NH Rev Stat § 304-C:126 (2021)
2021 New Hampshire Revised Statutes|Title XXVIII - Partnerships|Title 304-C - Limited Liability Companies|Section 304-C:126 - Charging Orders.

    304-C:126 Charging Orders. –||I. On application to a court of competent jurisdiction by any judgment creditor of (a) a member of a limited liability company (the "debtor-member") or (b) a transferee of all or any part of a member's limited liability company interest (a "transferee"), the court may enter a charging order against the limited liability company in respect of the limited liability company interest of the debtor-member or the transferee for the unsatisfied amount of the judgment plus interest.||II. (a) A charging order constitutes a lien on a debtor-member's or transferee's limited liability company interest.||(b) Under a charging order, a judgment creditor has only the right to receive distributions to which the debtor-member or transferee would otherwise have been entitled from the limited liability company, and only to the extent of the judgment, including interest.||(c) A judgment debtor that obtains a charging order does not thereby become the holder of the debtor-member's or transferee's limited liability company interest.||III. This section does not deprive any judgment debtor of the benefit of any exemption law applicable to the judgment debtor's membership rights.||IV. Except as provided in paragraphs VI and VII, a charging order is the sole and exclusive remedy by which a judgment creditor of a debtor-member may satisfy a judgment from a debtor-member's membership rights or from the assets of a limited liability company. This section is not exclusive as to the rights of creditors with respect to the limited liability company interests of transferees.||V. (a) The remedy of execution upon a debtor-member's membership rights shall be unavailable to a judgment creditor attempting to satisfy a judgment against a debtor-member of a multi-member limited liability company.||(b) Except as provided in paragraph VI, the remedy of execution upon a debtor-member's membership rights shall be unavailable to a judgment creditor attempting to satisfy a judgment against a debtor-member of a single-member limited liability company.||VI. (a) If a judgment creditor shows to the satisfaction of a court of competent jurisdiction that distributions under a charging order in respect of the limited liability company interest of a debtor-member of a single-member limited liability company will not satisfy the judgment within a reasonable time, a charging order shall not be the sole and exclusive remedy by which the judgment creditor may satisfy the judgment against the member.||(b) Upon such a showing, the court may order the sale of the debtor-member's membership rights under an execution sale.||(c) A judgment creditor may make a showing to the court under subparagraph (a) that distributions under a charging order will not satisfy a judgment either (1) when the judgment creditor applies for the entry of a charging order under a member of a single-member limited liability company or (2) at any time thereafter.||VII. If, under paragraph VI, a court orders an execution sale of the membership rights of a debtor-member that is the member of a single-member limited liability company:||(a) The purchaser shall obtain all of the member's membership rights and not merely the rights of an transferee;||(b) The purchaser shall become the member of the limited liability company; and||(c) The debtor-member whose membership rights have been sold shall cease to be a member.||VIII. Nothing in this section shall limit:||(a) The rights of a creditor that has been granted a consensual security interest in the limited liability company interest or other membership rights of a member to pursue the remedies available to the secured creditor under other law applicable to secured creditors;||(b) The principles of law and equity which affect fraudulent transfers;||(c) The availability of the equitable principles of veil-piercing, equitable lien, or constructive trust, or other equitable principles not inconsistent with this section; or||(d) The continuing jurisdiction of the court to enforce its charging order in a manner consistent with this section.||IX. In any action in a court of this state in which a judgment creditor seeks a charging order against a member or transferee of a foreign limited liability company, this section shall apply.|||Source. 2012, 232:2, eff. Jan. 1, 2013.|