§ 23-4-1-36 — Effect of dissolution on partner's existing liability

(1) The dissolution of the partnership does not
of itself discharge the existing liability of any partner.
(2) A partner is discharged from any existing liability upon
dissolution of the partnership by an agreement to that effect between
himself, the partnership creditor and the person or partnership
continuing the business; and such agreement may be inferred from the
course of dealing between the creditor having knowledge of the
dissolution and the person or partnership continuing the business.
(3) Where a person agrees to assume the existing obligations of a
dissolved partnership, the partners whose obligations have been
assumed shall be discharged from any liability to any creditor of the
partnership who, knowing of the agreement, consents to a material
alteration in the nature or time of payment of such obligations.
(4) The individual property of a deceased partner shall be liable for
those obligations of the partnership incurred while he was a partner but
subject to the prior payment of his separate debts and for which the
partner was liable under section 15 of this chapter.
Formerly: Acts 1949, c.114, s.36. As amended by P.L.230-1995,
SEC.7.