TRANSFERABLE INTERESTS AND RIGHTS OF TRANSFEREES AND CREDITORS

Idaho Code tit. 30, ch. 30-23, pt. 30-23-5

in effect

Idaho Code § 30-23-501 PARTNER NOT CO-OWNER OF PARTNERSHIP PROPERTY.

30-23-501. PARTNER NOT CO-OWNER OF PARTNERSHIP PROPERTY. A partner is not a co-owner of partnership property and has no interest in partnership property that can be transferred, either voluntarily or involuntarily. [30-23-501, added 2015, ch. 243, sec. 27, p. 823.]

Idaho Code § 30-23-502 NATURE OF TRANSFERABLE INTEREST.

30-23-502. NATURE OF TRANSFERABLE INTEREST. A transferable interest is personal property. [30-23-502, added 2015, ch. 243, sec. 27, p. 823.]

Idaho Code § 30-23-503 TRANSFER OF TRANSFERABLE INTEREST.

30-23-503. TRANSFER OF TRANSFERABLE INTEREST. (a) A transfer, in whole or in part, of a transferable interest: (1) Is permissible, except the transfer of a transferable interest in a professional entity is not permissible without compliance with section 30-21-901 (i), Idaho Code; (2) Does not by itself cause a partner’s dissociation or a dissolution and winding up of the partnership business; and (3) Subject to section 30-23-505 , Idaho Code, does not entitle the transferee to: (A) Participate in the management or conduct of the partnership’s business; or (B) Except as otherwise provided in subsection (c) of this section, have access to records or other information concerning the partnership’s business. (b) A transferee has the right to: (1) Receive, in accordance with the transfer, distributions to which the transferor would otherwise be entitled; and (2) Seek under section 30-23-801 (5), Idaho Code, a judicial determination that it is equitable to wind up the partnership business. (c) In a dissolution and winding up of a partnership, a transferee is entitled to an account of the partnership’s transactions only from the date of dissolution. (d) A partnership need not give effect to a transferee’s rights under this section until the partnership knows or has notice of the transfer. (e) A transfer of a transferable interest in violation of a restriction on transfer contained in the partnership agreement is ineffective as to a person having knowledge or notice of the restriction at the time of transfer. (f) Except as otherwise provided in section 30-23-601 (4)(B), Idaho Code, if a partner transfers a transferable interest, the transferor retains the rights of a partner other than the transferable interest transferred and retains all the duties and obligations of a partner. (g) If a partner transfers a transferable interest to a person that becomes a partner with respect to the transferred interest, the transferee is liable for the partner’s obligations under sections 30-23-404 and 30-23-407 , Idaho Code, known to the transferee when the transferee becomes a partner. [30-23-503, added 2015, ch. 243, sec. 27, p. 823.]

Idaho Code § 30-23-504 CHARGING ORDER.

30-23-504. CHARGING ORDER. (a) On application by a judgment creditor of a partner or transferee, a court may enter a charging order against the transferable interest of the judgment debtor for the unsatisfied amount of the judgment. A charging order constitutes a lien on a judgment debtor’s transferable interest and requires the partnership to pay over to the person to which the charging order was issued any distribution that otherwise would be paid to the judgment debtor. (b) To the extent necessary to effectuate the collection of distributions pursuant to a charging order in effect under subsection (a) of this section, the court may: (1) Appoint a receiver of the distributions subject to the charging order, with the power to make all inquiries the judgment debtor might have made; and (2) Make all other orders necessary to give effect to the charging order. (c) Upon a showing that distributions under a charging order will not pay the judgment debt within a reasonable time, the court may foreclose the lien and order the sale of the transferable interest. The purchaser at the foreclosure sale obtains only the transferable interest, does not thereby become a partner, and is subject to section 30-23-503 , Idaho Code. (d) At any time before foreclosure under subsection (c) of this section, the partner or transferee whose transferable interest is subject to a charging order under subsection (a) of this section may extinguish the charging order by satisfying the judgment and filing a certified copy of the satisfaction with the court that issued the charging order. (e) At any time before foreclosure under subsection (c) of this section, a partnership or one (1) or more partners whose transferable interests are not subject to the charging order may pay to the judgment creditor the full amount due under the judgment and thereby succeed to the rights of the judgment creditor, including the charging order. (f) This chapter does not deprive any partner or transferee of the benefit of any exemption law applicable to the transferable interest of the partner or transferee. (g) This section provides the exclusive remedy by which a person seeking, in the capacity of a judgment creditor, to enforce a judgment against a partner or transferee may satisfy the judgment from the judgment debtor’s transferable interest. [30-23-504, added 2015, ch. 243, sec. 27, p. 824.]

Idaho Code § 30-23-505 POWER OF LEGAL REPRESENTATIVE OF DECEASED PARTNER.

30-23-505. POWER OF LEGAL REPRESENTATIVE OF DECEASED PARTNER. If a partner dies, the deceased partner’s legal representative may exercise: (1) The rights of a transferee provided in section 30-23-503 (c), Idaho Code; and (2) For purposes of settling the estate, the rights the deceased partner had under section 30-23-408 , Idaho Code. [30-23-505, added 2015, ch. 243, sec. 27, p. 824.]

Source: Idaho State Legislature (legislature.idaho.gov)URL: https://legislature.idaho.gov/statutesrules/idstat/Title30/T30CH23PT5/Fetched: 10/20/2026