Md. Code, Corporations and Associations § 4A-603
This is the official text of Md. Code, Corporations and Associations § 4A-603, part of Maryland’s Code, Corporations and Associations — governs the formation and operation of corporations, LLCs, and partnerships.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§4A–603.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
Dealing with a business matter in Maryland?
See all Maryland Business lawyers
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.