(805 ILCS 206/Art. 5 heading)
ARTICLE 5
TRANSFEREES AND CREDITORS OF PARTNER
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(805 ILCS 206/501)
Sec. 501.
Partner not co-owner of partnership property.
A partner is not a co-owner of partnership property and has no interest in
partnership property
which can be transferred, either voluntarily or involuntarily.
(Source: P.A. 92-740, eff. 1-1-03.)
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(805 ILCS 206/502)
Sec. 502.
Partner's transferable interest in partnership.
The only transferable interest of a partner in the partnership is the
partner's share of the profits
and losses of the partnership and the partner's right to receive distributions.
The interest is
personal property.
(Source: P.A. 92-740, eff. 1-1-03.)
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(805 ILCS 206/503)
Sec. 503.
Transfer of partner's transferable interest.
(a) A transfer, in whole or in part, of a partner's transferable interest in
the partnership:
(1) is permissible;
(2) does not by itself cause the partner's
| | dissociation or a dissolution and winding up of the partnership business; and
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(3) does not, as against the other partners or the
| | partnership, entitle the transferee, during the continuance of the partnership, to participate in the management or conduct of the partnership business, to require access to information concerning partnership transactions, or to inspect or copy the partnership books or records.
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(b) A transferee of a partner's transferable interest in the partnership has
a right:
(1) to receive, in accordance with the transfer,
| | distributions to which the transferor would otherwise be entitled;
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(2) to receive upon the dissolution and winding up of
| | the partnership business, in accordance with the transfer, the net amount otherwise distributable to the transferor; and
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(3) to seek under a judicial determination that it is
| | equitable to wind up the partnership business.
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(c) In a dissolution and winding up, a transferee is entitled to an account
of partnership
transactions only from the date of the latest account agreed to by all of the partners.
(d) Upon transfer, the transferor retains the rights and duties of a partner other than the
interest in distributions transferred.
(e) A partnership need not give effect to a transferee's rights under this
Section until it has
notice of the transfer.
(f) A transfer of a partner's transferable interest in the partnership in
violation of a restriction
on transfer contained in the partnership agreement is ineffective as to a
person having notice of
the restriction at the time of transfer.
(Source: P.A. 92-740, eff. 1-1-03.)
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(805 ILCS 206/504)
Sec. 504.
Partner's transferable interest
subject to charging order.
(a) On application by a judgment creditor of a partner or of a partner's
transferee, a court
having jurisdiction may charge the transferable interest of the judgment debtor
to satisfy the
judgment. The court may appoint a receiver of the share of the distributions
due or to become
due to the judgment debtor in respect of the partnership and make all other
orders, directions,
accounts, and inquiries the judgment debtor might have made or which the
circumstances of the
case may require.
(b) A charging order constitutes a lien on the judgment debtor's
transferable interest in the
partnership. The court may order a foreclosure of the interest subject to the
charging order at any
time. The purchaser at the foreclosure sale has the rights of a transferee.
(c) At any time before foreclosure, an interest charged may be redeemed:
(1) by the judgment debtor;
(2) with property other than partnership property, by
| | one or more of the other partners; or
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(3) with partnership property, by one or more of the
| | other partners with the consent of all of the partners whose interests are not so charged.
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(d) This Act does not deprive a partner of a right under exemption laws with
respect to the
partner's interest in the partnership.
(e) This Section provides the exclusive remedy by which a judgment creditor
of a partner or
partner's transferee may satisfy a judgment out of the judgment debtor's
transferable interest in
the partnership.
(Source: P.A. 92-740, eff. 1-1-03.)
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