AR HB1020

Removes the conditional language "Subject to § 4-38-503(f)" from Arkansas Code § 4-38-502(a), clarifying that transfers of transferable interests in LLCs are permissible without automatic dissociation or dissolution.

Amends charging order procedures by allowing courts to charge a transferable interest with payment of unsatisfied judgments, creating a lien that requires the LLC to pay distributions to satisfy the judgment debt.

Adds new subsection (h) allowing courts to foreclose charging order liens upon showing that LLC members engaged in bad faith or intentional misconduct to reduce or eliminate distributions to the judgment debtor.

Adds new subsection (c) establishing separate foreclosure procedures for sole member LLCs, where the purchaser obtains the entire membership interest and becomes a member, rather than only receiving the transferable interest.

Establishes charging orders as the exclusive remedy for judgment creditors of members in multi-member LLCs, prohibiting other remedies except foreclosure in specific circumstances or court orders for directions and accounts.