{"data":{"id":"us-ky/krs-275.260","jurisdiction":"us-ky","citation":"KRS 275.260","heading":"Member's transferable interest subject to 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 liability company interest.\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\ninterest in the limited liability company with payment of the unsatisfied amount\nof the judgment. To the extent so charged, the judgment creditor has only the\nrights of an assignee and shall have no right to participate in the management\nor to cause the dissolution of the limited liability company. The court may\nappoint a receiver of the share of the distributions due or to become due to the\njudgment debtor in respect of the limited liability company interest and make all\nother orders, directions, accounts, and inquiries the judgment debtor might\nhave made or which the circumstances of the case may require to give effect to\nthe 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 limited liability company interest. A\ncharging order does not of itself constitute an assignment of the limited liability\ncompany  interest.\n(4) The  court may order a foreclosure upon the limited liability company  interest\nsubject to the charging order at any time. The purchaser of the limited liability\ncompany  interest at the foreclosure sale has the rights of an assignee. At any\ntime before foreclosure, the charged limited liability company  interest may be\nredeemed:\n(a) By the judgment debtor;\n(b) With property other than limited liability company property, by one (1) or\nmore of the other members; and\n(c) With limited liability company  property, by the limited liability company\nwith the consent of all members  whose interest 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 limited liability\ncompany  interest.\n(6) The  limited liability company  is not a necessary party to an application for a\ncharging order. Service of the charging order on a limited liability company may\nbe  made  by the court granting the charging order or as the court should\notherwise direct.\n(7) This section does not apply to the enforcement of a judgment by a limited\nliability company against a member  of that company.\n(8) This section does apply to the issuance of a charging order against the interest\nof a member  or assignee of a member  of a foreign limited liability company.","path":["KRS Chapter 275"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=47083","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:27Z","sha256":"bba9d63ccd3b89ac736fab914890c1dfff55e0cf84619b89df65428d3f9d7a26","source_id":"us-ky","stale":false,"prev":"us-ky/krs-275.255","next":"us-ky/krs-275.265"},"notice":"GroundRules: Original legal text. Not legal advice."}