2006 New York Code - Security For Expenses.



 
    §  121-1003.  Security  for  expenses. In a derivative action, brought
  pursuant to section 121-1002 of this article, unless  the  contributions
  of or allocable to the plaintiff or plaintiffs amount to five percent or
  more  of  the  contributions of all limited partners, in their status as
  limited  partners,  or  such  contributions  of  or  allocable  to  such
  plaintiff  or  plaintiffs  have a fair value in excess of fifty thousand
  dollars, the limited partnership in whose right such action  is  brought
  shall  be entitled at any stage of the proceedings before final judgment
  to require  the  plaintiff  or  plaintiffs  to  give  security  for  the
  reasonable expenses, including attorney's fees, which may be incurred by
  it  in connection with such action and by the other parties defendant in
  connection therewith for which the limited partnership may become liable
  under this article or under any contract or  otherwise  under  law.  The
  limited  partnership shall have recourse to such security in such amount
  as the court having jurisdiction of such action shall determine upon the
  termination of such action.  Notwithstanding the first sentence of  this
  section,  the amount of any security may from time to time be determined
  in the discretion of the court having jurisdiction of such action,  even
  if the five percent of contributions or fifty thousand dollar value test
  is met, upon a showing of the need therefor.

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