2011 Iowa Code
TITLE XII BUSINESS ENTITIES
SUBTITLE 1 PARTNERSHIPS
CHAPTER 488 UNIFORM LIMITED PARTNERSHIP ACT
488.607 Liability to other persons of person dissociated as general partner.
488.607 Liability to other persons of person dissociated as general partner.
1. A person s dissociation as a general partner does not of itself discharge the person s liability as a general partner for an obligation of the limited partnership incurred before dissociation. Except as otherwise provided in subsections 2 and 3, the person is not liable for a limited partnership s obligation incurred after dissociation.
2. A person whose dissociation as a general partner resulted in a dissolution and winding up of the limited partnership s activities is liable to the same extent as a general partner under section 488.404 on an obligation incurred by the limited partnership under section 488.804.
3. A person that has dissociated as a general partner but whose dissociation did not result in a dissolution and winding up of the limited partnership s activities is liable on a transaction entered into by the limited partnership after the dissociation only if all of the following apply:
a. A general partner would be liable on the transaction.
b. At the time the other party enters into the transaction, all of the following apply:
(1) Less than two years have passed since the dissociation.
(2) The other party does not have notice of the dissociation and reasonably believes that the person is a general partner.
4. By agreement with a creditor of a limited partnership and the limited partnership, a person dissociated as a general partner may be released from liability for an obligation of the limited partnership.
5. A person dissociated as a general partner is released from liability for an obligation of the limited partnership if the limited partnership s creditor, with notice of the person s dissociation as a general partner but without the person s consent, agrees to a material alteration in the nature or time of payment of the obligation.
2004 Acts, ch 1021, §58, 118
ARTICLE 7
TRANSFERABLE INTERESTS
AND RIGHTS
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