, or other encumbrance in or against any or all of\nthe limited liability company interest of a member shall not constitu te an\nassignment and shall not cause the member to cease to be a member or cease to\nhave the power to exercise any rights or powers of a member.\n(4) Limitations upon the assignment or pledge of a membership interest set forth or\nadopted in accordance with this section shall be enforced notwithstanding KRS\n355.9-406 and 355.9-408.","path":["KRS Chapter 275"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=13881","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:27Z","sha256":"35e17c494b9d9385a2d2d550655753f6f2b136bebf543366ca2c51ccdb4a30fe","source_id":"us-ky","stale":false,"prev":"us-ky/krs-275.250","next":"us-ky/krs-275.260"},"notice":"GroundRules: Original legal text. Not legal advice."}