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362.345 Rules for distribution.
In settling accounts between the partners after dissolution, the following rules shall be
observed, subject to any agreement to the contrary:
(1) The assets of the partnership are:
(a) The partnership property,
(b) The contributions of the partners specified in subsection (4) of this section.
(2) The liabilities of the partnership shall rank in order of payment, as follows:
(a) Those owing to creditors other than partners,
(b) Those owing to partners other than for capital and profits,
(c) Those owing to partners in respect of capital,
(d) Those owing to partners in respect of profits.
(3) The assets shall be applied in the order of their declaration in subsection (1) of this
section to the satisfaction of the liabilities.
(4) Except as provided in KRS 362.220(2):
(a) The partners shall contribute, as provided by subsection (1) of KRS 362.235
the amount necessary to satisfy the liabilities; and
(b) If any, but not all, of the partners are insolvent, or, not being subject to
process, refuse to contribute, the other partners shall contribute their share of
the liabilities, and, in the relative proportions in which they share the profits,
the additional amount necessary to pay the liabilities.
(5) An assignee for the benefit of creditors or any person appointed by the court shall
have the right to enforce the contributions specified in subsection (4) of this section.
(6) Any partner or his legal representative shall have the right to enforce the
contributions specified in subsection (4) of this section, to the extent of the amount
which he has paid in excess of his share of the liability.
(7) The individual property of a deceased partner shall be liable for the contributions
specified in subsection (4) of this section.
(8) When partnership property and the individual properties of the partners are in
possession of a court for distribution, partnership creditors shall have priority on
partnership property and separate creditors on individual property, saving the rights
of lien or secured creditors as heretofore.
(9) If a partner has become bankrupt or his estate is insolvent, the claims against his
separate property shall rank in the following order:
(a) Those owing to separate creditors,
(b) Those owing to partnership creditors,
(c) Those owing to partners by way of contribution.
Effective: June 26, 2007
History: Repeal the prior repeal contained in 2006 Ky. Acts ch. 149, sec. 239, which
was to have been effective January 1, 2008, 2007 Ky. Acts ch. 137, sec. 180,
effective June 26, 2007. -- Repealed 2006 Ky. Acts ch. 149, sec. 239, effective
January 1, 2008. -- Amended 1994 Ky. Acts ch. 389, sec. 101, effective July 15,
1994. -- Created 1954 Ky. Acts ch. 38, sec. 40, effective June 17, 1954.
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