North Dakota § 45-20-07 (807) Settlement of accounts and contributions among partners

North Dakota Statutes

§ 45-20-07 — (807) Settlement of accounts and contributions among partners

North Dakota § 45-20-07

Title 45Partnerships

Ch. 45-20Winding Up Partnership Business

This text of North Dakota § 45-20-07 ((807) Settlement of accounts and contributions among partners) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 45-20-07 (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, the 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

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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, the 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.
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 satisfy the partnership obligations. 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.
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.
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
appointed by a court to represent creditors of a partnership or a partner, may enforce a
partner's obligation to contribute to the partnership.