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Public Act 91-0762
HB0478 Enrolled LRB9102755SMcs
AN ACT to amend the Revised Uniform Limited Partnership
Act by changing Section 702.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Revised Uniform Limited Partnership Act
is amended by changing Section 702 as follows:
(805 ILCS 210/702) (from Ch. 106 1/2, par. 157-2)
Sec. 702. Assignment of a Partnership Interest.
(a) Except as provided in the partnership agreement:
(1), a partnership interest is assignable in whole
or in part;
(2). an assignment of a partnership interest does
not dissolve a limited partnership or, unless otherwise
provided in the partnership agreement, entitle the
assignee to become a partner or to exercise any rights or
powers of a partner;
(3) an assignment of a partnership interest
entitles the assignee to share in such profits and
losses, to receive such distribution or distributions,
and to receive such allocation of income, gain, loss,
deduction, or credit or similar item to which the
assignor was entitled, to the extent assigned; and.
Except as provided in the partnership agreement,
(4) a partner ceases to be a partner and to have
the power to exercise any rights or powers of a partner
upon the assignment of all of his or her partnership
interest. Unless otherwise provided in a partnership
agreement, the pledge of, or granting of a security
interest, lien, or other encumbrance in or against, any
or all of the partnership interest of a partner shall not
cause the partner to cease to be a partner or to have the
power to exercise any rights or powers of a partner.
(b) The partnership agreement may provide that a
partner's interest in a limited partnership may be evidenced
by a certificate of partnership interest issued by the
limited partnership and may also provide for the assignment
or transfer of any partnership interest represented by such a
certificate and make other provisions with respect to such
certificates.
(c) Unless otherwise provided in a partnership agreement
and except to the extent assumed by agreement, until an
assignee of a partnership interest becomes a partner, the
assignee shall have no liability as a partner solely as a
result of the assignment.
(d) Unless otherwise provided in the partnership
agreement, a limited partnership may acquire, by purchase,
redemption, or otherwise, any partnership interest or other
interest of a partner in the limited partnership. Unless
otherwise provided in the partnership agreement, any such
interest so acquired by the limited partnership shall be
deemed canceled.
(Source: P.A. 84-1412.)
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