Colorado § 7-64-807 Settlement of accounts and contributions among partners

Colorado Statutes

§ 7-64-807 — Settlement of accounts and contributions among partners

Colorado·Title 07 Corporations·Art. Colorado Uniform Partnership Act (1997)

(1)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 or provide for partnership obligations to creditors, including, to the extent permitted by law, partners who are creditors. Any surplus shall be applied to pay in cash the net amount distributable to partners in accordance with their right to distributions under subsection (2) of this section.

(2)Each partner is entitled to a settlement of all partnership accounts upon winding up the partnership business. In settling accounts among the partners, the profits and losses that result from the liquidation of the partnership assets shall be credited and charged to the partners' accounts. The partnership shall mak

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(1) 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
or provide for partnership obligations to creditors, including, to the extent
permitted by law, partners who are creditors. Any surplus shall be applied to pay in
cash the net amount distributable to partners in accordance with their right to
distributions under subsection (2) of this section.

(2) Each partner is entitled to a settlement of all partnership accounts upon
winding up the partnership business. In settling accounts among the partners, the
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.

(3) If a partner fails to contribute, all of the other partners shall contribute, in
the proportions in which those partners share partnership losses, the additional
amount necessary to discharge or provide for the partnership obligations.

(4) 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.

(5) After the settlement of accounts, each partner shall contribute, in the
proportion in which the partner shares partnership losses, the amount necessary to
discharge or provide for partnership obligations that were not known at the time of
the settlement.

(6) The estate of a deceased partner is liable for the partner's obligation to
contribute to the partnership.

(7) 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.

(8) Notwithstanding any other subsection of this section, no partner shall be
obligated to contribute under this section with respect to any amounts that are
attributable to a partnership obligation incurred while the partnership is a limited
liability partnership.

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