Michigan Compiled Laws
Article 5 - (450.4501...450.4515)
Section 450.4508 - Encumbrance Against Membership Interest; Effect.

Sec. 508.
Unless otherwise provided in an operating agreement, the pledge or granting of a security interest, lien, or other encumbrance in or against any or all of the membership interest of a member does not cause the member to cease to be a member or to lose the power to exercise any rights or powers of a member.
History: 1993, Act 23, Eff. June 1, 1993

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 450 - Corporations

Act 23 of 1993 - Michigan Limited Liability Company Act (450.4101 - 450.5200)

Article 5 - (450.4501...450.4515)

Section 450.4501 - Members; Admission; Liability for Acts, Debts, or Obligations.

Section 450.4502 - Members; Voting Rights.

Section 450.4503 - Members; Obtaining Certain Financial Statements and Tax Returns; Inspecting and Copying Records; Obtaining Other Information; Formal Accounting of Company's Affairs.

Section 450.4504 - Membership Interest as Personal Property.

Section 450.4505 - Membership Interest; Assignment; Liability of Assignee; Assignor as Member; Liability of Assignor Not Released.

Section 450.4506 - Assignee of Membership Interest; Conditions for Membership; Rights and Powers; Liability for Obligations of Assignor.

Section 450.4507 - Charging Membership Interest With Payment of Judgment; Rights of Judgment Creditor; Rights and Powers of Member; Charging Order as Lien on Membership Interest; Section as Exclusive Remedy.

Section 450.4508 - Encumbrance Against Membership Interest; Effect.

Section 450.4509 - Withdrawal of Member; Distribution; Expulsion.

Section 450.4510 - Commencement and Maintenance of Civil Suit by Company; Conditions.

Section 450.4511 - Investigation of Allegations; Stay of Derivative Proceeding.

Section 450.4512 - Dismissal of Derivative Proceeding; Findings; Burden of Proof; Determination; “Disinterested” Defined.

Section 450.4513 - Discontinued or Settled Derivative Proceeding; Court Approval Required; Notice; Expense.

Section 450.4514 - Termination of Derivative Proceeding; Court Order.

Section 450.4515 - Action in Circuit Court; Grounds; Order or Grant of Relief; “Willfully Unfair and Oppressive Conduct” Defined.