Ohio Code § 1706.342
Ohio Code § 1706.342. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 1706.342.
(A) On application to a court of competent jurisdiction by any judgment creditor of a
member or assignee, the court may charge the membership interest of the judgment debtor
with payment of the unsatisfied amount of the judgment with interest. To the extent so charged and after the limited liability company has been served
with the charging order, the judgment creditor has only the right to receive any distribution
or distributions to which the judgment debtor would otherwise be entitled in respect
of the membership interest. (B) After the limited liability company is served with a charging order, the limited
liability company or any member shall be entitled to pay to or deposit with the clerk
of the court so issuing the charging order any distribution or distributions to which
the judgment debtor would otherwise be entitled in respect of the charged membership
interest, and the payment or deposit shall discharge the limited liability company
and the judgment debtor from liability for the amount so paid or deposited and any
interest that might accrue thereon. Upon receipt of the payment or deposit, the clerk of the court shall notify the
judgment creditor of the receipt of the payment or deposit. The judgment creditor shall, after any payment or deposit into the court, petition
the court for payment of so much of the amount paid or deposited as may be necessary
to pay the judgment creditor's judgment. To the extent the court has excess amounts paid or deposited on hand after the payment
to the judgment creditor, the excess amounts paid or deposited shall be distributed
to the judgment debtor, and the charging order shall be extinguished. The court may, in its discretion, order the clerk to deposit, pending the judgment
creditor's petition, any money paid or deposited with the clerk, in an interest bearing
account at a bank authorized to receive deposits of public funds. (C) A charging order constitutes a lien on the judgment debtor's membership interest. (D) Subject to division (C) of this section, both of the following apply: (1) A judgment debtor that is a member retains the rights of a member and remains subject
to all duties and obligations of a member. (2) A judgment debtor that is an assignee retains the rights of an assignee and remains
subject to all duties and obligations of an assignee. (E) This chapter does not deprive any member or assignee of the benefit of any exemption
laws applicable to the member's or assignee's membership interest. (F) This section provides the sole and exclusive remedy by which a judgment creditor
of a member or assignee may satisfy a judgment out of the judgment debtor's membership
interest, and the judgment creditor shall have no right to foreclose, under this chapter
or any other law, upon the charging order, the charging order lien, or the judgment
debtor's membership interest. A judgment creditor of a member or assignee has no right to obtain possession of,
or otherwise exercise legal or equitable remedies with respect to, the judgment debtor's
membership interest or the property of a limited liability company. Court orders for actions or requests for accounts and inquiries that the judgment
debtor might have made to the limited liability company are not available to a judgment
creditor attempting to satisfy the judgment out of the judgment debtor's membership
interest and may not be ordered by a court.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 1706.342
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
Verify the text
Statute text is transcribed from the official Ohio Revised Code. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Ohio attorney.
Common questions
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The text above is transcribed from the Ohio Revised Code, the codified statutes of Ohio. The official publisher link appears under "Verify the text" on this page.
What subject does Ohio Revised Code § 1706.342 address?
It addresses the rule set out in the section text. Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Ohio Revised Code § 1706.342 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Ohio source before relying on this text.
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