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362.1-807 Settlement of accounts and contributions among partners.
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(2)
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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 the net amount distributable to
partners in accordance with their right to distributions under subsection (2) of this
section.
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 shall 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 KRS 362.1-306.
If a partner fails to contribute the full amount required under subsection (2) of this
section, then 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 KRS 362.1306. 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 KRS 362.1-306.
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 KRS 362.1-306.
The estate of a deceased partner is liable for the partner's obligation to contribute to
the partnership.
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.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 60, effective July 12, 2006.
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