§ 4A-603. Assignment of interest

   (a) In general. -- 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) Effect. -- 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) Release of assignor's liability. -- 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) Assignment of entire member's economic interest. -- 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) Pledge or grant of a security interest, lien, or encumbrance. -- 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.

HISTORY: 1992, ch. 536; 2011, ch. 597; 2012, chs. 599, 600; 2013, ch. 42.