State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_59 > GS_59-608

§59‑608.  Liability upon return of contribution.

(a)        If a partner hasreceived the return of any part of his contribution without violation of thepartnership agreement or this Article, he is liable to the limited partnershipfor a period of one year thereafter for the amount of the returnedcontribution, but only to the extent necessary to discharge the limitedpartnership's liabilities to creditors who extended credit to the limitedpartnership during the period the contribution was held by the partnership.

(b)        If a partner hasreceived the return of any part of his contribution in violation of thepartnership agreement or this Article, he is liable to the limited partnershipfor a period of six years thereafter for the amount of the contributionwrongfully returned.

(c)        A partner receivesa return of the partner's contribution to the extent that a distribution to thepartner reduces the partner's share of the fair value of the net assets of thelimited partnership below the agreed value of the partner's contribution whichhas not been distributed to the partner. As used in this section, the term"agreed value" means an amount or other measure of value as (i) isprovided in the partnership agreement, or (ii) if not provided in thepartnership agreement, is required to be set forth in the written recordsrequired pursuant to G.S. 59‑106. (1985 (Reg. Sess., 1986), c.989, s. 2; 1999‑362, s. 30.)