35-12-1008. Liability upon return of contributions.
35-12-1008. Liability upon return of contributions. (1) If a partner has received the return of any part of the partner's contribution without violation of the partnership agreement or this chapter, for a period of 1 year after the return, the partner is liable to the limited partnership for the amount of the contribution returned, but only to the extent necessary to discharge the limited partnership's liabilities to creditors who extended credit to the limited partnership during the period the contribution was held by the partnership.
(2) If a partner has received the return of any part of the partner's contribution in violation of the partnership agreement or this chapter, for a period of 6 years after the return, the partner is liable to the limited partnership for the amount of the contribution wrongfully returned.
(3) A partner has received a return of the partner's contribution to the extent that a distribution to the partner reduces the partner's share of the fair value of the net assets of the limited partnership below the value, as set forth in the partnership records required to be kept pursuant to 35-12-508, of the partner's contributions that have not been distributed to the partner.
History: En. Sec. 41, Ch. 522, L. 1981; amd. Sec. 28, Ch. 268, L. 1997.