§ 115-B — Security for expenses in limited partners' derivative action brought in the right of the limited partnership to procure a judgment in its...

New York § 115-B

• Jurisdiction: New York
• Law PTR: Partnership
• Art. 8: Limited Partnerships

Text

§ 115-b. Security for expenses in limited partners' derivative action\nbrought in the right of the limited partnership to procure a judgment in\nits favor. In any action specified in section one hundred fifteen-a of\nthis article, unless the contributions of or allocable to plaintiff or\nplaintiffs to partnership property amount to five percent or more of the\ncontributions of all limited partners, in their status as limited\npartners, or such contributions of or allocable to such plaintiff or\nplaintiffs have a fair value in excess of fifty thousand dollars, the\nlimited partnership in whose right such action is brought shall be\nentitled at any stage of the proceedings before final judgment to\nrequire the plaintiff or plaintiffs to give security for the reasonable\nexpenses, including attorneys' fees, which may be incurred by it in\nconnection with such action and by the other parties defendant in\nconnection therewith for which the limited partnership may become liable\nunder this article under any contract or otherwise under law, to which\nthe limited partnership shall have recourse in such amount as the court\nhaving jurisdiction of such action shall determine upon the termination\nof such action. The amount of such security may thereafter from time to\ntime be increased or decreased in the discretion of the court having\njurisdiction of such action upon showing that the security provided has\nor may become inadequate or excessive.\n