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#1857889 - 10/02/13 09:19 PM Assignment of membership interest in LLC
Rose Offline
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Joined: Jan 2010
Posts: 18
How does one take an assignment of membership interest in an LLC? What is the verbiage we should use in the commercial security agreement and UCC-1?

Any help would be greatly appreciated.

Thank you.

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Article 9
#1857911 - 10/02/13 11:36 PM Re: Assignment of membership interest in LLC Rose
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
Of what value is the membership interest if your have the assets secured? I have never heard of a bank wanting to do this.
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#1857930 - 10/03/13 04:11 AM Re: Assignment of membership interest in LLC Rose
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I have seen this done in desperation in a workout. There is really no true value to the bank.

Regardless the bank should spend a few hundred dollars to speak with an experienced attorney; also make sure the LLC interests can be pledged.
Last edited by Kathleen B; 10/10/13 06:00 PM. Reason: Corrected to " no true value"
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#1860410 - 10/10/13 05:34 PM Re: Assignment of membership interest in LLC Rose
Rose Offline
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Joined: Jan 2010
Posts: 18
Thank you for your input. I appreciate it.

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