LegalFix
Sign In

§ 4A-603. Assignment of interest

MD Corp & Assn Code § 4A-603 (2019) (N/A)
Copy with citation
Copy as parenthetical citation

(a)    Unless otherwise agreed:

(1)    Only an economic interest in a limited liability company may be assigned; and

(2)    An economic interest is wholly or partly assignable.

(b)    An assignment of an economic interest in a limited liability company does not:

(1)    Dissolve the limited liability company; or

(2)    Entitle the assignee to:

(i)    Become a member; or

(ii)    Exercise any rights of a member, including the noneconomic interest of the assignor.

(c)    If an assignee of an economic interest in a limited liability company becomes a member of the limited liability company, the assignor is not released from the assignor’s liability under § 4A–502 of this title to the limited liability company.

(d)    On assignment of all of a member’s economic interest in a limited liability company, the member ceases to be a member of the limited liability company and forfeits the member’s noneconomic interest in the limited liability company.

(e)    The pledge or grant of a security interest, lien, or other encumbrance in or against all or a part of the economic interest of a member does not cause the member to cease to be a member or affect the member’s noneconomic interest in the limited liability company.

Previous Section
§ 4A-602. Interest in limited liability company
Next Section
§ 4A-604. Right of assignee to become a member