§425E-607 - Liability to other persons of person dissociated as a general partner.
[§425E-607] Liability to otherpersons of person dissociated as a general partner. (a) Aperson's dissociation as a general partner shall not of itself discharge theperson's liability as a general partner for an obligation of the limitedpartnership incurred before dissociation. Except as otherwise provided insubsections (b) and (c), the person shall not be liable for a limitedpartnership's obligation incurred after dissociation.
(b) A person whose dissociation as a generalpartner resulted in a dissolution and winding up of the limited partnership'sactivities shall be liable to the same extent as a general partner undersection 425E-404 on an obligation incurred by the limited partnership undersection 425E-804.
(c) A person that has dissociated as a generalpartner but whose dissociation did not result in a dissolution and winding upof the limited partnership's activities shall be liable on a transactionentered into by the limited partnership after the dissociation only if:
(1) A general partner would be liable on thetransaction; and
(2) At the time the other party enters into thetransaction:
(A) Less than two years has passed since thedissociation; and
(B) The other party does not have notice ofthe dissociation and reasonably believes that the person is a general partner.
(d) By agreement with a creditor of a limitedpartnership and the limited partnership, a person dissociated as a generalpartner may be released from liability for an obligation of the limitedpartnership.
(e) A person dissociated as a general partnershall be released from liability for an obligation of the limited partnershipif the limited partnership's creditor, with notice of the person's dissociationas a general partner but without the person's consent, agrees to a materialalteration in the nature or time of payment of the obligation. [L 2003, c 210,pt of §1]