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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72" style='word-wrap:break-word'><div class=WordSection1><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Craig,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>The “standard” practice is a pledge and security agreement from the purchaser that pledges and grants a security interest in the membership interest back to the LLC, along with a UCC-1 . You may or may not want a purchase and sale agreement with appropriate reps and warranties. The transaction should be authorized under the operating agreement or, more likely, a resolution of the members and/or managers.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Regarding securities issues, the interest may not be a security depending upon whether the LLC is and will continue to be truly member-managed; otherwise, it probably is.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'>Bob Pampell <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Craig Gourley<br><b>Sent:</b> Sunday, February 27, 2022 5:08 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Securing a loan for an individual to acquire an LLC interest.<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Listmates, I have a scenario where an LLC that owns real estate wants to sell a membership interest and carry the contract. Apart from the potential securities issues, how do we secure the debtors note to the LLC? Just a UCC against the membership interest? I am wondering if there is a more creative solution. Thanks in advance!<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b>GOURLEY LAW GROUP</b><o:p></o:p></p><p class=MsoNormal><b>THE EXCHANGE CONNECTION</b><o:p></o:p></p><p class=MsoNormal><b>SNOHOMISH ESCROW </b><o:p></o:p></p><p class=MsoNormal>P.O. Box 1091<o:p></o:p></p><p class=MsoNormal>Snohomish, WA 98291<o:p></o:p></p><p class=MsoNormal>PH: (360) 568-5065 (800) 291-8401<o:p></o:p></p><p class=MsoNormal>Fax: (360) 568-8092 <o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><span style='font-size:10.0pt'>CONFIDENTIALITY NOTICE: This electronic mail transmission may contain legally privileged, confidential information belonging to the sender. The information is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or taking any action based on the contents of this electronic mail is strictly prohibited. If you have received this electronic mail in error, please contact sender and delete all copies</span>.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>