§ 23-16-7-8 — Liability upon return of contribution

Indiana § 23-16-7-8

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 16: LIMITED PARTNERSHIPS
• Ch. 7: Distributions and Withdrawals

Text

(a) If a partner has received the return of any
part of the partner's contribution without violation of the partnership
agreement or this article, the partner is liable to the limited partnership
for a period of one (1) year after receiving the return of contribution for
the amount of the returned contribution, but only to the extent
necessary to discharge the limited partnership's liabilities to creditors
who extended credit to the limited partnership during the period the
contribution was held by the partnership.
(b) If a partner has received the return of any part of the partner's
contribution in violation of the partnership agreement or this article, the
partner is liable to the limited partnership for a period of six (6) years
after receiving the return of contribution for the amount of the
contribution wrongfully returned.
(c) A partner receives a return of the partner's contribution to the
extent that a distribution to the partner reduces the partner's share of the
fair value of the net assets of the limited partnership below the agreed
value (as stated in the records of the limited partnership) of the
partner's contribution that has not been distributed to the partner.

Legislative History

As added by P.L.147-1988, SEC.1.