Md. Code, Corporations and Associations § 4A-603
Md. Code, Corporations and Associations § 4A-603
in effect(a) Unless otherwise agreed:
(1) Only an economic interest in a limited liability company may be assigned; and
(2) An economic interest is wholly or partly assignable.
(b) An assignment of an economic interest in a limited liability company does not:
(1) Dissolve the limited liability company; or
(2) Entitle the assignee to:
(i) Become a member; or
(ii) Exercise any rights of a member, including the noneconomic interest of the assignor.
(c) If an assignee of an economic interest in a limited liability company becomes a member of the limited liability company, the assignor is not released from the assignor’s liability under § 4A–502 of this title to the limited liability company.
(d) Unless otherwise agreed, on assignment of all of a member’s economic interest in a limited liability company, the member ceases to be a member of the limited liability company and forfeits the member’s noneconomic interest in the limited liability company.
(e) The pledge or grant of a security interest, lien, or other encumbrance in or against all or a part of the economic interest of a member does not cause the member to cease to be a member or affect the member’s noneconomic interest in the limited liability company.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gca§ion=4A-603&enactments=falseFetched: 10/16/2026