§ 7-61-114 — Transactions with limited partner

(1) A limited partner also may
loan money to and transact other business with the partnership and, unless the
limited partner is also a general partner, receive, on account of resulting claims
against the partnership, a pro rata share of the assets with general creditors.

(2) No limited partner shall, in respect to any such claim:

(a) Receive or hold as collateral security any partnership property; or

(b) Receive from a general partner or the partnership any payment,
conveyance, or release from liability, if at the time the assets of the partnership are
not sufficient to discharge partnership liabilities to persons not claiming as general
or limited partners.

(3) The receiving of collateral security or a payment, conveyance, or release
in violation of the provisions of subsection (1) of this section is a fraud on the
creditors of the partnership.

Legislative History

Source: L. 31: p. 632, � 13. CSA: C. 123, � 56. CRS 53: � 104-2-13. C.R.S. 1963: � 104-2-13. L. 2004: (1) amended, p. 1437, � 116, effective July 1.