LLC.1.6.040 Assignment of LLC Interest

(a) Unless otherwise provided in the Operating Agreement:

(1) An LLC interest is assignable in whole or in part.

(2) An assignment of an LLC interest entitles the assignee to receive only the distributions and to share in the allocations of profits and losses to which the assignee would be entitled with respect to the assigned interest.

(3) An assignment of an LLC interest does not dissolve the LLC.

(4) Unless and until the assignee becomes an Owner of the LLC under Section LLC.1.6.060,

the assignment of an LLC interest does not entitle the assignee to participate in the management or exercise rights of an Owner.

(5) Unless and until the assignee of an LLC interest becomes an Owner of the LLC under Section LLC.1.6.060, the assignor continues to be an Owner.

(6) The assignor of an LLC interest is not released from any personal liability arising under this Code as an Owner of the LLC solely as a result of the assignment.

(b) Unless otherwise provided in the Operating Agreement, the granting of a security interest, lien, or other encumbrance in or against any or all of an Owner's LLC interest is not assignable and shall not cause the Owner to cease to have the power to exercise any rights or powers of an Owner.