Explain what Hellman’s rights are with respect to the unsatisfied charging order.
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Anderson and Tallstrom are partners in Rancho Murieta Investors (RMI). Anderson owns 80 percent of RMI; Tallstrom owns the other 20 percent and is the managing partner of RMI. Hellman obtained judgments against Anderson in his individual capacity for more than $440,000. After various unsuccessful attempts to enforce the judgments, Hellman obtained an “Order Charging Debtor John B. Anderson’s Partnership Interest” in RMI. Despite the charging order, Hellman has not received any monies in satisfaction of the judgments because RMI had not generated profits and was not expected to do so in the near future. Explain what Hellman’s rights are with respect to the unsatisfied charging order. |
Explanation
Section 15028 permits an imposing order on the borrower partners' partnership interest. Additionally, it also permits the trial court to make all other orders.
As stated under the uniform partnership act, the law clearly implies lawful jurisdiction to order repossession and sale of the imposed interest because it further says the interest charged might be compensating at any moment before repossession or in case of trading being directed by the court. A purchase by no-debtor partners due to the termination of the partnership loan may also be fully accepted under section 15032, which relates to partnership termination and gives a testimonial to purchaser of the partnership interest as per section 15028.
Verified Answer
Individual H might seek a court-ordered repossession of Individual A's transferable partnership interest on the basis of the imposing command at any moment. The purchaser at the repossession sale has the right to a transferee.
