§ 7-62-1003 — Security and costs

In any action instituted in the right of any
domestic or foreign limited partnership, unless the contributions of or allocable to
plaintiff to partnership property amount to five percent or more of the contributions
of all limited partners, in their status as limited partners, or such contributions of or
allocable to the plaintiff have a market value in excess of twenty-five thousand
dollars, the limited partnership in whose right such action is brought shall be
entitled, at any time before final judgment, to require the plaintiff to give security
for the costs and reasonable expenses that may be directly attributable to and
incurred by it in the defense of such action or may be incurred by other parties
named as defendant for which it may become legally liable, but not including fees
of attorneys. Market value shall be determined as of the date that the plaintiff
institutes the action or, in the case of an intervenor, as of the date that the
intervenor becomes a party to the action. The amount of such security may from
time to time be increased or decreased, in the discretion of the court, upon showing
that the security provided has or may become inadequate or is excessive. The
limited partnership shall have recourse to such security in such amount as the court
having jurisdiction shall determine upon the termination of such action if the court
finds the action was brought without reasonable cause.

Legislative History

Source: L. 81: Entire article added, p. 450, � 1, effective November 1. L. 2004: Entire section amended, p. 1447, � 149, effective July 1.