[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ Enrolled ] |
91_HB0478
LRB9102755SMcs
1 AN ACT to amend the Revised Uniform Limited Partnership
2 Act by changing Section 702.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Revised Uniform Limited Partnership Act
6 is amended by changing Section 702 as follows:
7 (805 ILCS 210/702) (from Ch. 106 1/2, par. 157-2)
8 Sec. 702. Assignment of a Partnership Interest.
9 (a) Except as provided in the partnership agreement:
10 (1), a partnership interest is assignable in whole
11 or in part;
12 (2). an assignment of a partnership interest does
13 not dissolve a limited partnership or, unless otherwise
14 provided in the partnership agreement, entitle the
15 assignee to become a partner or to exercise any rights or
16 powers of a partner;
17 (3) an assignment of a partnership interest
18 entitles the assignee to share in such profits and
19 losses, to receive such distribution or distributions,
20 and to receive such allocation of income, gain, loss,
21 deduction, or credit or similar item to which the
22 assignor was entitled, to the extent assigned; and.
23 Except as provided in the partnership agreement,
24 (4) a partner ceases to be a partner and to have
25 the power to exercise any rights or powers of a partner
26 upon the assignment of all of his or her partnership
27 interest. Unless otherwise provided in a partnership
28 agreement, the pledge of, or granting of a security
29 interest, lien, or other encumbrance in or against, any
30 or all of the partnership interest of a partner shall not
31 cause the partner to cease to be a partner or to have the
-2- LRB9102755SMcs
1 power to exercise any rights or powers of a partner.
2 (b) The partnership agreement may provide that a
3 partner's interest in a limited partnership may be evidenced
4 by a certificate of partnership interest issued by the
5 limited partnership and may also provide for the assignment
6 or transfer of any partnership interest represented by such a
7 certificate and make other provisions with respect to such
8 certificates.
9 (c) Unless otherwise provided in a partnership agreement
10 and except to the extent assumed by agreement, until an
11 assignee of a partnership interest becomes a partner, the
12 assignee shall have no liability as a partner solely as a
13 result of the assignment.
14 (d) Unless otherwise provided in the partnership
15 agreement, a limited partnership may acquire, by purchase,
16 redemption, or otherwise, any partnership interest or other
17 interest of a partner in the limited partnership. Unless
18 otherwise provided in the partnership agreement, any such
19 interest so acquired by the limited partnership shall be
20 deemed canceled.
21 (Source: P.A. 84-1412.)