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91_HB0478eng HB0478 Engrossed 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 otherwise14provided 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.23Except 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 HB0478 Engrossed -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.)