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Illinois Compiled Statutes

Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

(805 ILCS 206/) Uniform Partnership Act (1997).

805 ILCS 206/Art. 5

    (805 ILCS 206/Art. 5 heading)

805 ILCS 206/501

    (805 ILCS 206/501)
    Sec. 501. Partner not co-owner of partnership property. A partner is not a co-owner of partnership property and has no interest in partnership property which can be transferred, either voluntarily or involuntarily.
(Source: P.A. 92-740, eff. 1-1-03.)

805 ILCS 206/502

    (805 ILCS 206/502)
    Sec. 502. Partner's transferable interest in partnership. The only transferable interest of a partner in the partnership is the partner's share of the profits and losses of the partnership and the partner's right to receive distributions. The interest is personal property.
(Source: P.A. 92-740, eff. 1-1-03.)

805 ILCS 206/503

    (805 ILCS 206/503)
    Sec. 503. Transfer of partner's transferable interest.
    (a) A transfer, in whole or in part, of a partner's transferable interest in the partnership:
        (1) is permissible;
        (2) does not by itself cause the partner's
dissociation or a dissolution and winding up of the partnership business; and
        (3) does not, as against the other partners or the
partnership, entitle the transferee, during the continuance of the partnership, to participate in the management or conduct of the partnership business, to require access to information concerning partnership transactions, or to inspect or copy the partnership books or records.
    (b) A transferee of a partner's transferable interest in the partnership has a right:
        (1) to receive, in accordance with the transfer,
distributions to which the transferor would otherwise be entitled;
        (2) to receive upon the dissolution and winding up of
the partnership business, in accordance with the transfer, the net amount otherwise distributable to the transferor; and
        (3) to seek under a judicial determination that it is
equitable to wind up the partnership business.
    (c) In a dissolution and winding up, a transferee is entitled to an account of partnership transactions only from the date of the latest account agreed to by all of the partners.
    (d) Upon transfer, the transferor retains the rights and duties of a partner other than the interest in distributions transferred.
    (e) A partnership need not give effect to a transferee's rights under this Section until it has notice of the transfer.
    (f) A transfer of a partner's transferable interest in the partnership in violation of a restriction on transfer contained in the partnership agreement is ineffective as to a person having notice of the restriction at the time of transfer.
(Source: P.A. 92-740, eff. 1-1-03.)

805 ILCS 206/504

    (805 ILCS 206/504)
    Sec. 504. Partner's transferable interest subject to charging order.
    (a) On application by a judgment creditor of a partner or of a partner's transferee, a court having jurisdiction may charge the transferable interest of the judgment debtor to satisfy the judgment. The court may appoint a receiver of the share of the distributions due or to become due to the judgment debtor in respect of the partnership and make all other orders, directions, accounts, and inquiries the judgment debtor might have made or which the circumstances of the case may require.
    (b) A charging order constitutes a lien on the judgment debtor's transferable interest in the partnership. The court may order a foreclosure of the interest subject to the charging order at any time. The purchaser at the foreclosure sale has the rights of a transferee.
    (c) At any time before foreclosure, an interest charged may be redeemed:
        (1) by the judgment debtor;
        (2) with property other than partnership property, by
one or more of the other partners; or
        (3) with partnership property, by one or more of the
other partners with the consent of all of the partners whose interests are not so charged.
    (d) This Act does not deprive a partner of a right under exemption laws with respect to the partner's interest in the partnership.
    (e) This Section provides the exclusive remedy by which a judgment creditor of a partner or partner's transferee may satisfy a judgment out of the judgment debtor's transferable interest in the partnership.
(Source: P.A. 92-740, eff. 1-1-03.)