Iowa § 486A.807 Settlement of accounts and contributions among partners

Iowa Statutes

§ 486A.807 — Settlement of accounts and contributions among partners

Iowa § 486A.807

Title XIIBUSINESS ENTITIES

Ch. 486AUNIFORM PARTNERSHIP ACT

This text of Iowa § 486A.807 (Settlement of accounts and contributions among partners) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 486A.807 (2026).

Text

1.In winding up a partnership’s business, the assets of the partnership, including the contributions of the partners required by this section, must be applied to discharge its obligations to creditors, including, to the extent permitted by law, partners who are creditors. Any surplus must be applied to pay in cash the net amount distributable to partners in accordance with their right to distributions under subsection 2.

2.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 must be credited and charged to the partners’ accounts. The partnership shall make a distribution to a partner in an amount equal to any exce

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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, must be applied to discharge its
obligations to creditors, including, to the extent permitted by law, partners who are creditors.
Any surplus must be applied to pay in cash the net amount distributable to partners in
accordance with their right to distributions under subsection 2.
2. 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 must 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 section 486A.306.
3. If a partner fails to contribute the full amount required under subsection 2, 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 section 486A.306. A partner or partner’s legal representative may
recoverfromtheotherpartnersanycontributionsthepartnermakestotheextenttheamount
contributed exceeds that partner’s share of the partnership obligations for which the partner
is personally liable under section 486A.306.
4. 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 section 486A.306.
5. The estate of a deceased partner is liable for the partner’s obligation to contribute to
the partnership.
6. An assignee for the benefit of creditors of a partnership or a partner, or a person
§486A.807, UNIFORM PARTNERSHIP ACT 20
appointed by a court to represent creditors of a partnership or a partner, may enforce a
partner’s obligation to contribute to the partnership.