New Mexico § 54-2A-509 Liability for improper distributions

New Mexico Statutes

§ 54-2A-509 — Liability for improper distributions

New Mexico § 54-2A-509

Ch. 54Partnerships

Art. 5Contributions and Distributions

This text of New Mexico § 54-2A-509 (Liability for improper distributions) is published on Counsel Stack Legal Research, covering New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.M. Stat. Ann. § 54-2A-509 (2026).

Text

A.A general partner that consents to a distribution made in violation of Section 508 [54-2A-508 NMSA 1978] of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership for the amount of the distribution that exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution, the general partner failed to comply with Section 408 [54- 2A-408 NMSA 1978] of the Uniform Revised Limited Partnership Act.

B.A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of Section 508 of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership but only to the extent that the distribution rece

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A. A general partner that consents to a distribution made in violation of Section 508 [54-2A-508 NMSA 1978] of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership for the amount of the distribution that exceeds the amount that could have been distributed without the violation if it is established that in consenting to the distribution, the general partner failed to comply with Section 408 [54- 2A-408 NMSA 1978] of the Uniform Revised Limited Partnership Act. B. A partner or transferee that received a distribution knowing that the distribution to that partner or transferee was made in violation of Section 508 of the Uniform Revised Limited Partnership Act is personally liable to the limited partnership but only to the extent that the distribution received by the partner or transferee exceeded the amount that could have been properly paid pursuant to Section 508 of that act. C. A general partner against which an action is commenced pursuant to Subsection A of this section may: (1) implead in the action any other person that is liable pursuant to Subsection A of this section and compel contribution from the person; and (2) implead in the action any person that received a distribution in violation of Subsection B of this section and compel contribution from the person in the amount the person received in violation of Subsection B of this section. D. An action pursuant to this section is barred if it is not commenced within two years after the distribution.