§ 59-18-11 — (1011) Interest as general partner

North Dakota § 59-18-11

• Jurisdiction: North Dakota
• Title 59: Trusts, Uses, and Powers
• Ch. 59-18: Trustee Liability and Dealings

Text

1. Except as otherwise provided in subsection 3 or unless personal liability is imposed in
the contract, a trustee who holds an interest as a general partner in a general or
limited partnership is not personally liable on a contract entered into by the partnership
after the trust's acquisition of the interest if the fiduciary capacity was disclosed:
a. In the contract;
b. In a registration of the partnership as a limited liability partnership filed pursuant
to chapter 45-22 in which the trustee is listed as a managing partner; or
c. In a certificate of limited liability limited partnership filed pursuant to chapter 45-23
in which the trustee is listed as a general partner.
2. Except as otherwise provided in subsection 3, a trustee who holds an interest as a
general partner is not personally liable for torts committed by the partnership or for
obligations arising from ownership or control of the interest unless the trustee is
personally at fault.
3. The immunity provided by this section does not apply if an interest in the partnership is
held by the trustee in a capacity other than that of trustee or is held by the trustee's
spouse or one or more of the trustee's descendants, siblings, or parents, or the spouse
of any of them.
4. If the trustee of a revocable trust holds an interest as a general partner, the settlor is
personally liable for contracts and other obligations of the partnership as if the settlor
were a general partner.