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362.601 Circumstances preventing distribution -- Liability for unlawful
distribution.
(1)
(2)
(3)
(4)
A registered limited liability partnership shall not make a distribution to the
extent that at the time of the distribution and after giving effect to the
distribution, all liabilities for the registered limited liability partnership exceed
the fair value of the assets of the registered limited liability partnership, other
than liabilities to partners or transferees on account of their transferable
interest in liabilities for which the recourse of creditors is limited to specified
property. The fair value of property that is subject to a liability for which the
recourse of partners is limited shall be included in the assets of the registered
limited liability partnership only to the extent that the fair value of that property
exceeds that liability.
A partner or transferee of a registered limited liability partnership who receives
a distribution in violation of subsection (1) of this section is liable to the
partnership for the amount of that distribution. A proceeding under this section
shall be barred unless it is commenced within two (2) years after the date on
which the distribution is paid to the partner or transferee.
This section does not affect any obligation or liability of a partner or transferee
of a registered limited liability partnership under an agreement or other
applicable law for the amount of a distribution.
For purposes of this section, the term "distribution" does not include amounts
constituting reasonable compensation for present or past services or
reasonable payments made in the ordinary course of business pursuant to a
bona fide retirement plan or other benefits program.
Effective:July 15, 2010
History: Created 2010 Ky. Acts ch. 133, sec. 4, effective July 15, 2010.
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