2006 Kentucky Revised Statutes - .606   Power to bind and liability to partnership before dissolution of person dissociated as general partner.

362.2-606 Power to bind and liability to partnership before dissolution of person dissociated as general partner. (1) After a person is dissociated as a general partner and before the limited partnership is dissolved, converted under KRS 362.2-1101 to 362.2-1113, or merged out of existence under KRS 362.2-1101 to 362.2-1113, the limited partnership is bound by an act of the person only if: (a)  The act would have bound the limited partnership under KRS 362.2-402 before the dissociation; and (b)  At the time the other party enters into the transaction: 1. Less than two (2) years has passed since the dissociation; and 2. The other party does not have notice of the dissociation and reasonably believes that the person is a general partner. (2) If a limited partnership is bound under subsection (1) of this section, then the person dissociated as a general partner is liable: (a)  To the limited partnership for any damage caused to the limited partnership arising from that obligation; and (b)  If a general partner or another person dissociated as a general partner is liable for that obligation, to that general partner or other person for any damage caused to that general partner or other person arising from that liability. Effective: July 12, 2006 History: Created 2006 Ky. Acts ch. 149, sec. 143, effective July 12, 2006. Page 1 of 1