2005 Idaho Code - 53-3-807 — SETTLEMENT OF ACCOUNTS AND CONTRIBUTIONS AMONG PARTNERS

                                  TITLE  53
                                 PARTNERSHIP
                                  CHAPTER 3
                           UNIFORM PARTNERSHIP ACT
                                   PART 8.
                       WINDING UP PARTNERSHIP BUSINESS
    53-3-807.  SETTLEMENT OF ACCOUNTS AND CONTRIBUTIONS AMONG PARTNERS. (a) In
winding up a partnership's business, the assets of the partnership, including
the contributions of the partners required by this section, shall be applied
to discharge its obligations to creditors, including, to the extent permitted
by law, partners who are creditors. Any surplus shall be applied to pay in
cash the net amount distributable to partners in accordance with their right
to distributions under subsection (b) of this section.
    (b)  Each partner is entitled to a settlement of all partnership accounts
upon winding up the partnership business. In settling accounts among the
partners, profits and losses that result from the liquidation of the
partnership assets must be credited and charged to the partners' accounts. The
partnership shall make a distribution to a partner in an amount equal to any
excess of the credits over the charges in the partner's account. A partner
shall contribute to the partnership an amount equal to any excess of the
charges over the credits in the partner's account but excluding from the
calculation charges attributable to an obligation for which the partner is not
personally liable under section 53-3-306, Idaho Code.
    (c)  If a partner fails to contribute the full amount required under
subsection (b) of this section, all of the other partners shall contribute, in
the proportions in which those partners share partnership losses, the
additional amount necessary to satisfy the partnership obligations for which
they are personally liable under section 53-3-306, Idaho Code. A partner or
partner's legal representative may recover from the other partners any
contributions the partner makes to the extent the amount contributed exceeds
that partner's share of the partnership obligations for which the partner is
personally liable under section 53-3-306, Idaho Code.
    (d)  After the settlement of accounts, each partner shall contribute, in
the proportion in which the partner shares partnership losses, the amount
necessary to satisfy partnership obligations that were not known at the time
of the settlement and for which the partner is personally liable under section
53-3-306, Idaho Code.
    (e)  The estate of a deceased partner is liable for the partner's
obligation to contribute to the partnership.
    (f)  An assignee for the benefit of creditors of a partnership or a
partner, or a person appointed by a court to represent creditors of a
partnership or a partner, may enforce a partner's obligation to contribute to
the partnership.