1. (a) Unless otherwise agreed:

   1. (1) Only an economic interest in a limited liability company may be assigned; and
   2. (2) An economic interest is wholly or partly assignable.

2. (b) An assignment of an economic interest in a limited liability company does not:

   1. (1) Dissolve the limited liability company; or

   2. (2) Entitle the assignee to:

      1. (i) Become a member; or
      2. (ii) Exercise any rights of a member, including the noneconomic interest of the assignor.
3. (c) If an assignee of an economic interest in a limited liability company becomes a member of the limited liability company, the assignor is not released from the assignor's liability under § 4A-502 of this title to the limited liability company.
4. (d) Unless otherwise agreed, on assignment of all of a member's economic interest in a limited liability company, the member ceases to be a member of the limited liability company and forfeits the member's noneconomic interest in the limited liability company.
5. (e) The pledge or grant of a security interest, lien, or other encumbrance in or against all or a part of the economic interest of a member does not cause the member to cease to be a member or affect the member's noneconomic interest in the limited liability company.

Added by Acts 1992, c. 536. Amended by Acts 2011, c. 597, § 1, eff. June 1, 2011; Acts 2012, c. 599, § 1, eff. Oct. 1, 2012; Acts 2012, c. 600, § 1, eff. Oct. 1, 2012; Acts 2013, c. 42, § 1, eff. April 9, 2013; Acts 2022, c. 294, § 1, eff. Oct. 1, 2022; Acts 2022, c. 295, § 1, eff. Oct. 1, 2022.