Common use of TRANSFERABILITY OF INTEREST Clause in Contracts

TRANSFERABILITY OF INTEREST. (a) Except as provided in Section 7.4 below, no Limited Partner may assign, sell, transfer, pledge, hypothecate or otherwise dispose of his interest in the Partnership, in whole or in part (and the transferee may not become a substituted Limited Partner), unless they are subsequently registered under the Securities Act and applicable state securities or Blue Sky laws or are exempt from registration, and without the express prior written consent of the General Partner, which may be granted or denied in its sole discretion. Any attempt in violation of the above shall be null and void. (b) Any transferee or assignee of Units who has not been admitted to the Partnership as a substituted Limited Partner shall be entitled only to the economic benefits (including the right to receive that share of capital and profits and that right of redemption) to which his assignor would have otherwise been entitled and shall not have any of the rights of a Limited Partner under the Act or this Agreement; and such transferee or assignee shall remain subject to the other terms of this Agreement binding upon Limited Partners.