§ 7-12-51 Rules for distribution. –In settling accounts between the partners after dissolution, the followingrules are observed, subject to any agreement to the contrary:
(1) The assets of the partnership are:
(i) The partnership property;
(ii) The contributions of the partners specified insubdivision (4).
(2) The liabilities of the partnership rank in order ofpayment, as follows:
(i) Those owing to creditors other than partners;
(ii) Those owing to partners other than for capital andprofits;
(iii) Those owing to partners in respect of capital;
(iv) Those owing to partners in respect of profits.
(3) The assets are applied in the order of their declarationin subdivision (1) to the satisfaction of the liabilities.
(4) Except as provided in § 7-12-26(b), the partnersshall contribute, as provided by § 7-12-29(1) the amount necessary tosatisfy the liabilities; but if any, but not all, of the partners areinsolvent, or not being subject to process, refuse to contribute, the otherpartners shall contribute their share of the liabilities, and, in the relativeproportions in which they share the profits, the additional amount necessary topay the liabilities.
(5) An assignee for the benefit of creditors of any personappointed by the court has the right to enforce the contributions specified insubdivision (4).
(6) Any partner or his or her legal representative has theright to enforce the contributions specified in subdivision (4), to the extentof the amount which he or she has paid in excess of his or her share.
(7) The individual property of a deceased partner is liablefor the contributions specified in subdivision (4).
(8) When partnership property and the individual propertiesof the partners are in possession of a court for distribution, partnershipcreditors have priority on partnership property and separate creditors onindividual property, saving the rights of lien or secured creditors aspreviously.
(9) Where a partner has become bankrupt or his or her estateis insolvent the claims against his or her separate property rank in thefollowing order:
(i) Those owing to separate creditors;
(ii) Those owing to partnership creditors;
(iii) Those owing to partners by way of contribution.
§ 7-12-51 Rules for distribution. –In settling accounts between the partners after dissolution, the followingrules are observed, subject to any agreement to the contrary:
(1) The assets of the partnership are:
(i) The partnership property;
(ii) The contributions of the partners specified insubdivision (4).
(2) The liabilities of the partnership rank in order ofpayment, as follows:
(i) Those owing to creditors other than partners;
(ii) Those owing to partners other than for capital andprofits;
(iii) Those owing to partners in respect of capital;
(iv) Those owing to partners in respect of profits.
(3) The assets are applied in the order of their declarationin subdivision (1) to the satisfaction of the liabilities.
(4) Except as provided in § 7-12-26(b), the partnersshall contribute, as provided by § 7-12-29(1) the amount necessary tosatisfy the liabilities; but if any, but not all, of the partners areinsolvent, or not being subject to process, refuse to contribute, the otherpartners shall contribute their share of the liabilities, and, in the relativeproportions in which they share the profits, the additional amount necessary topay the liabilities.
(5) An assignee for the benefit of creditors of any personappointed by the court has the right to enforce the contributions specified insubdivision (4).
(6) Any partner or his or her legal representative has theright to enforce the contributions specified in subdivision (4), to the extentof the amount which he or she has paid in excess of his or her share.
(7) The individual property of a deceased partner is liablefor the contributions specified in subdivision (4).
(8) When partnership property and the individual propertiesof the partners are in possession of a court for distribution, partnershipcreditors have priority on partnership property and separate creditors onindividual property, saving the rights of lien or secured creditors aspreviously.
(9) Where a partner has become bankrupt or his or her estateis insolvent the claims against his or her separate property rank in thefollowing order:
(i) Those owing to separate creditors;
(ii) Those owing to partnership creditors;
(iii) Those owing to partners by way of contribution.
§ 7-12-51 Rules for distribution. –In settling accounts between the partners after dissolution, the followingrules are observed, subject to any agreement to the contrary:
(1) The assets of the partnership are:
(i) The partnership property;
(ii) The contributions of the partners specified insubdivision (4).
(2) The liabilities of the partnership rank in order ofpayment, as follows:
(i) Those owing to creditors other than partners;
(ii) Those owing to partners other than for capital andprofits;
(iii) Those owing to partners in respect of capital;
(iv) Those owing to partners in respect of profits.
(3) The assets are applied in the order of their declarationin subdivision (1) to the satisfaction of the liabilities.
(4) Except as provided in § 7-12-26(b), the partnersshall contribute, as provided by § 7-12-29(1) the amount necessary tosatisfy the liabilities; but if any, but not all, of the partners areinsolvent, or not being subject to process, refuse to contribute, the otherpartners shall contribute their share of the liabilities, and, in the relativeproportions in which they share the profits, the additional amount necessary topay the liabilities.
(5) An assignee for the benefit of creditors of any personappointed by the court has the right to enforce the contributions specified insubdivision (4).
(6) Any partner or his or her legal representative has theright to enforce the contributions specified in subdivision (4), to the extentof the amount which he or she has paid in excess of his or her share.
(7) The individual property of a deceased partner is liablefor the contributions specified in subdivision (4).
(8) When partnership property and the individual propertiesof the partners are in possession of a court for distribution, partnershipcreditors have priority on partnership property and separate creditors onindividual property, saving the rights of lien or secured creditors aspreviously.
(9) Where a partner has become bankrupt or his or her estateis insolvent the claims against his or her separate property rank in thefollowing order:
(i) Those owing to separate creditors;
(ii) Those owing to partnership creditors;
(iii) Those owing to partners by way of contribution.
