The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 11C V.S.A. § 605)
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§ 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.)