A. On application by a judgment creditor of a member 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 requires the limited liability company 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. The member 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.
C. A limited liability company or one or more members 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.
D. This Chapter does not deprive any member or transferee of the benefit of any exemption law applicable to the transferable interest of the member or transferee.
E. This Section provides the exclusive remedy by which a person seeking in the capacity of judgment creditor to enforce a judgment against a member or transferee may satisfy the judgment from the judgment debtor’s transferable interest.
Note: As of September 1, 2020, this statute applies to all Arizona LLCs . The text above shows the statute as of January 1, 2024. To see if the Arizona legislature modified this statute after January 1, 2023, go the the Arizona legislature's website for Title 29, Chapter 7.