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Statutes Text

Article - Corporations and Associations




§4A–603.

    (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.



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