ASSEMBLY, No. 2320

STATE OF NEW JERSEY

INTRODUCED SEPTEMBER 16, 1996

By Assemblymen WEINGARTEN and AUGUSTINE

An Act concerning limited liability companies and limited liability partnerships and amending P.L.1953, c.30.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 4 of P.L.1953, c.30 (C.31:1-6) is amended to read as follows:

    4. No corporation, limited liability company or limited liability partnership shall plead or set up the defense of usury to any action brought against it to recover damages or enforce a remedy on any obligation executed by said corporation, limited liability company or limited liability partnership.

(cf: P.L.1953, c.30, s.4)

    2. This act shall take effect immediately.

STATEMENT

    Limited liability companies and limited liability partnerships are types of entities recently authorized by the Legislature. These entities are used in business in a manner similar to corporations. This bill will make these new limited liability entities subject to the New Jersey usury law in the same manner as New Jersey corporations.

Concerns limited liability companies and partnerships and the defense of usury.