Vermont § 605 - Charging orders for judgment creditor of member or transferee

§ 605. Charging orders for judgment creditor of member or transferee

• (a) On application by a judgment creditor of a member or transferee, a court may enter
  a charging order against the financial rights of the judgment debtor for the unsatisfied
  amount of the judgment. A charging order issued under this subsection constitutes
  a lien on the judgment debtor’s financial rights and requires the mutual benefit enterprise
  to pay over to the creditor or receiver to the extent necessary to satisfy the judgment
  any distribution that would otherwise be paid to the judgment debtor. (b) To the extent necessary to effectuate the collection of distributions pursuant to
  a charging order under subsection (a) of this section, the court may: (1) appoint a receiver of the share of the distributions due or to become due to the judgment
  debtor under the judgment debtor’s financial rights, with the power to make all inquiries
  the judgment debtor might have made; and (2) make all other orders that the circumstances of the case may require 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 financial rights. The purchaser at the foreclosure sale obtains only the financial
  rights that are subject to the charging order, does not thereby become a member, and
  is subject to section 603 of this title. (d) At any time before a sale pursuant to a foreclosure, a member or transferee whose
  financial rights are 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 sale pursuant to a foreclosure, the mutual benefit enterprise or
  one or more members whose financial rights are not subject to the charging order may
  pay to the judgment creditor the full amount due under the judgment and succeed to
  the rights of the judgment creditor, including the charging order. Unless the organic
  rules otherwise provide, the enterprise may act under this subsection only with the
  consent of all members whose financial rights are not subject to the charging order. (f) This title does not deprive any member or transferee of the benefit of any exemption
  of laws applicable to the member’s or transferee’s financial rights. (g) This section provides the exclusive remedy by which a judgment creditor of a member
  or transferee may satisfy the judgment from the member’s or transferee’s financial
  rights. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)