The bill amends the Uniform Limited Liability Company Act to clarify the provisions regarding charging orders. It expands the definition of who can apply for a charging order by including not only judgment creditors of a member or transferee but also any other owner of a membership interest in a limited liability company. The bill specifies that a charging order constitutes a lien on the judgment debtor's membership interest and outlines the rights of the judgment creditor, which are limited to receiving distributions that the judgment debtor would otherwise be entitled to. Additionally, it establishes that the entry of a charging order is the exclusive remedy for satisfying a judgment against a member or another owner of a membership interest.

Furthermore, the bill includes provisions that prevent a creditor from obtaining possession of or exercising legal remedies over the property of the limited liability company. It clarifies that the charging order lien cannot be foreclosed under this subchapter or any other law, ensuring that the rights of members and other owners of membership interests are protected. The amendments also apply to both single-member and multiple-member limited liability companies, reinforcing the protections and clarifications provided in the updated legal framework.